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Wednesday, 15 September 2010 22:30

General Motors Boosts OnStar to Challenge Sync

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After watching Ford dominate the in-car connectivity market with Sync, General Motors is fighting back with a slew of new features for OnStar in a push it calls “responsible connectivity.”

OnStar will roll out a long list of improvements, including Pandora online radio, Stitcher podcasts and wi-fi. Down the road, we could see

voice-activated Facebook, texting and iPod control so you can stay connected while keeping your hands firmly planted at 10 and 2.

OnStar, long known for its ability to unlock your doors and alert the cops when you crash, enjoys excellent brand recognition. Eighty percent of consumers who buy a GM vehicle cite OnStar as a reason, the company boasts. But OnStar is trying to catch up with Sync, which has been hugely successful as Ford goes nuts with in-car connectivity. To that end, OnStar, under the leadership of former GM PR boss Chris Preuss, will introduce improved service and hardware in 40 different models.

“Our system is first and foremost about safety and security, but we are evolving that now to include connectivity,” said Sam Mancuso, OnStar chief marketing officer. “Some people might say that we are behind in that space but we are not. We were doing connected services as far back as nine, 10 years ago but the marketplace really wasn’t ready for it yet.”

Times have changed, he said, and the market is ready.

Sync has been a huge hit for Ford, especially with the 20-something generation called millennials who want cars as connected as they are. Ford has shrewdly played to that growing market by packing Sync with features ranging from in-car wi-fi to song-tagging to in-dash control of smartphone apps. Looking ahead, Ford is trying to bring cloud computing to cars and it even has a tweeting Fiesta.

Inside the OnStar command center. Photo: General Motors

GM might be playing catch-up with Sync in the connectivity and infotainment space, but OnStar still occupies a valuable safety and security niche because — unlike Sync — its doesn’t rely upon a cellphone to work. Mancuso says OnStar, which first appeared in Cadillac models in 1996, has responded to 150,000 automatic calls for help through its automatic crash response service, which uses on-board hardware.

“Nobody can touch what we have done over the years,” Mancuso said. “In the case of Sync, for example, you need to have a cell phone with you that is paired with the system. And if the cell phone survives and works after the crash, it will then dial for help.”

The core OnStar service, which costs $199 to $299 annually, has 6 million subscribers, according to Mancuso. The hardware upgrades slated for the system bolster OnStar’s safety and security features without affecting subscription rates. The new infotainment features, such as Facebook access, may be available without a subscription to worry about.

The new hardware will appear in 2011 models, and no, you won’t be able to retrofit your older GM vehicle. It was designed to improve the user experience with new voice recognition, improved navigation and the ability to work with traffic management and weather alert services known as geo-boxed notification services.

Another play from OnStar comes early next year when MyLink, a sub-brand for mobile phones, launches with applications for Pandora, Stitcher and wi-fi. GM will invite outside developers to create apps for the system so long a they use voice-activated commands. OnStar also will feature apps for specific modelsincluding the Chevrolet Volt — that will allow owners to do things like lock their doors, start their cars and turn on the A/C from miles away.

Beyond that, OnStar may offer voice-activated control of Facebook so you can issue updates from the road, text service and even e-mail and Web searches. That depends upon convincing regulators it can be done safely — a key point, given Transportation Secretary Ray LaHood has expressed concerns over the rising number of in-car distractions.

“The market is ready for these types of services now but we will not introduce them until they pass rigorous safety standards so that we are not contributing to the problem of distracted driving,” Mancuso said. “When we have done that, we will bring the connected services to market.”

Main photo: Steve Fecht / OnStar. An OnStar engineer demonstrates OnStar MyLink for smartphone apps. General Motors and OnStar plan to offer apps that will allow vehicle owners to start their cars, unlock their doors and perform other functions from their phones.

Authors: Stuart Schwartzapfel

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