GM is talking with other carmakers offering OnStar

Posted on Wednesday, 4 February 2009 , 13:02:46 byEmil

Filed under gmgeneralmotorsonstarGM

GM is talking with other carmakers offering OnStar

With of General Motors` sales most profitable cars – SUVs and trucks – way out of the pace from a year ago even, the Michigan carmaker`s looking for some other ways for generating a positive money flow. One option is seeing General Motors licensing the system OnStar telematics to other auto makers, with General Motors already entering discussions with `several automakers`.

Automotive News saus GM's already in discussions with a few carmakers about using OnStar system, but no specific automakers are mentioned. 'We did make a decision late last year that we are now talking to other vehicle manufacturers about the potential of bringing OnStar services to their vehicles either in the United States and Canada or other parts of the world' Chet Huber OnStar President reported to Automotive News.

This move would not be totally unprecedented as General Motors has licensed the OnStar system to Subaru, Isuzu, Volkswagen and Acura, in the past, having Lexus even using some private-label system version. However, Toyota launched recently its own system of telematics, so it is unlikely that Lexus would be again on the list. GM does not keep separate finance OnStar book, but Huber affirms its profits there have 'been improving year over year for a while'. The service extension other car manufacturers seems to be a smart move as it will be giving the struggling carmaker a greatly needed income stream.