OnStar exploring sub-brand for entertainment services

Vehicle telematics company and GM subsidiary OnStar is evaluating plans to introduce an entertainment service, an effort that could be supplied via a "sub-brand" that would reflect the company's expansion beyond vehicle calling and telematics, according to Nick Pudar, OnStar's vice president of planning and business development.

Pudar declined to provide much in the way of specifics. He said the action is still in the planning stages, and that no final decision on whether to launch the effort had been made. However, he said the company's newly announced smartphone push reflects OnStar's goal to expand beyond its traditional voice calling and vehicle telematics services.

Pudar's comments largely dovetail with recent reporting by the Wall Street Journal and CNNMoney.com. According to those articles, published earlier this month, OnStar is working to expand its lineup of services, and possibly spread its activities beyond the automotive industry. Indeed, CNNMoney.com reported OnStar is working on a relaunch this year that involves a major technology push inside GM as well a partnership with a major outside technology company, according to Chris Preuss, the new chief of OnStar. Preuss declined to provide details.

An OnStar's revamp centering on entertainment could well rely heavily on partnerships with mobile content companies and wireless carriers. OnStar's existing services rely on a wireless module built into GM vehicles that allows motorists to make calls. The module is also connected to the car's innards, thereby allowing drivers to check on tire pressure and other diagnostics. (OnStar this week announced plans to develop a smartphone application for Android, BlackBerry and iPhone devices that will allow Chevy Volt owners to remotely unlock their car, monitor their vehicle's battery performance, and many other functions.)

OnStar is not alone at the intersection of smartphones and automotives. Earlier this month Nokia announced its new "Terminal Mode" standard, which the company said would allow all participating smartphones, not just Nokia smartphones, to support in-car infotainment systems. Separately, BlackBerry maker Research In Motion last month acquired QNX Software Systems. RIM's Mike Lazaridis said the move was to "further integrate and enhance the user experience between smartphones and in-vehicle audio and infotainment systems."

For more:
- see this WSJ article (sub. req.)
- see this CNNMoney.com article

Related article:
OnStar bolsters Android app for new Chevrolet Volt