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Digital already disrupting global auto industry

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The global automotive industry and many related facets of the business are changing rapidly as the digital revolution causes major disruption. This makes it essential for motor businesses to adapt or die.

This message came through loud and clear at the biennial CAR Conference held at the Kyalami Grand Prix circuit as part of the SA Festival of Motoring last weekend, where the overall conference theme was “Consumer Trends and Disruption: How SA automakers can drive the change required to adapt to a new future.”

The arrival of self-driving autonomous cars sooner rather than later was also a topic for many of the speakers.

Martyn Briggs, an industry principal of Frost and Sullivan in the United Kingdom and one of the keynote speakers, presented on the topic “Megatrends and the future of mobility”, an area of the industry where he is an expert. His address was an ideal scene-setter for the intriguing series of presentations that followed.

Much of what Briggs told the delegates was admittedly about future developments but he also had plenty of facts and figures about what was happening right now in terms of ride sharing, car sharing and ride hailing apps as well as the increasing use of apps to assist in finding a parking space in congested cities.

Briggs went on to explain how digital dealerships using small showrooms in shopping malls, with only one or two cars on display and doing business online, were proving increasingly successful in the UK. He predicted that this trend is expected to spread worldwide.

Briggs added that most people now know exactly which car they want to buy by the time they entered the relevant dealership and on average only visited the dealer only twice when doing the deal to buy a new car.

Briggs said that car design is another aspect of the automotive world that is being influenced by the changing digital landscape and the manner in which more and more vehicles are being used these days. This is resulting in the so-called trifecta design proposition whereby traditional body styles like hatches, sedans, MPVs and SUVs are being crossed and morphed to make hybrid designs. Examples here are the Suzuki SX4 and Tesla Model X.

Shayne Mann, the managing director of Mann Made, a brand experience company, summed up the rapidly changing automotive landscape when he said: “Technology is disrupting every industry worldwide and motor retail is not going to be spared. Disruption is coming – from online retail to driverless cars – and those who don’t learn to innovate now will find themselves left behind.”

Mann, who has already been involved in developing virtual automotive showrooms for local dealer groups, offered sound advice and examples of how dealers can catch the wave and start innovating faster.

He says that It’s “time to reboot!”; it is not necessary to throw away the expertise and physical footprint offered by traditional dealerships, but rather to re-imagine their role in an uncertain (but exciting) future.

Chris de Kock, the managing director of WesBank, the country’s leading vehicle finance house and the main sponsor of the SA Festival of Motoring, continued in the same vein about the need for change. He said that the current linear process of buying a car – search, sell, finance, buy – had to change as it was inefficient, did not offer a personalised experience and was expensive for the customer.

De Kock said WesBank was mulling the various disruptive technologies that will deliver the desired experience to the customer. Options include Platform Business Systems, Blockchain, Cloud Computing and the Internet of Things.

The need for change was reinforced by Dave Duarte, the founder of Treeshake, a consultancy dedicated to growing digital marketing capability, who also served as the master of ceremonies at the conference.

He set the scene by explaining that the growth towards a digital world in South Africa was driven by the fact that the number of active website users in the country, which now numbered 18-million people, was already double the number of cars on South African roads.

Other thought-provoking statistics that  were put on the table by Duarte were that 45.9% of 1 000 people surveyed in SA would be willing to buy a car online and that  only 17 people out of more than 4 000  interviewed in another survey said they were satisfied  with the current car buying process; all the others wanted change.

Duarte warned dealers that quick responses were necessary when dealing with potential buyers online. “They are not prepared to wait long for feedback to queries.”

The founder of Treeshake also explained that buyers of new vehicles were using general websites such as Gumtree when buying a new vehicle and not only using these sites for buying used vehicles. This trend has resulted in many dealers now using Gumtree and similar online websites to advertise both new and used models.

Delegates to this well-attended conference, which enjoyed backing from Gumtree, Tracker and Sasol, were certainly not left in any doubt that the digital world was the way to go if they still wanted to be in business in the future.

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Auto rivals team up for connected car demo

Rivals BMW, Ford and Groupe PSA, maker of Peugeot and Opel cars, have teamed up with the 5G Automotive Association (5GAA), Qualcomm Technologies and Savari for Europe’s first live demonstration of C-V2X direct communication technology operating across vehicles from multiple auto manufacturers.

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The live demonstration also featured a live showcase of C-V2X direct communication technology operating between passenger cars, motorcycles, and roadside infrastructure. C-V2X is a global solution for vehicle-to-everything (V2X) communication in support of improved automotive safety, automated driving and traffic efficiency.

The demonstration exhibited the road safety and traffic efficiency benefits of using C-V2X for Vehicle-to-Vehicle (V2V) collision avoidance, as well as Vehicle-to-Infrastructure (V2I) connectivity to traffic signals and Traffic Management Centers (TMC). C-V2X was operated using real-time direct communications over ITS spectrum and demonstrated its ability to work without cellular network coverage, and underscores its commercial readiness for industry deployment as early as 2020. Superior performance and cost-effectiveness compared to other V2X technologies, along with forward-compatibility with 5G, make C-V2X direct communications a preferred solution for C-ITS applications.

Six demonstrations were shown including: Emergency Electronic Brake Light, Intersection Collision Warning, Across Traffic Turn Collision Risk Warning, Slow Vehicle Warning and Stationary Vehicle Warning, Signal Phase and Timing / Signal Violation Warning and Vulnerable Road User (pedestrian) Warning. The vehicles involved included two-wheel e-scooters provided by BMW Group, and automotive passenger vehicles provided by Ford, Groupe PSA, and BMW Group, all of which were equipped with C-V2X direct communication technology using the Qualcomm® 9150 C-V2X chipset solution.  V2X software stack and application software, along with roadside infrastructure, were provided by industry leader, Savari.

C-V2X is globally supported by a broad automotive ecosystem, which includes the fast growing 5GAA organization.  The 5GAA involves over 85 global members comprised of many leading automakers, Tier-1 suppliers, software developers, mobile operators, semiconductor companies, test equipment vendors, telecom suppliers, traffic signal suppliers and road operators.  

Cellular modems will be key to the C-V2X deployment in vehicles to support telematics, eCall, connected infotainment and delivering useful driving/traffic/parking information. As C-V2X direct communication functionality is integrated into the cellular modem, C-V2X solutions are expected to be more cost-efficient and economical over competing technologies, and benefit from accelerated attach rates.  C-V2X direct communication field validations are currently underway in Germany, France, Korea, China, Japan and the U.S.

C-V2X currently stands as the only V2X technology based on globally recognized 3rd Generation Partnership Project (3GPP) specifications, with ongoing evolution designed to offer forward compatibility with 5G.  C-V2X also leverages and reuses the upper layer protocols defined by the automotive industry, including the European Telecommunications Standards Institute (ETSI) organization. C-V2X includes two complementary transmission modes: 

  • Direct communication as shown in this demonstration for V2V and V2I use cases
  • V2N network communication, which leverages mobile operators for connectivity and delivers cloud-based services, including automated crash notification (ACN, as mandated by eCall), hazard warnings, weather conditions, green light optimal speed advisory (GLOSA), parking spot location, and remote tele-operation to support automated driving, to name a few.

“This demonstration builds on the successful C-V2X showcase we organised with our members Audi, Ford and Qualcomm in Washington DC in April, said Christoph Voigt, Chairman of 5GAA.

“We are excited to witness the growing momentum behind this life-saving technology and to see our members working together to deploy C-V2X, and to make it hit the road as soon as possible.”  

“The BMW Group introduced the first C-ITS use cases already in 2013 with the market introduction of the BMW i3. Today most of envisaged C-ITS use-cases are already institutionalized. With the implementation of C-V2X, the BMW Group accomplishes the last set of the puzzle with a practical path to C-ITS showing quick benefits,” said Christoph Grote, Senior Vice President Electronics, BMW Group. 

“With its ability to safely and securely connect vehicles, along with its evolution into 5G, C-V2X is integral to Ford’s vision for future transportation in which all cars and infrastructure talk to each other,” said Thomas Lukaszewicz, Manager Automated Driving, Ford of Europe. “We are very encouraged by preliminary test results in Europe and elsewhere which support our belief that C-V2X direct communications has superior V2X communication capabilities.”

“We’re moving forward with seamless communication between cars and their environment for enhancing road safety, as well as our customers’ safety,” said Carla Gohin, Group PSA’s Vice President for Research and Advanced Engineering. “Following the first European C-V2X direct communications demonstration we hosted with Qualcomm Technologies last March, we’re pleased to work with leading automotive and technology companies today to highlight that C-V2X interoperability is a reality.” 

“This demonstration of interoperability between multiple automakers is not only another milestone achieved towards C-V2X deployment, but also further validates the commercial viability and global compatibility of C-V2X direct communications for connected vehicles,” said Enrico Salvatori, senior vice president & president, Qualcomm Europe and MEA. “We look forward in continuing to work alongside leaders in the automotive industry, like the 5GAA, BMW Group, Ford, Groupe PSA and Savari, to help advance the automotive industry’s shift towards a safer, connected and more autonomous future.” 

“As one of the V2X pioneers, our company is extremely pleased to continue to help enable the next step in the V2X revolution that we helped start back in 2008,” said Ravi Puvvala, CEO of Savari. “For the last year and a half, the Savari team has worked diligently alongside the dedicated C-V2X engineers in the 5GAA partnership. The resulting string of increasingly impressive demonstrations is continuing to convince the world that C-V2X will soon be deployed around the world.”

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Fleet management in 360

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An on-board dual camera system from global fleet management vehicle recovery and insurance telematics provider, Cartrack, reduces the costs of managing vehicle fleets, while creating new ways to motivate drivers and improve their on-the-road performance.

Historically, commercial drivers within fleets have been far removed from active management and oversight, with limited tools available in helping fleet owners understand how their drivers actually behave on the road. This lack of visual tracking ability has seen fleet managers struggle to achieve meaningful driver skills development, while also leaving companies vulnerable to poor operational performance and financial losses resulting from accidents.

Cartrack’s Drive Vision system is dramatically changing this status quo.

Drive Vision is an on-board dual camera system that records video footage with a 120-degree exterior view of the road ahead, and a 160-degree view inside the vehicle cab. Not only can fleet managers actively monitor all the footage that they wish, the system also records specific events such as speeding, harsh braking or an unforeseen action from a third-party.

Drive Vision’s video is continuously captured and then made available to users in two ways. The footage is either buffered in the unit’s memory card for up to five days, and selected time slots can be downloaded by the user via a web interface. Alternatively, footage is also automatically downloaded to the system when specific events occur, such as speeding or a collision.  The captured footage is stored at a web address and is immediately accessible to the client at any time. In addition, the data centre’s driver exception reporting mechanism can review the footage against a client’s pre-determined driver behaviour stipulations, creating a balanced and flexible driver performance assessment tool.

Cartrack CEO, Andre Ittmann, notes why Drive Vision is so useful for companies.

“There are two key strategic benefits to the technology.  Firstly, the company has a clear visual record of events in the case of an accident or legal dispute. Achieving this kind of detailed view hasn’t been possible before, and it can dramatically reduce the costs around incidents and accidents, on an ongoing basis. Secondly, Drive Vision is a highly functional, event-based coaching system. It therefore allows fleet managers to develop a culture that rewards excellent or improved performance, while also giving them the power to actively close skills gaps. “

Ittmann also notes that fleet video footage allows the company to monitor and manage aspects of its service and market performance, including the driver’s ability to access a work site, thereby ensuring timeous arrivals at designated locations and the ability to oversee passenger count and conduct.

Ittmann concludes that Drive Vision offers untold long-term advantages for companies.

“Beyond simply gaining a more efficient means to discipline errant drivers, Drive Vision also empowers fleet managers to proactively implement measures that will result in long-term benefits for their company. Ultimately, the company can also reduce costs related to driver mismanagement while simultaneously improving a driver’s skills and their performance on the road.”

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