Coming to your car: the Internet
By: Drivers.com staff
Date: 1999-09-04
Access the Internet and drive at the same time? As unlikely as this sounds, computer nerds can start cracking open a bottle of celebratory champagne (not to be drunk while driving, of course) in the wake of news that the world's biggest car manufacturer is investing $1 billion in such a plan.
General Motors says it is expanding its OnStar cellular phone/global positioning system service to include the Internet, a move that's bound to provide a boost to those companies offering traveler information services on the World Wide Web. It is also likely to encourage the development of a new generation of in-car devices capable of working on the Internet without distracting the driver.
It's understood that the Internet service will be entirely voice-based to minimize the danger of distraction. Screen-based services aimed at car passengers may be added later. The Internet data will probably be delivered to the vehicle over the wireless radio network that supports OnStar's existing services. The company is expected to begin marketing a vehicle fitted with OnStar that includes voice-activated Internet access this fall. The vehicle will be offered throughout the US by the end of next year. Similar systems in other GM vehicles are likely to become available wherever the OnStar service is offered, including Europe.
A million automobiles online
GM has also announced plans to broaden the deployment of its OnStar in-vehicle safety, security and information service from 75,000 vehicles at present to a million cars and trucks within the next 18 months.
The system is currently offered on 31 of GM's 77 models; but OnStar will be expanded to most of the company's range, and will be standard on some models by the end of next year.
The existing OnStar system delivers a range of security, safety and communications safety directly from the car through a 24-hour centre where advisors provide real-time person-to-person assistance. Services offered include remote diagnostics, automatic notification of air bag deployment, automatic theft notification, roadside assistance and emergency services. In addition, the service will track stolen vehicles, advise the driver on the best route to take, provide data and fax transmission services and even unlock the doors remotely.
In fact, the doors can be unlocked from almost anywhere, simply by calling OnStar and giving the advisor a PIN number or code word. OnStar can delay opening the door for 15 minutes to give the driver time to return to the car. In the event of air bags being deployed, an advisor will immediately contact the driver, if he or she is conscious, and also notify emergency services.
Services, restaurants, police on tap
Another OnStar feature is a database of more than four million listings of ATMs, restaurants, museums, zoos, hospitals and police departments.
OnStar is a dealer-installed option with an estimated cost of $1,000 for the system hardware and installation fees. Unlimited use currently costs $22.50 a month with normal cellular telephone rates on top of that.
Coincident with the OnStar announcement, General Motors also said it was forming a new business group - called e-GM - that harnesses resources and technological expertise from across the global enterprise to chart its course into a new era of Internet commerce.
The new business group will put a wide range of GM products and integrated services closer to customers by using electronic malls that deliver on the promise of real-time, interactive and customized relationships. In fact, the new business group will lay the groundwork to transform GM's traditional automotive operations into a global e-business enterprise.
"The Internet fundamentally changes the way business is conducted," said G. Richard Wagoner, Jr., president and chief operating officer of General Motors. "With this move, we are applying the power of our technology innovations and the strength of our human and financial resources to the Internet to enhance the way we develop customer relationships. That's where the world is going and that's what makes GM's approach unique to the auto industry today.
"GM has a strong e-based presence within our traditional business operations. What we are doing today is combining these initiatives to ensure we will be a leader in electronic commerce by leveraging the Internet and our worldwide communications capabilities," Wagoner added.
A new relationship with customers
GM will leverage its Internet infrastructure and information technology to work closely with its extensive dealer network to meet the changing needs of customers. Part of the strategy of the new business group is to strengthen the alliance between dealer e-commerce initiatives and those of the company to make the process seamless for the customer, yet take full advantage of the vast amount of information the company has available.
"We are committed to partnering with our dealers as we build this new model moving forward," said Zarrella. "Many of our dealers are already moving into the Internet sales arena. Integrating our systems simplifies the shopping and buying process and allows for a seamless connection."
Zarrella added that in-car services such as Internet access and CD-quality satellite radio broadcasts could generate revenues of between $4 and $6 billion annually within five years for the company.
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