Monday, January 31, 2005

2 GM safety features will be standard

Most vehicles will include OnStar and electronic stability control by 2010.

By Ed Garsten / The Detroit News

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General Motors Corp. is betting hundreds of millions of dollars that safety will sell by making two safety features standard equipment on all models by the end of the decade.

Electronic stability control, marketed as the StabiliTrak Control System, is already standard on many GM full-size and midsize sport utility vehicles. It will become standard on all SUVs and vans by 2007 and become available on all GM vehicles by 2008. By 2010, the automaker will make electronic stability control standard on all models except some commercial vehicles.

The automaker also plans to equip all vehicles sold in the United States and Canada with its OnStar safety and security service by 2007, and will immediately make OnStar standard equipment on midsize and full-size SUVs.

"This is a significant move on our part to not just talk about safety, but put real hardware in the vehicles," said Mark LaNeve, vice president of GM North America sales and advertising.

Electronic stability control assists drivers in critical driving situations by applying brakes to individual wheels when instability is detected. New research shows it helps prevent crashes and save lives.

A recent study by the National Highway Traffic Safety Administration concluded the device reduced single-vehicle crashes in passenger cars by 35 percent, and single-vehicle crashes in SUVs by 67 percent. Another study by the Insurance Institute for Highway Safety found it reduced the risk of fatal passenger vehicle crashes by 34 percent.

Federal auto regulators are encouraging automakers to make the equipment standard to reverse the recent rise in injuries and deaths caused by rollovers, primarily involving SUVs. As a service to consumers, NHTSA now assigns ratings that indicate the propensity of individual SUV models to roll over.

The added safety features won't boost prices, LaNeve said, because GM hopes to enhance the value of vehicles for consumers.

The wider availability of OnStar is expected to boost the service's subscribers from about 3 million now to 4.5 million to 5 million, said Tony DiSalle, OnStar vice president of sales, service and marketing. The service is free for one year after purchase and GM says more than 60 percent of consumers renew after the complimentary period expires.

GM will also add additional OnStar call centers as the service's subscriber base grows.

LaNeve said GM is investing "hundreds of millions" of dollars in the safety rollout.

It may be a good bet, says one industry analyst.

"Safety is a very potent sales tool," said Erich Merkle, an analyst with IRN Corp. in Grand Rapids. "GM sees where the market is heading."