is slashing the price of its OnStar FMV aftermarket telematics product that hit the retail market last year to $99.99, as part of a holiday promotion it hopes will put more of the high-tech rearview mirrors in U.S. vehicles.
The $200-discount scheme keeps with OnStar’s evolving business plan by taking a page from the playbook of the telecommunications industry, where manufacturers and service providers discount relatively inexpensive hardware to sell service subscriptions.
OnStar’s deluxe Direction and Connections feature adds another $299 per year. Service plans are available for as low as $199. OnStar will waive the $75 installation fee.
“OnStar FMV is an incredibly valuable option for any type of driver, and we want to make it even more affordable,” Terry Inch, president-sales, marketing and business development at OnStar, says in a statement.
“With this promotion, you can get OnStar FMV and our premium service for less than the cost of a cup of coffee a day.”
The promotion coincides with the Mother’s Day and Father’s Day holidays, as well as graduation season.
OnStar FMV, or For My Vehicle, has posted about 30,000 sales since GM started offering it last year through big-box retailers such as Best Buy. OnStar saysowners comprise 15.6% of FMV buyers, with buyers second at 12.3%.
The unit can be installed in just about any vehicle manufactured in the last 20 years and provides owners with same safety and security services owners of GM-brand vehicle can access, also for a fee.
OnStar services include automatic crash notification and hands-free calling.
GM offered OnStar’s service exclusively to owners of its vehicles until FMV launched in July as part of an effort to grow the telematics unit into a service provider. The plan included hiring executives from the telecommunications industry to lead the push.