19 Jun 2009

With six million users and $1 billion in revenues, General Motors\' OnStar service is a lonely bright spot on GM\'s horizon. And revenues aren\'t the only plus for GM - the connectivity allows GM to save hundreds of millions on warranty work as the system allows the automaker to monitor many vehicle conditions. According to iSuppli, GM saves over $100 million through information coming back from OnStar enabled vehicles.

\'There is a strategic value in having connectivity to the digital systems in the car,\' said Phil Magney, vice president of iSuppli Automotive Research. \'While the value of this is hard to monetize precisely, automakers have the ability to reduce warranty and service costs through telematics.\'

We know through commercials that OnStar can sense when airbags have been deployed and send for help. However, the remote diagnostics go far beyond airbags and can monitor many critical functions in a GM vehicle.

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