For commercial vehicle players, digital solutions and telematics are quickly moving from a nice extra to must have, and nobody wants to be left behind. Highlighting the growing importance of this area, MAN Truck & Bus has set up a new Telematics and Digital Solutions department, to be headed by Markus Lipinsky.
Daimler connection
Lipinsky brings experience in both the software field and the automotive industry. He previously served as Chief Executive at software firm Actano. Between 2009 and 2012, he was Chief Executive of Daimler Fleetboard, overseeing development and sale of telematics solutions for commercial vehicle fleets.
In his new role at MAN he will report directly to MAN Chief Executive Joachim Drees. Drees, appointed to the top role earlier this year, also put in time at Daimler, where he served as a manager with the Daimler Truck Group and Mercedes-Benz Trucks. Notably, Andreas Renschler is also a former Daimler executive. Previously head of the Daimler Truck Division, Renschler now serves as board of management member for Commercial Vehicles at Volkswagen AG and is tasked with forging closer collaboration among the truck operations at VW Group, making the most of synergies with MAN and Scania.
Commenting on the choice of Lipinsky for the new role, Frost & Sullivan (F&S) Automotive & Transportation Research Manager Sathya Kabirdas told Automotive World: “MAN has reached out to someone who was a known face in this industry. They are well aware about the market potential and the ability of the leader (with his proven success in Fleetboard) they have chosen.”
Drees has highlighted Lipinsky’s experience in digital networking, observing: “His outstanding expertise will help MAN take up a leading position within the industry in matters of digitisation – a key area for the future.”
Tip of the iceberg
With the creation of the new position, MAN is recognising the importance of digitisation within OEM corporate strategy. As Drees conceded: “It is clear that selling top-quality trucks and buses is no longer enough. There is going to be ever increasing demand amongst our customers for digital solutions, ergonomic telematics services and networked commercial vehicles. We have now started to take steps in this direction, despite the precarious economic climate.”
Kabirdas believes this sort of investment is important for all CV OEMs today, adding: “We are only seeing the tip of the iceberg” in terms of the benefits. The technology can help with reducing recalls (through over the air [OTA] updates), managing warranty costs (removing components from warranty that fail quickly), providing additional revenue, offering value added services (convenience, autonomous driving), improving use of the dealer network and aftermarket business, not to mention remaining competitive.
Many medium and heavy CV OEMs have already taken aggressive action on this front at a global level, notably Daimler, Volvo and Scania. Navistar is starting to make a bigger push in the connectivity field in general, and has been expanding the availability of its open architecture of connected vehicle and remote diagnostic system OnCommand Connection. The OEM is also moving ahead with plans to offer OTA reprogramming of engine control modules for certain International truck models. Hino has also been active, announcing that its MY2017 models will have telematics as standard. “Soon other OEMs will also follow suit, becoming aggressive in this new trend,” predicted Kabirdas.
MAN may not have been one of the leaders in this field, but coming late to the game is better than not playing at all. “It is never too late; some of the OEMs especially in Europe, don’t have a high number of active subscribers, though their installed base seems to be higher,” Kabirdas pointed out.
40 million by 2020
Connected technology offers numerous benefits to OEMs and drivers, and those that fail to invest could find themselves falling further behind rivals. By 2020, about 40 million trucks globally are expected to be connected. In addition, F&S analysis shows that nearly 40% of fleet managers feel connectivity in trucks is a ‘must have’ today, and Kabirdas adds that demand is increasing.
“With smart roads and smart cities, smart trucks in the future will be a necessity – OEMs should be prepared for this trend,” Kabirdas warned. With its latest corporate developments, that’s exactly what MAN is hoping to be.
Megan Lampinen
