OnStar Going Bankrupt?!?!?

[trash]

Well, maybe a little exaggeration, but in the paper today (National Post for us Canadians), there is an article about the Voice Recognition software arm of OnStar that has filed for Chapter 11 protection. It seems they havn't made a profit since day 1. This surprise me because I think the voice recognition in the Avalanche is outstanding. I've tried fooling it by slurring words (no I wasn't drunk ) and covering my mouth. Picked up what I wanted no problem.

Hope this doesn't spell disaster for the rest of OnStar...

 

[Chief]

I know OnStar is having serious customer retention issues. The stats of OnStar equipped vehicles that actually interact with OnStar at some level is very low, under 10% of all equipped vehicles on the road.

Although .30 cents a minute for cell phone use seems high, when you consider there is no roaming and no long distance charges it's not a horrible deal.

I think there are some limitations, even with the phone (can't dial into a voice mail system as an example) that if GM was smart they could address (interaction with the headunit to do keytones on press of certain buttons maybe). Personally I've found that I use my virtual advisor less and less - however for the conveinence of the phone and the peace of mind of the road side and accident assistance, I'm going to pay my $16 a month. I know I'm a distinct minority however.

BTW - I'm not terribly pleased with the voice recognition system - but I do think it's better than anything I've used on a PC.

 

[Durwin]

I'm another of those who do not use the OnStar feature. I believe that it's an idea before it's time. I liken it to a DVD player coming out in 1980. I just hope that they like XM can hold on for a few more years so they can get more subscribers and make it more into the mainstream.
Durwin

 

[Chief]

I think were OnStar is failing is in its premium services. I know that several members have serious complaints about reservations not being made, restaurants not being called, and flat out wrong directions being given. The travel assistance with hotel and restaurant reservations is a good idea but I think they could do things differently and still church a profit.

Rule number one of business, do what you do best, outsource the rest. Why not as part of the high end package charge but farm out the reservation and assistance piece to AAA or another organization which has years of doing it right.

I won't sign up for the premium service based on what I've seen at cruises - and that is something I'm saddened I have to say.

 

[gojira-san]

Yeah I really want to try this feature. Too bad Onstar still cannot give me a cell phone number in NH... My thread on that is here.

I am very interested in the personal calling, and having worked on voice recog. in the past am interested to see what they have done.

 

[Chief]

Yeah I really want to try this feature. Too bad Onstar still cannot give me a cell phone number in NH... ? My thread on that is here.

I am very interested in the personal calling, and having worked on voice recog. in the past am interested to see what they have done.

Yet another example -- too bad you can't give them an address somewhere else!

 

[dmacker]

Onstar, like Kmart, is a good product that lacks service.

On a recent GTG an Aver accidently locked his keys in his truck. A call to Onstar required ten minutes until they were able to unlock the vehicle.

Have you ever stood in a long checkout lane at Kmart while other checkout lanes were closed and the cashiers stood around chatting about nothing. Try asking for assistance in a Kmart store. Onstar is on the same road to disaster.

 

[chrisntam]

I think if they cut the price, they would get more subcribers.

 

[jst4f]

I just signed up for two more years of basic service. I don't really see the need for the premium service. I asked if they could give me up to date information on road conditions, and they can't. (I took a quick trip to CO and was concerned about the weather. If I could have called them to say I was in Grand Junction and that them tell be about the conditions on US 70 east into Denver, that would have sold me on the premium service. Unfortunately, they can't provide that service.)

In many ways my issue with On-Star is that it is an almost service. They got off to a good start but never finished completing it. It is more of an insurance policy. Its has great potential.

Anyway, I did sign up for my insurance for two more years. After that, the AV will be paid for and if things have not improved with On-star I will probably not sign up again.

 

[THEOFILOS2002]

I think if they cut the price, they would get more subcribers. ?

I second that. The deal has to be very attractive in order for me to use it. Like most I have a cell phone with about 1 guzillion minutes per month, essentially prepaid. The On-Star convenience is great but do I pay 30 cents/minute or do I pay $0 for that call? HMMMMM!


I have an idea. What if On-Star reorganized there business model to include an association with a cell company, say Verizon, such that On-Star and Verizon provide a unified package. The cell customer would add a $5 or $10 per month option to use the Verizon minutes. For instance, I turn off my cell phone when I get in my AV and use the On-Star system in place of the Verison. The cell bill would include an extra charge for that option. Verizon now has an extra attraction for there service and On-Star does not die off.


Had another idea. What if On-Star offered an after market product that graphically displays a map on a 6" LCD screen, for navigation purposes? The product would be removable. I mean okay its a great high end toy, but most of us travel the same route day in day out. I would pay $1500 to $2000 for that. Honda offered that option my wife's Odyssey at a cost of $3,000 extra and large section of the dash board. The price is to high and the dash board real estate is way too high.

In short On-Star needs to get creative if they are to survive. I have about 10 minutes left on my On-Star account since June 2002. First it was cool novelty, then it became an emergency assistance device - haven't needed it yet - KNOCK ON WOOD!!!

Hope On-Star is listening. Oh and if On-Star is the type of company that are too proud to go looking for options like this, then I hope they are ready to proudly go through a slow costly death.
-> -> ->

 

[NJAV]

I haven't used my ONstar feature once since I got the Av....I just haven't had a reason to use it yet...and I'm considering not renewing my service when this additional free month is up...especially with the new headunit and audio upgrades...I don't think I would go through the process of installing the extra accessory necessary to make the onstar function...and not to mention the $200 a year for their safe and security package....base deal...

 

[WVBubba]

I haven't renewed my OnStar, never used it, I have cell phones that travel with me into the mall or elsewhere, can't pack the AV into my pocket...Also have 1-800-chevusa, & AAA plus at fae less than the price Onstar charges and it covers both my vehicles...Not worth the money IMHO

 

[pdxkevin]

If they do fold: will you just let the equipt sit there? or mod it for your cellphone or GPS? or something else?

 

[Tri-C]

I knew next to nothing about On-Star before getting my Av (which just happened to have it). Was surprised at the high cost of the various service tiers. If the service is as bad as is being reported here, they need to make some major changes to survive.

I would be willing to pay a bit of a premium for cellphone usage in addition to a lower base rate for the "safe and sound" plan.

 

[Cape_Cod_Bob]

A logical bail out might be to either merge or be take over by one of the cell phone companies. That way you could use your minutes either on your cell or with onstar.
I don't see OnStar surviving any other way.

 

[ygmn]

I renewed onstar and have not used it since day one to set it up.....

I think of it as insurance...for cases like bigred and his accident or when the check engine light comes on....

I do feel if it was only $100 a year more would renew....

Will it survive? I dunno I hope so......GM has invested heavily in OnStar so I think they would look at what they need to do to keep it.

only time will tell

 

[Trophyman]

Last year our new Monte Carlo SS was stolen. On-Star located it with 5 feet of where it was and how long it had been there. See if a steering wheel club will do that!!!

It took them less than 2 minutes to find our brand new black SS.

Naysayers listen up. Can you follow bread crumbs that fast?

I am an On Star fan forever. They have never failed me.

I only use the basic service. I don't need it to perform sex acts, just cover my butt when I get in trouble.

Trophyman.

 

[bjkirk]

I cannot see ONstar being a good Navigation system with out mapping. The new Escalades EXT I think will have the option of a Map screen and DVD based navigation. It also seems expensive as a cell phone. I have no idea how much a lojack system would cost but this may be what makes ONstar attractive.
I personally have installed the Pioneer Nav system and picked up a lot of options with it. DVD player, back-up cameras, voice recognition and the ability to add many more. that I haven't started to mess with. Still the LoJack capabilities of OnStar would be nice. I will have to see how much a LoJack mod will cost. I will get back to you shortly.

Hello Theofilo,
I also got the Satellite Navigation System in my Honda Odyssey, I only paid $2000 for it in 2000. I like the Pioneer system better but I haven't upgraded to the new software yet on the Honda/Alpine System. The Pioneer system only cost about $1945 including shipping off the internet. The install should only cost another $50 or so unless you are @n@l like me and have to have it just perfect. Still not perfect but wife has deemed it good enough and no longer will allow me to mess with the install.

 

[mnr602]

I love onstar. The cellular is nice when you have a group in the AV and your trying to make plans...everyone can chime in. What cost?...30 cents a minute on a $35K vehicle, the saying "pennywise & pound foolish" comes to mind. Plus I like the 12month expiration on the minutes. There their when I need them and I only pay for what I need.

Heres my opinion on them capturing market share. Lincoln now offers RESCU, which I understand offers their cellular through Sprint. If onstar were to join forces with Alltell or Cellular One (anyone of the big analog providers) I think more people would sign up and they could compete for the "per minute" buyers.

I also think they have to offer more incentive to add it in to the 60month payment so that people will have enough time to use the infrequent features (airbag, theft, diagnostic) to appreciate the true value.

 

[NJAV]

Last year our new Monte Carlo SS was stolen. ?On-Star located it with 5 feet of where it was and how long it had been there. ?See if a steering wheel club will do that!!!

It took them less than 2 minutes to find our brand new black SS.

Naysayers listen up. ?Can you follow bread crumbs that fast?

I am an On Star fan forever. ?They have never failed me.

I only use the basic service. ?I don't need it to perform sex acts, just cover my butt when I get in trouble.

Trophyman.

It is definitely nice to hear about these kinds of stories...it makes you feel more reassured....nonetheless it comes down to whether or not the price is justified...and the kind of service you are receiving....

 

[Trophyman]

............."nonetheless it comes down to whether the cost is justified....."

Let's see..... $200 per year and I recovered a $30,000 vehicle. I'll do the math every time I write the check!!!

Trophyman.

 

[Pendlum]

Yeah, but most people don't see it like that. I think every person that has had their vehicle recovered by OnStar will sign up at pretty much any cost, but for a majority of the population, they just look at the amount they have to pay as a whole.

I agree, they need to pair up with a big cell phone company and get the price down. Paying for only what you use in minutes is good, but when customers get that first bill for $300 because they were a little chatty, they're going to be very upset.
I like the idea of integrating it with your personal cell phone. Two units drawing from the same plan and bill.

For the Navigation part, it must be integrated with a mapping system for it to be useful enough.
How many of us have been told directions and end up lost? Tell someone to go down two lights and then turn left and they'll end up getting lost. Directions are never as easy as they sound. If we see it, then see how easy it is, we'll use the crap out of it and be willing to pay for it.

People need to justify the cost. The difficult part is getting them to use it and see how useful it is.
It's got to be
-Easy to use
-Accessible
-Cost effective.

 

[Trophyman]

You are correct if you're buying it for the cell phone and directions. It is not the best deal. I must respectfully disagree in regard to the theft recovery part of it. I think ALL people see it like that.

Here is an example:

Do you have insurance on your AV? Cost effective? Not in the least----- until you need it.

That's why we have insurance.

State Farm can't recover my vehicle in 2 minutes.

Agreed?

Trophyman.

 

[Boar-Ral]

A logical bail out might be to either merge or be take over by one of the cell phone companies. That way you could use your minutes either on your cell or with onstar.
I don't see OnStar surviving any other way.

The problem with this being that only a small number of people can use the service. Regardless of the roaming package I purchase here and regardless of who I purchase it through, I am still required to pay outrageous roaming fees if I leave 'their' service area. Driving from here to Philadelphia, a friend racked up an amazing fee by letting his phone roam the entire way. Even though we all use the same standards in North America for cellular phones, things are still far from standard, unfortunately.

 

[Boar-Ral]

The problem with OnStar -- and this is not a problem with OnStar so much as customers and potential customers -- is that services such as vehicle recovery, airbag notification, and lockout services are not looked at as very glamorous. Let's face it, unless we need to use these services, which is more glamorous, locating a stolen vehicle or receiving directions somewhere in realtime? (Though I still find incredible geek-value in having my doors unlocked like that. Or remote engine diagnostics too!)

Whether it is OnStar not promoting these services or it is salespersons only concentrating on navigation, something needs to be done. These services are very valuable and definitely worth the cost. (This coming from someone currently unemployed and about to renew services before they expire.) By the way, you still get some limited navigation with the basic plan, I found. When in the US and looking for a dealership to look at my truck, OnStar located the nearest dealership and guided me there. The dealership was waiting for me when I arrived. Very cool.

Back to the original discussion of basic services though: I know it is cliched, but how much do you value your vehicle? Your life and well-being? After reading Big Red's thread about his rollover and OnStar contacting rescue services who were on scene within four minutes, I will gladly renew. ( http://www.chevyavalanchefanclub.com/cafcna/index.php?board=8;action=display;threadid=1878;start=0 )

Just my two cents.