AT&T Wireless hitches a ride with DaimlerChrysler

Telematics--the use of wireless and satellite communications devices in cars--is a service that automakers are increasingly offering to consumers. It can include the ability to receive roadside emergency assistance, hands-free cellular telephone calls and help with road directions--and even trade stocks.

The advanced telecommunications services offer another source of revenue to carmakers beyond the initial sale, financing fees and maintenance charges.

Although DaimlerChrysler offers telematics in its Mercedes-Benz line, it is well behind the curve on its U.S. line of cars. General Motors is on cruise control with about 800,000 people subscribing to OnStar--a system found in roughly one out of every four GM vehicles. Other automakers, such as Toyota's Lexus and Honda's Acura, have signed deals with OnStar, which debuted about three years ago as an option on Cadillac luxury sedans. --Sandeep Junnarkar, Special to ZDNet News