Business Case Studies & Business Publications

General Motors OnStar

Farris, Paul W., P...

Case

General Motors OnStar

Farris, Paul W.; Pfeifer, Phillip E.; Johnson, Richard R.; McCormack, William

M-0659 | Published January 9, 2002 | 8 pages Case

Collection: Darden School of Business

Product Details

In the drive to create the wired automobile, General Motors developed the OnStar system, a subscription-based wireless dashboard communication service that provided numerous safety and convenience features including emergency assistance, remote door unlocking, and making hotel reservations. GM was faced with several key questions regarding its market-leading telematics system. Should it syndicate OnStar, or was it of more value to the company as an exclusive feature? Should the OnStar division be spun off? Would telematics devices become standard for all vehicles, and if so, how would this affect decision making regarding OnStar? A teaching note is available to registered faculty, along with a video supplement to enhance student learning.