An American manufacturer that developers a device used in cars to turn off the engine when loan repayments are not met says business is booming, and he expects it to grow.
Passtime, based in Littleton, Colorado, says sales for its device are up 33% from last year, while chief executive Stan Schwarz told CNN.com that business is expected to grow.
“Right now, we are moving about 2000 units a month into the marketplace,” he said. “I fully expect by the end of the year we will be up to 14,000 to 15,000 a month.”
Schwarz claims that around 300,000 consumers a month are dropping from “A” credit ratings into “B” ratings, meaning they have been late on both home payments and other related bills. His device is an attempt to protect assets against those consumers who cannot pay their debts.
The device works by combining telecommunications and wireless technology, and are controlled by a dealer or lender. The driver of a car with the device installed is given warnings via flashing lights when a deadline is approaching.
When the deadline has been and gone, the controller of the device can shut the engine off entirely. Schwarz also says the device can be used as an anti-theft measure, with the consumer being able to track the stolen vehicle via GPS software on a computer.
The concept is so popular that automaker General Motors has introduced a similar concept that would allow law enforcement agencies to stop a stolen car, or slow it down to an idle speed.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
