10 Reasons Connected Cars Are Tough for Automakers

Con­nect­ed car tech­nolo­gies are offer­ing an enor­mous poten­tial for automak­ers and the econ­o­my – IHS Auto­mo­tive fore­casts that over the next decade, $50 bil­lion in rev­enue will come through in-vehi­cle mobile adver­tis­ing, $500 bil­lion from vehi­cle main­te­nance, $5 bil­lion from ser­vice sub­scrip­tions, and there will be bil­lions of dol­lars in fuel sav­ings.

How­ev­er, there are 10 hur­dles to climb to get there accord­ing to Forbes

1. Smart­phones turn fast, cars don’t
Smart­phones con­stant­ly get oper­at­ing sys­tem upgrades and new apps as peo­ple buy new phones, but cars are being held much longer these days.

2. Impact of safe­ty rules
Europe is bring­ing in eCall emer­gency ser­vices to vehi­cles on manda­to­ry basis; sim­i­lar sys­tems are like­ly to make it to US.

3. You can’t do it alone
Automak­ers and mobile phone providers are on dif­fer­ent paths but need to work togeth­er; Chrysler is doing that with Sprint Nex­tel and GM is work­ing with AT&T.

4. Deal­ers need to be edu­ca­tors
The role of the deal­er­ship is expect­ed to change even more in times ahead. Sales­peo­ple need to be ready to spend an hour or more of their time teach­ing cus­tomers how to use all the con­nect­ed car func­tions.

5. Car shar­ing is part of it
Mobil­i­ty is the mag­ic word for the future of trans­porta­tion; automak­ers under­stand they’re no longer in the busi­ness of just sell­ing cars. Car shar­ing ser­vices are part of it.

6. What’s the best way to get con­nect­ed?
There’s a debate between built-in options with stronger con­nec­tions ver­sus con­sumers pre­fer­ring teth­er­ing their exist­ing smart phone via Blue­tooth or USB cable; that also gives them full access to per­son­al con­tacts and playlists.

7. Who’s going to pay the bill?
How does con­nect­ed car ser­vice get paid for? Con­sumers will pay to some extent, but some want it includ­ed in the pur­chase price and some want month­ly pay­ments. The ques­tion of who will pay for roam­ing and data usage also needs to be answered.

8. How many apps do you get?
Automak­ers are wor­ried that exces­sive num­bers of apps could bring in secu­ri­ty and reli­a­bil­i­ty issues. They want to main­tain some con­trol over devel­op­ers.

9. Self-dri­ving cars are com­ing, but not yet
For now, built in sys­tems like adapt­ed speed and brak­ing tech­nolo­gies are mov­ing intel­li­gent vehi­cles along; self-dri­ving cars are not here yet, but the tech­nol­o­gy advances are mov­ing in that direc­tion.

10. Con­nect­ed cars no longer an option
They must be built in for a few rea­sons – cus­tomers expect con­nec­tiv­i­ty, the gov­ern­ment is like­ly to require them for bet­ter safe­ty, and will be part of build­ing strong cus­tomer ser­vice and brand aware­ness.

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