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OnStar wars: Bucks couple sue over shutdown
[March 30, 2007]

OnStar wars: Bucks couple sue over shutdown


(Morning Call, The (Allentown, PA) (KRT) Via Thomson Dialog NewsEdge) Mar. 30--What: Some OnStar systems in older GM cars will stop working at the end of the year because they are based on outdated cellular technology.

Who: The outage affects about 10 percent of OnStar customers, all of whom have vehicles produced before 2006, most before 2003.

Services: 24-hour access to call center advisers, remote door unlocking, vehicle diagnostics, hands-free calling, automatic notification of emergency responders following crashes and stolen car location.

More information: Find out if your OnStar system is affected by pushing the blue button and asking the adviser to tell you what type of equipment you have, or call 866-579-7726.

Source: http://www.onstar.com

The commercials are so reassuring. Someone's toddler is locked in a car, but with one quick call to OnStar, a friendly operator remotely unlocks the doors and all is again right with the world.

But for just under 500,000 subscribers with older, cellular-based technology in some vehicles produced before 2006, the watchful eyes of OnStar are about to flicker out. That friendly blue button? It'll be about as useful as an eight-track tape player.

One Bucks County couple who bought a 2002 Cadillac Escalade decided last week they weren't going to sit back and take it.

After getting a Feb. 12 letter from General Motors informing them the shutdown will happen by the end of the year, Robert and Sarah Gordon sued GM and OnStar in what is probably the country's first lawsuit over the problem. The Gordons are seeking class action status for the suit, filed in Bucks County Court.


"We think there is a very significant public safety reason for people who bought cars and thought they were going to have the equipment for a long period of time to require the manufacturer to do something," said the couple's attorney, Ronald J. Smolow of Trevose.

The suit has a long way to go. Before the merits can be argued, Smolow said he first must persuade the court to certify owners of the outmoded OnStar technology as a national class.

OnStar spokeswoman Jocelyn Allen said the company had not been served with the lawsuit and would not comment on it. She said the company is unaware of any other pending lawsuits.

But she did provide OnStar's statement on the shutdown, which resulted from a 2006 Federal Communications Commission decision that allows mobile phone companies to turn off their analog transmission systems in early 2008.

"Approximately 90 percent of OnStar subscribers have vehicles that either are capable of operating on the digital network or can be upgraded to operate on the digital network," the statement reads.

According to OnStar, once General Motors realized the FCC would allow the phase-out of analog systems, it created kits for many models' electrical systems designed to upgrade the service to digital technology.

"Unfortunately, digital-capable upgrade kits were not created for a small percentage of earlier GM models due to significant differences in their electrical systems," the statement reads.

The company has not released a list, but says some 2002, most 2003 and nearly all 2004 and 2005 models are upgradable. The system debuted in 1996.

The Gordons, of Falls Township, purchased their Escalade in 2002 from a dealership in Bristol, thinking OnStar would be operational for the life of their vehicle, according to the lawsuit.

With its own call center workers, OnStar offers a variety of services depending on the level of subscription. They include hands-free telephone calls, vehicle diagnostics, remote door unlocking, roadside assistance, directions and automatic notification of emergency responders after a crash.

Smolow said he sees the OnStar technology as a safety device, similar to an air bag, that GM should be obligated to repair.

How many customers, he asked, would sit still if their carmaker informed them their air bags would stop working after a particular date?

"We are looking for injunctive relief," he said. "We would like to force them to provide replacement devices. They have the technology."

The suit also asks for unspecified monetary damages.

Several local GM dealers said they have had just a few calls from customers who are using the old technology.

But the dealers have been supplied with stickers to put next to the OnStar buttons on used cars for sale. The stickers tell buyers whether the OnStar system can be upgraded to digital, is already digital-ready or will be useless after Dec. 31.

"It has not been a huge issue for us," said Brad Ritter, part owner of Ruhe Pontiac on Tilghman Street in Allentown. Ritter said the dealership has performed one upgrade for a customer with an analog system.

Copyright (c) 2007, The Morning Call, Allentown, Pa.
Distributed by McClatchy-Tribune Business News.
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