According to ABI Research, more than 30 million new cars will ship with onboard telematics units worldwide by 2013.

General Motors is leading the way in turning telematics and onboard diagnostic data into actual service leads through its new GM OneSource Pipe, a lead generation service that provides sales leads from OnStar, GM's corporate Web sites and the DealerPulse Pro customer retention system. Other OEMs are also exploring the potential for telematics-based services.

The ASA recently published a report, Telematics: Past, Present and Future, that outlines the challenges and opportunities that telematics systems will present to the aftermarket.

"Although the total dealership network may be too small to handle the total number of potential customers, OEMs have the capability to use telematics to potentially bring more customers to the dealership or dealer satellite service facilities," the report says. "This scenario could redirect the amount of repair work and routine maintenance that has predominantly gone to the independent sector of the industry."

For customers with GM's OnStar service that opt in to the lead generation system, the selling or preferred servicing dealer is notified when the consumer is due for maintenance or is impacted by a recall alert. GM is now sending nearly 2.5 million monthly diagnostic e-mails to consumers, but only 5 to 6 percent of these consumers have opted to share that information with dealerships. However, GM executives claim a 90 percent appointment rate from OnStar-based service leads.

In 2006, GM reported that more than 1 million vehicle owners signed up for OnStar Vehicle Diagnostics.

Diver Chevrolet in Wilmington, Del., began piloting OneSource in November 2007, and the system officially went live this spring.

"We check the OneSource Web site to see if there are any leads and that allows you to contact the customer and set up an appointment," says Herb Hoeflinger, service manager at Diver. "You can monitor what's going on with those customers, whether or not they responded, etc. We have gotten some OnStar leads, but most of the leads we get that turn into real appointments are customer generated."

While the value of onboard diagnostics leads will grow, Leslie Petrick, Internet sales manager at Diver, thinks that Web-based leads, e-mail communication with customers and a more "connected" service department will have the largest impact on expanding the service business.

"People are still kind of shocked that their vehicle can e-mail them," says Petrick. "Ten years ago, most sales departments weren't even set up for Internet sales, but now 75 percent of consumers do their research online before approaching a dealership. Service is going to be like that eventually. Who's offering the best price? Consumers will do their research at home before scheduling an appointment."

Hoeflinger adds that an increasing number of customers are opting to schedule service appointments online rather than over the phone.

Low Rate of Adoption for Advanced Services

Using telematics systems to deliver diagnostic information to the OEM or dealership could help boost after-sales revenues by capturing more service business. That connection with the customer could also potentially make service operations more predictable, improve operational efficiency in the service bay and boost consumer awareness of routine maintenance issues.