General Motors has made its $1,500 OnStar subscription service mandatory on all Buick and GMC models.
As of early June, all Buick and GMC models sold in the United States have been equipped with the three-year OnStar and Connected Services Premium Plan as standard. The $1,500 system has been included in the manufacturer’s suggested retail price and provides buyers will complete access to the service.
“By including this plan as standard equipment on the vehicle, it helps to provide a more seamless onboarding experience and more customer value,” GM spokesperson Kelly Cusinato told The Detroit News.
While customers are not forced into activating the OnStar service, they will not be offered a price reduction if they choose not to use it.
Auto News says that dealerships will activate the service during the delivery process. Existing GM owners can subscribe to the OnStar and Connected Services Premium Plan for $49.99 a month.
Customers will be asked to re-subscribe to the service at the end of the initial three-year plan. These subscriptions will not be renewed automatically.
Cusinato noted that GM intends to “offer more services that we know will be important to the ownership experience and will add more value,” adding that the automaker is “continuing to work with dealers and update all sales materials about the new Premium Plan so it is easier to understand.”
General Motors believes that revenue from software and services could reach as much as $25 billion by 2030 and OnStar will be an important part of this. GM’s research indicates that customers subscribed to 25 products and services will spend $135 per month on them. OnStar Insurance could also add $6 billion in annual revenue to GM by the end of the decade.