With sales of General Motors’ most profitable vehicles – trucks and SUVs – way off the pace from even a year ago, the Michigan automaker is looking for other ways to generate a positive cash flow. One such option could see GM licensing its OnStar telematics system to other car makers, with GM already entering talks with ‘several automakers’.
According to Automotive News, GM is already in talks with several automakers about using the company’s OnStar system, although no specific car makers have been 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,” OnStar President Chet Huber told Automotive News.
The move wouldn’t be completely unprecedented as GM has licensed its OnStar system to Acura , Volkswagen , Subaru and Isuzu in the past, with even Lexus using a private-label version of the system. However, Toyota recently launched its own telematics system, so it’s unlikely Lexus would be on the list again.
GM doesn’t keep a separate financial book for OnStar, but Huber says its profits have “been improving year over year for a while”. The move to extend the service to other auto manufacturers seems like a smart one as it will give the struggling automaker a much needed stream of income.
