Cisco: Connected Cars Can See $1400 in Yearly Savings
Andreas Mai, who manages Cisco’s connected-car group, says that by allowing automakers to access to your driving data can save you $1400 in yearly operating costs.
Cisco teamed up with Germany’s Continental AG and will be unveiling a connected car concept vehicle this week at the Center for Automotive Research’s annual Management Briefing Seminars event.
As more and more automakers begin to offer at least some level of connectivity, smarter vehicles with internet access have become more of a priority. Other benefits and advancements could include linking of cars via a ‘cloud’ system to alleviate traffic and even eventually have driverless cars.
Connectivity represents a "really fundamental change" for insurance providers, Mai, said Friday in Michigan. "Vehicle connectivity ripples through their entire value chain. It helps prevent crashes. … It also helps [insurers] to reconstruct who is at fault and actually helps them to really control the cost."
"Last but not least, you will also spend less time stuck in traffic because if you have a large portion of the vehicles connected, you will also be able to circumvent the traffic jam. If you have the [vehicle] ecosystems communicate with each other, you can quintuple the capacity of one vehicle lane and that has an obvious impact on how many roads you need to build long-term."
Mai estimates the value of a connected car's data as follows:
• The motorist can save $550 by enjoying better fuel economy, less time stuck in traffic, lower insurance rates, etc.
• Society can save $420 by employing car platoons to speed up traffic and increase a road's capacity.
• Service providers can earn $150 by providing traffic guidance, navigation, parking, emergency services, etc.
• Automakers can save $300 in lower warranty costs, profitable apps, etc.
There are definitely privacy issues but according to a survey by Cisco, 74% of drivers are willing to share this type of data.
"There have to be rules about who owns the data," Mai said. "Most likely it's the consumer, since he bought the car. A balance needs to be struck."
