ATX, Mercedes-Benz to Seek Separate Paths into Telematics Future
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DALLAS-FORT WORTH - December 3, 2007: ATX Group, the world's largest independent, international telematics services provider to the automotive industry, announced today that its nearly decade-old relationship in telematics with Mercedes-Benz in North America will conclude for new subscribers in November 2009.
ATX will provide service to all new, telematics-equipped Mercedes-Benz vehicles for the next two years and will continue to provide ongoing service to all Mercedes-Benz subscribers active as of November 2009.
Over the next five years ATX will continue to experience growth, projecting an annual compounded growth rate of over 30%. ATX also announced earlier in 2007 its extension of services to other mobile devices, such as personal navigation devices and cell phones, designed to serve the automobile after-market and other mobile market segments. ATX also is embarking on an aggressive expansion of services in the European and Asian markets.
"We take great pride in the significant achievements our relationship with Mercedes-Benz USA has produced, particularly in the area of customer satisfaction and loyalty, where we've consistently led the industry in terms of customer renewals of telematics service," said ATX President and CEO Steve Millstein. Millstein noted that a key to that success had been the seamless integration between ATX's systems and Response Center personnel with the Mercedes-Benz roadside assistance program and Mercedes-Benz's Customer Care Center.
The ATX and Mercedes-Benz relationship began in 1999 when the Mercedes- Benz Tele Aid program became standard on all Model Year 2000 S Class vehicles sold in the U.S., and within a year became standard on almost all other Mercedes-Benz models. Since that introduction, ATX has teamed with Mercedes- Benz to drive the introduction of many technological advances and innovative services:
* Web-based in-car information service (2000);
* the integration with telematics of in-vehicle speech recognition
technology (2000);
* the integration of telematics and customer relationship management
processes (2000);
* nation-wide deployment of location-based, real-time traffic reporting
(2001);
* direct telematics connection between vehicles and dealerships (2003);
* the first interactive voice-response owner's manual (2005) and
subsequent applications involving maintenance reminders (2007);
* in-vehicle capability to download Web-based, North American digital map
information (2007).
"We strongly believe that telematics services delivered into the vehicle should be customized to reflect an extension of the automaker's brand experience and to serve the unique needs of the vehicle owner," said Millstein. "We've learned a lot from the thousands of daily interactions we've had for nearly a decade while serving Mercedes-Benz customers. That experience has prepared us well as the market for mobile connectivity expands."
"Mercedes-Benz and ATX have simply chosen to move in different directions with different strategies in the telematics markets, each believing that their strategy best serves its own markets. That doesn't mean our interests won't converge in other markets or at some point in the future," Millstein continued. "We are extremely grateful to Mercedes-Benz for trusting us with their customers."
ABOUT ATX
Based in Dallas-Fort Worth, Texas, and Dusseldorf, Germany,
ATX Group is the world's largest provider of personalized telematics
services to the automotive industry, serving both North America and Europe.
ATX telematics services are designed to provide enhanced safety, security
and driving convenience to vehicle owners. These services include
location-specific emergency and roadside assistance, automatic collision
notification, stolen vehicle recovery, remote diagnostics and real-time
traffic and navigation assistance. ATX also customizes telematics services
to help automobile manufacturers and their affiliated dealerships to use
telematics data to reduce costs, enhance vehicle servicing, and more
closely manage customer relationships. ATX services are provided to
vehicle owners through the brand names of its customers -- Mercedes-Benz,
BMW, PSA Peugeot Citroen, Maybach, and Rolls-Royce Motor Cars. For more
information, visit www.atxg.com.