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Just in time for the Consumer Electronics Show in Las Vegas next week, Dash Navigation said it will integrate Yahoo! Local features into its dedicated in-car GPS system. The announcement basically recycles statements made by Dash execs at DEMOfall in September but, hey, I missed it then too.

Dash’s Express unit is the size of a small paperback book and plugs into a car’s cigarette lighter. When the service launches  the original January date has been pushed back to “spring”  it will have a monthly premium, probably in the $7.95 to $12.95 range. The service is backed by high-profile VC players, including Kleiner Perkins, Sequoia and Skymoon Ventures.

While other traffic systems are proliferating, Dash’s differentiator is going to be the integration of the Yahoo! local info, which will help users select local services and find them on-the-go (i.e., Chinese Restaurants). Another differentiator is that the service provides real-time traffic reporting that complements highway-based GPS reporting (often provided by local authorities) with anonymous reports from other Dash-equipped cars to figure out how fast traffic is really going.

The Dash device, which will be sold in consumer electronics stores, will reach the Web using a cellular connection or a Wi-Fi network if it senses one is available. It also uses Tele Atlas for mapping and points of interest.

To be sure, Dash won’t have the field to itself. Largely ad-supported, for instance, provides traffic reports for most of the top 100 markets via XM and Sirius satellite radio. It complements its GPS reporting with eyewitness accounts from TV and radio news helicopters and cellphone call-ins. For Dash to compete, it will need to ensure that there are enough Dash-equipped cars. And, of course, plenty of traffic.

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