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Automakers Could Leave $8B on the Table by 2017
Telematics is Crucial to Maximizing Profits
Boston, MA - June 19, 2013 – Strategy Analytics report, Telematics Update Detroit: Avoiding the Zombie Car analyzes potential dangers OEMs are facing by allowing connected vehicles to go unconnected. According to John Canali, Senior Analyst with Strategy Analytics' Automotive Multimedia and Communications service (AMCS), “There are over 22M vehicles on the road that have telematics hardware but are not currently connected because subscriptions have lapsed. The telematics business model is changing and revenues from subscriptions are far less important than revenues from other opportunities like retaining consumers and after sale purchases. BMW, Hyundai, and Ford are beginning to see this and the business model appears to be slowly changing, however OEMs must adapt more quickly or revenues will be left on the table".
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