Month: May 2021

Originally published in Dealer Marketing Magazine

May 17, 2021 by Greg Ross

Most dealers have Courtesy Transportation, or CTP programs in place, with the support of their respective manufacturers. What dealers may not be aware of though, is that these programs are increasingly using Connected Car technology to track and manage the vehicles enrolled in them. Not only does this new technology create opportunities for better fleet management, but it also has the potential to create some exciting new revenue opportunities for dealers in the very near future. The same platform used to operate CTP can be used by dealers to operate Rental programs, Alternative Financing programs, or Demonstrations.

Connected CTP Programs

Manufacturers are increasingly equipping new vehicles with built-in telematics equipment. In 2021, over 90% of all new vehicles will be equipped this way. Fleet owners have long recognized the value of built-in connections for fleet management applications. Fleets can more accurately track vehicle location, maintenance needs, mileage, and driver behavior data using a built-in connection and centralized fleet management. Vehicle manufacturers are increasingly bringing connected fleet management tools to their CTP to let dealers more closely manage these fleets as well.

These programs, operated by companies like TSD Loaner, Connexion Telematics, Bluebird Auto Rental Systems, and ARSLoaner, all enable Dealers to more closely manage CTP vehicles. Dealers can easily enroll vehicles from their inventory into these systems and then track which ones are rented out, how many miles have been driven, how much fuel is being used, and whether any of the vehicles need maintenance. In the event that one of the vehicles goes missing, it can also be located.

To get the most out of Connected CTP, dealers should take full advantage of available reporting, such as:

• Mileage alerts to prevent vehicles from being used past OEM program mileage limits
• Fuel Usage, to recoup fuel costs
• Rental History, to identify which vehicles are over-and under-used
• Over-Time alerts, to identify vehicles that have been kept longer than planned
• Tolling Alerts, to recoup toll costs

Some programs also include remote lock/unlock commands, giving the dealer the ability to easily help if a CTP customer gets locked out. Taken together, dealers can use these tools to significantly improve the efficiency of their CTP.  

New Revenue Opportunities

While Connected CTP can be useful in managing costs today, they can also create a platform for dealers to easily try out new revenue models. Technically, any connected vehicle on the dealer’s lot – new or used – can be activated and managed from the same platform that is used to manage CTP. That creates some interesting possibilities, such as:

Short-Term Rentals

Any connected vehicle on the dealer’s lot could be enrolled and offered as a short-term rental. The CTP platform could easily bill the rental customer for time, mileage, fuel used, tolls, etc., at a rate negotiated by the dealer. Rentals could be for use by individuals or businesses or could be offered to Uber or Lyft drivers. Dealers should seek information & guidance from their providers & OEM partners. Some of the providers mentioned above already offer integrations that can result in immediate revenue opportunities. 

Alternative Financing Models

The same CTP platform could also allow the dealer to experiment with alternative financing models, such as subscriptions or “loan to own.” The platform can easily track vehicle usage, apply a metered price by day, month, or by mileage, and can apply additional charges for fuel, tolls, and maintenance. In the event vehicles need to be recovered, they can also be located. The platform built to enable a Connected CTP can easily be adapted to operate these programs, as well.

Demonstration Programs

The dealer’s CTP platform can also be used to offer vehicles for demonstration. With the roll-out of Electric Vehicles, for example, many customers may want to have a trial of an EV before committing to an all-new method of propulsion. Any other vehicle on the dealer’s lot can also be offered this way, with mileage and usage easily monitored for follow-up with the customer.

These new applications are not yet widely deployed to dealers, but dealers should be aware of the potential of Connected CTP and press their manufacturer sponsors and platform providers to bring these capabilities forward. Motormindz can offer guidance on the potential for CTP and other connected programs, both for savings today and revenues in the near future.

May 7, 2021in Thought Leadership

by Greg Ross, Connected Vehicles Practice Lead, motormindz

Connected Car Data:  Balancing Opportunity with Responsibility

There is no shortage of opportunity for connected car data and commands, but every opportunity to create value can also be an opportunity for mayhem and abuse.  As built-in connections become more widespread and more capable, we will continue to see innovation at all levels, in every part of the automotive industry. But to create a healthy environment for innovation around connected car data, it is essential to build in protections for data security, access management, and consumer privacy.

The ultimate responsibility for creating and managing a secure connected car ecosystem falls squarely on OEMs. Manufacturers have a custodial responsibility to ensure that access to both vehicle data and systems is secure, that data collected from vehicles is carefully stored and managed, and that user consent is clearly obtained and honored.  To their credit, the OEMs have acknowledged this responsibility in a statement of principles, which are regularly updated by the Alliance for Automotive Innovation, representing manufacturers of nearly 99% of vehicles sold in the US.

Having taken responsibility for a secure connected car ecosystem, the OEMs are now faced with the significant challenge of ensuring that the ecosystem is well-functioning – and this is no easy task.  The ideal ecosystem will provide innovators and third parties with easy access to vehicle data as well as read/write access to vehicle systems – while at the same time ensuring that that access is highly secure and strictly compliant with all privacy, contractual, and regulatory commitments.

Some of the most difficult challenges to be solved here include:

• On the vehicle: Each controller produces useful data and can benefit from periodic software updates and enhancements. But OEMs must strictly control the data that is extracted.  OEMs and their Suppliers must also carefully track and manage any software updates.
• Vehicle to Cloud: innovators envision connections from vehicles to other vehicles, to road infrastructure, to merchants, and to the manufacturer’s data center. At the same time, this complex web of connections has to be managed to ensure that only authorized connections are made, and only authorized data is exchanged.
• Cloud to Third Parties: A whole range of third parties, including dealers, insurance companies, finance companies, fleet managers, municipalities, toll operators, and many others are lining up to use connected car data to provide enhanced services. This puts data in the hands of a huge number of entities, and the OEM-designed system must ensure that all are obtaining proper consent and that only authorized data is being exchanged for authorized purposes.
• Owner Data Management: Finally, vehicle owners expect to have a degree of control over the data produced by their vehicle. These expectations are increasingly becoming regulatory requirements.  OEM systems must therefore provide owners visibility and control over their data’s collection and usage.

Some OEMs are beginning to explore pieces to put in in place to enable innovation and ensure security.  Several start-ups have emerged with cybersecurity solutions for both on-vehicle and vehicle-to-cloud security and data management. Data aggregation startups have also emerged not only to create a market for OEM consumer data, but also to implement required security and consent management.  There are also well-established entities in industries like Finance, Insurance, and Data Management that have established methods for ensuring data security, but much more needs to be done to take full advantage of the myriad of opportunities for connected car data and commands.

motormindz’ Connected Car practice regularly helps our OEM, Suppliers, and technology innovator clients solve challenges inherent in building and operating secure connected car ecosystems.  Our Connected Car veterans have decades of real-world experience in building highly recognized and successful systems for many of the major OEMs.  We can help you build a system that enables disruptive innovation through secure Connected Car technologies – that also ensures responsible management of your customer’s data. Reach out and get connected with us – and we’ll help you “get” Connected.