GM and the Webcar

[Michael White]

There has been a lot of discussion about GM trying to become the "webcar" of the future. I must admit it sounds pretty cool. However, I have some concerns because it all centers around the use of Onstar. At this time, Onstar is not cost effective, and in fact has not been a success. They only have approx. 75,000 subscribers, and are targetting to have 1,000,000 by the end of next year. How are they going to do that?? The new 2 button system is not even compatible with the majority of GM's 2000 product line.
There was a interesting article in Automotive News that talks about this and says its a great idea. However, GM being so large and slow to respond, it is important that they do not loose focus on the basics.Spending $1,000,000,000 on a web car system is a lot of money. I hope it pays off for all of us. There is no doubt that so far Onstar has beena costly bust. Hopefully with some low cost updating, and especially having a system that the dealerships can make some acceptable monies, will pay off.
Mike White

[sallen1]

As a single point Cadillac dealer we have had OnStar as part of our offerings for a couple of years. Here's where GM made mistakes.

1) OnStar was initially part of an in-car cell phone system that used old technology (analog). There was a hand-held unit from Delco but it was pulled.

2) Most people already have cell service and usually carry their own phone around with them. Therefore, to get OnStar, you had to have another phone and that didn't fly.

3) Delco made a bunch of phone units and the only way GM could get rid of them was to offer them 'free' with the purchase of a vehicle.

4) The 3-button system that came with the Escalade will be standard in all Cadillacs for 2000. OnStar has told us that in-car phones will be available, but the push will be with thru the 3-button system. Driving while manipulating a hand-held phone is difficult and I miss the hands-free phone system that was part of the in-car phones.

What's interesting (or discouraging...) is that the only way GM has found to get people to use OnStar is to force it on them. If the system is standard in the car, the customer cannot ask to remove it and it's cost from the transaction. Then there is the subscription scheme with different levels of service.

The concept is pretty sound: Get some sort of wireless connection into the vehicle and use it to pass information, including voice and data (real-time vehicle diagnostics?). The help OnStar people give when looking for directions is terrific, however, even the 2000 Cadillacs (Deville, Seville) will have on-board navigational units NOT connected to OnStar.

While the dealerships have struggled with OnStar, the customers like it.

My thoughts...

scott

[Michael White]

Scott,

Do you have a lot of customers renewing their Onstar? Our experienced is mixed on the renewing part.

In the Bay Area, Onstar has signed up a upside fender who will do the installations and warranty repairs at what GM will pay. They are Dealer Radio Service. Is there someone like this in your area?
Mike