Philips Car Systems: Vehicle Navigation No Longer a Future Feature
4 November 1997
Philips Car Systems: Vehicle Navigation No Longer a Future Feature
LAS VEGAS, Nov. 4 -- Vehicle navigation is one of the hot new
technologies being shown here at the Specialty Equipment Manufacturers (SEMA)
Show this week.
According to industry studies, about 10,000 vehicles already are equipped
with vehicle navigation in this country, and that number should grow to one
million by the year 2000, with half sold that year. The market will grow from
a $310 million in 1995 to $3 billion by the year 2000.
In 1995, research firm J. D. Power and Associates found high satisfaction
levels among a test group of consumers who drove cars equipped with navigation
systems for two days. On a scale of one to 10, with 10 being "extremely
satisfied," 80 percent of 170 respondents rated the system a nine or 1O.
"In Europe, car navigation already is widely accepted and an enjoyable
part of driving. U.S. drivers can now enjoy the same stress-free experience,"
says Mark Stephenson, vice president of marketing at Philips Car Systems, a
division of Philips Electronics North America Corp.
A 1996 survey conducted by the Consumer Electronics Manufacturers
Association (CEMA) showed that 55 percent of the consumer public said they are
aware of car navigation systems, with 18 percent indicating an interest in
buying car navigation.
According to the CEMA study, safety overshadowed all reasons why consumers
would choose vehicle navigation, with 61 percent saying this function was most
important. This is echoed by a 1995 study for American Express that found
that 33 percent of corporate travel managers surveyed "would likely include
navigation system availability as a negotiation point in upcoming corporate
rental car contracts," primarily because of the safety benefit.
"With the right nav system and with voice prompts, you can concentrate on
driving rather than reading a map, searching for a street name, or wondering
if the next exit is the right one," explains Philips' Stephenson.
Other benefits of vehicle navigation include time efficiency, which can
mean significant cost savings for delivery companies. Drivers can eliminate
searching for an address or use the system to plan stops at multiple addresses
saving time, wear and tear, and gasoline. Plus, it's fun!
There are a variety of products to choose from, depending on your
pocketbook and desires. More than a half dozen automakers offer some form of
navigation as an option on new models and another half dozen companies offer
aftermarket versions that can be owner-installed. Each has its own method and
process for calculating position and providing point-to-point information.
However, not all navigation systems are created equally. In general, the more
you pay, the more features you get.
Almost all rely on Global Positioning System (GPS) satellites to pinpoint
a vehicle's position, a location database (the best systems use a CD-ROM that
includes points of interests such as hotels, restaurants, and gas and police
stations), as well as detailed road maps. Higher-end units provide map and
route directions on a video screen and use voice commands, while lower-priced
units use voice only to point the way.
The best units use GPS only as the initial and backup locator, while
proprietary software and special sensors plot actual and assumed positions.
Philips Car Systems, CARiN, available now as an aftermarket product, was
first offered for sale in 1996 by BMW as a BMW-branded option on its 1997 5
and 7 Series vehicles.
Both BMW and CARiN units operate off an on-board navigation computer
supplemented by GPS with an LCD color monitor that displays maps and turn-by-
turn pictograms. The system also gives audible directions so the driver can
keep his/her eyes on the road.
Among all navigation systems now on the market, CARiN is one of the
easiest to use, offering user-friendly options such as choice of languages,
minimum or maximum use of freeways, color background, automatic re-routing,
and emergency phone instructions. Maps covering the whole of the United
States are available on seven CD-ROMs, which are sold separately. The unit
retails through select Circuit City Stores nationwide for $2,399, including
installation and a CD-ROM map. The first semiannual map update is free.
Potential buyers can get an on-line demonstration through CARiN website at:
http://www.carin.com.
Other systems offer less, for less cost. Savings comes from moving the
database to a central server which is accessed by the owner's cell phone. But
there are monthly fees and phone charges to consider. One unit offered by
Mercedes-Benz in its 1998 M-Class SUV integrates navigation, radio, heating
and ventilation controls.
Another system uses slide-in PC cards rather than CD-ROMs and, therefore,
less mapping and destination information is available. At less than $1,000
installed, the unit is voiceless and can only point the way rather than give
turn-by-turn directions as with the Philips Car Systems' unit.
If you rented a car from Hertz recently, you may have been asked to
upgrade to their NeverLost system for about $8 more per day. The unit
functions a lot like CARiN, but mapping is less detailed. Re-routing --
important if you miss your turn -- is done manually, while intersections are
not as precisely detailed.
Ford Motor Company's RESCU and General Motors' OnStar systems, available
as options on some models, use GPS and the car's cell phone to summon
mechanical or emergency help when needed, or, in the case of OnStar, when your
vehicle's air bag inflates. RESCU adds the same function for 1998. However,
neither is a true navigation system.
As competition and the market heat up, you can bet that prices of all
navigation systems will come down. For automakers, this will speed the
integration of navigation with other systems in the vehicle, lowering weight
and complexity, freeing up space, and further reducing overall costs.
SOURCE Philips Car Systems
