Subject: [NEXTEL-1] Chrysler Intros Wireless, Hands-free System- UConnect

From: [email-masked]
Date: Fri, 13 Jun 2003 14:48:17 -0400

Chrysler Intros Wireless, Hands-free System

DaimlerChrysler's Chrysler Group launched its Uconnect system today. The system
connects wireless phones with a microphone in the car using Bluetooth technology
for a wireless, hands-free experience. Uconnect is available factory-installed in
the Chrysler 2004 Pacifica. The system may be purchased for $299 and
dealer-installed in Chrysler, Jeep and Dodge vehicles. 

============================================================================================================
New way to drive and call
Chrysler to debut a hands-free cell phone device
June 12, 2003

BY JEFF BENNETT
FREE PRESS BUSINESS WRITER

DaimlerChrysler AG's Chrysler Group might have found a way to give a
cell-phone-craving nation what it wants most -- the chance to talk hands-free on
their own cell phones without attaching wires to their heads or installing ugly
gizmos in their vehicles.

Today the automaker rolls out the UConnect system, which wirelessly links a
motorist's cell phone with a microphone installed in the vehicle. It works with
any cell phone that uses a special wireless system called Bluetooth.

Initially, the system will come factory installed only on the 2004 Pacifica, but
it can be purchased at Chrysler, Jeep and Dodge dealerships and loaded on almost
all DaimlerChrysler vehicles dating to 1994.
Thilo Koslowski, vice president and lead automotive analyst for Gartner/G2, has
tested the system and said it comes the closest to giving customers what they
want.

"The basic fundamental lesson is don't replicate the personal computer experience
in the car," Koslowski said. "Others have tried to give consumers access to e-mail
and online information. The vehicle is a mobility tool, and consumers are
interested in doing what they are used to in a car, talking and driving."
To make a call, the motorist pushes the UConnect button, which connects the cell
phone to the microphone. The motorist then states the name or number. The system
stores up to 32 names, and four numbers per name.

The voice-recognition system responds, confirms the number and dials. The number
appears on the face of the radio as it is being dialed. The radio speakers provide
the sound on the factory-installed version, while a separate speaker is installed
on the dealer option.

Up to five cell phones can register with the system.

The customer needs to have a Bluetooth-enabled telephone. Bluetooth connects two
electronic products together via a radio frequency. Several cellular phone
providers, including AT&T, T-Mobile and Nextel,offer Bluetooth phones ranging from
$100 to $300.

Chrysler Group, which has already spent millions researching and refining UConnect
over the past two years, is throwing the dice in the risky telematics business.
Telematics is two-way data and voice communication between vehicles and external
sources.

There have been hundreds of telematics ideas and companies that have tried and
failed. Most notable was Wingcast, a joint venture between Ford Motor Co. and
Qualcomm that was dissolved in 2002. Wingcast was expected to offer a variety of
wireless services in Ford vehicles.

OnStar, General Motors Corp.'s telematics approach, offers motorists a variety of
subscription services. OnStar started in 1996 and began posting a profit in 2002.

Jack Withrow, Chrysler's director of vehicle entertainment and communications,
said this system has avoided the pitfalls of its predecessors because it is not
offering subscription services or requiring them to leave behind their own cell
phone and use one installed in the car.

"What people really want to do is talk on the phone in their cars," Withrow said.
"They don't want to trade stocks or read e-mails. It's also a waste to offer
people information services they are not going to pay for. Information is like
water; it's everywhere."

The UConnect system costs $275 factory installed or $299 dealer installed, not
including labor.

More than 128 million people across the nation own cell phones. One in four
drivers uses a cell phone while driving.

"People know that it's not a great thing to be holding a cell phone while driving
but people want to be on the cell phone," Withrow said.

But Koslowski said to use UConnect the customer has to buy a Bluetooth phone and
not many people know what Bluetooth is.

Terry Sullivan, OnStar's spokesman, said customers want versatility and services
such as unlocking doors or contacting the police at the touch of a button.

"The UConnect is a cell phone and doesn't offer safety and security features which
can be provided through an embedded system like OnStar."

If UConnect proves successful for Chrysler, it could be picked up by other
automakers who want to avoid potential legislation or legal problems.

Philadelphia, Chicago and Aspen, Colo., along with 22 states across the country
are considering laws to ban the use of cell phones while driving.
Contact JEFF BENNETT at 313-222-8769 or [email-masked]

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