Remember when your son begged you to buy him that remote control car for his birthday? You would never admit it, but you wanted to play with it as much as he did. That little hand-held radio transmitter brought more joy to kids (and grown-ups) across the country simply because they were in control of the vehicle at the other end.
Today, remote control cars are still extremely popular and a lot more sophisticated. But some aren’t actually toys. On several vehicle makes, operating data can be gathered and interpreted while the car is on the road, giving OEMs and service providers a sense of vehicle control since the car can communicate needed service without even entering a bay. There’s nothing like your car telling you its oil life is low or a set of brake pads is required.
This new tool is being used by some OEMs to create more touch points with the driver, says Joerg Dittmer, senior industry analyst with Frost & Sullivan. It’s also a way to capture more service business for the dealerships.
Phil Magney, president and principal analyst of the Telematics Research Group, believes that this technology will “be a tool relied on heavily for both the OE and dealer channel” to build direct relationships with their customers.
A study conducted by ATX, a leading telematics provider, supports this notion. Its research states that sales and service management from a cross section of U.S. automobile dealerships see enhanced value in using real-time, telematics-generated data for generating new service revenues and augmenting current customer relationships.
On the contrary, a 2003 speech by Dennis Foy, author of “Automotive Telematics,” suggested dealers are slow to embrace the technology. Some he spoke to were thankful their respective car company didn’t offer it. Many had the belief that every car still needs “the ears, eyes and hands of a good mechanic” before a diagnosis can be made.
That viewpoint is surely being refuted at some corporate OE headquarters since there is so much value this technology can offer, if utilized properly. The biggest challenge BMW faced before launching their TeleService feature, which includes a remote diagnostic component, was the cultural change that needed to take place at the dealer level, says Ken Barile, manager, aftersales and engineering systems, BMW North America. The use of this technology requires a completely different mindset; however, it was only an initial concern for them. He reports that their remote diagnostic offering is being fully embraced, mostly due to all the value it adds for dealers.
Key players
According to Magney, it has always been the goal of telematics providers to incorporate this “vision of remote diagnostics,” since it’s a very compelling application; however, Dittmer reports that some OEs offered it for a while and then backed off. “They found it wasn’t helping them sell more vehicles or generate good revenue streams.”
Magney firmly believes, however, that more OEs will launch products with this type of technology because “companies will be a little more able to subsidize putting the equipment in knowing they will get added value out of the system from customer relationship management or vehicle relationship management.”
So far, it seems General Motors, Mercedes-Benz, BMW and Honda are onboard, yet their systems all vary.
Honda’s Acura RL offers remote diagnostic capability. Their system, called AcuraLink Satellite Communication System, “can alert the customer directly in the car should a problem arise,” according to Chuck Schifsky, manager, regional public relations operations for Honda.
He explains that if a warning light appears on the instrument panel, AcuraLink can be configured to send a trouble code along with sensor data associated with the fault to the Acura telematics server, which analyzes the code and sends a message back to the driver. For example, if an ABS/brake warning light should appear on the instrument panel, a trouble code is sent to the Acura telematics server where it is interpreted. The telematics server then sends a message back via a heads-up display such as, “ABS and EBD shut down! Drive slowly. Avoid sudden hard braking.”
This way, the owner knows if a particular fault is serious enough to cancel a trip, if it can be dealt with later or if it requires special driving techniques, says Schifsky.
In cases where communication to and from the Acura telematics server is needed, the vehicle owner’s Bluetooth cell phone is used.
The messages displayed consist of a limited amount of text plus expanded details via text-to-speech. Each message is prioritized by importance. In all cases, the vehicle owner can choose to read or listen to the message immediately, or archive it to be retrieved later, says Schifsky.
A wide variety of messages can be sent to the RL, including detailed information regarding required maintenance, supplements to the owner’s manual, diagnostic information and instruction should an onboard system issue arise and details regarding a service or repair required.
“Since the system allows two-way data communication between the RL and the Acura telematics server, AcuraLink can provide the owner with vital information that previously has been unavailable,” explains Schifsky. The data connection is enabled even if the monthly XM service package is not in effect.
OnStar, perhaps the most publicized telematics provider, has had a diagnostic service they’ve been offering drivers for years, according to Keith Yaden, OnStar communications manager.
With the push of a button, OnStar subscribers can talk to an advisor and ask for a “GM Goodwrench Remote Diagnostics” vehicle check at any time on four key systems: powertrain, antilock brakes, the OnStar system and airbags. OnStar advisors perform “real-time” remote diagnostic checks for subscribers about 27,000 times per month.
Last fall, they launched an additional service called “OnStar Vehicle Diagnostics,” which automatically performs hundreds of diagnostic checks and sends a monthly e-mail to drivers with a status on each of the four systems. “The e-mail also provides other maintenance information,” according to Yaden, like recommended check intervals and oil life monitoring.
“Most GM cars have oil life monitoring systems. We calculate [oil life] using algorithms to determine when it is necessary to change the oil,” explains Yaden. “It’ll say, for example, ‘you have 5 percent of your oil life left.’”
Every 30 days or so, a real-time report is sent via e-mail directly to the OnStar subscriber’s computer desktop. Also included in the e-mail, adds Yaden, is the name and contact information for the selling dealership.
“If you want to make an appointment, you’d call your [OnStar] advisor and they would call the dealership you selected.”
Offered as an opt-in service on more than 50 GM vehicle makes including SUVs, light trucks, minivans, crossovers, large and midsize sedans, as well as small cars that come with the OnStar system, subscribers can enroll at the OnStar website or by pressing their blue OnStar button. So far, more than half a million drivers have been enrolled in OnStar’s Vehicle Diagnostics check program.
Some of you may also be familiar with the BMW commercial where the driver, in the midst of singing, “The wheels on the bus go round and round” is interrupted by a call from his service provider, who tells him he needs his oil changed.
“Our vehicles are equipped with sensor technology and software algorithms that monitor routine maintenance needs,” says BMW’s Barile. Everything from the vehicle’s front and rear brakes and oil life to the spark plugs and fluids are checked remotely.
This feature, called TeleService, is part of the BMW Assist Safety Plan, which is standard on 5, 6 and 7 Series Sedan and Sport Wagons and is an upgrade option with the 3 Series E90.
The situation and condition of the car determine when service is needed, says Barile, and then the car proactively asks for service. Data is transmitted to BMW’s telematics service provider, ATX, which aggregates it and then sends that information to BMW. They enrich the information to include customer preferences and then forward it along to the BMW service advisor, who then is equipped with the details necessary to call and schedule an appointment and pre-order any necessary parts.
Reports also suggest that ATX works with Mercedes-Benz, though nobody from either company was available for comment. Online information suggests Tele Aid, the Mercedes-Benz premium telematics service, has been standard equipment on most Mercedes-Benz vehicles since the system made its debut on the 2000 S-Class. Dealer Connect is one of the features offered; it provides one-button access to speak directly with a dealership of the driver’s choice.
Drivers also have a direct link to the Mercedes-Benz Customer Assistance Center for information on the vehicle. Finally, if an owner reports a problem with their car, the status of the electronic systems can be accessed remotely via Tele Aid from Mercedes-Benz Roadside Assistance.
Future expectations
The Hansen Report On Automotive Electronics from January 2004 suggests that as the costs of such systems come down, remote diagnostic features will be commonplace on luxury vehicles in the next eight to 10 years.
BMW’s Barile says, “This is an important technology for BMW, so you will likely see it appear on more and more models. We want to differentiate ourselves through service, so to that degree, we see TeleService being very important to help us do that.”
Yaden with OnStar says that they are somewhat surprised that other manufacturers haven’t tapped into this technology yet.
For Honda, their remote diagnostic feature will only be applied to Acura models for now, “but like most technology, it may someday become more mainstream,” says Schifsky. “As an example, navigation systems were once only found on upscale cars like Acura models. However, last year we introduced the all-new 2006 Honda Civic with navigation.”
A spokesperson in Toyota’s corporate communications office says none of their vehicles feature remote vehicle diagnostic capabilities with the key word being “remote.” They are aware that the industry is looking at it but have no story to tell right now.
In addition to Ford, DaimlerChrysler, too, does not have any vehicles that feature a remote diagnostic capability. Cole Quinnell, manager, communications for engineering at DaimlerChrysler, says that the company currently uses remote diagnostics on their fleet of engineering test vehicles and has for some time. They are taking the time to explore the methods and benefits to which it can best be utilized before implementing it on any of their vehicles.
Because they are still in the investigative mode, he was unable to specify a timeline for introduction.
Potential roadblocks
Privacy and cost raise two questions of concern for some. Civil rights advocates could argue that motorists lose their privacy when outside sources can pinpoint both exactly where a vehicle is as well as its operating data.
Quinnell is somewhat in agreement. “Our biggest concern is protecting privacy and ensuring the accuracy of the information that is being flowed,” he says, adding that it’s very easy to control their test vehicles in this way but that’s in a confined and controlled environment. “We want to make sure the consumer never has to worry about that before we launch anything.”
Additionally, according to The Hansen Report, there’s tremendous cost involved in launching remote diagnostic systems, a reason it’s typically being offered on higher-end vehicles at present, or as part of a larger telematics program.
In an e-mail from Kristen Kinley at Ford Motor Co., she reports that they “investigated this several years ago and due to budgetary and other reasons,” they elected not to pursue it. She is not suggesting, however, that they have completely ruled it out. “It may be considered in the future but it’s not in Ford’s business plan at this time.”
According to reports, an embedded platform can cost upwards of $600 plus a monthly expense for the wireless service required to send data back and forth, which some consumers just aren’t willing to pay.
“We have many customers who own GM products that have not renewed their OnStar subscription after the initial one year free service expired,” says Dave Lanspeary, Automotive Service Association member and owner and operator of Dave’s Auto Repair in Youngtown, Ariz. “When asked, they have replied first that cost was the primary reason for non-renewal.”
Customers also told him that they didn’t use the system or perceive the value in all of the features available. Others have used it just for emergencies while some have asked Dave’s Auto to completely disable certain systems.
Another pitfall that is being overlooked could be the fact that remote diagnostics should not and cannot replace the need for a physical vehicle check, suggests Lanspeary, who has been following the telematics industry for quite some time. “Equipment that’s designed to replace or supplant the need for a trained technician has never worked as planned as there are too many variables that can alter this concept in practice.”
But Barile points out that the BMW system, for example, cannot diagnose itself — it can just communicate when certain services are needed or if a fault code is recognized. “It can pass a fault code to us, but it doesn’t examine it in real-time.”
Lanspeary does believe telematics opens new doors for marketing opportunities, “providing service alerts, to track and confirm repair and provide consumers — the ultimate beneficiaries — more peace of mind and hopefully an improved experience in vehicle reliability and satisfaction.”
The question remains, however, whether consumers are ready for or even desire these types of services. Some suggest that unless these features are standard, consumers may not be willing to pay extra.
Vetronix, a well-known automotive diagnostic provider, built an end-to-end infrastructure in the ’90s for consumers and only sold 400 units. After that, they made the decision to focus their efforts on the commercial side. Unable to comment at this time, it is not known whether they will delve back into non-commercial applications in the near future.
Frost & Sullivan’s Dittmer says their research suggests that renewal rates for services like OnStar haven’t been as high as the OEs would like. After the initial year, many consumers let the membership lapse, just as Lanspeary pointed out. Adding complementary services like remote diagnostics to the overall package is one way to secure more subscribers, says Dittmer.
But with direct regard to remote diagnostics, in the 2005 J.D. Power and Associates U.S. Automotive Emerging Technologies Study, half the people surveyed were interested in it. Angel Muxlow, research supervisor, says, “On their next vehicle at the likely mid-point price of $200 — this technology is ranked eighth compared to other technologies asked about.”
Will the aftermarket ‘plug’ in?
Lanspeary truly believes it will be several more years before telematics achieves any sort of vehicle penetration, giving the aftermarket an opportunity to get involved in this field and remain competitive. “There are simply not enough dealership service bays to handle the volume of vehicles on the road today and well into the future.”
Dittmer thinks that as most vehicles enter the aftermarket, which typically occurs after their warranty has expired, they may no longer have an active telematics system. “Owners may be less likely to subscribe,” he says, one reason he doesn’t think remote diagnostics is of any threat to the aftermarket.
But whether it becomes a threat or not, the technology does offer the aftermarket an opportunity to get involved, possibly as a way to create new revenue streams.
Lanspeary says the aftermarket is completely capable of “assimilating this technology whether through franchising and/or licensing agreements, or stand-alone products that emulate what the OEMs are using.”
Adds Magney, “It’s entirely possible to do this in the aftermarket,” though the opportunities are a little less clear.
“Most of the time, it’s been OEM supplied capability...however, there is a fair amount of aftermarket diagnostic equipment allowing you to connect to the OBDII port. Combine that with wireless capability and you’ve got remote diagnostics,” says Magney, who believes these systems will have to go above and beyond those offered by the OEMs in order to gain widespread consumer acceptance, which will require more sophistication and a deeper level of integration.
After digging far and wide, we found one company that does offer a true aftermarket product. Networkcar has a complete plug-and-play system that is typically sold through new car dealers, though that’s not to say they aren’t interested in selling it through traditional aftermarket channels or via large independents or franchise service centers, says Ryan Glancy, director of business development for Networkcar. The product features remote diagnostics, GPS tracking and emergency roadside assistance.
Compatible with most 1996 or newer vehicles, the Internet-based scan tool technology takes about 30 minutes to install, explains Glancy. The upfront costs for hardware are about $695, and there is a monthly service fee of $10. The technology, which is designed to communicate with the vehicle’s onboard computer, interprets the data it receives, is read and enriched by Networkcar and then is transmitted to the consumer or service provider.
Data is sent to the driver immediately if a problem is detected, which allows the service center to remotely troubleshoot vehicle problems online before it’s even brought in for service.
In addition, consumers and/or the selected service provider will receive e-mail alerts every month if the system detects a diagnostic trouble code or if the vehicle reaches a service milestone.
In some states, car owners can even receive a remote smog test without having to take their vehicle in for inspection. Finally, consumers and service providers can access an easy-to-read website at any time to get an update on their vehicle’s operating conditions.
Glancy says it is up to the service center to utilize the data provided to help build customer relationships. “They need to drive the consumer to come in for service.”
He points out that not every vehicle will transmit the exact same data since the number of sensors used differs by make, model and year.
The key is that there most certainly is an opportunity for the aftermarket to tap into. And Lanspeary is a firm believer we should.
“We cannot fear technology, we must embrace it, learn to use and apply it to our advantage in the servicing of vehicles.”
Today’s fleet owners find value, savings when using telematics systems
A study by Frost & Sullivan suggests that by 2012, nearly 32 percent of commercial vehicles are expected to be equipped with a telematics system. The revenue from both hardware and services in the long haul, local fleet and trailer-use segments will likely reach $6.5 billion in the next six years.
For telematics services like remote diagnostics and vehicle tracking, “there is certainly more of a business case on the commercial side,” says Phil Magney, president and principal analyst of the Telematics Research Group. Many aftermarket companies offer products in this category that are extremely sophisticated, helping fleet owners save thousands of dollars, he adds.
Vetronix, a maker of service bay diagnostic solutions and one of the first companies to develop scan tools, has an extensive fleet management telematics offering called Mastertrak Fleet Solutions, which not only provides satellite-based vehicle tracking but remote diagnostic capabilities that allow them to determine repair and service needs.
Networkfleet, offered by Networkcar, is a wireless fleet management solution that enables fleet owners to communicate with every aspect of their vehicle via a terrestrial wireless data network. The solution includes a combination of location technology, remote diagnostics, stolen vehicle recovery and emergency roadside assistance. For fleet owners in the aftermarket, Ryan Glancy of Networkcar says, “We can help them dispatch vehicles, try to reduce excessive fuel use” and provide remote access to operating and driving conditions. He claims systems like theirs really help cut down on fuel spending.
Mike Needleman, owner of Auto Sound in Plainville, Mass. — an accessories installer of items like spoilers, wood dashes, moon roofs and more — has been using Networkfleet on his fleet vehicles, while also selling and installing the consumer option for nearby car dealerships. The most beneficial aspects of using it for him include peace of mind when roadside assistance or vehicle recovery is needed, the ability to send directions in real-time and being able to keep track of routine maintenance.
The key differentiator, he says, is the system’s diagnostic component. “You know what’s going on regarding fuel economy, trouble codes, idling and how [the vehicle] is driven.”
Another fleet management system provider, Teletrac, has technology that will send performance reports to fleet owners outlining the number of miles logged by each vehicle, the number of hours the engine was running, total in-time motion, total idling time and fuel consumption. It also can report data pulled from the vehicle’s JBUS, providing fault codes and other engine management details, if they are available. “The goal is to get that information to the mechanic since they are going to understand what it means, which allows them to be more proactive,” says Tim Van Cleve, the company’s COO.
For light-duty fleets, Teletrac does not have a remote diagnostic function but says that it’s currently in the development stage.
