Telematics and the connected car - today, not tomorrow

I recently attended a presentation by Dr. Egil Juliussen PhD, research director and principal analyst at IHS Automotive. The good doctor rattled off every acronym known to science and technology in describing the rate of deployment of those technologies that will communicate with and eventually drive our vehicles. The sentiment in the room was, “if this guy is half right, we’re in for a wild ride.”

Vehicle connectivity and telematics are getting a lot of attention these days – and rightly so. Hardly a day goes by without a story involving autonomous driving, vehicle hacking, privacy concerns, traffic mitigation and more. A major take away from Dr. Juliussen was the rate at which these technologies are becoming mainstream.

Small-scale deployments of self-driving cars will begin by the end of the decade – this decade. Testing is, of course, already underway. And, volume deployments will be underway by 2025. Recently NHTSA announced that 10 leading car companies would make automatic braking systems standard equipment on all of their vehicles (no deadline specified). The systems and technologies required for vehicles to safely navigate our chaotic roads are being deployed at exponential rates. Highway fatalities fell 25 percent over the last decade thanks to safety improvements and accident avoidance technologies. That number can’t fall fast enough, frankly.

But, at several points in the presentation, Dr. Juliussen addressed wireless communication with the vehicles and the growing number of applications and services that will be available. Consumers are increasingly demanding connected services in their cars – everything from navigation and traffic avoidance to infotainment and web apps. Vehicle manufacturers are tripping over themselves trying to incorporate the features that will sell cars in an age when horsepower and gas consumption is no longer king.

Not surprisingly, the same technology that can deliver your Pandora channel can be used to communicate with the vehicle manufacturers or their dealer networks. Over-the-air software and firmware updates are not far down the road. And, insurance companies are already pulling usage and driving behavior data from vehicles in exchange for the possibility of lower rates.

Here’s where it starts to get concerning. Vehicle manufacturers would find tremendous value in remote, wireless diagnostics and odometer readings. If car companies know the miles driven and presence of any diagnostic trouble codes, they can proactively market services to the vehicle owner with unprecedented precision. If left unchecked, the new car dealer could be servicing an increasing number of computer controlled and monitored systems, leaving aftermarket service providers to work on the dirty parts. I can hear it now, “Why did you take the Lexus back to the expensive dealer, honey?” “Because it told me to,” she answers.

Recognizing the challenges posed by the connected car and remote diagnostics is not something new. The Auto Care Association published a Telematics Primer authored by Derek Kaufman in 2008. Awareness has been growing of the disruptive effects of building in customer relationship management systems at the factory. Aftermarket telematics solutions are available today and the association, together with the Equipment and Tool Institute (ETI), is promoting the Aftermarket Telematics Challenge to recognize the best examples of plug-it-in or bring-it-in alternatives to the built-in or beamed-in connectivity from the factory. But, counting on the future of an open port to have any meaningful connectivity with the vehicle is a limited-time strategy.

Vehicle manufacturers are already citing cyber-security concerns. And, demonstrations of successful (albeit tedious) vehicle hacking have gotten the attention of consumers and lawmakers alike. Safety and security against cyber threats is a critical and non-negotiable requirement. But, the aftermarket parts and service industry cannot rely upon the kindness of the OE channel for our future livelihood. And consumers cannot be reduced to a single source of information about the condition and service requirements for their vehicle. The consumer owns the vehicle and the consumer still owns the right to choose where the vehicle will be serviced.

A few years ago, a consortium of interested stakeholders in the automotive parts and service industry formed the Aftermarket Telematics Task Force. Their purpose is to educate and inform consumers, the industry and lawmakers about the impact of connected technology on the level and unbiased right of the consumer to choose where and when their vehicle is serviced. Given that operational data streaming from the vehicle is the enabler for remote diagnostics, the task force adopted the slogan “Your Car, Your Data.”

This is a thorny issue, no doubt. And, the vehicle manufacturers have already signaled a reluctance in having anyone messing around on their BUS and vehicle management systems. But, controlled, authenticated access by those with a legitimate interest in the vehicle – and permission of the owner – is possible and necessary to preserve the consumer’s freedom to choose.

Hard work and technical negotiations with the car companies is the only way we can co-exist. We applaud the work of the Telematics Task Force and encourage adequate funding and participation in support of their efforts. Vehicle connectivity and telematics is the next battleground in the “Consumers’ Right to Choose” their service provider. And if Dr. Juliussen is half right, the day of reckoning is fast-approaching.

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