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Insurance industry

AAA Enters Wireless Driver Aid Service Market, Challenges OnStar

Strategic Insights

— 1 min read

AAA is set to launch its own wireless driver aid service, dubbed Response Services Center, which will offer services such as route guidance, vehicle tracking, and emergency alerting. This move marks the first attempt by a non-automaker to offer such services independently in the United States. AAA's service will be tested in up to six markets early next year and will include features similar to those offered by General Motors' OnStar.

Key Takeaways:

  • AAA's Response Services Center will offer subscribers instant access to operators for route guidance, vehicle tracking, and emergency services.
  • The service will be tested in up to six markets early next year and will be made available to subscribers in the form of a package.
  • AAA plans to add additional services such as Internet connectivity and remote vehicle diagnostics to the package in the future.
  • This marks the first attempt by a non-automaker to offer such services independently in the United States.
  • Several companies in Europe, including Germany's Mannesmann AG and Deutsche Telekom, have formed joint ventures with automakers to offer similar services.
  • Marshall Doney, vice president of AAA services, is negotiating a deal with a national aftermarket electronics chain to be the installer of the device.
  • AAA's Response Services Center will offer a direct challenge to General Motors' OnStar.

Statistics:

  • 6 markets will be tested for AAA's Response Services Center early next year.
  • Customers are willing to pay a premium of about $3,000 for cleaner emissions and greater gas mileage achieved with hybrid technology, according to Ford research.
  • The two-seat Honda Insight sold 187 units in March of last year.
  • Ford plans to offer its first hybrid-electric engine in a mass-market vehicle, the Escape, in 2003.
  • Mazda's Tribute will be sold in the US market and will slide between the Honda CR-V and the Nissan Xterra.

Sources:

  • "AAA to Develop Own Wireless Driver Aid Service, Challenge to OnStar," USA Today
  • "Ford Plans to Offer Hybrid-Electric Engine in Mass-Market Vehicle," Automotive News
  • "Mazda Unveils Tribute Compact SUV for US Market," Automotive News
  • "Ford Ups Incentives for Spring Quarter," Automotive News
  • "Chrysler Increases Incentives on Minivans," Automotive News

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