The business of stealing cars is a $7 billion game that every year saps the resources of law enforcement and results in a financial and personal loss for car owners. A wireless technology exists, however, that can track the location of a stolen car and speed its recovery time.
LoJack Corp. in Dedham, Mass., operates a terrestrial-based stolen vehicle recovery system throughout the United States. A small transmitter is randomly installed in the vehicle at the dealership and is activated when a routine stolen vehicle police report is filed. The LoJack signal can lead police directly to a vehicle’s location, the company said.
Starting at around $600 for the basic transmitter, the service is sold through authorized car dealerships as an add-on feature. The consumer can upgrade their system to include a starter disabler and alarm, and for vehicles with power locks or keyless entry, the LoJack handheld remote can be configured to open all the car’s doors.
LoJack said that vehicles recovered using its system usually have one-fifth the damage of stolen cars not equipped with Lo-Jack “because you get the car back in a more speedy fashion,” according to Paul McMahon, director of marketing communications for LoJack.
“Recovery time is usually two to 24 hours,” said McMahon.
If LoJack cannot locate the vehicle within 24 hours after being reported stolen, it will refund the cost of the LoJack system to the consumer.
LoJack first entered the market on a trial-basis in Massachusetts in 1986. Three years later, the Federal Communications Commission, satisfied with the trial and its success, approved the LoJack system for consumers and allocated a police radio band for operation of a nationwide stolen vehicle recovery system.
This September, the FCC again granted a waiver to LoJack that will allow the company to launch its new technology, Uplink.
“With LoJack’s Uplink feature, if a customer’s car is stolen, LoJack’s Uplink network will alert the owner and direct him to report the theft … it also will make it possible to monitor a customer’s vehicle just as an alarm monitors his home,” said LoJack Chairman C. Michael Daley.
The Uplink module is expected to be sold as an option to the standard LoJack unit starting early next year, and like all LoJack’s services, will not require a monthly fee, the company said.
LoJack currently operates in 18 states, is licensed in 16 countries and has more than 1.5 million units installed. To date, approximately 40,000 vehicles have been recovered using the LoJack system. It appears to be flourishing in its niche market, but the onslaught of telematics services cued up for launch during the next few years could easily integrate a LoJack-type service, and have the benefits of routing, roadside assistance and navigation as well.
Alexander Doroski with Lehman Brothers Inc. said LoJack could easily be put out of business if it does not embrace the telematics revolution, but the company is in a good position because it provides for the support and recovery of the vehicle, as well as the development of the product.
“The telematics developers could become strong distribution partners for LoJack on a licensing model if they feel that they cannot simply provide the service on their own,” Doroski noted.
McMahon said LoJack is looking into telematics, but the company now is focused on expanding its network here and abroad. Immediate expansion is planned for five more states, including Nevada, Louisiana, North Carolina, Ohio and Colorado, and into other countries including Brazil, China, France and Taiwan. LoJack also is vying for a piece of the fleet and commercial vehicle market.
