Telematics provider and GM subsidiary OnStar announced today a significant price reduction for its aftermarket product OnStar FMV for a six weeks period.
From May 6 until June 16, OnStar FMV will be available for $99.99 with installation included, against $299 plus $50 to $75 installation fee. The cost of the telematics services are however unchanged, the Safe and Sound package (which includes automatic crash response, hands-free calling and stolen vehicle locater) runs $18.95 a month or $199 a year, while Directions and Connections (which includes turn-by-turn navigation) is $28.90 a month or $299 annually.
Thus far OnStar is said to have sold fewer than 30,000 units in the U.S. since its launch in July 2011. The product is currently carried by 2,200 retailers and dealers.
OnStar said that “owners of Toyota vehicles accounted for 15.6 percent of OnStar FMV sales, followed closely by Ford owners at 12.3 percent. More than 30 percent of the Ford owners to install FMV had Ford Sync as an option when they purchased their vehicles.“
From May 6 until June 16, OnStar FMV will be available for $99.99 with installation included, against $299 plus $50 to $75 installation fee. The cost of the telematics services are however unchanged, the Safe and Sound package (which includes automatic crash response, hands-free calling and stolen vehicle locater) runs $18.95 a month or $199 a year, while Directions and Connections (which includes turn-by-turn navigation) is $28.90 a month or $299 annually.
Thus far OnStar is said to have sold fewer than 30,000 units in the U.S. since its launch in July 2011. The product is currently carried by 2,200 retailers and dealers.
OnStar said that “owners of Toyota vehicles accounted for 15.6 percent of OnStar FMV sales, followed closely by Ford owners at 12.3 percent. More than 30 percent of the Ford owners to install FMV had Ford Sync as an option when they purchased their vehicles.“
While OnStar is bragging on selling its device to competitor’s cars available with telematics options, its sales have been rather low so far, hence the drastic price cut announced today on the hardware to boost volume. One would not be surprised to see that price point extended in the future.
For OnStar giving away or making a small loss on the hardware side is probably the best way to drive significant volumes in consumer electronics stores such as Best Buy and others.
For OnStar giving away or making a small loss on the hardware side is probably the best way to drive significant volumes in consumer electronics stores such as Best Buy and others.
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