Telematics and “Connected Vehicles”.pptVIP

GM CONFIDENTIAL mP2P Consumer Telematics Strategy ? 2003 -- GM CONFIDENTIAL Telematics and “Connected Vehicles” Mike Peterson (LFM ’94) Strategy Planning Manager OnStar michael.l.peterson@ Telematics and Connected Vehicles Definition of Telematics Drivers Infrastructure Current Future Offerings Challenges Opportunities Definition of Telematics and “Connected Vehicle” A two-way connection to and from a vehicle for data and information transfer Telematics is typically not: Onboard autonomous navigation systems AM/FM radio A telematics system consists of: Vehicle (cell phone, GPS, vehicle data) Wireless interface Back-office systems Potential Components of a Telematics System Markets for Telematics Vehicle types Personal vehicles: cars, trucks Boats, motorcycles Work vehicles: mail trucks, semis, Border Patrol, Coast Guard, ambulances Vehicle owners Personal Fleets Military Value Propositions for Telematics To consumers Safety security Time savings (navigation) Increased productivity (in vehicle) To fleet provider Optimization of assets (asset tracking, performance monitoring) To business Additional data from vehicles (warranty, usage) Increased vehicle sales (or “price of survival”) To government Improved infrastructure management (traffic, tolls) There is a significant market opportunity for telematics, if done right. Wireless use is growing US wireless industry is $80B (WSJ 7/28/03) 30 M US households will employ data networks by end of 2007 (Park Associates) Intel’s Otellini predicts that 1.5 B PC’s will have wired or wireless broadband connections by 2010 Cable broadband services posting operating profits of ~60% (CIBC) Consumers want to be more productive Consumers pay $15-100/mth for cell phones internet service providers Average US citizen spends 541 hrs/yr driving in vehicles (1.5 hrs/day) (NTPS) 97 M people in the US spend at least 37 minutes commuting in their car every day. Automotive industry is highly competitive; features and services which