In-Car Assistance Packages Popular

In-car 'Personal Assistance Services' (PAS), which put drivers in direct two-way contact with call centre operatives who can pinpoint a vehicle's exact location and send help or provide support, show major potential for growth according to the latest from J.D. Power and Associates.

Approximately 10 per cent of new vehicles sold in the United States in the past year were equipped with some type of PAS system, and a comfortable majority (63%) of those purchasing vehicles equipped with the system in the last 3 years have opted to renew. Meanwhile, based on feedback from new-vehicle buyers, one-third of consumers are interested in having a PAS system on their new vehicle, adding up to a very substantial market potential.

In addition to contact with the call centre, PAS systems typically offer a mayday feature that sends help when the vehicle is in an accident and an airbag deploys. Other service options often include mobile phone services, concierge services, remote door unlocking and the ability to locate the vehicle if it is stolen.

The three major providers of PAS systems to automotive manufacturers at present are OnStar, used GM, Acura, Audi, Lexus and Saab; ATX, used by BMW, Mercedes-Benz and Lincoln; and Cross Country, used by Volvo.

In most cases PAS services are free for the first year, after which time owners must pay a subscription fee if they elect to continue the service.

'While the majority of PAS systems are found in luxury vehicles, they have recently become available in mainstream vehicles as well,' said Frank Forkin, partner at J.D. Power and Associates. Forkin expects a drop in prices for PAS soon, to attract owners of non-luxury vehicles.

Safety and security benefits are the main reasons given for renewal, with a sizeable outside vote (c.20 percent of owners) who rely on the hands-free mobile phone services included. With the exception of the last usage, most owners report using their PAS system an average of less than once a month.

Price-sensitivity is evident from the fact that when the price jumps to $45 a month (the average price of premium subscription packages) only 13 percent of owners renew.

The 2003 Personal Assistance Services Report was released last week and is based on responses from more than 1,300 consumers who purchased a new vehicle in the United States in the past three years. J.D.Power & Associates' Web site is at www.jdpower.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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