Wireless connectivity has nearly become a necessity, especially in a social media obsessed, hyper-connected, Western world. With our growing reliance on this technology and its increased integration into our daily lives, it is no surprise that Wi-Fi technology is beginning to find its way into our cars as well. Wi-Fi in cars is a phenomenon that will cause a reimagination of the driver experience. As with any sweeping adoption of new technology, this will no doubt present opportunities and challenges for automakers, dealerships, and repair centers.
Wi-Fi in Automobiles
Ever since Audi became the first automaker to introduce built-in Wi-Fi in their cars in 2011, 16 other automakers have followed suit. In the 2017 model year, more than 100 luxury and non-luxury vehicle lines will offer built-in Wi-Fi, making this technology more accessible than ever before.
Using built-in Wi-Fi technology, cars and trucks become 4-wheeled mobile hotspots, constantly looking for connections that our devices can use remotely. Once a network is found, we can watch our favorite Netflix shows on our tablet, surf our phone for any of the hundreds of online radio stations, or check business emails on our laptop, without using up mobile data.
Advances in Wi-Fi automotive integration are not only influencing the user experience, but also the ways that automakers, dealerships, and repair centers realize their bottom line.
Wi-Fi in Cars Mean More Revenue for Automakers
Wi-Fi technology in automobiles is providing new streams of revenue for automakers. Consumers may be willing to spend hundreds, even thousands, on a built-in Wi-Fi package that supports their professional and entertainment needs. Car manufacturers can realize additional revenue by teaming up with wireless carriers to offer data to their users on a monthly subscription basis, similar to General Motors’ OnStar program.
Lastly, in the event of a recall, automakers can save millions of dollars by reprogramming the car’s software via remote link, as opposed to taking the time, energy, and money to pay dealerships to handle the issue.
Will Wi-Fi in Cars Hurt Dealerships?
While dealerships can also realize new forms of revenue as a result of Wi-Fi technology being implemented into automobiles, there is a potential downside as a result of the new technology. Firmware updates will most likely be done automatically through the car, without the aid of a dealer. While this creates a more convenient experience for the customer, it also means dealerships could see a lower headcount in their service centers.
There are still chances, however, for dealerships to remain a useful and profitable part of the customer experience. Firstly, dealerships can still service the physical consoles or displays that broadcast the information. Secondly, because built-in Wi-Fi is not common enough that it is offered in all base car models, dealerships can also offer dealer-installed Wi-Fi kits for consumers who want the technology without having to purchase an expensive option package.
Repair Centers Must Stay Ahead of the Wi-Fi Curve
Many service centers are still working closely with OEMs to make sure they remain a relevant and important part of the supply chain as automotive technology gradually becomes less physical and more digital.
Failures are bound to occur with the advent of any new technology. Service centers will need to stay ahead of the curve and seek out new opportunities to provide meaningful service for the new wave of automotive technology, which includes not only Wi-Fi, but also autonomous control units, sonar, lidar, and radar technology.
