Industry News: New Study Reports Many New Technologies Aren't Being Used

[William Maley]

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Automakers are leveraging new technologies such as automatic parking systems, concierge services, and mobile internet to bring people into showrooms. But a new study done by J.D. Power reveals that a number of owners aren't using it.

 

J.D. Power published today the 2015 Driver Interactive Vehicle Experience Report, a new study which looks at 33 tech features in vehicles and ask owners if they have ever used them. According to the report, at least 20 percent of owners have never used 16 out of the 33 features (about 48.4 percent).

 

The top five features that owners said they never use includes,

• In-Vehicle Concierge Services - 43%
• Mobile Routers - 38%
• Automatic Parking Systems - 35%
• Heads-Up Display - 33%
• Built-In Apps - 32%
  

So why do owners not use these features? A key part comes down to dealers not explaining the features, which in turn causes an increase of an owner not using it. Also, the report says that if a feature isn't activated when a vehicle is delivered, it sometimes mean an owner doesn't know it exists.

 

“The first 30 days are critical. That first-time experience with the technology is the make-it-or-break-it stage. Automakers need to get it right the first time, or owners will simply use their own mobile device instead of the in-vehicle technology,” said Kristin Kolodge, executive director of driver interaction & HMI research at J.D. Power.

 

Source: Automotive News (Subscription Required), J.D. Power

 

Press Release is on Page 2

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Automakers Spending Billions on Technologies That Many Consumers Don’t Use

• Built-in Connectivity among Least Used Technologies, Creating Lost Value
  

WESTLAKE VILLAGE, Calif.: 25 August 2015 — Automakers are investing billions of dollars to put technologies in their cars and light trucks that are not being used by many of the owners of those vehicles, according to the J.D. Power 2015 Driver Interactive Vehicle Experience (DrIVE) Report.SM
The 2015 DrIVE Report measures driver experiences with in-vehicle technology features during the first 90 days of ownership.
The report finds that at least 20 percent of new-vehicle owners have never used 16 of the 33 technology features measured. The five features owners most commonly report that they “never use” are in-vehicle concierge (43%); mobile routers (38%); automatic parking systems (35%); head-up display (33%); and built-in apps (32%).
There are 14 technology features that 20 percent or more of owners do not want in their next vehicle, including Apple CarPlay and Google Android Auto, in-vehicle concierge services and in-vehicle voice texting. Among Gen Y[1], the number of features unwanted by at least 20 percent of owners increases to 23, specifically technologies related to entertainment and connectivity systems.
“In many cases, owners simply prefer to use their smartphone or tablet because it meets their needs; they’re familiar with the device and it’s accurate,” said Kristin Kolodge, executive director of driver interaction & HMI research at J.D. Power. “In-vehicle connectivity technology that’s not used results in millions of dollars of lost value for both consumers and the manufacturers.”
Among all owners, the most frequently cited reasons for not wanting a specific technology feature in their next vehicle are “did not find it useful” in their current vehicle and the technology “came as part of a package on my current vehicle and I did not want it.”
In addition, owners who say their dealer did not explain the feature have a higher likelihood of never using the technology. Furthermore, features that are not activated when the vehicle is delivered often result in the owner not even knowing they have the technology in their new vehicle.
Kolodge noted that the technologies owners most often want are those that enhance the driving experience and safety, which are only available as a built-in feature rather than via an external device. In-vehicle technologies that most owners do want include vehicle health diagnostics, blind-spot warning and detection, and adaptive cruise control.
“The first 30 days are critical. That first-time experience with the technology is the make-it-or-break-it stage,” said Kolodge. “Automakers need to get it right the first time, or owners will simply use their own mobile device instead of the in-vehicle technology.”
Because the first few weeks of ownership are so critical, dealerships play the most important role in helping owners get off to a good start with the technology in their vehicle, Kolodge noted.
“While dealers are expected to play a key role in explaining the technology to consumers, the onus should be on automakers to design the technology to be intuitive for consumers,” said Kolodge. “Automakers also need to explain the technology to dealership staff and train them on how to demonstrate it to owners.”
Safety and Repair Costs
Use of in-vehicle technologies has implications beyond the auto industry. For example, the insurance industry is closely tracking automotive technology for safety and financial purposes. Insurers are concerned that difficult-to-use technology may distract drivers and cause an accident. Using smartphones instead of in-vehicle technology also creates safety issues. Additionally, in-vehicle technology can significantly increase claims costs for vehicles damaged in an accident.
“While some technologies, such as lane-departure warning, are making vehicles safer, the insurance industry is very concerned about the driver-distraction hazards caused by some of the other technologies,” said Chip Lackey, senior director of the insurance practice at J.D. Power. “In addition, technology drives up the repair and replacement costs. A slight bumper scrape that would normally cost a few hundred dollars to repair can catapult a claim into thousands of dollars when a park assist camera or other sensors are damaged.”
The 2015 Driver Interactive Vehicle Experience (DrIVE) Report is based on responses from more than 4,200 vehicle owners and lessees after 90 days of ownership. The report was fielded in April through June 2015.

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[FAPTurbo]

I think a couple of those items aren't used because they're typically unenjoyable to operate. Car apps either lag, or their development significantly lags behind mobile platform peers. 

 

Unless I'm mistaken, those mobile car routers require a subscription to use, and nearly every mobile phone has hotspot functionality. Why would anyone pay extra per month for a couple gigabytes of data that's only available in a vehicle, when they could just tack it on to an existing phone plan?

[G. David Felt]

I would agree with BUZZ, many of the new technologies are not really needed in cars and if they think by having them they will snag the young college level to late 20's crowd they are WRONG, as most are too in debt to afford a car.

 

Anyone who has driven a HUD auto loves it and Cadillac has an amazing one in how you can customize it. This is as the story says, FAILURE of the Dealership more than the end user not using it or wanting it.

 

The biggest final impression is the delivery by the sales person of the auto to the customer. This is where you win or lose long term customers. Dealers need to step up and deliver.

[William Maley]

I think a couple of those items aren't used because they're typically unenjoyable to operate. Car apps either lag, or their development significantly lags behind mobile platform peers. 

 

Unless I'm mistaken, those mobile car routers require a subscription to use, and nearly every mobile phone has hotspot functionality. Why would anyone pay extra per month for a couple gigabytes of data that's only available in a vehicle, when they could just tack it on to an existing phone plan?

 

They do. I know off the top of my head that OnStar 4G LTE costs $5.00 per month for 500 MB and climbs from there.

[FAPTurbo]

They do. I know off the top of my head that OnStar 4G LTE costs $5.00 per month for 500 MB and climbs from there.

Yeah, while the pricing doesn't appear too terrible, it's strange that someone would choose to allot data strictly to their vehicle, instead of just adding it to their existing plan and using it wherever their phone goes. 

 

I suppose if an automaker incorporated a WiFi Extender which boosted a smartphone's data signal throughout a larger area, that'd be a neat feature, worthwhile for people camping or events/festivals.  

 

I would agree with BUZZ, many of the new technologies are not really needed in cars and if they think by having them they will snag the young college level to late 20's crowd they are WRONG, as most are too in debt to afford a car.

 

That's a little presumptuous. It really has nothing to do with debt... It has more to do with the fact that a smartphone with a ten dollar mount from Amazon has more capability and slicker operation than an automaker's optional system boasting just one laggy music streaming option. 

 

We want car tech. We just want modern tech instead of antique hardware, and half-baked Java apps written by interns.

[oldshurst442]

I have realized I dont want car tech.  Other than certain safety features and nanny stuff, such as ABS brakes and traction control...all other stuff could go to HELL!!!

 

Ill only keep a USB port or two...that is it!!!

[ocnblu]

crank windows and a stick shift would suit me

[ccap41]

I think a couple of those items aren't used because they're typically unenjoyable to operate. Car apps either lag, or their development significantly lags behind mobile platform peers. 

 

Unless I'm mistaken, those mobile car routers require a subscription to use, and nearly every mobile phone has hotspot functionality. Why would anyone pay extra per month for a couple gigabytes of data that's only available in a vehicle, when they could just tack it on to an existing phone plan?

That is exactly what I think of when I see those Chevy commercials. I was sitting watching tv with my dad the other week and we started talking about that and how it doesn't make sense for exactly the reason you brought up. Now if it were to be free to the original buyer and only the second, third, etc owners had to pay that would be another story and a great way to get people to buy your stuff new as well as opposed to people like me waiting two-four years and saving 15k off the original sticker.

• 200 megabytes (enough to stream about six hours of music or use the Internet for 13 hours): $5 for OnStar subscribers; $10 for non-subscribers.

• 1 GB: $15 for subscribers; $20 for non-subscribers.

• 3 GB: $30 for subscribers and non-subscribers.

• 5 GB: $50 for subscribers and non-subscribers

 

GM also will offer one-time purchases of $5 a day (for subscribers) and $10 (non-subscribers) for 250 MB of use and $150 (subscribers) and $200 (non-subscribers) for a month of up to 10 GB.

 

http://www.autonews.com/article/20140512/OEM06/140519987/gm-says-new-4g-lte-services-will-cost-$5-to-$50-a-month

Edited August 26, 2015 by ccap41

[G. David Felt]

crank windows and a stick shift would suit me

So you just need a good crank with a stifk shift?

[ocnblu]

 

crank windows and a stick shift would suit me

So you just need a good crank with a stifk shift?

 

yessir