Your Source for Up-To-Date News and Research on the Collision Repair Industry 

 

click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email

SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor

Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide

Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...

Feedback
Letter to the Editor

GM OnStar Seen Profitable in 2003

DETROIT -- General Motors Corp. said it hopes its OnStar telematics unit will begin generating profits at some point in 2003, after years of losses from investments in the in-vehicle communications service.

OnStar, which has about an 80 percent share of the market for "telematics" or in-vehicle cellular services with more than 1.8 million subscribers, is available on more than 36 GM vehicles and on a few selected competitors' models.

OnStar, which GM expects to continue to grow in the future, allows drivers to contact a 24-hour on-call center for a variety of service and safety features, such as directions and emergency assistance, without taking their hands off the steering wheel.

GM is far ahead of its main competitors, Ford Motor Co. and DaimlerChrysler AG's Chrysler group in offering telematics services. Those two companies have said they will offer services in coming years that differ from those provided by OnStar.

OnStar is part of GM's drive to try to derive more fee and service revenues from its customers.

Some analysts question whether OnStar and similar services will generate considerable profits longer term, or become just another feature that consumers expect to be part of an overall package in new cars and trucks.

©2000 Collision Repair Industry INSIGHT
All Rights Reserved

FEATURED
LINKS:

INSIGHT Supports the NABC!
Do You?