Aftermarket Insider Issue 83 - (Page 8)
inSidE TEcHnoloGy
connected cars
Telematics in the Aftermarket –
Truth or Consequences
Will Connected Car Technology Make
Aftermarket vehicle Service irrelevant?
At a recent telematics conference in
Detroit, industry analyst Roger Lanctot
with Strategy Analytics implored the
audience of automotive executives and
tier-one suppliers to, “Stop trying to
figure out how to get the customer to
pay for it (telematics subscriptions)…
and just turn the modems on. The
data about the vehicle’s use is worth
more than any revenue stream you
might create.” At that same conference,
BMW executives announced that
nearly all of their 2014 model year
vehicles will come with 10 years of
basic telematics service at no cost
to the customer. Basic service, they
explained, includes automatic crash
notification (the leading feature
requested by consumers) and remote
vehicle diagnostics (potentially, the
most valuable feature to the car
company and dealer network). It seems
the car companies were listening, Roger.
At the 2013 Aftermarket eForum™,
Fred Blumer, Vehcon CEO said, “Car
manufacturers are building a closed
ecosystem for the entire vehicle
ownership lifecycle. With their
embedded telematics
systems, the car dealers
are first in line to
Fred Blumer, Vehcon CEO
8 | AFTERMARKET INSIDER | VOLUME 83
get repair and maintenance data.”
Clearly, the independent aftermarket
cannot sit by and do nothing while the
car companies deploy this strategy.
service provider. Remote diagnosis is
a time saver for both consumers and
their technicians. Even an “all-clear” is
a non-obtrusive and gentle reminder
about regular car care and maintenance.
With their embedded
telematics systems, the
car dealers are first in
line to get repair and
maintenance data.
Recently, AAIA convened a Telematics
Task Force to serve as the heart of an
industry-wide coalition of stakeholders.
The mission of the task force is quite
simply to define what it is we want
relative to telematics and how we want
to go about getting it. It’s safe to say
that demanding equal access to the
communications technology embedded
by the OEM is not going to get us very
far. Telematics is really a consumer
choice issue. The aftermarket must
successfully ensure that consumers
who buy vehicles with embedded
telematics continue to have the same
choice they have today in where
that vehicle is serviced. AAIA will
collaborate with kindred associations
from Europe and elsewhere to ensure
that aftermarket telematics options are
available equally around the world.
AAIA has been focused on the
challenges, as well as the opportunities,
presented by connected car technology
for several years. This is the second
year of the Aftermarket Telematics
Challenge, and again this year AAIA
will recognize a product or solution
that effectively offers the consumer the
choice in where their connected car
communicates. Last year’s winner was
Delphi Product & Service Solutions
with web interface designed by
Aftermarket Telematics Technologies
(ATT). Their OBD-II plug-in telematics
module allows the vehicle owner to
monitor the health of their vehicle and
sends trouble codes and other status
reports to the consumer’s chosen
To learn more about AAIA telematics
initiatives, visit www.aftermarket.
org/technology/telematics.
http://www.aftermarket.org/Technology/Telematics
Table of Contents for the Digital Edition of Aftermarket Insider Issue 83
Health Care Help:industry News
Millennials:The Aftermarket Generation
Talking Telematics:INSIDE TECHNOLOGY
Dress for Success
Workplace Wear:TOOLBOX
Conflict Minerals
Facts and Feedback:MARKET INTELLIGENCE
Words from a Winner:HEAD OF THE CLASS
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