The entire automotive ecosystem will change, and dealers need to take action now to ensure their businesses remain relevant and profitable, said Michael Robinet, Executive Director, Automotive Advisory Services, with IHS Markit, and a speaker at the CADA Summit in February. Robinet was interviewed by Canadian auto dealer this week about the changes he sees on the horizon.
“The entire automotive ecosystem will change. Dealers that can get ahead of it, understand their customers, and understand the technology and the changes — will stay ahead,” said Robinet.
Robinet is in a good position to have that vantage point, because he’s been involved in automotive research and forecasting and technology roadmapping for more than 30 years, and has been with IHS Market since 1996. “My focus is mainly on automotive production and sales forecasting,” said Robinet.
He looks at which automotive technology will be in demand in the future, which systems will be adopted by OEMs for their vehicles, and how those decisions will impact the industry.
For his CADA Summit presentation, his focus will be on what the automotive world will look like in the next decade and longer. “Are you ready for electrification? Are you ready for autonomous? Are you ready for different types of customers and how they will engage you? How will you service these vehicles?”
“I am going to be roadmapping the future ecosystem these dealers will be operating in,” said Robinet. “I will bring data to underscore this.”
When it comes to the future, Robinet said people mistakenly focus too much on Level 4 and Level 5 for autonomous vehicles. “Everyone is thinking about the end game, Level 5,” said Robinet. “The real battleground for the next 5-10 years is going to be in Level 2 and Level 3.”
OEMs and designers are focusing on how to make the vehicles safer, easier to drive, while still keeping drivers engaged in the driving experience.
When it comes to electric vehicles, Robinet says there are going to be many different types of electrification from mild, plug-in, and full-battery electric vehicles. “I think the dealer base needs to understand that these vehicles will be even more complicated,” he said.
There are going to be major implications for things such as maintenance intervals, and service requirements.
For example, the greatest voltage we deal with today is 12V or 124V. But a lot of the new systems are being designed with 400V or 500V. “The training and equipment needed to maintain these vehicles are going to be complex,” he said.
Over the air updates for software will also significantly change the dealership world, since many updates won’t necessarily involve dealers.
He said dealers will also need to focus on all the data generated and make sure they have access and opportunities. “The OEMs are expecting to make money on selling the data and selling connectivity,” said Robinet.
Other speakers at this year’s event include Frank McKenna, Deputy Chair of TD Bank Group, former Canadian ambassador to the United States and the Premier of New Brunswick; Michael Hainsworth, Former Senior Anchor at Business News Network (BNN); and Christian Bourque, Executive Vice-President and Senior Partner at Leger.
The event is sponsored by TD Auto Finance and will take place at the Metro Toronto Convention Centre in Ontario on February 12, 2020.
