Navigation system demand to Double

[Ming]

Report: Navigation system demand to double
DEE-ANN DURBIN
Associated Press
5/19/05

DETROIT - Vehicle navigation systems are installed in just 3 percent of passenger vehicles made in North America, but that's expected to double in five years as prices come down, according to a new report from an auto research firm.

CSM Worldwide predicts the number of navigation systems installed in North America will grow by 91 percent in the next five years, ballooning from a $406 million to a $778 million business. CSM Worldwide measured the growth of factory-installed systems, which are far more common than stand-alone systems that owners install.

"In North America, consumers are finally catching on to what Japanese consumers have appreciated for a while now," Don Montoy, a market analyst for CSM Worldwide, said Thursday.

Japan has the highest rate of installation of navigation systems, at 16 percent of vehicles produced. That's expected to grow at a much slower rate of 32 percent by 2010 because the market already is so large, Montoy said. Navigation systems are already a $1.6 billion market in Japan.

The European market is expected to see the greatest growth in navigation systems, Montoy said. Montoy expects that market to grow by 103 percent to $2.5 billion by 2010. Europe now installs navigation systems in 8 percent of the vehicles it produces.

Navigation systems currently cost around $2,000 as optional equipment. But the price has been falling as automakers have learned to incorporate the systems into vehicle audio systems, reducing the need for separate parts, Montoy said.

The quality also has improved in the last 10 years, and the systems are now simpler to operate and better at recognizing voice commands, Montoy said.

As a result, navigation systems, which used to be optional only on luxury vehicles, are becoming a standard feature on higher-end trim levels of minivans and mid-size cars.

DaimlerChrysler AG's Town & Country minivan, for example, now offers a navigation system as a standard feature on its Limited model, which starts at $35,530. The system isn't offered on the base model, which starts at $21,965, but it's a $1,430 option on the minivan's more expensive Touring model.

Toyota Motor Corp. offers navigation systems on all Lexus models and at the highest trim levels of 11 Toyota cars and trucks, spokesman John McCandless said. General Motors Corp. offers navigation systems on all Cadillac models, the Chevrolet Corvette, GMC Denali SUV, Buick Terazza minivan and upcoming Buick Lucerne sedan, spokesman Tom Wilkinson said.

Article Source: http://www.ledger-enquirer.com/mld/l...s/11688060.htm

[Infiniti Z350]

Navigation system fever is definitely spreading. You can get navigation in a Mazda3, a compact car. Pretty cool. They improve the look of a lot of interiors and almost always give lower-end cars a more upscale feel.

[Ming]

Japan has the highest rate of installation of navigation systems, at 16 percent of vehicles produced. That's expected to grow at a much slower rate of 32 percent by 2010 because the market already is so large, Montoy said. Navigation systems are already a $1.6 billion market in Japan.

There's another reason the Japanese like nav systems beyond their general love of owning anything new and techy: No street names (except major famous ones) and an archaic address system within a web of hundreds of thousands of narrow criss-crossing streets in Japan. I remember trying to find people with the "block" system. Not easy, even when you get used to it. It seems to have some value, at least logically, in a crowded city like Tokyo, but the way it works in practice is not always logical, but seems instead built upon older systems and is very chaotic in the end. So nav systems can help, a LOT.

[ZillaZ]

Originally Posted by Ming

[b]General Motors Corp. offers navigation systems on all Cadillac models, the Chevrolet Corvette, GMC Denali SUV, Buick Terazza minivan and upcoming Buick Lucerne sedan, spokesman Tom Wilkinson said.

Nav systems are also available in the Pontiac Vibe, all the Hummers (including the new H3), the Buick Rainier, Saab 9-7 and GMC Envoy to mention a few others.

[1BadPig]

I can read my maps just fine... I wonder how much is this feature really used, besides the "cool toy" factor?

[Ming]

Originally Posted by 1BadPig

I can read my maps just fine... I wonder how much is this feature really used, besides the "cool toy" factor?

I think the feature probably appeals to wives who are sick of their husbands getting lost using 10 year old $1.00 maps and insisting "I don't need to ask for directions at the gas station".

[jro4566]

I've owned two vehicles so far with navigation systems - the G35 and now the 300C. I didn't intend to get one in the G35, but my dealer didn't have any base G35s. After that, I was hooked. I can easily find my Shell gasoline station or the nearest Bank of America with that thing. And it really helps when you travel a lot with your vehicle.

[Buick61]

A map is only useful if you know where you are to begin with. When you're already lost, a map isn't going to help.

And maps don't calculate drive times through various routes, exact mileage, where your brand of gas can be found along the way, the restaurants in the area, and where the nearest hospital is.

[1BadPig]

I agree when you travel to unfamiliar areas that this is a lifesaver... from abuse from the wife . I can see this would be a good thing for my directionally-challenged wife, on paper. In reality when the navigation system tells her the next exit is about 100 yards she would just keep on going because she has no idea how far that is down the road. Besides I used one a few years ago in a rental while traveling around Philly (my first time) and the blasted thing took me through some of the scariest areas of inner city Philly...

[mikest00]

Originally Posted by Buick61

A map is only useful if you know where you are to begin with. When you're already lost, a map isn't going to help.

And maps don't calculate drive times through various routes, exact mileage, where your brand of gas can be found along the way, the restaurants in the area, and where the nearest hospital is.

You hit the nail on the head. That is the appeal of the nav system. How many times have you been out and asked the question where is the nearest Starbucks (or whatever). And don't forget it is also a phonebook!

[FER43DFG]

Are the GM systems integrated with OnStar, or are they two completely separate items?

[mikest00]

Originally Posted by FER43DFG

Are the GM systems integrated with OnStar, or are they two completely separate items?

Separate systems.

[Vintalage]

When I would ask why most of GM's vehicles don't offer Navigation, the response I would get is "Navigation isn't needed when there is Onstar." Oh really?

This article just reinforces what I already knew. And that is why the G6, Lacrosse, and even the Bonneville (which is now dead) among others with no available Navigation bothers me.

[mbukukanyau]

I have been telling Lutz in his Blog that he's got to get those Navigation systems as options, despite what his marketing team tells him.. especially in cars like La Crosse...

He does not listen...

[megeebee]

You can HAVE the one out of my CTS. I've never used it.