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Friday, 01 November 2019 21:43

Automotive Industry Faces Disruption Driven by Societal Changes

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Cameras are proliferating. Soon, six to ten cameras on a car will be the norm. So, while collision technicians debate the virtues of repairing sheet metal as opposed to panel replacement, the question becomes, “Will all ADAS systems components work as they should upon completion of repairs, and can the car still maintain internet connection?”

 

A Brave New World

 

Terlep’s vision of a “brave new world” of a disrupted collision repair industry includes:

 

  • ADAS systems and related technology will make cars safer to drive. This, combined with autonomous cars and concepts like ride-sharing and improved ride-hailing technology, and the socio-economic acceptance of using different means of short-hop transportation in an increasingly urbanized world means fewer cars on the road and fewer accidents.
  • The era of the “two-car” family is quickly dying. Given the expense, there is less and less reason for having a second car when so many other alternatives are emerging. Hence, less cars, less accidents.
  • Fewer accidents means a consolidation of all areas of the collision industry including the number of shops needed, along with the infrastructure to support those shops. This includes parts suppliers (including OE’s), as well as paint and equipment suppliers.
  • The proliferation of electric cars means less mechanical maintenance – good for vehicle owners as far as downtime and cost is concerned, a disruption for car dealers who depend on parts and service sales for a good portion of their gross profit and a disruption for independent mechanical shops and collision shops who will have to deal with technologies they are not familiar with.
  • The proliferation of electric cars and their attendant technology, some of which haven’t even been invented yet, will require shops to invest heavily in training and new tools and equipment – all of which will quickly become obsolete as technology moves forward at mind-numbing speed.

 

Sunrise – Sunset

 

As the disruptive climate grows and expands, some companies will be greatly consolidating or “sun-setting” altogether, while others will experience birth and meteoric growth. Just as innovative companies found a way to make vast improvements in internal combustion cars, emerging companies, through technology and innovation, will find a way to improve electric car performance, the experience of driving an internal combustion car, and enhance the customer experience in the transportation field overall. “Sunrise” initiatives include:


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