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Old 05-09-2009, 03:43 AM   #1
AVANTI R5
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Default Rumor of the Day: GM Turning OnStar Off?




Quote:
A TTAC source has pinged us: “‘I’ve just heard 2nd hand that the Delphi OnStar team has had all their GM contracts canceled. It seems that GM may be getting rid of OnStar completely, but it isn’t clear when that would happen. This sounds like a pretty good business decision to me since cell phones have become so widely adopted, and navigation systems are getting cheaper.” This tip flies in the face of a recent Reuters report, in which the head of said OnStar claimed the service was wildly profitable. OK, “highly.” Which is the same as “wildly,” given GM’s current slide into C11. Anyway, “GM does not break out its revenue or profits from OnStar, but had said the division had turned profitable in 2003 and has been steadily and more profitable since. The division receives part of its revenues from consumer subscription fees.” If there’s anyone who knows whether OnStar lives or dies
http://www.thetruthaboutcars.com/wil...ng-onstar-off/
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Old 05-09-2009, 03:56 PM   #2
Eyeflyistheeye
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If I were GM, I would be trying to offload this onto Verizon/Sprint/ATT/T-Mobile. With all the BS fees they charge subscribers, they should be able to afford this easily
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Old 05-09-2009, 05:38 PM   #3
Hazdaz
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Default

OnStar supposedly makes money - and is being sold to other car makers - so I find this rumor HIGHLY unlikely.
Sold to someone else? Well, that I could believe. But not just turned-off.
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