Will your phone be the most important part of your car in future?

By dpa | 20 August 2020


BERLIN: The smartphone is becoming an integral part of owning a networked car, allowing users to remotely perform tasks such as monitoring their vehicle's petrol level or checking its mileage.

And manufacturers are convinced that this is only the beginning. Thanks to so-called digital ecosystems, even more services will be offered through smartphones in the future, according to carmakers.

Mercedes has been integrating the digital ecosystem Me in its vehicles since 2014. More than 5 million users around the world have installed the corresponding app on their smartphone, says Mathias Vaitl, who's responsible for Me and digital services at Mercedes.

Vehicles built after 2002 can be connected to the app via a free plug-in adapter for the on-board diagnostic system (OBD II). Basic services include maintenance management and remote vehicle updates.

In the future, smartphones that have the app will also be able to serve as a digital key. It can also be used to book or extend services, or update or upgrade software in the vehicle. "In the future, we will work with more partners in order to offer more services.

This could include automatically paying for tolls, parking spaces or fuel, but it could also be ordering food," says Vaitl.

Since 2017, Volkswagen has been offering its digital platform for mobility services, called We, which goes beyond sold vehicles to include carsharing, leasing or renting. With the We Connect app, users can take advantage of services such as cashless parking, mileage and fuel level monitoring, as well as distance travelled.

The car can also be unlocked with the smartphone, and for electric cars, the phone can be used to pay for electricity. "The advantage for customers lies in the fact that they can learn a lot about their vehicle and driving style, and it makes their life easier," says Christoph Hohmann, head of VW's Customer Engagement & Communication.

The We app also aims to connect as many vehicles as possible so that drivers can swifty receive information about open parking spots, accidents or bad weather along their route. Since mid-2020, VW has been networking every new vehicle that rolls off the line, while older models can be retrofitted with a dongle for under 50 dollars.

For Jan Burgard, managing director of the consulting firm Berylls Strategy Advisors, a digital ecosystem by carmakers will only become valuable when it's as good or better than the systems already available in the smartphone sector. "If the digital functions of a manufacturer's system are only rudimentary and can't be personalized by the user, then it won't win over customers. They will continue to use the apps on their smartphone and ignore carmaker's offerings."

At the moment, almost all manufacturers have been forced to develop their own systems to facilitate technological transition, especially for electric vehicle customers.

"For drivers of short-range e-cars, it's important to know where the next free charging station is and whether it's out of order or not, and to know if there's a possibility of making a reservation from the car," says Burgard.

Peter Henrich, head of product management at BMW, sees vehicles and digital service moving closer together. "Most customers are still buying a BMW for its design, technology and driving behaviour. But digital services are becoming more important," says Heinrich.

BMW has a service called Connected Drive to network its vehicles.

The digital mobility assistant makes it easier to prepare for a journey, as well as the actual driving of the vehicle. "Connected Drive provides a connection to the outside world in the car. Drivers receive updated information. It also lets them stream music and integrate their smartphones using Apple Carplay and Android Auto."

About 14 million BMW vehicles are networked. There are four different packages available starting at about 80 dollars a year, with a range of functions that depend on the vehicle.

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