Automotive News - July 28, 2008 - (Page 16) 16 • JULY 28, 2008 ADVERTISING STAFF Challenges travel with OnStar to China Alysha Webb awebb@crain.com OnStar: En route to China but not without overcoming some challenges CHALLENGE SOLUTION SHANGHAI — Imagine a driver from Guangzhou has an accident. He calls OnStar, but the Mandarinspeaking OnStar staffer doesn’t understand Cantonese, the dialect spoken in Guangzhou. “You can’t plan and design a system to cover 1,000 different dialects,” says Jonathan Hyde, director of telematics for GM China Group. GM assumes that most car buyers will speak Mandarin, the dialect taught in China’s schools. Hundreds of local dialects are just one challenge General Motors faces as it prepares to launch OnStar in China. But the chance to be the first to offer such services in the world’s fastestgrowing automotive market trumps any trepidation Hyde might feel. “It’s fun,” he says of his job. “This Hundreds of different dialects Consumers don’t understand OnStar features/benefits Constantly changing roads Use only Mandarin, the dialect taught in school Massive education campaign for users and employees Use local mapping company Education about OnStar is one of his biggest challenges. GM must teach not only China’s drivers but OnStar employees and GM dealers about services it provides. The services include notifying emergency assistance after a crash, navigational assistance and car diagnostics. No similar service exists in China. Furthermore, a majority of Chinese car owners are first-time drivers. The fast pace of China’s development is another challenge. Roads in China appear seemingly overnight; old buildings, and even not-so-old buildings, are torn down. New structures pop up immediately. OnStar is using a local company to create and maintain the mapping system. “We averaged about 70 units a month in 2007! In 2008 we are averaging 150 plus vehicles! Yes, even in this market!” Amarillo, Texas is all a huge opportunity.” Late last year, GM created Shanghai OnStar Telematics Co. The company is a joint venture involving Shanghai Automotive Industry Corp., GM, and Shanghai Automotive Industry Sales Co. SAIC and GM own 40 percent each; the sales company owns the remaining 20 percent. Total investment is $46 million. Hyde must adapt the technology to Chinese needs. GM plans to launch the service in China in 2009. Hyde is living in China for the first time. The Canadian joined OnStar in the United States in 1995. He admits to being “a little naive” at first about the challenges of launching OnStar in China. But he’s learning fast. “We launch and we adapt,” he says. Not everything about establishing OnStar in China is difficult. China’s government jurisdictions are much less complicated than in the United States, Hyde says. The basic emergency response systems are in place. OnStar has made the most progress in Qingdao, a city in northeast China. Qingdao, with about 4.5 million residents, is considered a medium-sized city by Chinese standards. GM has a plant nearby, and its local partner has good relations with the government, Hyde says. China’s car market may be growing at a double-digit rate, but only about 25 million cars are on the road. So OnStar will have only one call center in China at first. It has two call centers in the United States and one in Canada. In North America, OnStar has more than 5 million subscribers. The inclusion of OnStar will be possible on all of the models produced at Shanghai General Motors Corp. starting in 2009. Shanghai GM has not decided whether OnStar will be standard or optional, says Ding Lei, Shanghai GM’s president. 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Table of Contents Feed for the Digital Edition of Automotive News - July 28, 2008 Automotive News - July 28, 2008 A scared-stiff industry stomps on the brakes No-lease edict stuns Chrysler dealers Hummer: Bonuses, buyouts Amid the gloom, Mercury celebrates Ford banks on Mulally's small-car plan PACE awards open for innovative suppliers GM expands employee discount plan through July American Axle blames strike for big quarterly loss Mercedes expects U.S. sales to fall; B class may come in 2011 Chevy plans new U.S. subcompact by '11 GM or Reynolds? Dealers must decide now Ralph Kisiel Ghosn: It's wrong time for a new partner GM geniuses turned their auto dreams into realities Dealers fresh out of Mini Coopers Chrysler, Ford, Honda top NAACP report card GM alters bonus for dealers who outperform their region Automakers angle for Chrysler's idle engine plant Chrysler revokes franchises in Pa. Sonic-Mercedes case could allow big dealers to add stores Buick's new LaCrosse It's still true: Product is king Still a bad idea NHTSA's Nason is leaving some big jobs undone Don't advertise them until they're on sale Safety matters much more than mpg Chrysler's no 'fuel economy laggard' $4 gas won't turn the U.S. into Europe For Europeans, America still spells opportunity Challenges travel with OnStar to China Personnel Mexico sales rise 1.2% in June Picture this Europe's worst sales result? Toyota Kia spends big to launch Borrego Kia launches Borrego just as SUVs lose favor Detroit 3: Goodbye, bailouts Dealers Eaton: Supercharger sales will grow Fla. appeals panel overturns class status in Kia brake suit Audi certified push pays off Used-car rule goes to the shop for tuneup Big-truck prices take a tumble in June Automaker tax break piggybacks on mortgage bill Honda rides high in 2nd-quarter rankings Ford Credit takes a hit as truck values fall 100 years of the Tin Lizzie Lamborghini profit soars AutoNation net income falls GM names CFO for N.A. TI Automotive unit will move Mercedes to cut Ala. production Fleming was a consummate newspaperman Toyota plans to raise Prius output A dart for Smart Tesla gets good reviews at Bentley 422 hp — and, uh, easy at the pump Ford's 2nd qtr: The reddest ink ever Bill Gates joins the car-dealer club Detroit 3 should put Mini under the microscope What's a Gov. to drive? Automotive News - July 28, 2008 Automotive News - July 28, 2008 - Hummer: Bonuses, buyouts (Page 1) Automotive News - July 28, 2008 - Hummer: Bonuses, buyouts (Page 2) Automotive News - July 28, 2008 - American Axle blames strike for big quarterly loss (Page 3) Automotive News - July 28, 2008 - GM or Reynolds? Dealers must decide now Ralph Kisiel (Page 4) Automotive News - July 28, 2008 - GM or Reynolds? Dealers must decide now Ralph Kisiel (Page 5) Automotive News - July 28, 2008 - GM alters bonus for dealers who outperform their region (Page 6) Automotive News - July 28, 2008 - GM alters bonus for dealers who outperform their region (Page 7) Automotive News - July 28, 2008 - Buick's new LaCrosse (Page 8) Automotive News - July 28, 2008 - Buick's new LaCrosse (Page 9) Automotive News - July 28, 2008 - Buick's new LaCrosse (Page 10) Automotive News - July 28, 2008 - Buick's new LaCrosse (Page 11) Automotive News - July 28, 2008 - Chrysler's no 'fuel economy laggard' (Page 12) Automotive News - July 28, 2008 - Chrysler's no 'fuel economy laggard' (Page 13) Automotive News - July 28, 2008 - For Europeans, America still spells opportunity (Page 14) Automotive News - July 28, 2008 - For Europeans, America still spells opportunity (Page 15) Automotive News - July 28, 2008 - Personnel (Page 16) Automotive News - July 28, 2008 - Personnel (Page 17) Automotive News - July 28, 2008 - Picture this (Page 18) Automotive News - July 28, 2008 - Picture this (Page 19) Automotive News - July 28, 2008 - Europe's worst sales result? Toyota (Page 20) Automotive News - July 28, 2008 - Europe's worst sales result? Toyota (Page 21) Automotive News - July 28, 2008 - Detroit 3: Goodbye, bailouts (Page 22) Automotive News - July 28, 2008 - Dealers (Page 23) Automotive News - July 28, 2008 - Fla. appeals panel overturns class status in Kia brake suit (Page 24) Automotive News - July 28, 2008 - Fla. appeals panel overturns class status in Kia brake suit (Page 25) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 26) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 27) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 28) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 29) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 30) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 31) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 32) Automotive News - July 28, 2008 - Honda rides high in 2nd-quarter rankings (Page 33) Automotive News - July 28, 2008 - 100 years of the Tin Lizzie (Page 34) Automotive News - July 28, 2008 - Mercedes to cut Ala. production (Page 35) Automotive News - July 28, 2008 - Toyota plans to raise Prius output (Page 36) Automotive News - July 28, 2008 - Toyota plans to raise Prius output (Page 37) Automotive News - July 28, 2008 - What's a Gov. to drive? (Page 38) Automotive News - July 28, 2008 - What's a Gov. to drive? (Page 39) Automotive News - July 28, 2008 - What's a Gov. to drive? (Page 40) Automotive News - July 28, 2008 - What's a Gov. to drive? (Page 41) Automotive News - July 28, 2008 - What's a Gov. to drive? (Page 42)
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