Report plots emerging global telematics market

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Nov. 20, 2003

While brand loyalty was strong among North American vehicle buyers in the past, the links between the Big Three and their customers has been steadily deteriorating over the years, according to market research firm ABI. This is due to many reasons, including disappointing new product designs and performance, lack of innovation, poor post-sale customer support, and intensifying competition from overseas players.

North American OEM efforts to increase vehicle quality and reliability to match or surpass that of foreign offerings has been construed as too little too late by many. This concern is only amplified through Ford's precarious position of being potentially dethroned by Toyota as the world's number two automaker.

According to a recent ABI report, North American OEMs must leverage additional methods to maintain their relationships with car owners and better respond to changing consumer needs. One method gaining increasing favor among OEMs is utilizing telematics as a CRM (customer relationship management) tool.

The report suggests several areas where telematics could be leveraged to preserve customer relationships after a vehicle is purchased. One example is to develop remote vehicle diagnostics technologies to be more proactive in helping customers understand and manage potential mechanical problems. Diagnostics information could be managed by a telematics service provider to maintain vehicle service logs, advise when scheduled maintenance is due, and then schedule it as well.

Future remote vehicle diagnostics systems will enable OEMs to study vehicle owners' driving habits in order to manufacture better automobiles. Additionally, OEMs could monitor vehicle systems performance to identify possible component failures for quality assurance and vehicle recall purposes. ABI's report cautions that these are solutions which must be initiated now in order to reap long-term rewards, and while many automakers are still sitting on the fence with their telematics initiatives, others are trudging forward.

ABI's newest OEM telematics report: "The Digital Car: OEM Strategies, Challenges and Opportunities In Global Consumer Telematics," delineates global OEM efforts to drive a new generation of telematics services and applications, and gives recommendations on how new opportunities may be exploited to benefit all members of the telematics value chain.

ABI is a N.Y.-based technology market research firm founded in 1990. ABI publishes market research and technology intelligence on the wireless, automotive, electronics, broadband and energy industries. Details can be found on the web at abiresearch.com or by calling 516-624-3113.

Copyright © 2003, Allied Business Intelligence, Inc. All Rights Reserved. Reproduced by DeviceForge LLC with permission.

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Use of this site is governed by our Terms of Service and Privacy Policy. Except where otherwise specified, the contents of this site are copyright © 1999-2009 Ziff Davis Enterprise Holdings Inc. All Rights Reserved. Reproduction in whole or in part in any form or medium without express written permission of Ziff Davis Enterprise is prohibited.