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OnStar One of The Best Positioned for Fleet Telematics, Claims ABI Research

June 22, 2004

GM's OnStar is currently in an ideal position to introduce commercial fleet-oriented versions of its telematics services, according to a new study released by ABI Research on June 8. ABI Research's "Commercial Telematics Quarterly Service," suggests that GM's commercial vehicle business, when combined with OnStar's expertise in hardware integration and services delivery at the consumer level, will make OnStar among the best positioned to address the "sweet spot" in the commercial telematics market: the sub-Class 8 trucks and vans that make up the bulk of commercial fleets. According to ABI Research's Director of Automotive Research, Frank Viquez, "the technology is now at a level and a price point where GM can reach out to this huge market. They could include OnStar in OEM vehicles of this class, and layer specialized services to address unique market segments." The ABI Research analysis suggests that a commercial fleet-oriented offering would not be difficult for OnStar: the infrastructure, billing systems, content/services partnerships, customer base and calling centers are already in place. And the market is very large: "Even though many private fleets may have a small number of vehicles," adds Viquez, "there are a substantial number of these fleets, so volumes could build up quite quickly."
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