The Big 3 U.S. automakers – General Motors, Ford and Chrysler – each have some kind of connectivity strategy. GM has OnStar. Ford has Sync, and Chrysler is touting “uconnect” for phone, tunes, GPS and Web access.

Given today’s credit crunch, high fuel prices and consumers’ desires to get rid of their SUVs, you might understand if car makers put telematics in the back seat. But they’re not. In fact, industry insiders say automakers have plenty of reasons to keep telematics on the R&D front burner.

To name a few: Offering telematics services can be a way to increase customer loyalty, generate new revenue, enhance aftermarket vehicle performance and avoid costly recalls. But if you’re still skeptical after seeing years of forecasts predicting hockey-stick growth for telematics, that’s understandable, too.

Automotive telematics has been around for at least 10 years, according to Telematics Research Group (TRG), a unit of iSuppli. Ford tried to make it work in 2000 with the establishment of its Wingcast venture with Qualcomm, but that was shut down in 2002. The most visible success story is General Motors’ OnStar, and even there – 10 years after it started – some analysts wonder if its model is sustainable in the years to come.

Still, telematics has its believers. “There’s no doubt that we will see increasing numbers of new vehicle telematics enabled over the next year,” said Michael Saxton, CEO of Cross Country Automotive Services, which recently acquired ATX Group. As for that huge hockey stick growth? “We actually believe that is going to happen now over the next two or three years.”
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