Automotive Telematics Gains Ground in North America

    MINNEAPOLIS--Jan. 8, 2003--It's an important week for telematics. The North American International Auto Show (NAIAS) opens in Detroit while the Consumer Electronics Show (CES) opens in Las Vegas. Each show will feature telematics although from two (sometimes opposing) perspectives. Auto makers control the interface to embedded vehicle functions while consumer electronics makers dictate the mobile devices consumers carry with them. A key challenge for the telematics industry is getting the two parties to work together.
    Regardless what camp you are in, automotive telematics in North America is steadily gaining ground. Based on TRG's Vehicle Telematics Database of 2003 vehicles, there are now 90 unique models of cars and light trucks that offer telematics as either standard or optional equipment. This is up from 67 models last year as four automakers introduce telematics to the North American Market for the first time.
    According to TRG's data, 19 brands of cars and light trucks sold in North America now offer telematics. "On many vehicles, particularly luxury cars and SUVs, telematics is becoming standard equipment or comes bundled with luxury trim packages where a premium is placed on comfort, convenience, and safety," says Phil Magney, principal analyst with Telematics Research Group.
    "In the North American market nearly half the passenger vehicles in the market can now be ordered with some type of telematics hardware. And last year more than 25% of all GM vehicles sold in North America were delivered with OnStar," adds Magney.



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                   North American Telematics Trends
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Automotive Telematics                    2001       2002       2003
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# Vehicle Mfgs. offering Telematics       12         15         19
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# of Models offering Telematics           51         67         90
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Average Price of Vehicle w/Telematics  $40,166     $41,704    $38,496
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Average Price of Telematics Option      $2,218     $1,900     $1,238
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Sales of Telematics-enabled Autos      1,630(k)   2,020(k)   2,450(k)
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Telematics systems and services will become increasingly available on passenger vehicles and by the end of the decade half the cars sold worldwide will come with telematics hardware. In regions such as North America and Western Europe and Japan, telematics will approach 70% of new vehicle sales.
Telematics Research Group tracks, analyzes, and forecasts the market for automotive telematics. TRG's Vehicle Telematics Database profiles the telematics systems and services from all the major OEMs. For more information go to www.telematicsresearch.com, or contact Phil Magney at (952) 935-0400.