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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