re: Chrysler's Bluetooth-Enabled In-Car Telematics Plans
Customers can use any wireless carrier to provide basic in-car voice services, although information and other advanced services are available via a subscription with AT&T Wireless.
>> Chrysler Telematics Boosts US market
Daniel Beaumon
Bluetooth World
Issue 6, 01 December 2001
Chrysler's plans to offer its US customers a Bluetooth-enabled in-car telematics system early next year is a huge boost for the short-range standard and will fuel demand in a market that has been reluctant to jump on the Bluetooth bandwagon.
Chrysler's offering is unique in that it is based on a user's Bluetooth-enabled handset, which links to a Bluetooth receiver in the dashboard and a microphone in the rear-view mirror to enable hands-free calling and other services. Most telematics systems on the market, including those offered by Chrysler sister company Mercades-Benz, are integrated in high-end vehicles and require a dedicated subscription and phone number. Chrysler, the US unit of Germany's DaimlerChrysler, says its customers can use any wireless carrier to provide basic in-car voice services, although information and other advanced services are available via a subscription with AT&T Wireless.
The move may well be the single most important source of US demand for Bluetooth-enabled handsets to date, particularly since up to 80 per cent of US mobile-phone calls originate from vehicles. Chrysler, which sells 2.5 million vehicles a year, says the Bluetooth service is designed for the mass market and - unlike other telematics systems - will not be restricted to high-end models or early-adopter segments, such as corporate sales forces. "By the spring of 2002, we'll see Jeeps, Dodges and Chryslers with Bluetooth systems," says David Barnas, senior manager of news relations at DaimlerChrysler USA. He adds that the Bluetooth telematics system will be available as an add-on kit in the spring, with factory-built systems a standard feature in Chrysler's new models by early 2003.
If the system works as advertised, it will be a massive boost for the US Bluetooth market, potentially raising awareness of Bluetooth while driving new handset sales. "Bluetooth Technology is becoming the de facto standard in the wireless industry," says Don Boerema, senior vice president of AT&T Wireless.
One Device, One Number
Barnas argues that the main strength of the Bluetooth system will be that it gives the driver the opportunity to use one handset and phone number in all environments (see margin). Bluetooth systems should also be cheaper and more flexible than full-service built-in solutions, although Chrysler has not detailed pricing. The group argues that the safety and convenience of hands-free calls will fully justify the combined cost of the in-car system and Bluetooth-enabled handset.
DaimlerChrysler stresses, however, that a Bluetooth-based handset solution is not the only way forward. The group's Mercedes-Benz unit has developed a built-in Tele Aid telematics system, which provides a range of safety, security and communications services. The service, launched in 1999, is included in some 24 per cent of Mercedes sold in the United States, the company says. DaimlerChrysler says it will continue selling Tele Aid in high-end vehicles.
The challenge for designers of Bluetooth in-car telematics is to deliver a system that is as safe and reliable as built-in systems and that can work with Bluetooth-enabled handsets from different manufacturers.
Markets Differ
The market for in-car telematics in the United States is undoubtedly strong. GM has sold 1.2 million cars equipped with its OnStar communications system, and Mercedes says Tele Aid sales remain strong in high-end models. But Chrysler's system is the first telematics solution for the mass market and as such could introduce Bluetooth to millions of US consumers.
Bluetooth may be slower to arrive to European telematics systems, however, partly because mobile phones are not as widely used in vehicles in Europe as in the United States, so car manufacturers feel high-end systems adequately meet demand. "The US and Europe differ greatly here," says Andreas Vill, communications officer at Mercedes-Benz Europe. "Mercedes has some of the most advanced telematics, such as the TeleAid solution, but it may take until 2003 or 2004 before Bluetooth hits the luxury-car market in Europe."
Bluetooth, by contrast, is developing more slowly in the United States than in Europe, partly because the Bluetooth standard is driven largely by European telecoms players. Europe has more Bluetooth handset users and higher consumer awareness but a less developed telematics market, whereas the US has a more mature car telematics market but relatively few handsets.
This leads to the classic chicken-and-egg market-development dilemma. Will sales of Bluetooth-enabled handsets drive demand for applications, or will applications such as in-car telematics encourage customers to upgrade their phones to Bluetooth models? Chrysler is betting on the second scenario, and it is probably right to, given the scale and importance of the US automotive market. In Europe, where mobile phones have as much brand appeal as cars, Bluetooth may well develop the other way around, with consumers upgrading handsets for various reasons and then discovering new Bluetooth applications.
In Touch With Customers
Chrysler sees its Bluetooth telematics system as a product differentiator. All things being equal, a customer may buy a Chrysler if it has better communications and sound systems than a similar low-end model. But on a deeper level, in-car telematics is also viewed by the automotive industry as a way of gathering more data about customers, to turn one-time purchases every few years into ongoing commercial relationships.
Chrysler plans "to keep in close contact with the customer long after they leave the dealership," says Barnas.
Killer Application?
Bluetooth is trickling into the market via handsets, PDAs and high-end notebook computers, a move that is in turn enabling data-oriented applications, such as file synchronisation and transfer. Using Bluetooth instead of serial and other cables is convenient and will gradually boost demand, but it is not going to motivate many consumers to race to the stores for Bluetooth devices.
Hands-free calling from the car is also an evolution of existing systems, but it is also an application area in which Bluetooth can deliver substantial convenience at reasonable cost - a classic formula for mass-market success. Telematics solutions also have the advantage of being bundled with big-ticket consumer items and so often represent a minimal incremental expense to car buyers.
Chrysler's Solution
Upon entering the car, the mobile phone will connect to the in-car system. Thereafter, the phone audio is fed to the car's sound system. "This contrasts with the current offerings, which tend to be fixed to the car and so requiring a different phone number," says David Barnas, senior manager of news relations at DaimlerChrysler USA. Drivers will be able to view an in-vehicle browser, and the Bluetooth system will be able to recognise up to five phones within a range of 30m, the company claims.
AT&T will work with Chrysler to develop wireless services, and Johnson Controls has been contracted to make the main dashboard systems. Other partners include Gentex (embedded microphone fitted behind the mirror); IBM (ViaVoice speech-recognition software for English, French and Spanish); and Intel (Xscale processors). The recent New York ban on talking on the phone while driving, and plans for similar legislation in other states, could give further impetus to hands-free systems. Chrysler is part of a joint governmental industry initiative to improve road safety.
Sig Unveils Hands-Free Profile
Chrysler is the first to offer concrete plans for Bluetooth, but other announcements are likely to follow the formal release of the Bluetooth hands-free profile. A SIG representative told PW that developers will make prototype products using version 0.95 of the profile over the next two months before the final version is formally released early next year. <<
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