ADAPTING TO BIG DATA, CONNECTIVITY AND TECHNOLOGY
Parts, aftermarket and repairs
Crash repair and customisation: who is liable for the outcome?
Who is liable?
Onboard sensors required for ADAS and autonomous features tend to be found in vulnerable positions on the vehicle: bumper, door mirrors, windscreen and so on. As such, any incident with the vehicle is likely to affect one if not all of them. A repair does not have to be complicated for ADAS to be featured. Indeed, wheel alignments can affect park assist features; windscreen replacements can affect the sensors in the rear-view mirror; adjusting the suspension can affect pretty much everything.
While the impact may be as small as windscreen wipers not reacting to the weather or headlights failing to dip; there are also significant safety concerns for some of those systems. Although not clear cut, the likelihood is that if the vehicle found itself in an accident, and the cause could be traced back to an incorrectly calibrated sensor, it would probably be the repairer who was found liable. It is important, therefore, that those looking to work on ADAS-equipped vehicles have the requisite training to do so.
Insurance Industry Requirements
for ADAS-equipped vehicles
Onboard sensors required for ADAS and autonomous features tend to be found in vulnerable positions on the vehicle: bumper, door mirrors, windscreen and so on. As such, any incident with the vehicle is likely to affect one if not all of them. A repair does not have to be complicated for ADAS to be featured. Indeed, wheel alignments can affect park assist features; windscreen replacements can affect the sensors in the rear-view mirror; adjusting the suspension can affect pretty much everything.
While the impact may be as small as windscreen wipers not reacting to the
Earlier this year, as the number of ADAS-enabled vehicles on UK roads reached 4.5million, Thatcham Research released a set of Insurance Industry Requirements (IIRs) to ensure the safe repair of such vehicles. Thatcham worked with vehicle manufacturers, insurers, windscreen repair and replacement companies, equipment providers and repairers to develop the IIRs, which it expects to be implemented by March 2021.
The document highlights that inspection, realignment and calibration requirements must be considered in all situations where the ADAS technology, including sensors, is likely to be impacted by the repair work. Procedures include documenting the presence of ADAS on the vehicle, completing activities as detailed by the manufacturers technical specification and ensuring that a competent person completed the calibration work.
weather or headlights failing to dip; there are also significant safety concerns for some of those systems. Although not clear cut, the likelihood is that if the vehicle found itself in an accident, and the cause could be traced back to an incorrectly calibrated sensor, it would probably be the repairer who was found liable. It is important, therefore, that those looking to work on ADAS-equipped vehicles have the requisite training to do so.
Opportunities for the aftermarket
The future impact of ADAS and connectivity on aftermarket revenue and dealer profitability is likely to be considerable. The modern dealership’s aftermarket (parts, maintenance, and repair) average contribution to revenue is around 10%, but SMMT data suggests aftermarket contributes 45% to 50% of dealership profitability.
In a recent Cox Automotive dealer sentiment survey for this report, almost half (47%) of dealers suggested that the increased level of connected technology was impacting on vehicle profitability, with a further fifth (22%) unsure. A quarter of respondents (26%) had seen an increase in service or bodyshop work that included ADAS calibration, while two fifths (39%) were unsure.
ADAS-equipped vehicles can be more complex to calibrate which provides opportunities and threats. The time and cost to repair an ADAS-equipped vehicle as compared with a standard vehicle is mitigating some of the financial impact.
However, the potential reduction in volume and severity of accidents because of ADAS means the number of vehicles coming in for repair is likely to reduce. Long-term, this reduction in vehicle damage (both minor and severe) could be as significant as the development of extended maintenance cycles in the early 2000s on dealer repair and consumer footfall.
Although this may accelerate the trends of fewer service networks and dealers, one opportunity could be the creation of fewer, more specialist sites with a higher throughput that ultimately improves dealer profitability.
ADAS and remarketing
There is a trend on the horizon, with the new world of safety requiring those who are selling the vehicle to confirm all repairs and calibrations were done to manufacturer technical specifications. .
The potential impact on sale price is still up for discussion. Is it the buyer or seller who covers the cost of an organisation like Manheim completing the calibration inspection? While the tipping point for ADAS in the new vehicle market has certainly been reached, the industry is still in the early stages of managing connectivity and safety technology at wholesale. If, for example, the suspension or ride height of a vehicle have been altered, at what point should the sensor calibrations be checked, and by whom?
The rapid growth in personal leasing in both new and used vehicles, as well as increases in subscription and flexi-rent models, have meant end-of-life inspections are more important than ever. While the Thatcham IIRs have been welcomed across the industry, there is still uncertainty and a lack of clarity around consistent standards and technology application. Costs, liability and responsibility remain key concerns when it comes to adapting the remarketing process for ADAS-equipped vehicles.
“As increasingly complex technologies make their way into the wholesale market, it is vital buyers and vendors can work with partners they trust. The risk factors around incorrectly calibrated ADAS systems are significant. Continuing to invest in our vehicle processing and remarketing support services remains a strategic priority.”
Pete Bell, Chief Operating Officer, Cox Automotive Europe
Read our overview
The Outlook
Share
Insurance Industry Requirements
for ADAS-equipped vehicles
Earlier this year, as the number of ADAS-enabled vehicles on UK roads reached 4.5million, Thatcham Research released a set of Insurance Industry Requirements (IIRs) to ensure the safe repair of such vehicles. Thatcham worked with vehicle manufacturers, insurers, windscreen repair and replacement companies, equipment providers and repairers to develop the IIRs, which it expects to be implemented by March 2021.
The document highlights that inspection, realignment and calibration requirements must be considered in all situations where the ADAS technology, including sensors, is likely to be impacted by the repair work. Procedures include documenting the presence of ADAS on the vehicle, completing activities as detailed by the manufacturers technical specification and ensuring that a competent person completed the calibration work.