ALl major car builders plan factory-installed cellular in 1991

Mobile Phone News, June 21, 1990

ALL MAJOR CAR BUILDERS PLAN FACTORY-INSTALLED CELLULAR IN 1991

Factory-installed cellular telephones will be options in many 1991 model cars under service arrangements now being completed by the nation's Big 3 car manufacturers and major cellular suppliers.

Ford Motor Co.'s Electronics Division last week put Ford first through the gate by announcing it has approved agreements with 9 major cellular suppliers who will begin to service factory-installed cellular phones immediately as well as providing service to non-Ford cellular owners who sign up for the network at Ford dealerships. Spokesmen at Chrysler and General Motors confirmed for MOBILE PHONE NEWS they intend to offer factory-installed phones in some higher priced model cars this fall.

...Chrysler Will Expand Cellular Phone Offer

Chrysler, which introduced a visor-phone cellular system last spring, will expand its cellular options to more traditional floor-mounted phones this fall. GM is combining with Motorola and Hughes Network Systems equipment to introduce a line of cellular communications devices in conjunction with GM's Intelligent Vehicle Highway System (IVHS). The first device, a cellular telephone, will be available with unspecified GM model cars this fall.

Ford said it is offering installed phones immediately to buyers of Lincoln Town cars, Continentals and Mark VII cars, as well as non-Ford cellular owners who register at a dealership regardless of the type of car the owner drives. The program, besides the factory-installed phone, offers service and optional packages that include call waiting, conference calling, messaging and call forwarding.

Chrysler Corp. said it intends to expand a successful market test of its OKI telecom-built "visor-phone" to include "more traditional" floor-mounted cellulars in some model cars and mini-vans later this year.

Car dealers are apparently excited about the popular cellular phones being offered as part of their after-market options because of sliding automobile sales. Allan Wilbur, executive public relations spokesman for the National Automobile Dealers Association (NADA) called the cellular-car dealer marriage "a natural."

"In today's slow [car] market, dealers are looking for any number of ways to enhance their products," Wilbur said. "Cellulars are a natural [for dealers] because they are part of the [automobile] future," he said.

Ford announced its nationwide program late last week, calling it the industry's first "total package" cellular option. Under the program, dealers will activate the factory-installed phones for customers who opt for the service so the new car customer can drive from the showroom with the phone in working order.

...Ford Buyers Eligible for Benefits

Frank Macher, general manager of Ford's Electronics Division, said Ford buyers are eligible for a number of benefits including installation, service and coast-to-coast coverage.

Ford has signed 3-year service and installation agreements with cellular suppliers including American Cellular Communications Corp., Atlanta; Ameritech Mobile Communications Inc., Schaumburg, Ill.; Bell Atlantic Mobile Systems Inc., Basking Ridge, N.J.; and BellSouth Mobility Inc., Atlanta. Also signed are GTE Mobilnet Service Corp., Houston; Nynex Mobile Communications Co., Pearl River, N.Y.; SNET Mobilecom Inc., New Haven, Conn.; United States Cellular Corp., Tulsa, Okla.; and U S West Cellular, Bellevue, Wash.

Cellular service is now available in about 80% of the country. The agreements will provide coverage in 300 metropolitan areas and will cover about 80% of the nation's population. Customers will be capable of moving from one part of the country to another and still be covered, Macher said.

"When customers visit the Lincoln dealership serving their new area, that dealer will arrange for the original service to be disconnected and for a new number to be assigned. Customers don't have to be concerned with making these changes, and dealers can assist [the customers] simply by calling an easy-access 800 number."

Ford customers will receive a 60-day Custom Calling package that may include call waiting, conference calling, call forwarding, mobile messaging and detailed billing.

Customers will also have access to a customer hotline service to answer questions about their cellular phone, give advice or offer assistance.

Robert Keller, Nynex Mobile's chief operating officer, said the agreement with Ford "shows that cellular telephones are now popular, mainstream accessories" for car owners. He said his company expects to use the 3-year marketing tie [with Ford] to expand its customer base.

...Nynex Will Service 200 Dealerships

Nynex, the largest provider of cellular telephone service in the Northeast, said it will service more than 200 Lincoln-Mercury dealers.

In Atlanta, BellSouth Mobility will work with dealers in 26 communities. Gerry Stevens, director of market development for BellSouth, called the agreement a demonstration of "Ford's commitment to our industry."

Rick Harms, general manager for automotive distribution for Bell Atlantic Mobile, said training car dealers and salesmen in cellular technology "is the single most important element" in the success or failure of the program. Harms is working with salesmen at 135 Lincoln-Mercury dealerships in the Philadelphia-Washington-Baltimore-Pittsburgh region.