Hyundai's Blue Link Targets GM's OnStar on Price
By Paul Seredynski January 6, 2011
Hyundai introduced its new Blue Link telematics system Wednesday at the Consumer Electronics Show (CES) in Las Vegas. Blue Link offers features similar General Motors' OnStar but will undercut it on price.
Blue Link is Hyundai's first foray into the connected vehicle realm, a segment of services including automated crash response pioneered by OnStar.
No pricing was announced, but Hyundai is expected to undercut OnStar's current service fees, which begin at $199 a year. Sonata and Veloster offer Blue Link first.
On Sonata, Veloster
Blue Link will appear first on the 2012 Hyundai Sonata this spring and on the upcoming Hyundai Veloster this summer. The service will eventually permeate the entire Hyundai lineup, with most models offering it for the 2013 model year.
Hyundai's system will be offered initially in three tiers:
- Blue Link Assurance, the least expensive, focuses on safety services such as automatic crash notification;
- the mid-level Blue Link Essentials adds convenience features such as remote unlock, remote start and stolen vehicle slowdown;
- the top-tier Blue Link Guidance adds a number of navigation-based features as well as restaurant ratings and gas price search. Unlike OnStar, Blue Link will rely more on automated voice control, as opposed to live operators.
Simplicity, Safety, Security
"Simplicity is number one," explained Michael Deitz, Hyundai's national manager, Connected Car, noting that the majority of requests will be easily handled via the advanced voice-recognition software developed with Nuance.
"Overall it's about safety, security and infotainment combined. Services such as the voice texting... that depends on who you ask whether that's a safety feature or is more of an infotainment feature," Deitz added.
"We think we've hit a sweet spot," said Barry Ratzlaff, director of Service Operations for Hyundai Motor America, noting the system offers live operators or the option of using the system without talking to a person.
"In the case of the safety services -- automatic collision notifications and such- - it's necessary, useful and helpful to have a live operator, because those situations are so diverse, it really takes human capability to understand how to best help the situation -- to provide empathy in a time of crisis," he said.
Live operators will be available via the rearview mirror mounted Blue Link button, and the call-center backbone for the new service was developed with ATX, which provides similar telematics systems for BMW and Toyota.
"A key part of our technology here is that the services don't all depend on a live operator, which reduces cost," Ratzlaff added.
Only hours before the Hyundai Blue Link event, OnStar announced it was entering the aftermarket with its services for multiple cars brands and models, likely an effort to leverage its large call-center investment.
Asked how Blue Link will help Hyundai's bottom line, Ratzlaff offered, "It helps with our technology image, it's a base for building loyalty, and it's base for driving service business back into the dealerships. On top of that, we've got subscription revenue that we'll generate from the services. It's not just one, and that's the powerful point, this helps on many fronts."
Added Deitz: "We want to give them an experience that's not just about a mechanical device. This is about an emotional connection, and we really want to drive that connection between the car and owner."
Paul Seredynski is covering the 2011 Consumer Electronics Show in Las Vegas this week.
Photos by Hyundai
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