Hughes Telematics has won the contract to supply telematics for Mercedes-Benz cars and light trucks in North America beginning in November 2009.
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According to WardsAuto.com, Hughes will replace ATX Group, which has supplied the Mercedes telematics system, branded as Tele Aid, for almost 10 years. Mercedes was one of the first auto makers to offer telematics services beginning in 1998.
Hughes announced earlier it would be the telematics service provider for Chrysler models beginning in 2009, as well, the report added.
According to WardsAuto.com, the most popular features of telematics systems at present are simple safety and security features, such as remotely unlocking car doors or notifying emergency personnel when an airbag deploys. But suppliers currently offer or are developing a broader menu of features expected to prompt future consumer demand, including the ability to remotely monitor maintenance items such as tyre pressure and fluid levels or to track a teenager’s driving habits.
WardsAuto noted that the new systems with more features and functionality will soon force long-term telematics customers of all automakers in the US to make upgrades.
Suppliers such as ATX and General Motors’ OnStar, which provide most systems in the US, have been informing their most loyal customers – those who have continued service on 2003 and older models – that their analogue-based systems will be cut off from 1 January, the report said.
OnStar customers will have to buy a new vehicle to continue service, which now is completely digital, WardsAuto.com said. Mercedes customers are being offered a digital package that costs as much as $US1,500 to upgrade systems on their current vehicles.
The report said the service cut-off was due to a Federal Communications Commission ruling that allows wireless communications providers to cease analogue network service at that time.
WardsAuto.com said GM’s OnStar subsidiary currently dominates the automotive telematics marketplace in North America, with about 5m subscribers but rivals of all sizes are entering the market as special electronics features become more popular with drivers there.
with its Tele Aid, the report said.
