Carmakers Offer Free Telematics In Buyer Battle

The initial shot was fired in 1995 when General Motors introduced OnStar. It gave drivers connectivity, services and safety at an unprecedented level and other automakers struggled to catch up. Ford responded quickly with Remote Emergency Satellite Cellular Unit (RESCU) in the 1996 Lincoln Continental. It offered a satellite-based connection to emergency services in the event of a collision or some other event, but not the concierge service or turn-by-turn navigation that OnStar did.

Onstar's remote connected app, allowing features like remote start and remote door unlock, becomes standard in 2014. In the nearly decade and a half that followed, that single shot has become a firefight among automakers to see which one can attract customers by offering the best telematics services for free.

In just the last week alone:

Audi announced it is adding a feature to its cars that will help drivers find an empty spot in a parking lot
General Motors plans to offer free OnStar RemoteLink Mobile App services, such as remote start and door lock for five years on 2014 vehicles
BMW created M Power App allowing owners to record their driving performance whether it’s on their way to work or working their way around the race track

Audi is utilizing a system produced by Inrix, which already provides navigation information, to find the available parking spots in more than 18,000 parking garages and lots across the country. It’s part of the German maker’s Connect system that provides a host of services ranging from navigation to remote starting to paying tolls or parking fees automatically.

GM is joined on some level by Ford, Hyundai, and virtually every luxury maker offering a plethora of connected services for free and even more services for a fee. Even low-volume automakers are offering connectivity. Tesla Model S drivers can download any song they want to hear, via Pandora, free of charge by simply issuing an audio command to the car’s infotainment system.

NAFA Fleet Management Association
125 Village Blvd., Suite 200
Princeton, NJ 08540

Telephone: 609.720.0882 Fax: 609.452.8004