<<In addition, Dilts said, DaimlerChrysler would introduce in-vehicle communications and remote safety equipment -- known within the automotive industry as telematics -- in its vehicles in 2002 or 2003........
....Dilts said automakers would have to offer telematics to compete. But he questioned whether they would provide a new source of revenues, or become a service that customers come to expect for free as part of the vehicle package.
``Whether you give it away for free or it makes money, we think it's something you've got to have,'' he said. >>
Friday August 11, 12:51 pm Eastern Time
DaimlerChrysler sees FastCar cutting millions in costs
By Michael Ellis
TRAVERSE CITY, Mich., Aug 11 (Reuters) - DaimlerChrysler AG (NYSE:DCX - news) expects its new FastCar Internet-based product development system to save $200 million to $400 million for each new vehicle under development, officials said on Friday.
Gary Dilts, head of the automaker's e-commerce efforts, said industry consultants expected FastCar to save around 20 percent of the research and development costs for each new vehicle, which could total as much $1 billion to $2 billion.
DaimlerChrysler announced FastCar on Wednesday. The Internet-based product development system is expected to connect and streamline the whole process from design to sales. That will increase the speed and efficiency of the product development cycle and cut waste.
Dilts said the first use of FastCar would begin in October in the development of Chrysler's new large cars. FastCar would be quickly implemented across the North American brands -- Chrysler, Dodge and Jeep -- and could be used by Mercedes in the future, he told Reuters following a speech at a University of Michigan automotive conference.
FastCar would allow all involved in the product design process to communicate changes to the programme instantaneously rather than wait as long as three months.
In addition, Dilts said, DaimlerChrysler would introduce in-vehicle communications and remote safety equipment -- known within the automotive industry as telematics -- in its vehicles in 2002 or 2003.
DaimlerChrysler has been lagging behind General Motors Corp. (NYSE:GM - news) and Ford Motor Co. (NYSE:F - news) in developing telematics applications for vehicles.
GM expects its OnStar service to have more than 1 million subscribers by the end of the year.
Ford announced about two weeks ago an alliance with Qualcomm Inc. (NasdaqNM:QCOM - news) to form Wingcast, a new company that will put Internet, entertainment, safety and information services in Ford vehicles beginning in late 2001.
Dilts said automakers would have to offer telematics to compete. But he questioned whether they would provide a new source of revenues, or become a service that customers come to expect for free as part of the vehicle package.
``Whether you give it away for free or it makes money, we think it's something you've got to have,'' he said.
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