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Automotive Industry

Telematics benefits - Brief Article

Automotive Industries, July, 2002

NEW REVENUE STREAMS

* Forrester-Research predicts the telematics industry will grow from $3 billion in annual sales today to $20 billion by 2006.

* Hardware software and services are the key elements driving revenue in telematics.

* Partnerships and profit sharing provide strategic opportunities for companies entering the telematics industry.

NEW CUSTOMERS

* As telematics services become more visible and familiar to consumers, companies will be able to reach a much broader demographic than the traditionally rich or technologically savvy buyers may have spurred the growth or the industry.

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* As the auto industry finally begins to understand the needs of Gen Y, and as newer vehicles like the Hyundai Elantra and the Pontiac Vibe lure young buyers, the potential to provide an entire generation of Internet-savvy consumers with new services should open the floodgates for revenue opportunities.

IMPROVED CUSTOMER INTIMACY

* Connective to the Internet allows for closer customer interaction and better knowledge of product usage and performance post-sale. Customers can receive telematics system upgrades and new product information as quickly and easily as receiving an upgrade CD in the mail.

* Emergency services can arrive promptly with telematics communications, thus enhancing customers' security.

* REDUCED WARRANTY COSTS

* Onboard diagnostics and communications links can defect problems early and alert the dealer/factory to contact customers for service before regularly scheduled visits.

IMPROVED PRODUCT DESIGNS

* Real time communication between the vehicle and factory allows OEMs to study real life problems, such as internal wear, with technology and product design to improve existing and next-generation designs and to tower product lifecycle costs.

REGULATORY COMPLIANCE

* Telematics will help speed auto companies compliance with newly developing laws and regulations to minimize driver distraction.

BRAND DIFFERENTIATION

* Providing telematics devices that can fit every price range and car model offers automakers the ability to differentiate brands

Automotive Industry

Telematics benefits - Brief Article

Automotive Industries, July, 2002

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