Automotive News - July 21, 2008 - (Page 19) INSIGHT JULY 21, 2008 • 19 Telematics gets no respect — the word, that is Companies tout the benefits that telematics could bring drivers. But they shun the term, even when it’s part of their corporate name. “We have shied away” from the word, says Kevin Link, vice president of Hughes Telematics. “The market doesn’t understand it.” Beginning in 2009, the Atlanta company will equip Chrysler and Mercedes vehicles with standardequipment telematics hardware. “In focus groups, the very first question was, ‘Are you familiar with telematics?’ ” Link says. “And there was not one person that understood the term. It was even comical. People thought it was an automatic telephone.” The word entered the language in the late 1970s from French scholarly work on the computerization of society. Some in the industry say it was coined by U.S. essayists of the 1980s who combined “telecommunications” with “informatics,” then an emerging computer field. “Telematics” was popularized, at least to a modest extent, by the auto industry. Companies used the term to refer to everything from the combination of navigation, safety and entertainment in a moving vehicle to linking the car to the Internet. Steve Milstein, president of ATX Telematics, of Dallas, a unit of ATX Group Inc., almost wishes the word hadn’t been coined. It confuses customers and, in the minds of many in the auto industry, is tied to the early mistakes made during the heady days of the tech bubble — and the subsequent crash of tech investments. Yet Milstein admits he is among the many who scratch their heads when it comes to finding a better term to describe how cars can communicate using data, call centers, emergency authorities and drive-oriented features to enhance the experience for drivers. Continental AG, which provides the “black box” hardware units behind Ford’s Sync system, refers to the field simply as “connectivity.” The reason: The sector’s growth depends on connecting the data on the car to data outside the car in ways that help the driver. For example, connectivity might compare the fuel left in the car’s tank and recent mileage to prices at interstate filling stations to determine whether you can make it to the exit with the cheapest fuel. Analysts have suggested other terms and acronyms for such services. Thilo Koslowski, an analyst for the Stamford, Conn., information technology research company Gartner Inc., uses “vehicle ICT,” for information and communications technologies — to describe an IT field bigger than just the car. Consumers may never use the term or any of the suggested replacements, says analyst Phil Magney of Telematics Research Group Inc. in Minnetonka, Minn. “I don’t think telematics will ever become a common consumer term,” he says. Instead, Magney cites the example of General Motors’ OnStar or Ford Motor Co.’s Sync. “Cars going forward will increasingly be enabled with a telematics-type service, and it will be called whatever it’s branded.” — Tim Moran COMEBACK Vehicles are jammed with electronics continued from Page 17 Mike Marshall, a J.D. Power and Associates analyst. Rather than expecting their cars to do what their PCs do, they want to mirror the connectedness of their consumer electronics lifestyle, he says. “To the consumer, it’s ‘What part of my life do I want to do in a vehicle, and what rank and importance do I place on that?’ ” Marshall says. Consumers now place a higher value on wireless connectivity partly because so many phones and personal navigation devices are Bluetooth-enabled, he says. In addition, today’s cars have a number of electronic devices. Linking them can give the equivalent of an expensive, dedicated telematics system. In this current environment, KeyBank remains committed and consistent. They are always responsive to my needs. RON BOUCHARD Ron Bouchard’s Auto Group Fitchburg, MA There’s no such thing as an ordinary, everyday financial challenge for your auto dealership business. That’s why, at KeyBank, we’ve never offered ordinary, everyday financial solutions. For more than 50 years, we’ve crafted financing strategies for our clients without any formulas other than to leave no stone unturned when it comes to the possibilities. Rely on our dedicated KeyBank professionals to help you get the most growth out of your business in all these ways: New, used and program inventory financing Working capital term loans, acquisition financing and lines of credit Real estate loans to construct, improve or acquire dealership properties Deposit accounts and cash management, including automated floor plan sweep service Key’s Inventory Management System: secure online access to floor plan information and transaction initiation Additional services like Investment Management and Equipment Leasing Not just luxury Many vehicles have a touch-screen display, a hard drive, a global positioning system antenna and a communications link. And automakers are putting those components in less-expensive vehicles, not just their luxury nameplates, as part of safety, comfort and entertainment systems. Consider Ford’s Sync system, offered on the Focus and planned for the entire lineup. Ford Motor Co. is bringing upgrades that will enable 911 emergency calls in case of a crash. The latest version of General Motors’ OnStar, due with the 2009 models, adds significant safety and convenience features. In coming years, expect more connections between cars and the outside world. For example, more vehicles will offer more information specific to a driver’s route. The offerings could include detailed zone-by-zone weather for a long trip or a listing of options for parking, refueling or least-cost routing. The vehicle may safeguard the driver against speed traps, traffic cameras or badly timed traffic signals. Sound far-fetched, like the wild promises of telematics past? Already, Hughes Telematics and the state of California are running trials of “virtual” emissions testing. In the test, a consumer gives the state access to on-board systems for a specific period. The system could save time, fuel and annoyance for millions of motorists who otherwise would need to take their vehicles to state inspection stations. c To learn how KeyBank solutions can help strengthen your dealership, call 1-888-288-6539 or visit key.com/KAFdealer. Credit products are subject to credit approval. ©2008 KeyCorp. http://key.com/KAFdealer http://key.com/KAFdealer
Table of Contents Feed for the Digital Edition of Automotive News - July 21, 2008 Automotive News - July 21, 2008 Gray sky, not blue; store values wilt Sour Chery: Bricklin suit claims corruption Germans in U.S. eye VW work S.C. warranty insurer faces shutdown LaNeve: Make do with less marketing money Tesla CAFE: 244 mpg Lincoln's big crossover Schaeffler goes shopping: Can supplier land Continental? Dealers cut, shift their ad spending Truck for the times? Oklahoma pickup gets 37 mpg For Chrysler sensations, glory days are gone Kuzak: Redone Fords must have best fuel economy The Fisher brothers: Quite a body of work Kazamai concept: Mazda's design heard round the world 3 years later, Mitsubishi, UAW resume contract talks Big-pickup production will plunge Nason's NHTSA: More rules, fewer penalties A vote for the Volt Hyundai: Genesis gives brand a new beginning in luxury GM may survive; to thrive, it needs hot products GM just bought some time Green can be cool; it's up to the maker Why don't we drive diesels in the U.S.? Hooray! Joint effort stops airbag deaths All-Stars: Look beyond top brass Leno was right about U.S. cars Toyota recalls Siennas, disputes safety issue This time, the industry embraces connectivity Telematics connects with consumers Telematics gets no respect — the word, that is Tapping mapping for an extra eye on the road Drivers can check CO2 'tire print' Pay As You Drive insurance tracks cars to trim costs Subscribers, sponsors may fund telematics services Big-truck sales fall 14% in June Continental plant to make brakes Lear to shut Mo. seating plant Modine shifts production to Ky. Linamar buys Visteon plant Picture this Lexus revamps 'Taste' marketing extravaganzas Suzuki hires new auto ad agency Fisker turns to Finnish firm to make first hybrids American Suzuki gets new president Canada sales slip 5.6% in June Dealers A big fuel saver: Easy-rolling tires (but watch braking) MPG now! Automakers race to boost efficiency Products — not entire brands — likely to be ditched Pared ad budget is back on the chopping block GM goal: Big small-car profits Congress mulls arbitration bill 2009 Mazda6 price: $19,220 Copart files antitrust suit Denton's out, Leuliette's in as Dura CEO June output falls 13.8% Dodge Challenger: Not quite a sellout Magazine is raided in Renault espionage case Ya gotta believe: Dealers buy GM stock States of the auto industry Will the big guns pull the trigger? Lear a year later: Icahn's offer in hindsight Midcourse correction in Toyota's global sales outlook Chattanooga: A good site better Automotive News - July 21, 2008 Automotive News - July 21, 2008 - (Page Intro) Automotive News - July 21, 2008 - Gray sky, not blue; store values wilt (Page 1) Automotive News - July 21, 2008 - Gray sky, not blue; store values wilt (Page 2) Automotive News - July 21, 2008 - Lincoln's big crossover (Page 3) Automotive News - July 21, 2008 - Truck for the times? Oklahoma pickup gets 37 mpg (Page 4) Automotive News - July 21, 2008 - Truck for the times? Oklahoma pickup gets 37 mpg (Page 5) Automotive News - July 21, 2008 - 3 years later, Mitsubishi, UAW resume contract talks (Page 6) Automotive News - July 21, 2008 - 3 years later, Mitsubishi, UAW resume contract talks (Page 7) Automotive News - July 21, 2008 - A vote for the Volt (Page 8) Automotive News - July 21, 2008 - A vote for the Volt (Page 9) Automotive News - July 21, 2008 - Hyundai: Genesis gives brand a new beginning in luxury (Page 10) Automotive News - July 21, 2008 - Hyundai: Genesis gives brand a new beginning in luxury (Page 11) Automotive News - July 21, 2008 - Why don't we drive diesels in the U.S.? (Page 12) Automotive News - July 21, 2008 - Why don't we drive diesels in the U.S.? (Page 13) Automotive News - July 21, 2008 - Leno was right about U.S. cars (Page 14) Automotive News - July 21, 2008 - Leno was right about U.S. cars (Page 15) Automotive News - July 21, 2008 - Toyota recalls Siennas, disputes safety issue (Page 16) Automotive News - July 21, 2008 - Toyota recalls Siennas, disputes safety issue (Page GM1) Automotive News - July 21, 2008 - Toyota recalls Siennas, disputes safety issue (Page GM2) Automotive News - July 21, 2008 - Telematics connects with consumers (Page 17) Automotive News - July 21, 2008 - Telematics connects with consumers (Page 18) Automotive News - July 21, 2008 - Telematics gets no respect — the word, that is (Page 19) Automotive News - July 21, 2008 - Tapping mapping for an extra eye on the road (Page 20) Automotive News - July 21, 2008 - Pay As You Drive insurance tracks cars to trim costs (Page 20A) Automotive News - July 21, 2008 - Pay As You Drive insurance tracks cars to trim costs (Page 20B) Automotive News - July 21, 2008 - Pay As You Drive insurance tracks cars to trim costs (Page 20C) Automotive News - July 21, 2008 - Subscribers, sponsors may fund telematics services (Page 20D) Automotive News - July 21, 2008 - Subscribers, sponsors may fund telematics services (Page 21) Automotive News - July 21, 2008 - Linamar buys Visteon plant (Page 22) Automotive News - July 21, 2008 - Picture this (Page 23) Automotive News - July 21, 2008 - Fisker turns to Finnish firm to make first hybrids (Page 24) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 25) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 26) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 27) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 28) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 29) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 30) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 31) Automotive News - July 21, 2008 - Dealers (Page 32) Automotive News - July 21, 2008 - MPG now! Automakers race to boost efficiency (Page 33) Automotive News - July 21, 2008 - GM goal: Big small-car profits (Page 34) Automotive News - July 21, 2008 - Denton's out, Leuliette's in as Dura CEO (Page 35) Automotive News - July 21, 2008 - Denton's out, Leuliette's in as Dura CEO (Page 36) Automotive News - July 21, 2008 - June output falls 13.8% (Page 37) Automotive News - July 21, 2008 - Chattanooga: A good site better (Page 38) Automotive News - July 21, 2008 - Chattanooga: A good site better (Page 39) Automotive News - July 21, 2008 - Chattanooga: A good site better (Page 40)
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