2005 Marks Watershed Year for OnStar

[Guest Josh]

*Subscriber base approaches 4 million in 2005 *Technology Leadership Leads to Expanding Services and Growth DETROIT – Without much fanfare, OnStar by GM has answered the call of millions of drivers with the simple push of the “Blue Button.” In the process, Onstar has become not only a key differentiator for GM cars and trucks, but a highly innovative company with far-reaching influence within the technology sector. With increased usage and strong acceptance, OnStar grew to nearly four million customers in 2005, capping a watershed year in the company’s ten-year history. By leveraging the experience, technology and resources of GM and a host of technology companies, OnStar has been able to harness the capabilities and creativity of the still-emerging telematics industry, to offer customers the most comprehensive in-vehicle safety, communications, directional assistance and personal services in the industry. Since its beginning in 1995, OnStar has evolved from a “nice-to-have” safety feature to a comprehensive suite of communication and security services that customers increasingly rely on for peace of mind. According to an OnStar survey, over 75 percent of OnStar subscribers say they prefer to have OnStar in their next vehicle, and almost 90 percent of subscribers say they would recommend the service to others. “OnStar is a great example of the innovative thinking and world-class technology that only GM can offer,” said Rick Wagoner, GM Chairman and CEO. “OnStar’s unique features and services complement our great cars and trucks and enhance our customers' overall vehicle experience. The decision to make OnStar standard on all models over the next couple of years highlights our promise to offer the best cars and trucks with the best value,” Wagoner added. Highlighting a remarkable year, OnStar: *Announced that it would become standard on all GM retail vehicles in the U.S. and Canada by the end of 2007. *Increased the subscriber base by 30 percent over 2004, approaching 4 million customers. *Saw its unaided brand awareness grow significantly, comparable to tech industry giants Sony® and Microsoft®. *Introduced OnStar Vehicle Diagnostics (OVD), a GM-exclusive service that conducts remote diagnostics and sends a personalized monthly report to the subscriber. Initial receptivity of the new service has been strong, with over 430,000 subscriber activations since it was introduced in September. *Played a key role in growing the subscriber base of XM, America's No. 1 satellite radio, which surpassed five million subscribers in September, more than double the number of a year ago. Factory-installed XM Satellite Radio is currently available on more than 90 percent of the GM vehicle lineup, making it among the fastest technology rollouts in GM history. *Leveraged its sophisticated communications infrastructure and network to aid people in need during the evacuations leading to, and the relief efforts in the wake of, several hurricanes this year. OnStar opened its entire suite of services free-of-charge to provide telecommunications, route support and emergency assistance for thousands of subscribers. “The growth of OnStar is due in large part to our ability to bring to market relevant technologies that meet customers’ evolving needs,” said Chet Huber, OnStar president. “We’ve established a strong technology foundation, which serve as the building blocks for future offerings. What began with core safety features such as roadside assistance, emergency services and route support, continues to expand with new offerings and features like Advanced Automatic Crash Notification (AACN), hands-free calling, and OnStar vehicle diagnostics.” “While the range and depth of OnStar's technology and services has grown tremendously, the beauty of the system and real customer value lies in the surprisingly simple, easy-to-use interface. Staying true to our brand position of powerfully simple technology has really been important to our growth,’’ Huber added. “The dot-com era businesses that survived and became successful did so in an environment of high-profile IPOs, rampant equity speculation and other hoopla that drove many automotive technology offerings into the ditch,” said Thilo Koslowski, technology analyst for Gartner, Inc. “All the while OnStar was quietly adding millions of paying customers and expanding service. In legitimizing opportunities to incorporate consumer technology into vehicles, the company has left the door open for continued innovation that offers real value to consumers.” Representing OnStar’s commitment to increase value for its subscribers, OnStar has launched six generations of hardware during its short ten-year history. Debuting exclusively on Cadillac models in 1997, OnStar is now available on over 50 GM models today. In an average month, OnStar advisors respond to more than 340,000 routing calls, 44,000 remote door unlocks, 25,000 roadside assistance calls, 32,000 remote vehicle diagnostic checks, 500 stolen vehicle location assistance requests, 900 air bag deployment notifications, 15,000 emergency service requests and 5,500 good Samaritan calls for assistance. To date, OnStar has had more than 53 million subscriber interactions including more than 12 million routing requests, 1.25 million door unlock requests, 750,000 Roadside Assistance requests and 25,000 air bag deployment notifications.

[regfootball]

on star has a ways to go. they have ENORMOUS potential to add entertainment services and vehicle management and servicing functions in addition to safety and travel assistance. on star could make more money than the cars do for GM, if they figured out how to do it. -in car tv, on demand video and audio, gaming and subscription services

[Clownzilla]

on star has a ways to go.  they have ENORMOUS potential to add entertainment services and vehicle management and servicing functions in addition to safety and travel assistance.

on star could make more money than the cars do for GM, if they figured out how to do it.

-in car tv, on demand video and audio, gaming and subscription services

[post="63814"]<{POST_SNAPBACK}>[/post]

I agree. They already are VERY valuable to GM but can be much more valuable. I think
they need to reduce the price of some of their packages. Sure, they would have to hire more staff, but if a salesperson told me I could make resteraunt reservations from my car via a On Star rep. for an extra $20 a month, I would be sold!

[razoredge]

Wow, Im impressed. When I heard last year that they were really going to spend and push Onstar, I was negitive about it. I never figured people would need or use it. I never realized how helpless the public was. I have a feeling some of the doorlocks were test calls, just for shits and giggles....at least I hope so. I also hope the service calls were gasoline or flat tire related...otherwise that means theres a vehical reliability issue. I do see the good side for the emergency stuff like accidents and air bags (stupid things). Well this is good news for GM and the public as I can now see.

[BowTieFarmer]

Wonder how many vehicles it is in? The last figure I saw for OnStar was an 11% subscription rate after the first year, and Acura (I think) has already dropped it. My Silverado and Impala have it, and I'm glad for GM that someone finds value in it!

[SwedeRacer]

I agree. They already are VERY valuable to GM but can be much more valuable. I think
they need to reduce the price of some of their packages. Sure, they would have to hire more staff, but if a salesperson told me I could  make resteraunt reservations from my car via a On Star rep. for an extra $20 a month, I would be sold!

[post="63884"]<{POST_SNAPBACK}>[/post]

I love OnStar...I was sold the moment I first used it. I have three subscriptions now and no regrets. My primary vehicle has the Concierge Service that indeed allows me to get tickets, reservations etc all at the push of a button! For the extra cost I was a bit hesitant but it has turned out to be a great time saver.

[SwedeRacer]

Wonder how many vehicles it is in? The last figure I saw for OnStar was an 11% subscription rate after the first year, and Acura (I think) has already dropped it.  My Silverado and Impala have it, and I'm glad for GM that someone finds value in it!

[post="64263"]<{POST_SNAPBACK}>[/post]

For 2006 Acura offers OnStar still as an option . It comes with one year subscription like GM offers. Audi for sure offers it on the A8 as an option for 2006. Honda also offers it as an option. Toyota has introduced or will be introducing their own version of OnStar in Japan only for now. I have read some bits and pieces about their program and it is getting mixed reviews on usefulness. I am not sure if Toyota was once an OnStar user.

[VenSeattle]

I am not sure if Toyota was once an OnStar user.

[post="64271"]<{POST_SNAPBACK}>[/post]

Toyota has offered OnStar off and on in Lexus vehicles under the product name "Lexus Link".

[goblue1999]

when my daughters are old enough to drive, their cars WILL have OnStar, and I will have exactly what they advertise, a small piece of mind.

[SingleStylish]

I wish the telematics were good enough to capture the DVD Navi systems and put in information in addition to the live body on the phone. For example, I call for reservations or suggestions on a resturant. The OnStar folks read Zagats review of several nearby restraunts and as they read it the DVD Navi system pulls up locations and maps to those locations. It also would be good if video was available. I really wish OnStar was more interactive with the car itself.

[thegriffon]

For 2006 Acura offers OnStar still as an option .  It comes with one year subscription like GM offers. Audi for sure offers it on the A8 as an option for 2006.  Honda also offers it as an option.  Toyota has introduced or will be introducing their own version of OnStar in Japan only for now.  I have read some bits and pieces about their program and it is getting mixed reviews on usefulness.  I am not sure if Toyota was once an OnStar user.

[post="64271"]<{POST_SNAPBACK}>[/post]

There are at least two Japanese-market specific telematics systems totally unrelated to Onstar and non-transferable outside Japan—Nissan's CarWings and Toyota's G-book. There are also European systems again unconnected with Onstar, although GM still uses the Onstar name on the system they use in Europe. None really have the same breadth and depth of services available with Onstar. BTW, who can even remember what the major rival system championed by Ford was?

[Flybrian]

Wasn't it like Wingcast or Wingcom? I didn't think it even got off the ground, though.

[VenSeattle]

Yep... Wingcast, which was meant to replace & expand upon Lincoln's short-lived RESCU telematics that debuted on the 1996 Lincoln Continental.