AND THAT’S NOT NECESSARILY A GOOD THING
Is your service department in danger of being replaced with a bit of computer code transmitted wirelessly over the Internet? Probably not, but much of the work it does just might be.
It seems there’s an app for everything these days, and that includes apps for many of the vehicles you’re selling and servicing, which have become in effect just oversized mobile communication devices. Some of these apps have the potential to benefit your business —others could hurt it.
The term “app” is short form for “software application.” But it’s a very specific piece of software that typically is designed to fulfill a single purpose, such as performing a specific function or enabling a particular source of entertainment.
Apps burst onto the mobile phone scene in 2008 and quickly became so ubiquitous that the term was selected as the “Word of the Year” in 2010 by the American Dialect Society.
Unlike traditional computer software programs, apps typically are accessed and used online, rather than residing on the computer’s hard drive.
Another characteristic of apps is that they tend to be platform-specific, compatible with just one type of operating system such as Apple, Android, Blackberry or Windows — or the proprietary operating systems automakers use to control the many systems within their vehicles.
Many vehicles now offer access to such apps through interface capabilities with various smartphones. By linking the two, via hardware or Bluetooth technology, the vehicle’s infotainment system becomes, in effect, an extension of the smartphone with access to most of its functions, including apps.
In addition, some vehicles now offer Apple CarPlay with Siri and all its attendant features, as a built-in component. Other vehicles are already offering Android Auto or they will soon in a similar role.
But there are problems with both those scenarios from the perspective of many automakers. For one, they want their customers to identify with the vehicle and its brand — not with some other brand.
Many automakers also want to offer apps of their own that are specific to the brand or vehicle. Almost every automaker is moving in that direction, if they’re not already there. They’ll still offer smartphone integration but they’re reluctant to cede the whole infotainment/communication space to a third party.
The issue for automakers goes far beyond just claiming the infotainment space as their own. Apart from apps for infotainment and communication, they can provide a means for the automakers to update a variety of vehicle systems.
For example, an obvious use would be updating nav-system mapping, not just once a year or so but every time there’s a change or addition within the mapped area where the owner may be driving or has selected a destination.
Apps could also be used to update things like an engine’s calibration to improve emissions performance, fuel consumption or drivability. Ditto for such characteristics as suspension calibration or ABS/ESC operation.
Think of it as a wireless chip exchange — all without taking the vehicle to a dealership.
Given that almost everything in a modern vehicle is now electronically controlled, the possibilities seem limitless. But apps could also be potentially limiting to the number of service visits that may be required to your service department.
An obvious extension of that capability would be to implement software-based recalls that don’t need physical hardware changes.
Tesla reportedly took that route recently to address a potential overheating issue during charging of its Model S electric vehicles. Software updated, recall avoided, no dealership visits necessary.
All of which may be seen as a big red warning flag for dealers. But there’s a flip side. Remote diagnostic capabilities and automatic maintenance reminders may help drive customers back into the fold, at least to some extent.
But there’s another potential problem with app-based recall fixes — one that haunts almost every aspect of the auto business, especially in the U.S. It’s the spectre of liability. What if something goes wrong? And something always goes wrong, sooner or later.
There are also privacy concerns. Who actually owns the software and associated data in the vehicle? Is it the manufacturer or the car owner? Who has the right to change it?
It’s all a step too far for some automakers who simply won’t take the chance, especially with safety-related issues.
But that’s now. Things could change a lot in a short time. It’s a rapidly changing world and those who are prepared for such eventualities will be
the ones who not only survive but also prosper when they occur.
