E-Cruising Hits Rental Road

<B>E-Cruising Hits Rental Road</B>

By Lynn Woods

Corporate travelers by 2001 likely will be able to rent cars with Internet access and make hands-free cellular phone calls simply by speaking to the vehicle. General Motors is running tests of new Internet-access enhancements of OnStar, its in-vehicle road emergency and concierge service, with the major car rental companies, said OnStar spokesman Todd Carstensen.

The electronic enhancements, announced in mid-January by the auto manufacturer, consist of hands-free cellular phone service and "Virtual Advisor," which would allow drivers to receive stock market quotes, weather forecasts and other information, along with e-mail messages, after preselection through a "My OnStar Web page." (Initially, users only would be able to receive e-mail.)

These services would be activated through new OnStar devices currently being installed on 2001 models of Tahoes and other large GM SUVs available later this year. They will rely solely on voice recognition, so drivers don't have to take their eyes off the road. Positioned on the overhead console, rearview mirror or instrument panel of the car, the three-button OnStar device enables drivers to receive information and communicate through a microphone and the car's radio speakers.

OnStar, which has been installed on 29 GM models since its introduction on Cadillacs in 1996 and has more than 200,000 subscribers, currently is linked only to the GM remote service center. The enhanced version, expected to be available in more than 4 million vehicles within the next three years, would give subscribers optional access to the cell phone service or "Virtual Advisor" for additional monthly fees. Prices have not yet been determined, although Carstensen said the re-sold wireless phone service, offered in cooperation with Bell Atlantic Mobile and GTE Wireless, will be competitively priced because corporate customers won't have to pay access fees.

<B>$10 Billion In 10 Years</B>

General Motors predicted that annual revenues from the new services will reach $10 billion in a decade. If successful, OnStar could make the car manufacturer the largest reseller of cellular phone services.

Although a GM spokesperson declined to name which car rental companies are involved in the test, one of the firms is most certainly Avis, which is the only car rental company that currently offers OnStar. Available in 850 Cadillac Escalades at an extra cost of $6.95 a day, OnStar uses GPS and cellular technology to instantly connect renters to a central call center in the event of an accident or breakdown. Representatives at the center immediately can locate the car and dispatch assistance.

The service also enables GM staff to remotely diagnose a mechanical problem when the "check engine" light goes on in a vehicle, as well as remotely unlock doors, track stolen vehicles, provide route-mapping directions, and provide information on nearby restaurants, hotels, airports and other attractions.

Meanwhile, Avis, in partnership with GoAmerica, a wireless Internet service and content provider, has announced a new service that enables customers to obtain and confirm the status of current reservations through their PalmPilots, Windows CE handheld computers or other personal wireless device.

Registered subscribers access Avis's Web site through the Go.Web service with an identification name and password. The service should be available by the middle of this year, said an Avis spokesperson.

In a two-month pilot, Avis also has installed kiosks at Newark International and a handful of other airports this month enabling rental car customers to check their e-mail, get stock quotes, and access other information through the Internet.

<B>No Net Yet For Hertz Or Budget</B>

Neither industry leader Hertz nor Budget Rent a Car have any plans to offer in-car Internet services in the near future, said company spokespeople. However, it's likely that such enhancements will become available in the next couple of years since Ford Motor Co., which is the main supplier of cars for both companies, has plans to develop a host of new in-car technologies. They include voice-activated e-mail and news retrieval, hands-free cellular phone, remote pager systems and satellite radio.

Ford's counterpart of OnStar, called Vehicle Emergency Messaging System, is an option on Lincoln Continentals, but it will become a standard feature on selected Lincolns beginning next year, said a Ford spokesperson.

Meanwhile, Hertz has introduced Ford luxury "conversion" vans in eight cities, mainly in the Sunbelt. The vans feature leather seating for seven and a "sport top roof," and are equipped with a color television with videocassette player, and AM/FM stereo with compact disc player. The vans will be available this spring in 12 additional cities, including Atlanta, Boston, Charlotte, N.C., Hartford, Conn., Houston and San Francisco. Spokeswoman Lauren Garvey said the company expects luxury minivans to be popular among corporate meeting planners.

Hertz also expects to finish its installation of the multilingual, upgraded version of NeverLost, its GPS navigational system, on 50,000 cars by year-end. Hertz has been the only U.S. car rental company to commit to a mass installation of an in-car navigation system.