GM takes to the road with OnStar

America's Network, Dec 1, 1999

General Motors Corp. (www.gm.com) has been a leader in the nascent telematics market. While its OnStar system currently offers limited services compared with those envisioned for the future, the service is growing in popularity. In addition, General Motors has announced an ambitious plan to bring various new wireless services, including Internet access, to its cars.

The company recently disclosed that its wireless services will be included in nearly one million General Motors cars and trucks within the next 18 months, dramatically increasing the subscriber base from the current level of 75,000.

OnStar is an in-vehicle safety, security and information service that uses global positioning system (GPS) satellite technology and wireless communications to link the driver and vehicle to the 24-hour OnStar Center, where advisors provide real-time, person-to-person help. The company is now offering the service as a factory-installed option on several models and is expanding the selection of those models.

"Factory installation of OnStar will expand the availability of this innovative service to a million GM drivers beginning in the 2000 model year," says Ronald L. Zarrella, executive vice president of GM and president of North America Operations. "Initial consumer response to OnStar's standard equipment availability on the Cadillac Escalade last fall has been highly favorable and has provided the learning to allow for this expansion."

Chet Huber, managing director of OnStar, says that the service has logged more than one million calls from subscribers, including emergency requests, since being first offered three years ago. In addition to emergency calls, OnStar offers stolen vehicle tracking, remote door unlock, remote vehicle diagnostics, route support, convenience services locator and concierge services.

OnStar was introduced in 1996 on three Cadillac models as a dealer- installed option. Twenty-one GM models were added in 1997. OnStar launched its second-generation three-button system in 1999 as standard equipment on the Cadillac Escalade, and as optional equipment on 11 additional models.