For full functionality of this page it is necessary to enable JavaScript. Here are the instructions how to enable JavaScript in your web browser Connected Cars Are on the Rise and So Is Recall in the Premium Car Market

Connected Cars Are on the Rise and So Is Recall in the Premium Car Market

By Stericycle Expert Solutions

Farzad Henareh is VP of Commercial and Business Development at Stericycle Expert Solutions. Here, the recall management expert explains how the car industry is coping with non-automotive players entering from the digital arena.

Cars are getting smarter thanks to the digital revolution and the world’s insatiable thirst for convenience and security in the daily driving experience. While cars cannot quite think for themselves just yet – evidenced in the recent Uber malfunction where a woman lost her life when the autonomous tech failed to see her in its path – they are being programmed to respond and predict just like their smart phone cousins.

By 2020, it is anticipated that one in every five cars will be connected to the internet. And with this band of new technology comes a fresh generation of non-automotive operators entering into the car manufacturing arena.

A recent report by McKinsey looked at opportunity this presents. By delivering services through the car including internet radio and driving assistance application, car manufacturers can and will recognise an area for differentiation and more importantly for them, future profits.

However, with this opportunity comes a lot of hard work and Original Equipment Manufacturers (OEMs) will have to commit to keeping pace with technology updates and manage their product and service development cycles around this.

This will present a number of challenges, as with most technology and service offerings in their infancy, there will be teething issues. Not only that, competition will become fierce. If we look at the duration of time drivers in the UK spend on average in their cars, it is around 50 minutes. This presents a window of opportunity to monetise digital media revenues. This makes it hugely attractive to those in and outside the traditional automotive industry.

Those teething issues, coupled with the new partnerships that will be borne out of the opportunity that will see tech firms working hand in hand with automotive giants will also transform the recall management process.

Automotive recall is fast becoming the number one recall category ahead of toys. There are a number of reasons for this like regulation changes owed to fuel emission targets or airbags failing to meet the EU standards.  However, in the last two years, connectivity or tech related recalls have increased suggesting the big players are competing to differentiate in the networked car arena.

To be clear, this increase does not mean that networked cars are less safe than their “un-connected” counterparts, but what it does suggest is that as more manufacturers dare to differentiate with connectivity, the likelihood of having to issue a recall notification will also increase. There is a lot of fine-tuning to do in the future like the impact on insurance premiums, but I am confident that with new players entering from the digital arena, this premium car segment will grow at light speed.


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