Chrysler Sees a Weak Demand in the Near Future for ‘Telematics’
The Chrysler unit of DaimlerChrysler has no plans to rush into selling in-car computer services, despite extensive efforts from several other automakers. Chrysler officials said they will wait until technology advances further and a set of industry standards for such services, known as telematics, are established before attempting to install them on a wide range of Chrysler vehicles. Telematics services currently include a range of computer and wireless communications built into vehicles – from unlocking doors through a phone call to dialing automatically for help when airbags deploy. Telematics are seen as potential revenue by several automakers worldwide. UBS Warburg LLC analyst Saul Rubin has estimated that the market for telematics hardware and services will grow from $4.2 billion this year to $47.2 billion by 2010. In luxury cars, basic telematics have become fairly common. DaimlerChrysler’s Mercedes-Benz unit will offer a telematics package as standard equipment on all 2001 models. But telematics are not yet in demand among Chrysler’s middle-class buyers, and that the company couldn’t make money with an OnStar-type approach, says Karenann Terrell, Chrysler’s director of Business Connect for its E-Connect platform. Chrysler instead would rely on computer makers for such services, and showed off a prototype of telematics network built into a Chrysler PT Cruiser. Through screens built into the dash and rear seats, each passenger would be able to download audio files, send and receive e-mail, and play a trivia game based on the car’s location.
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