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GM Promises "Star Treatment," Dumps Old OnStar Subscribers

Existing Customers Abandoned as GM Rolls Out New Ads

By James R. Hood
ConsumerAffairs.com

May 19, 2007

OnStar • OnStar Owners Bristle at Loss of Service • OnStar Goes in Pursuit of Bad Guys • Lower Insurance Rates for Some OnStar Customers • GM Promises "Star Treatment," Dumps Old OnStar Subscribers • OnStar Goes Digital, GM to Drop 500,000 Subscribers • Consumer Complaints --- • More about GM ...

As the Onstar sun sets for 500,000 loyal General Motors customers, the stars are coming out to promote the feature on GM's new-car line-up.

The odd constellation of events takes a little explaining, but you can talk til the stars go dim and it won't satisfy owners of older GM cars who are being abandoned by the switch from analog to digital transmission.

Why would a company walk away from 1/8 of its existing customers? Talking out of one side of its mouth, GM blames it on the government while on the other hand it launches a glitzy new ad campaign aimed at attracting new OnStar customers.

Although GM gives the impression that OnStar is some kind of unique Star Tech technology, in reality it works through the nation's network of cell towers in pretty much the same manner as an ordinary cell phone.

Currently, FCC rules require that cell towers support both digital and analog signals. But as of 2008, the cell towers will no longer have to support analog so OnStar is hanging up on the 500,000 of its 4 million OnStar customers who have older analog units.

Consumers with a 2003, 2004, or 2005 vehicle will need to update their OnStar system. An adapter will cost approximately $200. Those whose vehicles are a 2002 or older are simply out of luck; there is no adapter available.

Customers are blazing mad, but GM is going merrily on its way, signing the Deutsch advertising agency to put together a new OnStar ad campaign that features a galaxy of celebrities like Tiger Woods and Kelly Ripa touting the theme that having OnStar is like getting star treatment.

Star Treatment

New 30-second and 60-second spots will hit the nation's airwaves tomorrow as part of a nationwide "branding effort," ad execs say. The spots close with the tag: "Get the OnStar treatment, no matter who you are."

The automaker spent $80 million advertising OnStar last year, according to Nielsen Monitor, and is expected to exceed that figure this year. That's certain to further inflame angry GM motorists, who are already feeling they've gotten the bum's rush instead of the star treatment.

Many motorists think GM could -- and should -- offer them a free or cut-rate digital upgrade that would keep their service working. It's not as though it's free -- customers pay a monthly fee in addition to the upfront cost. The typical annual subscription costs $199.

GM, supposedly desperate to sell cars, could not even be bothered to offer a rebate on a new car for existing OnStar customers.

Those who bought a GM car because of OnStar's much-touted safety features are particularly irate.

"I shouldn't have to sell my car to get a piece of safety equipment to work," said a San Diego Pontiac owner. "if my air bag or seat belts stopped working GM would figure a way to upgrade the airbags and seat belts."

False Advertising

Barbara of Derry, New Hampshire, thinks GM is guilty of false advertising because she wasn't informed that the service had a sunset date.

"I purchased my SAAB 9-3 in the fall of 2002. At no time during the sale was I informed that within 5 years of owning the vehicle I would no longer have access to OnStar."

Unlike Tiger Woods and Kelly Ripa, many GM customers -- like Gordon of Kennett Sq., Pennsylvania -- aren't young, vigorous multi-millionaires.

Gordon, who is 91, bought an OnStar-equipped Saab in 2001 and says the safety feature enables him to drive to doctor appointments and run other essential errands.

"I may have to give up driving or curtail my visits to the doctors offices. I certainly can't afford to spend thousands for a new car. My whole lifestyle will be changed in the few years I have left," Gordon wrote.

Gordon also thinks GM knew -- or should have known -- it was selling obsolescent technology.

"I am sure that in late 2001 GM/Saab/OnStar were well aware of the analog/digital fiasco. The prospective buyer should have been informed. Silence is golden...at least for GM," he said.

Unlocking Doors

In the past, GM has put heavy emphasis on OnStar's safety features, airing dramatic commercials of the "I've fallen and I can't get up" genre -- e.g., mothers calling for help as their vehicle sinks into a lake or after it has rammed another vehicle.

The new ad campaign plays up convenience features.

In one spot, Tiger Woods rushes to his Buick and, using a cell phone, asks OnStar to open his door remotely so he can remove his Nike shirt, Advertising Age reported.

To demonstrate "On Demand Vehicle Diagnostics," Kelly Ripa, driving her Yukon Danali, discovers through OnStar that she didn't replace her gas cap. In an even sillier spot, Jimmy Kimmel calls OnStar to report his Pontiac Solstice stolen, then is embarrassed to discover that the valet is delivering it to him.

As expected, GM dealerships shrug and say there's nothing they can do -- unless, of course, you'd like to buy a new car.

Lawsuits Planned

Some soon-to-be-abandoned OnStar subscribers are suing GM because the automaker refuses to offer an upgrade for their system. Most of the suits charge the automaker knew for years that the analog network would eventually be shut down but did nothing to inform consumers of that.

"I was told that GM chose not to offer an upgrade but I was invited to purchase a new car," Don of St. Louis wrote ConsumerAffairs.com. "No discount on the car, but 2 years free of OnStar by GM."

"What a slap in the face," Don said.

In a given month OnStar receives 900 automatic airbag notifications, helps with 500 stolen vehicles, connects 15,000 emergency calls, provides 44,000 remote door unlocks, takes 25,000 roadside assistance calls, receives 5,500 good Samaritan calls, offers 32,000 remote diagnostics and facilitates 12.6 million hands-free calls.

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