Connected Cars to “Threaten the livelihood of the Automotive Aftermarket”?

Connected Cars to “Threaten the livelihood of the Automotive Aftermarket”?

Wendy Williamson delivered an insightful keynote speech at Automechanika Birmingham 2018 (5-7 June 2018 at the NEC Birmingham). If you are involved in the automotive aftermarket, then you were probably at the Automotive Aftermarket event of the year! However if not, here’s a quick recap of the key note speech from the current chief executive of the Independent Automotive Aftermarket Federation (IAAF).

Wendy focussed on 3 main points

• The Future of The Automotive Aftermarket.
  •   Connected cars will “threaten the livelihood of the aftermarket”
    • Williamson believes that if new legislation doesn’t prevent OEMs from controlling access to connected car data then the independent aftermarket will take a big hit, as the OEM’s will be able to block the independent garages from being able to access repair the newer vehicles.
    • She said it was “not the sector’s intention to lure motorists away from the franchised dealer networks, but it is imperative that OEMs allowed third-party providers to continue providing choice to consumers.”
• The IAAF’s “Your car, Your Choice” campaign
• • This campaign aims to inform the consumer of their choice to take their vehicle anywhere for a service without compromising their warranty (provided all products used are of OE quality). This is a movement aimed to prevent the main dealers from being able to monopolise this section of the industry.
• Consumer’s Lifestyle changes that will affect the aftermarket.
  • Wendy said that “Ownership of vehicles will change; renting vehicles by the day or even the hour will become more popular, particular among the younger generation.”

Finally, Williams stated “We as a sector need to ensure we keep up to date with the times. “We must continue to invest in tools, equipment, people and of course training to ensure we’re able to cope with the myriad of changes that are taking place in the automotive industry.

“We have a reputation for finding a way through – the threats are more complex but we’re certainly up for the challenge.”

Personally, I think there is a lot of truth to change in ways of owning a vehicle. As a true Millennial, I consider my mobile phone as necessary as my car, I need to have one and I need it to work (which is why I have a phone on contract with insurance!). If I could pay a regular monthly service fee (rather than risk a hefty garage bill) for use of a vehicle which covered any problems (not deemed my fault) then I would see this as a benefit. It would also mean I could upgrade at the end of my contract to a newer, nicer car. Much like the Hire options you have now, which are becoming increasingly popular for those who see a car as a necessity first and a passion project second, if at all.

Glen Callum has seen there are big challenges ahead for the Automotive Aftermarket, but over the last 18 years, there hasn’t been a challenge the Automotive Aftermarket couldn’t tackle yet.

You can read the full article from the IAAF here: http://iaafnewsletter.co.uk/2018/06/08/wendy-williamson-delivers-keynote-speech-on-the-future-of-the-automotive-aftermarket/