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OnStar Subscriptions To Grow To 7.9 Million By End 2017 -IHS ISuppli
Monday, 7 March 2011 - 20:05
By Matt Jarzemsky
OF Dow Jones Newswires
Subscriptions to General Motors Co.'s (GM) automotive communications system OnStar are set to grow steadily in the next few years on higher GM sales and renewal rates, according to technology researcher IHS iSuppli.
The service, which provides crash assistance, driving directions and other features, comes standard with a free one-year subscription on all GM vehicles. Last month, GM said it would begin offering it to drivers of other brands of vehicles, selling an OnStar-equipped standalone rearview mirror in a partnership with Best Buy Co. (BBY).
ISuppli sees the service's subscriber base increasing to 7.9 million by the end of 2017 from 5.1 million at the end of last year. It expects renewal rates to climb into the 60% range and remain there for the next few years.
In January, GM replaced Chris Preuss, who had led the division for less than a year, with Linda Marshall, a former telecom executive. GM Chief Executive Dan Akerson had been vocal about his dissatisfaction with OnStar.
General Motors shares recently traded at $31.85, down 54 cents, amid a broad market downturn.
-By Matt Jarzemsky, Dow Jones Newswires
212-416-2240; [email protected]
(END) Dow Jones Newswires
March 07, 2011 13:05 ET (18:05 GMT)
Monday, 7 March 2011 - 20:05
By Matt Jarzemsky
OF Dow Jones Newswires
Subscriptions to General Motors Co.'s (GM) automotive communications system OnStar are set to grow steadily in the next few years on higher GM sales and renewal rates, according to technology researcher IHS iSuppli.
The service, which provides crash assistance, driving directions and other features, comes standard with a free one-year subscription on all GM vehicles. Last month, GM said it would begin offering it to drivers of other brands of vehicles, selling an OnStar-equipped standalone rearview mirror in a partnership with Best Buy Co. (BBY).
ISuppli sees the service's subscriber base increasing to 7.9 million by the end of 2017 from 5.1 million at the end of last year. It expects renewal rates to climb into the 60% range and remain there for the next few years.
In January, GM replaced Chris Preuss, who had led the division for less than a year, with Linda Marshall, a former telecom executive. GM Chief Executive Dan Akerson had been vocal about his dissatisfaction with OnStar.
General Motors shares recently traded at $31.85, down 54 cents, amid a broad market downturn.
-By Matt Jarzemsky, Dow Jones Newswires
212-416-2240; [email protected]
(END) Dow Jones Newswires
March 07, 2011 13:05 ET (18:05 GMT)
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