GM requires Buick, GMC buyers to buy $1,500 OnStar membership

DETROIT – General Motors has begun requiring all Buick and GMC buyers to pay $1,500 for a subscription service that was previously optional.

The mandatory upcharge offers a three-year subscription to OnStar, GM’s long-standing in-vehicle safety, security and connectivity service. This is included in the manufacturer’s suggested retail price of all Buicks and GMCs ordered from June 2 and all Cadillac Escalades ordered through July 18.

The $1,500 plan is listed on the window sticker as a separate line item along with other additions to the vehicle’s standard equipment, but there is no option to remove it or order the vehicle without it. Customers who refuse to activate their OnStar service will not be given a price reduction, GM said.

Detroit Free Press Noticed the mandatory onstar charge on Tuesday.

“By including this plan as standard equipment on the vehicle, it helps to deliver a more seamless onboarding experience and greater customer value,” said GM spokeswoman Kelly Cucinato. Automotive News in an email.

The OnStar service of the vehicles will be activated at the dealership during the delivery process. According to the OnStar website, customers will receive OnStar and Connected Services Premium, which GM sells separately for $49.99 per month. A $1,500 add-on equates to $41.67 per month for three years.

OnStar is a key part of GM’s plan to generate $20 billion to $25 billion in software and services revenue by 2030. OnStar Insurance, the OnStar service that some vehicles now require apart from GM, could drive $6 billion in annual revenue by the end of the year. decade, the automaker said last year.

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According to GM research, customers subscribe to an average of 25 products and services and will spend $135 per month on them.

After the end of the three-year OnStar plan, customers will be asked to subscribe again. Their membership will not automatically renew, GM said.