DETROIT (Dow Jones)--General Motors Corp.'s (GM) Onstar unit expects no
interruption in its in-car-Internet service, despite the announcement Wednesday
that a company that provided it is ceasing operations, a spokesman said.
Onstar spokesman Terry Sullivan said GM owns the computer code for the Virtual
Advisor service and will shift it to Electronic Data Systems Corp. (EDS), its
main information-technology vendor.
"We see no impact on our delivery of this service," he said.
The software was developed and operated by General Magic Inc. (GMGC), which
announced Wednesday that it is ceasing operations because it couldn't raise
additional financing.
Sullivan said GM expects to write off the value of its $15 million investment
in General Magic, made when the companies first allied in 1999.
"We believe we have received very good value for the investment," Sullivan
said, pointing to the experience GM has gained in developing and marketing the
service.
GM announced plans for the Internet service, delivered by voice link to many
of its cars, at the height of the Internet boom. Demand for the service has been
limited, however, with most users interested in traffic and weather updates. GM
charges uses for the cellular airtime used to access the service. Sullivan
declined to comment on how many users the service has.
- Gregory White, The Wall Street Journal
(END) DOW JONES NEWS 09-18-02
05:31 PM- - 05 31 PM EDT 09-18-02 |
