Over the last while we have seen multiple recalls from companies like Toyota, with the unintended acceleration and Takata with the faulty airbags. Some manufactures such as General Motors had significant failures recalling vehicles especially the life-threatening ignition switch defect and of course Volkswagen had its EA189 scandal (emissions cheating). All of this has led to low confidence from the consumer. This at a time when we are bringing through ADAS and autonomous vehicles.
Roger Lanctot, associate director of Global Automotive Practice at Strategy Analytics, as a speaker at the TU-Automotive Europe 2015 conference, concluded that carmakers and providers should to something about these issues as an industry. He also states that Connectivity is the solution and it is very low-cost – “the cost is minimal relative to the cost of not getting connected to our cars”.
Connected cars make up only 2.5% of the global auto market – 150M connected cars on the road by 2020 – and the promising figures projected for connected-car penetration will not be fulfilled unless carmakers change their business strategies, according to Martin Rosell CEO of Wireless Car. The failure to use connectivity to find cars with life-threatening defects will have another damaging consequence for the industry: how the consumer will perceive it. And that’s why carmakers need to change their business models – “The car is a living thing and the core value proposition is about connecting to that living thing, being connected to that car from the factory to the dealer to the customer to the subsequent owner”, Lanctot, at the TU-Automotive Europe 2015 conference.
Carmakers should know how their vehicles are being used and how the systems are performing. There is huge value in customer retention, after-sales revenue and there is big money taking care of cars, leveraging that vehicle connection.
That is the vision, at least, and Car And US.com believes so: a self-driving car as part of the Internet of Things, connected to home and to a comprehensive urban transport systems that will make getting from one place to another a smooth and exciting experience. But first, consumers have to want to buy into this vision and this is where carmakers should base their business strategies.