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Is OnStar service impacted by GM bankruptcy?

Consumer Reports News: June 08, 2009 05:08 AM

OnStar, a wholly owned subsidiary of General Motors, says users should not be concerned about their service being affected by the GM bankruptcy.

The telematics system is offered on most new GM vehicles, and it provides subscribers with a variety of emergency and convenience services ranging from emergency assistance after a crash to driving directions.

In a prepared statement sent to Consumer Reports, the company said, "OnStar has taken the necessary steps to prepare for this event and has made plans to ensure our ability to continue to provide service to our more than 5.5 million subscribers. We will remain accessible to our subscribers 24 hours per day, seven days a week with no planned service interruptions or changes. The full range of services should remain available, and subscribers should not notice any changes."

A company representative said the while declining sales of GM vehicles have had an impact on the number of new subscribers signing up, OnStar continues to be profitable, and has been since 2004.

Jim Travers


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