The auto industry is large with over 245 million cars on the road globally. Connected car technology allows cars to connect to the internet and exchange information. This presents both challenges and opportunities for car manufacturers. Many provide built-in or brought-in connectivity systems through partnerships. Future opportunities lie in interactive interfaces, mobile apps, heads-up displays and augmented reality. Car sharing and clubs give customers access to vehicles without ownership costs and responsibilities. Successful companies will have widespread reach and excellent customer service. Today's car buyers extensively research online before visiting dealerships, where they want control and access to information through technology.

1. auto
industry
propanestudio.com
san francisco
newbusiness@propanestudio.com
415.550.8692
private & confidential
july 19th 2013

2. agenda
• industry overview
• car manufacturers
• car dealers
• car buying behaviors
• leveraging new technology

3. industry
overview

4. statistics
industry overview
cars on the
road
245 M1
expected sales
2013 $15.5 M2
total sales
jan-june
$7.8 M3
average price of
a car
$30,3034
dealership
revenue
$609 B5
new car dealers
17,540 (US)
1,307 (CA)6
1. Whitehurst, Roslyn. "The Number of Older Vehicles on the Road Increased More than 17 Million Since 2009." Experian. N.p., 27 June 2012. Web.
2. Snyder, Jesse. "US Sales pace in August Projected to Top 15.5 Million Analyst Predict." Automotive News. N.p., 28 Aug. 2013. Web.
3. Durbin, Dee-Ann. "Auto Sales Keep Picking up Speed." Philly.com. N.p., 04 July 2013. Web.
4. MoneyBuilder. "Average Price of a New Car?" Forbes. Forbes Magazine, 10 May 2012. Web.
5-6."NADA Data." State of the Industry Report 2012. N.p., 2012. Web.

5. holdingcompanies
industry overview
General Motors (Buick, Cadillac, Chevrolet, GMC)
Volkswagen Group AG (Audi, Bentley, Lamborghini, Porsche, Volkswagen)
Toyota Motor Corp (Lexus, Scion, Toyota)
Hyundai Motor (Kia, Hyundai)
Ford Motor Company (Ford, Lincoln)
Nissan (Datsun, Infiniti, Nissan)
Fiat S.P.A (Chrysler, Dodge, Ferrari, Fiat, Jeep, Maserati)
Honda Motor Company (Acura, Honda)
BMW AG (BMW, MINI, Rolls-Royce
Daimler AG (Mercedes, Mitsubishi)
Tata Motors (Jaguar, Land Rover, Tata, Daewoo)

6. fastestgrowingcarcompanies
industry overview
1.volks-
wagen
2.BMW 3.BAIC 4.toyota
5.kia &
hyundai (tie)
6.SAIC
motor
7.FAW
group
8.Geely
automotive
9.nissan
10.tata
motors
7."World's Fastest Growing Car Companies." Forbes. Forbes Magazine, n.d. Web. <http://www.forbes.com/pictures/eglg45fgfmj/what-auto-execs-think-3/>.

7. automanufacturersbymarketshare
industry overview
GM
24%
Ford
20%
Toyota
19%
Chrysler-Fiat
15%
Honda
12%
Nissan
10%
figure 1."Auto Sales - Markets Data Center - WSJ.com." WSJ.com. N.p., 04 Sept. 2013. Web

8. car
manufacturers

9. newtechnology
connected cars
the connected car enables the exchange
of information between the car and its
surroundings via the Internet. the
connection is provided by a transmitter/
receiver unit built into the vehicle or via a
3rd party system such as a smartphone8
8."Trend Analysis: Connected Car 2015." MBtech Consulting. Mercedes Benz Consulting, n.d. Web.

10. challengevs.opportunity
car manufacturers
the challenge:
original equipment manufacturers are having difficulties
generating revenue from connected cars for two reasons, first
connected vehicles are costly to build, second it is hard to
convert customers from the trial phase to adoption of the
technology
the opportunity:
however, connected car technology has the ability to add
significant value to customers through the creation of a better
user experience and the continuation of ongoing customer
relationships9
9."The Connected Car Industry Report 2013." Telefonica Digital. Telefonica Digital, 2013. Web.

11. benefitsofconnectedcars
car manufacturers
1. increase in road capacity
a. one stretch of road will be able to safely accommodate more cars,
eliminating congestion and reducing accidents
2. connected communities
a. connected car sharing could lead to a large reduction in vehicle
ownership
3. personalization
a. every car could feel like your car, cars that come to your location and
are smart enough to remember individual drivers’ preferences
4. virtual environments
a. heads up displays, that allows customers to keep their eyes on the
road, sensors that recognize hazards and points of interest along the
way10
10."The Connected Car Industry Report 2013." Telefonica Digital. Telefonica Digital, 2013. Web.

12. Luxury Vehicles Economy Vehicles
embracingconnectivity
car manufacturers

13. built-in
systems

14. nissan
built-in systems
system: NissanConnect partnered with Google, Pandora and Intel
features: real time traffic updates, predictive 5 day weather forecasts, hands
free communication (texts and calls), music streaming
connectivity: customer’s Bluetooth phone
pricing: $1090 for the package, first 3 years free, after that yearly subscription
11.Nissan USA. N.p., n.d. Web. <http://www.nissanusa.com/cars/sentra/features/>.

15. volvo
built-in systems
system: Sensus Connected Touch partnered with Ericsson
features: full internet browser, real time traffic updates and directions,
points of interest, service center locator, weather updates, voice
control
connectivity: customer phone data plan
pricing: $2,058 for the package12
12."Volvo Sensus Connected Touch." Sensus Connected Touch. N.p., n.d. Web. <http://www.volvocars.com/intl/sales-services/sales/sensus-connected-touch/pages/
default.aspx>.

16. minicooper
built-in systems
system: MINIConnected USB integration
features: hands free voice recognition, music playlists, Google local search,
apps (Facebook, twitter etc.), send to car, navigation
connectivity: customer’s Bluetooth phone
pricing: package for $2,25013
13."What Is MINI Connected? Official MINI Video." YouTube. YouTube, 07 Mar. 2011. Web. 27 Sept. 2013. <http://www.youtube.com/watch?v=1zvp7D5KGtE>.

17. porsche
built-in systems
system: Porsche connect
features: voice command, navigation, music and contacts
transferring, mobile app
connectivity: customer’s Bluetooth phone
pricing: package for $93014
14."Bluetooth® Communications - Porsche Service - Service and Accessories - Dr. Ing. H.c. F. Porsche AG." Bluetooth® Communications - Porsche Service -
Service and Accessories - Dr. Ing. H.c. F. Porsche AG. N.p., n.d. Web. <http://www.porsche.com/usa/accessoriesandservices/porscheservice/bluetooth/>.

18. gmc
built-in systems
system: Intellilink
features: internet radio (Sirius, Pandora), hands free calling, voice
commands and controls, real time traffic and directions, points of
interest, updated info about movies, weather and fuel
connectivity: customer’s Bluetooth phone
pricing: free for first 3 mo.,, then monthly subscription15
15."GMC." Infromant System. N.p., n.d. Web. <http://www.gmc.com/intellilink-infotainment-system.html>.

19. brought-in
systems

20. mercedes
brought-in systems
system: Mbrace powered by Hughes Telematics
features: Send2Benz, route assistance, concierge, points of interest,
location based traffic, in vehicle apps (Facebook, yelp etc.)
connectivity: monthly or yearly subscription
pricing: 3 package options ranging from $280/yr. to $14/mo16
16."Mbrace In-Vehicle Telematics Technology and Personal Assistance | Mercedes-Benz." Mercedes-Benz USA. N.p., n.d. Web. <http://www.mbusa.com/
mercedes/mbrace>.

21. kia
brought-in systems
System: UVO system powered by Microsoft
Features: voice recognition, a Send2Car app, roadside assistance (crash
notification and 911 connect), vehicle maintenance reminders
Connectivity: customer’s Bluetooth phone
Pricing: customer’s data plan17
17."Kia Motors - Experience UVO." Kia Motors - Experience UVO. N.p., n.d. Web. <http://www.kia.com/us/uvo/>.

22. toyota
brought-in systems
system: Entune uses mobile apps and data services
features: apps (iheartradio, movietickets, opentable etc.), stocks, fuel
prices, weather, traffic updates, sports
connectivity: customer’s data plan
pricing: free for 3 years, then monthly subscription $5-$2818
18."Toyota Entune - IHeartRadio." YouTube. YouTube, 14 Dec. 2012. Web. <http://www.youtube.com/watch?v=vLGeXslNObU>.

23. combination
systems

24. bmw
combination systems
system: ConnectedDrive uses a built in SIM card and iPhone integration
features: send-to-car app, heads up display, real time traffic updates,
vehicle maintenance reminders, personal assistant (directions,
destinations etc.), hands free calling and messaging
connectivity: customer’s data plan
pricing: 3 year trial period, then $182.21 /yr19
19."BMW Vision ConnectedDrive - How to Steal Jewellry." YouTube. YouTube, 12 Aug. 2011. Web. 2013. <http://www.youtube.com/watch?v=P-12wG6V46U>.

25. lexus
combination systems
system: Enform
features: app suite (pandora, bing, opentable etc.), real time weather
and traffic updates, destination services, roadside assistance, stolen
vehicle location, collision notification
connectivity: customer’s data plan
pricing: 1 yr. free, then from $139.50-$264.90 /yr20
20."2013 Lexus Enform App Suite." YouTube. YouTube, 14 June 2012. Web. <http://www.youtube.com/watch?v=dGwDUzKD9R0>.

26. audi
combination systems
system: Audi Connect w/built in wi-fi hotspot
features: Google earth, points of interest, travel information, weather
reports, fuel prices, send to car, voice control
connectivity: customer’s data plan
pricing: partner with T-Mobile plans for $15/mo21
21."Audi Connect." In Car WiFi. N.p., n.d. Web. <http://www.audiusa.com/innovation/intelligence/audi-connect>.

27. chrysler
combination systems
system: Uconnect
features: built in wi-fi, in vehicle apps (iheartradio, Pandora etc.),
emergency assistance (stolen vehicle, 911), voice texting, vehicle
performance stats, send-to-car
connectivity: customer’s data plan and Bluetooth enabled phone
pricing: subscription from $9.99/day to $34.99/month22
22."Chrysler Uconnect." Chrysler Uconnect. N.p., n.d. Web. <http://www.driveuconnect.com/>.

28. ford
combination systems
system: Ford Sync
features: voice control for hands free calling and texting, music
playback, turn by turn directions, vehicle health report, 911 assist, in car
apps, built in wi-fi
connectivity: customer’s Bluetooth phone
pricing: subscription for wi-fi23
23."Ford Sync." Ford Sync. Ford, n.d. Web. <http://www.ford.com/technology/sync>

29. chevy
combination systems
system: Chevy MyLink
features: hands free calling/messaging, app integration (Pandora, Sirius
Radio etc.), voice control
connectivity: customer’s Bluetooth phone
pricing: unknown24
24."Chevrolet MyLink." Take Control. Chevy, n.d. Web. <http://www.chevrolet.com/mylink-vehicle-technology.html>.

30. summary
connected cars
the internet of things is the way of the future. Auto
Manufacturers will experience the most success when they are
able to provide customers with personalized features they need
at an affordable price.

31. opportunitiesforthefuture
connected cars
• interactive touchscreen interfaces
• mobile app development (send-to-car feature)
• heads-up display (Mercedes pointing prototype)
• enhanced car windows (Toyota zooming prototype)
• rearview cameras (Keio University Japan transparent
backseats)
• augmented reality GPS (directions projected on the road)

32. newidea
car sharing
car sharing is a version of car rentals
where users rent cars for a short
period of time often by the hour or
for the day. car sharing gives
customers access to vehicles without
the cost and worry of ownership.

33. bmwdrivenow
car sharing
• premium car sharing by bmw, mini & sixt
available in san francisco
• users join and then receive their
individual drivenow id
• they can locate cars via the drivenow
app or site
• and drive for as little or long as they
want ($12 for first 30 mins and .32 for
each additional min or $90 for the day)
• cars can be dropped off at any drivenow
station25
25. "DriveNow." BMW. N.p., n.d. Web. <https://us.drive-now.com>.

34. newidea
car clubs
car clubs allow individuals to
purchase vehicle packages, giving
them access to a variety of luxury
cars. customers can experience
these vehicles for a allocated
number of days per year based on
the their individual plans.

35. clubsportiva
car clubs
• gives car connoisseurs
access to a luxury fleet of
vehicles for a monthly
membership fee.
• the club takes care of the
cost of depreciation,
insurance and maintenance
• members enjoy the cars
without the inconvenience of
ownership26
26."Exotic Car Rentals, Exotic Car Tours, Club Memberships." Club Sportiva. N.p., n.d. Web. <http://clubsportiva.com/>.

36. summary
car sharing & car clubs
successful companies will have a wide reach and superior
customer service. car pickup locations will be widespread and
maybe, in the future the vehicle will drive to the customer.
representatives will be accessible to customers via all digital
channels, including in the vehicle interface.

37. opportunitiesforthefuture
car sharing & car clubs
• seamless and interactive websites that let users browse,
schedule and reserve vehicles
• this also includes a mobile component for bookings on the
go
• smart car interface systems that remember drivers
preferences
• interfaces with video/audio/augmented reality capabilities
that enable customers to access company representatives

38. car
dealers

39. carbuyinggoesdigital
• dealers are no longer the
source of product information
• buying conversations are
happening online instead of
at the dealership
• dealers are approached much
later in the game27
27. Boyle, Matthew. "Why Car Dealers Are Failing Online Customers." Why Car Dealers Are Failing Online Customers. SlideShare, 27 Sept. 2012. Web.

40. car
buying
behaviors

41. pre-
shopping

42. buyersgatherinfoonline
pre-shopping
• 85% shop online first where
they can easily compare prices
and vehicle models
• 64% consult sites such Kelly
Blue Book to get the
manufacturer’s invoice price
• 25% have used or will use
Facebook as a resource while
shopping for their next
vehicle28
28. "Have You Met the New Car Shopper?" 2013 New Car Guide. Cars.com, 2013. Web.

43. sitesforbuyers
pre-shopping

44. sitesforbuyers
pre-shopping

45. sitesforbuyers
pre-shopping

46. sitesforbuyers
pre-shopping

47. sitesforbuyers
pre-shopping

48. buyersexplorefinancingoptions
pre-shopping
in addition to pre-shopping on sites,
smart car buyers tend to deal with
financing ahead of time.
• finance department is the biggest
profit center for dealerships
• shop interest rates from local
banks or credit unions
• bring newfound knowledge to the
dealership and present it to the
salesman and challenge him to
match or beat your rate29
29. Munroe, Brian. "Buying a Car: What to Know Before You Go." Car and Driver. N.p., June 2009. Web.

49. dealership
shopping

50. theindependentbuyer
dealership shopping
• car buyers want to remain
anonymous until they are
ready to buy30
• they are interested in
engaging with technology like
mobile apps, interactive kiosks,
and virtual videos to
independently and easily
access vehicle information
30. Bunkley, Nick. "Why Dealers Should Embrace 'the Age of Transparency'"Automotive News. N.p., 22 Apr. 2013. Web.

51. theindependentbuyer
dealership shopping
• use smartphones for tasks
closer to purchase
• 33% feel that info attained
from their mobile devices is
essential in their vehicle
purchase
• 43% use smartphones on the
dealership floor31
31. "Have You Met the New Car Shopper?" 2013 New Car Guide. Cars.com, 2013. Web.

52. theindependentbuyer
dealership shopping
• enjoys engaging with a series of
interactive kiosks and tv displays
• this allows customers to view
features and build their own car
from scratch
• tesla stores as pictured on the
left, are an excellent example of
this new dealership experience
that is not only interactive, but
incorporates digital technology

53. audidigitalshowroom
next generation experience
• audi opened the world’s first digital
dealership in london during 2012
• the dealership is two story and features
only 3 cars on display that rotate weekly
• customers have the freedom to wander
the floors, interact with paint and
leather samples and manipulate car
designs via in store touchscreens
• customers can also schedule test
drives, negotiate and purchase vehicles
all from the digital dealership
• buyers believe this digital experience is
much more relaxed and places them at
the center of the buying experience32
32. Laird, Jeremy. "Audi's Digital Showroom Is the Ultimate Car Buying Experience."TechRadar. N.p., 03 Dec. 2013. Web.

54. summary
car buying behaviors
successful dealerships will be the ones that leverage technology
to quickly deliver car buyers with customized relevant
information. this information will be consistent and available on
all digital channels. no matter what customers will be connected,
whether they choose to pre-shop online or engage with mobile
devices and other technology on the dealership floor.

55. opportunitiesforthefuture
car buying behaviors
• create intelligent, easy to navigate sites that combine all
the resources customers (reviews, invoice price
information, financing etc.) use when pre-shopping new
cars
• ensure these sites are responsive and function seamlessly
on mobile devices
• build smart interactive touchscreens that live on the
dealership floor to engage customers

56. leveraging
new
technologies

57. salestool
mobile
• integration of mobile devices and
apps for dealers to use on the
sales floor
• features Include: direct
communication and the ability to
send tailored messages to
customers, access analytical
information and DMS and CRM
integration33
33. "FUSION Mobile Car Dealer Websites." Click Motive. N.p., n.d. Web. <http://clickmotive.com/mobile-car-dealer-websites.html>.

58. dmsvs.crm
the differences
dealership management system
• track vehicle inventory & sales
• calculate insurance & financing
• track customers (follow-up)
• manage accounting
• manage dealer website
• calculate commissions for sales
staff
• track purchase orders
• manage parts inventory
• manage work orders
• schedule appointments34
customer relationship management
• track marketing efforts
• measure campaigns over
multiple channels
• track client responses, leads
and deals
• manage customer requests
and rewards
• schedule appointments
• integrate social media35
34. "Dealership Management System." Wikipedia. Wikimedia Foundation, 09 Dec. 2013. Web.
35. "Customer Relationship Management." Wikipedia. Wikimedia Foundation, 26 June 2013. Web.

59. salestool
tablet
• intellacar is a way to
revolutionize the sales process
and empower reps to close more
sales
• reps are led through the sales
process from greeting to
delivery
• they can even demonstrate car
features through videos and
illustrations and show customers
instantly how different feature
packages can enhance a car36
36."IntellaCar Is the Game-Changer That Transforms Shoppers IntoBuyers." IntellaCar. N.p., n.d. Web. <http://www.intellacar.com/>.

60. customerengagementtool
mobile
• creating custom apps that
give loyal customers access
to coupons and benefits
• features: dealer directions
and contact info, inventory
search and payment
details37
37. Long, Kimberly. "The Importance of Mobile Websites for Dealerships." Internet Department. Auto Dealer Monthly, June 2011. Web.

61. customerengagementtool
mobile
• QR codes next to traditional
window labels so customers
can access information
about vehicles quickly and
easily
• features include: record of
saved vehicles, book test
drives on the spot38
38. Long, Kimberly. "Incorporating QR Codes into Dealership Marketing." Article. Auto Dealer Monthly, June 2011. Web.

62. inventorymanagementtool
software
• VinManager allows dealers to
access stock numbers
directly
• they can use the VinCamera
to take and upload photos
and videos of vehicles and
print customized window
stickers
• dealers also have access to
integrated pricing tools, DMS
integration tool that
automatically adds or
removes vehicles from
inventory39
39. "Take Your Automotive Inventory Everywhere." VinSolutions. N.p., n.d. Web. <http://www.vinsolutions.com/inventory-overview.aspx>.

63. othervinsolutiontools
software

64. wholesalebuying&sellingtool
online
• allow dealers to purchase
vehicles online instead of
attending traditional auctions
• this allows dealers to sell non-
moving inventories more
quickly
• two sites dealers are using
are OVE.com40
and ATC-
Onlane41
40. OVE.com. N.p., n.d. Web. <https://www.ove.com/login>.
41. "Manheim." N.p., n.d. Web. 30 Sept. 2013. <http://www.manheim.com/>.

65. vehiclefinancingtool
online
• dealers can finance any
customer regardless of
credit and streamline the
entire process
• two sites dealers are using
DealerTrack42
and
RouteOne43
42. "Dealertrack Technologies." Dealertrack Technologies. N.p., n.d. Web. <https://www.dealertrack.com/public/login.fcc?TYPE=33554432>.
43. "Dealers." Route One. N.p., n.d. Web. <http://www.routeone.com/>.

66. summary
leveraging new technology
successful dealerships will be the ones that use technology to
streamline their internal business functions and selling
strategies. they will use software and other tools to manage and
track inventories. additionally, they will educate sales staff to
serve each customer with a personalized approach.

67. opportunitiesforthefuture
leveraging new technology
• develop online and mobile solutions for dealerships to
manage inventories
• design apps that allow sales staff to easily show, share and
save cars for customers
• develop apps that educate dealership staff on sales tactics
(quiz or game something that is fun and interactive)
• design apps that project onto Smart TVs where sales staff
and customers can close sales wirelessly instead of sitting
at a desk

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