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HANNOVER MESSE 2020, 20 - 24 April
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Digital Ecosystems

Car manufacturers struggle with the smartphone

Car and smartphone – two basic objects that the majority of Germans use as a matter of course. Manufacturers are faced with big problems when it comes to their interaction, however, reports Simon-Kucher & Partners.

16 Aug. 2019
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Car manufacturers struggle with the smartphone (Photo by Samuel Foster on Unsplash)

A study by the consultants has shown that customers would like a seamless connection of their smartphones in their vehicle. The automotive companies should fulfill this desire at all costs, and at the same time also gain a portion of the turnover for themselves with the digital services. This is more difficult in practice than it may seem, nonetheless. BMW even offers a subscription model for integration into the car. Rainer Meckes of Simon-Kucher & Partners, however, believes this will appear absurd to the customer, who, on top of the costs they have already incurred, will have to pay an integration fee. Longer contract periods are “poison for products such as these”. What would make more sense would be a monthly fee or a business model whereby the customers are not charged any fees but for which they “pay” with their user information. This could then even generate high commission and advertising fees.

The Car Connectivity Consortium (CCC) was founded in 2011 to drive forward the integration of mobile communication solutions. Automotive manufacturers as well as telecommunication service providers and technology companies are amongst their members.

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