GM Likely To Share OnStar With Competitors

Jan 27
08:18

2009

Matthew C. Keegan

Matthew C. Keegan

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Vehicle navigation, security and diagnostic device, OnStar, could soon find its way to other markets as well as to other car companies besides parent General Motors products.

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OnStar,GM Likely To Share OnStar With Competitors  Articles which is the General Motors Corporation's subscription based in vehicle navigation, security and remote diagnostics technology, has been a valuable addition to the GM arsenal ever since the option was rolled out in select 1997 models. Since, then the service has grown and expanded and now includes a wide variety of GM models serving more than six million vehicles in the United States and Canada.Early on GM shared its technology with other automakers, but those alliances ended when the company switched from analog to digital technology. Today, the auto giant is looking at expanding OnStar to new markets beyond Canada and the United States as the service has proven to be profitable and well liked by users. GM says that a full twenty percent of its used car buyers elect to go with an OnStar subscription when purchasing a vehicle so equipped.The expansion to other brands including that of its competitors would actually be a win-win situation for all involved. The technology is proven – it is now in its eighth generation – and is considered a valuable attribute for drivers. GM has done well by teaching the public what OnStar can do as the service can unlock cars remotely, call for 911 assistance, as well as provide turn by turn instructions.General Motors will not be able to include the Toyota Motor Corporation in its list of possible clients as the Japanese automotive manufacturer is finally catching up to GM by rolling out its own proprietary navigation system this summer for Toyota, Scion and Lexus vehicles. The Ford Motor Company has done extremely well with SYNC, technology it developed with the Microsoft Corporation last year. Chrysler could be a logical recipient for OnStar, given the company's size and lack of available system for buyers. Other manufacturers with a US presence such as Volkswagen, Mitsubishi and Suzuki could also benefit, given each company an important selling feature. In these difficult financial times, having OnStar available could be beneficial, besides the technology and call centers are in place, eliminating an important start up and maintenance option, one that would be borne by OnStar.As far as other markets go, offering OnStar across much of Europe is a logical next step for the automaker. With a concentrated market and a strong presence there thanks to its Opel, Vauxhall, Saab, Chevrolet and Cadillac brands, OnStar could particularly work out well from the United Kingdom to Italy and up the Scandinavian countries. GM hasn't identified which markets it is looking at, but the odds on hitting Europe appear great, opening up a whole new world of possibilities for the world's most popular in vehicle navigation, diagnostic and security system.

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