Fred Blumer said it best with regards to telematics and what it means to the aftermarket supply chain, “It’s never too early to panic.” Blumer knows what he’s talking about when it comes to telematics.
He was a co-founder of Hughes Telematics, the folks who engineered the original connected vehicle technology for Mercedes-Benz and Volkswagen. More recently, he is president of Vehcon, a telematics company based in Atlanta that is betting on the success of the aftermarket.
Blumer was a presenter at the Aftermarket eForum held in Chicago in May. Among other things he explained that car companies and their dealer networks are attempting to build “a closed ecosystem for the entire vehicle ownership lifecycle.”
Telematics means many different things. But, in this case, Blumer referred to the coming tsunami of connected vehicle technology, which monitors the condition and mileage of the vehicle, forwarding that useful intelligence to the OEM’s and their dealer network.
The result could be a significant erosion in the amount of maintenance and service work performed in the aftermarket as consumers are steered toward the closest dealer whenever an indicator lights comes on or a service interval rolls over on the odometer.
The good news is that most consumers prefer the independent aftermarket for their vehicle service needs because of the added value and convenience. With education and awareness it is a safe bet that consumers will also prefer to choose where the information about their vehicle’s health is sent. The car companies can build anything they like into the BUS. But, the consumer who bought the vehicle should have the opportunity to send the remote diagnostics and other operating data to their chosen service provider – OE dealer or independent aftermarket.
The even better news is that the aftermarket can “do” telematics today. AAIA recognized Delphi Product & Service Solutions for their OBDII plug-in device, which monitors vehicle health and provides consumers with smartphone controls and notifications. The connected car technology works whether the vehicle came equipped with communications from the factory or not.
Today, there are a lot more OBD-equipped vehicles that do not have factory telematics than do. So the current market for this aftermarket telematics retrofit is vast.
Now for the return to reality. The OEM’s would love to see their share of parts and service increase at the expense of the aftermarket. And dealers who struggle to profit on the sale of vehicles are looking to their service bays for more revenue and profit.
But, the aftermarket has demonstrated over the years that we can innovate and compete in the face of changing vehicle technology. And whether the answer lies in smartphone apps or some wireless interface to the vehicle’s “brain”, AAIA and the aftermarket will work to ensure that consumers have the right to choose where their telematics goes and how it is used. Let the innovation begin.
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