Right to choose is key issue in connected car debate

March 4, 2014
Vehicle manufacturers are adding embedded communications technology to their products, in part, as a way to stay in touch with the vehicle for years after it drives off the lot.

Vehicle manufacturers are adding embedded communications technology to their products, in part, as a way to stay in touch with the vehicle for years after it drives off the lot. Remote diagnostics and proactive maintenance reminders are high among the features most valuable to OEMs.

The right to choose what information is sent and where is a fundamental consumer right as the owner of the vehicle. Telematics is really Right to Repair - part II or Right to Choose.

It's one thing to say consumers should have the right to choose where their telematics systems communicate. It's another to propose a technical solution that respects the safety and security issues involved in accessing the brains of the vehicle. AAIA has partnered with the Equipment and Tool Institute and other leading industry groups worldwide to formulate and propose standards and protocols that enable aftermarket telematics in a way that does not endanger the vehicle or compromise the OE technology.

The Aftermarket Telematics Task Force was organized to provide a forum for all stakeholders in the aftermarket, worldwide. By coordinating our Telematics solutions with counterparts in Europe, we can present a single solution to the vehicle manufacturers – improving our negotiating position.

It’s easy to conclude from all the media coverage that the hammer is about to fall on the aftermarket and every vehicle equipped with OE Telematics is lost forever to the dealer service channel. Fortunately that is not the case for a couple of reasons. 1) The vehicles on the roads of America with OE-embedded Telematics account for only 2% of the parc and they are generally still under their factory warranty. These vehicles won’t enter the aftermarket sweet spot for several years. 2) Consumers value freedom of choice and don’t want to pay someone to market to them. The renewal rate on OnStar after the complimentary first year is abysmal, in part, because consumers do not associate value with getting monthly maintenance reminders.

There will definitely be an impact to the aftermarket as a result of Telematics if we do nothing. But, we have three to five years to develop a solution and educate consumers about their fundamental rights as the owner of the vehicle. It’s your car – and your data.

For more on the Aftermarket Telematics Task Force visit www.aftermarket.org/technology/telematics.

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About the Author

Scott Luckett | Chief Information Officer, AAIA

Scott Luckett is vice president, industry strategy for GCommerce, Inc. where he has responsibility for industry partnerships and major account development. Previously, Luckett rose through several positions at the Auto Care Association over 17 years and as CIO had responsibility for the Technology Standards Committee, the Telematics Task Force and the National Catalog Managers Association (NCMA). Before Auto Care, Luckett was an executive at a local automotive WD and prior to that was a top sales producer for Triad Systems (now Epicor). Luckett is a recipient of the Northwood University Automotive Aftermarket Management Education Awards and the Northwood Founders Service Award for his contributions to training and education in the Auto Care Industry.

About GCommerce
GCommerce connects over 1,200 suppliers with 600 retailers and wholesalers, exchanging in excess of 2 million transactions monthly. The GCommerce Virtual Inventory Cloud (VIC) is a powerful supply chain visibility solution to support drop ship and special orders. PBEPRO is a repository of rich, PIES-compliant product content for non-application product categories. GCommerce also offers an online web commerce platform, AutosoEZ, and a robust order fulfillment and shipping management application called Fulfillment Master. GCommerce is Driving Digital Commerce. Contact GCommerce at (515) 288-5850 or write to [email protected] to learn more.

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