Thursday, August 17, 2006

New telematics a success in Japan - Asia Report - there are currently over 40 services available, including e-commerce and music

Although the jury is still out, early signs indicate that the latest generation of telematic services by Japan's Big 3 carmakers has been more favorably received than their predecessors.

Toyota Motor's 'G-Book,' the most comprehensive of the systems, debuted last October on the new WILL Cypha. Through December, an estimated 80 percent of 8,090 Cypha buyers had enrolled in the service.

Honda Motor's 'InterNavi Premium Club,' introduced last fall on the remodeled Accord, has had similar success with nearly 100 percent of domestic customers opting for car navigation (some 60 percent of the total) signing up.

Meanwhile Nissan Motor's CarWings,' introduced on the remodeled March last spring, is now available on the Cube, Primera, Elgrand and Fairlady Z. Nissan provided no sales results, but was encouraged by the level of interest in the service, particularly among younger drivers.

Analysts note that it is still too soon to gauge profit potential, though they also feel that Toyota, judging by the range of G-Book services, has decided such offerings will help it sell cars--if not now, in the future.

In total, there are more than 40 services ranging from music and entertainment to vehicle security and e-commerce. Half are provided for free.

Included in G-Book's basic package: online business, financial and general news, weather forecasts, sports scores, traffic advisories and incoming email messages, all read out load in synthesized voice. Tapping into "Gazoo," a related Toyota service, G-Book provides a broad listing of hotels, restaurants, golf courses and other recreational facilities, complete with reservation procedures and fees. And in the safety field, G-Book features a mayday' service that automatically alerts the G-Book center in the event of an accident or breakdown. The center, which is paid for and staffed by Toyota, then notifies the appropriate repair or emergency service.

With all these features, the main question left is whether Toyota can price G-Book at affordable levels. For the WiLL Cypha, it may have done so. However, no one believes that the $5.40 monthly fee or $55 yearly rate comes close to covering costs.

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