Telematics ensures OEM ROI says CEO

The telematics industry is undergoing a transition to a business model focused on data-centric, vehicle relationship management applications that benefit OEMs and auto dealerships more directly, according to Steve Millstein, president and CEO of telematics service provider ATX Group.

Speaking at the SAE World Congress, Millstein said telematics “has to become standard on every vehicle” to ensure that OEMs achieve a return on their investment. He outlined a system in which data is pulled from a telematics-equipped vehicle in real-time and integrated with personal information provided by vehicle owners. The aggregated data can be used to enhance an automaker’s service, customer relationship management and warranty programs.

"Dealers make their money on aftermarket sales and service," Millstein noted, "yet the vast majority of vehicle owners do not return to the dealership after the warranty period, and that's where telematics comes in," he said. "Providing real-time data about the car and driver to the dealer gives dealerships a reason to communicate with the driver, thereby opening a new opportunity to increase dealer revenue and margins."