GM: The New Service Company

[nadepalma]

Very good article.

[Kheiron]

cool very interesting. I just hope GM continues to improve and deliver with every product from Aveo to XLR as every single one is crucial. What is the next big announcemnt/auto show, NAIAS?

-Kheiron

[chakis24]

isnt gm introducing a navi system? i thought i saw it in the 07 silverado pics?

[DanCBJMS1988]

Interesting article. If OnStar can be used for just all that alone, then I wonder if GM could make their cars truly "hands-free" and introduce cell phone service through the OnStar system, without the need for dedicated phones. Think about it - OnStar is joining cell phones in going digital. Thus, what would happen if GM decided to allow customers, within the OnStar plan, to allow their customers' existing cell phone service to be also ported to the OnStar network. That would be brilliant! You wouldn't need the hands-free sets because something like that would make GM cars truly hands-free!

[rhvfd10]

Originally Posted by Murrow

Toyota has used On-Star in Lexus vehicles. They rebranded it "Lexus Link."

Are you sure that is on star? I had heard that it was Toyota' own creation.

[superstreet]

great article

[Squashman]

No, Toyota did not invent anything. Lexus just wanted to change the name but it is still using OnStar's technology. Going forward, I believe it is going to become exclusively available on GM products (no more for Acura, VW, etc)

[Shotgun]

Despite what GM claims, no one I know opted to renew OnStar on their new vehicles. However. I agree with one poster's point...most people would opt for a DVD navigation. I think this is the better route for GM to go. I'd like to know if most of the retention is from business owned vehicles?

[1G6]

I have two OnStar cars, and wouldn't think of letting them lapse. I love the capabilities for myself, and I rest easier knowing my wife can get help in a moment's notice if it becomes necessary.

[goatgary]

Originally Posted by 1G6

I have two OnStar cars, and wouldn't think of letting them lapse. I love the capabilities for myself, and I rest easier knowing my wife can get help in a moment's notice if it becomes necessary.

Agree 100%. I have renewed on-star on every vehicle I have had since it came out. I also want to make sure the wife has it as well as my Mom. Cheap insurance for what it can do. Also like the new diagnostic info.

[mgescuro]

Originally Posted by 1999 White C5 Coupe

A lot of assumptions. A lot.

How about some facts on the costs to develop and support OnStar?

Doesn't matter. Onstar is a sunk cost. Developed 10 years ago. Any improvement to Onstar are just upgrades. It's not a new capital expediture.

[mkaresh]

This isn't a new idea. Jack Smith and friends hatched the idea to make GM into a service company a decade ago. Since they couldn't make money selling cars, they hoped to make money on telematic services. This was the thinking behind OnStar when they first launched it. GM goes from silver bullet to silver bullet, and for a couple of years this silver bullet was telematics.

Problem was, the implication was that the cars didn't have to be so hot if you were making money on the services.

VW opted to purchase OnStar to fulfill some of its obligation under the Lopez settlement. I think it agreed to buy $700m in parts from GM over a specific number of years. After they fulfilled this obglibation, they dumped OnStar.

[mgescuro]

Originally Posted by mkaresh

This isn't a new idea. Jack Smith and friends hatched the idea to make GM into a service company a decade ago. Since they couldn't make money selling cars, they hoped to make money on telematic services. This was the thinking behind OnStar when they first launched it. GM goes from silver bullet to silver bullet, and for a couple of years this silver bullet was telematics.

Problem was, the implication was that the cars didn't have to be so hot if you were making money on the services.

VW opted to purchase OnStar to fulfill some of its obligation under the Lopez settlement. I think it agreed to buy $700m in parts from GM over a specific number of years. After they fulfilled this obglibation, they dumped OnStar.

Of course it's not a new idea. But GM is now branching out into more services. And as I noted, there's a slight danger in GM focusing on these services instead of working the perception of their cars.
Telematics are a nice feature to have. BUt telematics can be expensive, and a recurring cost for the consumer. Good for GM. Bad for consumer, but good for the consumer should he/she really need them.

Point is... if you get lost on a road once a year, is it really worth $299 to get yourself unlost?

[toronado10]

Do they have Onstar in GM's rental car fleets. It would be very useful to people because they wouldn't know where to go without a map. And, the agency could pay the bill and get more business, or split the cost up by raising prices a tick.

[327]

Originally Posted by toronado10

Do they have Onstar in GM's rental car fleets. It would be very useful to people because they wouldn't know where to go without a map. And, the agency could pay the bill and get more business, or split the cost up by raising prices a tick.

depends on how the rental company orders them