GM's Onstar subscriber growth levels
GM's Onstar, which has more than 2 million subscribers, has a renewal rate of 56% after the first year. According to this Wall Street Journal story (subscription required) that is just short of the company's target of 60%.
Two years ago, GM began a big push to expand Onstar, which combines a built-in cellular phone with global-positioning equipment to connect cars to operators at a service center who can provide emergency assistance, travel information and other services. Onstar also offers features like remote door unlocking and tracking of stolen cars, as well as voice-operated phone service and Internet access. Onstar charges $16.95 a month for basic emergency service, which accounts for about 80% of its subscribers, with packages including navigation assistance and concierge services costing $34.95 and $69.95 a month.
GM has included Onstar hardware and a one-year subscription to the basic service in popular option packages on many of its models, and offers it as a standalone option on some vehicles at a cost of $695. The service also is available on some vehicles from rivals, including Toyota Motor Corp. and Honda Motor Co. Volkswagen AG will be rolling it out across many of its Volkswagen and Audi vehicles in the next year, Butler said.