OnStar One Of The Best Positioned For Fleet Telematics, Claims ABI Research

Business Wire, June 8, 2004

Business Editors

OYSTER BAY, N.Y.--(BUSINESS WIRE)--June 8, 2004

GM's OnStar is currently in an ideal position to introduce commercial fleet-oriented versions of its telematics services, according to a new study by ABI Research.

ABI Research's "Commercial Telematics Quarterly Service", suggests that GM's commercial vehicle business, when combined with OnStar's expertise in hardware integration and services delivery at the consumer level, will make OnStar among the best positioned to address the "sweet spot" in the commercial telematics market: the sub-Class 8 trucks and vans that make up the bulk of commercial fleets.

According to ABI Research's Director of Automotive Research, Frank Viquez, "the technology is now at a level and a price point where GM can reach out to this huge market. They could include OnStar in OEM vehicles of this class, and layer specialized services to address unique market segments."

The ABI Research analysis suggests that a commercial fleet-oriented offering would not be difficult for OnStar: the infrastructure, billing systems, content/services partnerships, customer base and calling centers are already in place.

And the market is very large: "Even though many private fleets may have a small number of vehicles," adds Viquez, "there are a substantial number of these fleets, so volumes could build up quite quickly."

While OnStar has made no official announcements of plans to roll out fleet services, GM already offers an handset-based telematics option from Nextel as an incentive for buyers of certain commercial vehicles, which ABI Research sees as a trial balloon. "The next step," says Viquez, "will be to launch an integrated, embedded solution like the one on the consumer side."

ABI Research's "Commercial Telematics Quarterly Service" is an ongoing series of studies which example the state of the industry and the position of the leading players by focusing on key manufacturing firms, levels of technological innovation and integration, geopolitical issues, and possible legislative effects.

Founded in 1990 and headquartered in New York, ABI Research maintains global operations that support annual research programs, quarterly intelligence services and market reports in wireless, automotive, semiconductors, broadband, and energy. Their market research products can be found on the web at www.abiresearch.com, or by calling 516-624-3113.