Mike Anderson on the economics of telematics

By CRM Staff

Toronto, Ontario — August 29, 2018 — Collision Advice CEO Mike Anderson discussed the rise of telematics at NACE Automechanika this year.
He said that consumers were given a survey discussing what was the most important to them in terms of a body shop and a leading 52 percent said “certified by my OEM manufacturer.”
In response OEM’s care because studies say that 60 percent of all consumers who have to return their vehicle to a collision repair centre with a problem will sell or trade their vehicle within one year, and 63 percent will change brands when looking for a new vehicle.
Anderson went on to discuss the use of telematics within vehicles.
While self-driving vehicles get all of the attention in the media, the OEMs are actually focused on preventing fatalities, minimizing body injuries, improving fuel economy, and creating safety and comfort features.  
“In 2014, the World Health Organization stated that 1.24 million people die in traffic accidents each year. On a global scale, traffic fatalities continue to increase steadily and are expected to become the fifth leading cause of death in the world by 2030, unless countermeasures are implemented”
Anderson pointed out the telematics is going to be working in the future with first response teams to help with these safety features.
He explained that telematics are here to stay. By 2022 the majority of new vehicles shipped in each market will be equipped with telematics and 89 percent Canadian.
The Canadians within that portion said they were willing to spend $168 for telematics and $181 for the Wi-Fi, while the Americans are willing to spend $484 for telematics and $472 for Wi-Fi.
“Affordability is key to this gaining traction!” a slide in Anderson’s presentation declared, and some of the OEMs he mentioned have shown they can deliver collision detection capability for less than the $484 price point, at least for a couple of years.
Anderson also mentioned that the younger generation is fine with being monitored non-stop.
HIS Markit study said that 32 percent of respondents in the survey felt that roadside assistance was the most important telematic feature, and 28 percent felt stolen car aid was the most significant. Automatic crash notification and turn-by-turn navigation tied at 25 percent, according to IHS Markit.
Collision notification is clearly a popular concept. 


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