GM Considering the Addition of Free OnStar Services
Wednesday, September 8th, 2010Automotive News is reporting this morning that General Motors may be considering the addition of some free services to their OnStar in-car communications system, in order to compete more directly against Ford Motor Co.’s Sync system.
Currently, OnStar subscriptions provide accident alerts, directions, and automobile diagnostics, but an upgrade scheduled to be released later this month will expand the system with links to Facebook and a voice-to-text interpretation service.
According to Brandy Schaffels, an analyst with TrueCar.com, such in-car technology helps attract consumers who like geeky toys, and also allows automakers to attach higher prices to smaller, cheaper cars. She agrees that GM’s changes to OnStar are a reaction to Ford’s Sync. In an interview, Schaffels said, “When Ford came out with Sync, they met OnStar’s services and upped the ante. Technological features are where GM and Ford are going to found their reputation with the next generation.”
So what’s on tap for OnStar? Possible options include an “infotainment” package that will link to a user’s smartphone without a subscription or fee, said a source who preferred to remain anonymous. Right now, OnStar is offered free for the first year in many models, and, depending on the chosen features, costs $199 to $299 a year, thereafter. It’s available on more than 40 of the vehicles in GM’s lineup for the 2011 model year, and, according to a regulatory filing from the company, has about 5.7 million subscribers.