The digital revolution is upon us, and not just in the electronics we use at home. The automotive industry is being inundated with technology at every turn – telematics, in-vehicle connectivity, crash avoidance systems and autonomous vehicles, to name a few. And if aftermarket veterans up and down the supply chain aren’t paying attention to these automotive changes, it’s quite possible they could be left in technology’s wake.
“Consumer devises have changed and are beginning to change the buying experience and owner experience with the vehicle owners,” said Bill Long, AASA President and COO, during the association’s annual Vision Conference. “It’s not in our best interest to ignore these types of changes and how they will impact our industry.”
The topic of technology was a focal point for this year’s conference held last month in Chicago and centered around the theme of “Connecting the Aftermarket.” Some 285 suppliers, leaders, distributors and auto channel affiliates attended the three-day event.
Presenters were not shy about noting the impact of technology on the market, and the fact that some major winners and losers will emerge as a path featuring electric vehicles, autonomous cars, ride sharing habits and new in-vehicle technologies becomes more clear. Opportunities will exist for new products and services and collaboration will be a must.
“The building blocks for this transformation are already in place,” Long told the audience. “We knew this day was coming. We just didn’t know when.” Suppliers, he said, will play a significant role in the transformation of the industry.
As an example of how suppliers could have a significant impact, Nat Beuse, Associate Administrator, Vehicle Safety Research for the National Highway Traffic Safety Administration (NHTSA), told attendees that existing crash avoidance technologies could reduce the annual number of collisions by nearly a third. That doesn’t include soon-to-be released technologies still in development, which will have an even greater impact.
Also of note was the belief that consumers will drive a demand for aftermarket technologies as new vehicles enter the market with crash avoidance systems, telematics features or other connectivity options.
Denso’s Senior Manager-Marketing & Strategic Planning David Williams says suppliers and consumers will benefit from analysis of Big Data that evolves from in-vehicle connectivity. The end result will be an increase in new or improved products for vehicle owners, he said.
Donny Seyfer, a shop owner from Colorado and current Automotive Service Association Chairman, took part in the panel discussion. Seyfer pointed out that it was critically important for shop owners and technicians to stay current on what’s happening with new vehicles.
“This is going to be a firehouse if you wait five years,” he said.
In his presentation, the OEM View of Connected Vehicle Service, Toyota’s Mark Saxonberg echoed Seyfer’s comments and highlighted the need for trained technicians in the aftermarket. Carmakers recognize that out of warranty vehicles will enter the aftermarket and they understand how critical it is for shops to properly repair advanced vehicles. Saxonberg believes a poor repair experience in the aftermarket can hurt an OEMs brand image and result in lost business when a customer begins shopping for a new vehicle.
“I can assure you, the automakers aren’t hanging out in a smoke-filled room trying to figure out how we’re going to (mess with) the aftermarket. That’s not happening,” he said. Automakers need the aftermarket and understand the value of a strong aftermarket as a way of supporting vehicles in their second life cycle – outside the bounds of dealer care cycle.
