Forward Motion: OnStar Exits GM'S Garage en Route to Independence

Brandweek, April 10, 2000 by Jeff Green

OnStar, General Motor's roadside emergency services unit, is driving the Batmobile out of the bat cave as it seeks broader appeal and distance from its automotive parent.

Toyota is expected to add OnStar services to its lineup and other automakers are in serious talks with the GM unit to follow suit. OnStar agency Campbell-Ewald Advertising, Warren, Mich., recently began airing ads that position the wireless, in-vehicle information, assistance and emergency alert program as a standalone product that can help super heroes--as well as regular folks--get to their destinations unscathed.

Officially, that's been the plan all along, said Jeff Cohen, executive dir-sales, services and marketing at Troy Mich., based OnStar. "Let there be no doubt that this is and continues to be a very strong brand that just happens to get its financing from GM," said Cohen. "We have intended to reach a broader audience from day one."

OnStar will get $45-50 million in ad support this year, he added, roughly the same as in 1999.

Despite studies showing that OnStar has 60% brand awareness, per Cohen's data, only 5% of respondents associate the brand with GM. Auto industry insiders say the drive for distance is relatively new and the Batman ads were developed to ease the transition from the womb.

When GM first introduced OnStar, it was only available on three 1997 Cadillac models and was used to differentiate the luxury nameplate from competitors--hardly the best way for OnStar to strike out on its own.

The service was backed by a $20 million branding campaign from then-lead agency Ammirati, Puns Lintas, N.Y., that played up its round-the-clock readiness. In one spot, a representative helped a couple stranded in the desert avoid an encounter with a snake. The effort, which had a limited run, was tagged, "OnStar always there to help."

But client-agency tensions over compensation ensued and the account became the subject of a shootout between APL and CEA (Adweek, Jan. 18, 1999), which the latter ultimately won.

GM has since extended OnStar to other nameplates--it will be available on a total 29 models for 2000. But even at this year's auto shows, its sole presence has been alongside GM vehicles.

Similar emergency roadside/navigation assistance services are now offered by Mercedes-Benz and Ford's high-end Lincoln and Jaguar models, but many consider the technology too expensive to create from scratch. Thus, the push to outsource the product to others.

Toyota executives acknowledged discussions with Onstar but said no decision had been made.

Cohen said future auto show displays will see Onstar equipment as a standalone offering. The most recent campaign showing the caped crusader using OnStar to unlock his vehicle, get directions and other assistance, is the first step toward an Intel-styled "OnStar inside" platform.

"We do get a tough challenge from the GM brands [to align our brand more closely]," Cohen said. "But we are consistent in pushing against the fact that we're independent." GM divisions must use a conjunction when discussing the service in marketing efforts, such as "Cadillac and OnStar," or "Oldsmobile with Onstar," Cohen said.

OnStar, which charges $199 a year for its safety service and $399 a year for the complete travel-assistance package, now counts more than 100,000 subscribers who rely on services that range from emergency assistance to remote unlocking of power doors and location finders from a 5 million listings database. Another new feature: personal calls provided via a deal with Bell Atlantic Mobile and GTE Wireless.

Cohen said there is no doubt OnStar will move on from just GM models. "We have a stable of customers beyond GM that have a strong commitment to adding OnStar," he said.