Your customers are ready for highly connected vehicles. Are you ready to sell them?
If you’ve dawdled in training your sales staff on automated and connected vehicle technology, help is at hand. A variety of OEM and government initiatives are helping to prepare dealers and drivers for the future of transportation.
But there’s not a moment to lose.
According to a Senate Committee on Transport Communications, there is no doubt that fully automatic cars will one day be capable of performing nearly all driving tasks, while connected vehicles — cars that can interact with their environment and relay information to the driver — already offer new levels of safety and instant access to information.
But while driverless cars are already a reality, Canada is ill-prepared for their arrival, according to a Senate news release. The group has issued a report urging the federal government to develop a coordinated national strategy that ensures Canadians will benefit from emerging automotive technologies — and allows the government to prevent potential harm.
The report, Driving Change: Technology and the Future of the Automated Vehicle, says that strong cybersecurity measures will be needed to maintain public safety and confidence. And rigorous oversight must protect personal information gleaned from automated vehicles.
The intense focus on connectivity should come as no surprise to most industry players, according to Francois Boisvert, General Manager at Boisvert Ford in Boucherville, Québec.
“The industry is aware of what’s coming. It’s fascinating for everyone — the driver, the seller, the people in the dealerships — everyone,” he says.
OEMs offer several levels of training to help dealership staff explain a brand’s range of connected features to customers, says Boisvert.
They also are putting significant pressure on dealers to ensure that their salesforce effectively completes their web-based training on vehicles with connected and highly-connected features, says Simon Legendre, General Manager of Ford 440 in Laval, Québec.
“Customers are also very knowledgeable about the technology, which also puts significant pressure on the credibility of the sales rep’s product knowledge,” says Legendre.
He believes that dealers will be ready for what’s to come, partly because they are excited about the technology — and partly because they need to be.
For Legendre the revelation came nearly three years ago. That’s when he began to notice that consumers were “demonstrating a genuine interest in all of these connectivity features, and were more inclined to purchase them.”
His observation is backed by research: Car buyers across the globe are increasingly demanding connectivity — and they’re willing to pay for it.
In just one year, the number of people who said they would switch from their current OEM to another manufacturer they trust if it was the only one that offered a car with full access to apps, data and media rose from 20 to 37 per cent, according to a September 2015 McKinsey & Company report.
Three factors have made connected features less frightening for the consumer, says Legendre. These include socio-demographic criteria, the importance of R&D for the manufacturers, and technology growth in all automotive sectors.
“Societal pressure has had its effect and today we see buyers of all ages who not only inquire about the technology, but also want to be informed about it before buying the product,” Legendre says.
What’s holding them back
Not everyone is onside with connectivity just yet, however. Some people still have safety concerns, despite what dealers can offer them in information and test drives. Many want to know how they will be protected from cybersecurity threats. They want to be sure their data is safe from hackers.
According to a 2017 study by Foley & Lardner LLP:
- 63 per cent of respondents were most concerned about cybersecurity attacks in terms of legal issues;
- 58 per cent were worried about intellectual property protection; and
- personal injury and property liability were at the forefront for 55 per cent.
It’s an area that requires further exploration by OEMs and the government, and where some dealers may require more training.
In the meantime, the federal government is taking steps to ensure that these fears will be tackled.
Transport Canada has set aside $2.9 million to fund the Program to Advance Connectivity and Automation in the Transportation system. The funding supports research, studies and technology demonstrations across the country.
Results will help to address the technical, policy and regulatory issues related to connected and automated vehicles, and findings will be shared extensively, according to a news release.
One beneficiary has been the city of Saskatoon, Saskatchewan, which received $25,000 for a project to support capacity building on connected and automated vehicles.
In Calgary, three projects were recently awarded a total of $390,000, including:
- $290,000 to the City of Calgary to establish a connected vehicle test-bed on 16th Avenue North;
- $50,000 to the Canadian National Institute for the Blind to study impacts of connected and automated vehicles on pedestrians with sight loss; and
- $50,000 to the City of Calgary to test an automated shuttle connecting light rail transit with the Calgary Zoo and Telus Spark Science Centre.
Another concern that will need to be worked out — in this case by the telecom providers — is the issue of data fees. According to Benjamin Hunting, a Montreal-based automotive journalist, Canada’s high data rates make connected cars a hard sell.
“The idea of adding yet another monthly charge for data (after the initial period from the OEM runs out) is not appealing, especially given overage fees or any fees associated with traveling outside of the country,” says Hunting.
He adds that he’s “not looking for my car to duplicate smartphone functionality, and very little of the ‘unique’ features associated with connected cars are appealing.”
But OEMs are pushing the envelope on connectivity features to offer more intriguing options for people like Hunting.
Hyundai, for example, has come up with something to match the smartphone appeal, provide a sense of ease and security to the consumer, and increase daily efficiency. At the International Consumer Electronics Show (CES) 2018, Hyundai Motor America unveiled a concept showcasing how their future vehicles will be controlled through the Intelligent Personal Cockpit, which voice-enables commands from car-to-home.
“The idea of the connected car is based on telecommunication technology that Hyundai plans to install in all of our vehicles in the future to provide customers with always-on connectivity,” says Steve Flamand, Director of Product and Corporate Strategy, Hyundai Auto Canada Corp. “By installing communication modules in our vehicles, we expect to provide customers with data-intensive connected services, improved quality, and safer, more secure connected services.”
In 2011, MyFord Touch was a turning point for the carmaker in terms of connectivity — and later voice commands, Bluetooth and their infotainment system. Now the intrigue is more about the company’s third generation connectivity system (SYNC3), with an application that allows drivers to control certain remote functionalities, geolocation, and more.
While the OEMs have a handle on what’s in store for connectivity, and are working to educate dealers and consumers along the way, it’s ultimately up to the dealer to make sure staff is ready for the transition.
“If you’re still in the preparation phase of your team on the connectivity features of your vehicles, you’ve got work to do,” says Ford dealer Simon Legendre. “You must at least have specialists for these connectivity products that will serve as a reference for your dealership.”
