Picture this: a world where cars not only take you from point A to point B but also contribute to a cleaner and more sustainable future. That’s the vision behind the ‘Fit for 55’ regulation, a set of measures proposed by the European Commission to reduce greenhouse gas emissions by at least 55% by 2030. In this article, we’ll take a ride through the key points of the ‘Fit for 55’ regulation and explore how it’s revolutionizing the auto industry.
What is the 'Fit for 55' Regulation?
The ‘Fit for 55’ regulation is a roadmap to a greener future, challenging car manufacturers to reduce carbon emissions by at least 55% by 2030, compared to 1990 levels. The regulation’s main focus is on new cars and vans, with the aim of reducing the average CO2 emissions of these vehicles by 55% by 2030, compared to 2021 levels. This means that car manufacturers need to ramp up production of electric and hybrid cars and reduce the production of fossil fuel-powered vehicles.
Let’s take a look at all ‘Fit for 55’ goals:
To reduce greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels.
To reduce the average CO2 emissions of new cars and vans by 55% by 2030, compared to 2021 levels.
To reduce the production and use of fossil fuel-powered vehicles.
To increase the production and adoption of electric and hybrid cars.
To encourage the development and adoption of new technologies and infrastructure to improve fuel efficiency and reduce emissions.
To promote a circular economy by optimizing production processes and reducing waste and emissions.
To provide consumers with more information on the environmental impact of their vehicles.
So, how Does the 'Fit for 55' Regulation Work?
The ‘Fit for 55’ regulation is not just about putting more eco-friendly cars on the road, it’s a revolution in the way the auto industry operates. Car manufacturers will need to invest heavily in research and development of new technologies and infrastructure to produce vehicles with lower carbon emissions. For example, lightweight materials, aerodynamic designs, and more efficient engines will help improve the fuel efficiency of cars and reduce emissions.
The regulation also promotes a circular economy by encouraging car manufacturers to optimize their production processes and reduce waste and emissions. This means that the industry will be more environmentally friendly from start to finish, from the production line to the scrap heap.
LinkedIn Poll Reveals Concerns About Higher Costs with 'Fit for 55' Regulation
A recent LinkedIn poll we conducted among industry professionals has revealed that 100% of respondents believe that the ‘Fit for 55’ regulation may lead to higher costs.
The poll asked the question, “What do you think about ‘Fit for 55’ and its impact?” and provided several answer options. However, all of the respondents’ answers indicate that they are concerned about the potential for increased costs associated with the regulation.
These results suggest that many people in the industry are apprehensive about the economic impact of the ‘Fit for 55’ regulation and the measures that may need to be taken to comply with it. Some experts have argued that the regulation will require significant investments in research and development, production, and infrastructure to reduce emissions, and that these costs may be passed on to consumers. Others have pointed out that car manufacturers may struggle to meet the emission reduction targets without substantial changes to their operations, which could lead to additional costs.
Despite these concerns, proponents of the ‘Fit for 55’ regulation argue that the long-term benefits of reducing carbon emissions and mitigating the effects of climate change outweigh the short-term costs.
The Benefits of the 'Fit for 55' Regulation
The ‘Fit for 55’ regulation is not just about reducing carbon emissions. It’s also about creating a better world for us and future generations. By embracing the challenge, car manufacturers can drive innovation and create new opportunities in the market. The demand for eco-friendly cars will increase, and companies that can produce them will be at the forefront of a new era of sustainable transportation.
The benefits of the ‘Fit for 55’ regulation extend beyond the auto industry. A cleaner environment means better health and a higher quality of life for everyone. Moreover, reducing carbon emissions will help mitigate the effects of climate change, such as more frequent and severe natural disasters.
The ‘Fit for 55’ regulation is not just a set of measures; it’s a call to action. It challenges the auto industry to do better, to drive towards a greener future. By reducing carbon emissions, promoting innovation, and creating a circular economy, the regulation will create a better world for all of us.
As we discussed in our previous article from this series, the world of telematics is advancing at an unprecedented rate. Telecommunications and informatics converge to transfer data over long distances and the automotive industry, in particular, has quickly embraced technology by installing cutting-edge telematics systems in their vehicles to gather valuable insights on driver behaviour, vehicle performance, and other crucial metrics.
However, to keep up with this rapid growth, companies need the expertise of specialized telematics engineers who can design, develop, and maintain these complex systems. Unfortunately, the lack of trained telematics engineers is holding back the industry’s true potential, hampering its progress towards a connected future. Keep on reading to discover how well-trained engineers can boost your telematics business and how can you benefit from additional revenue by investing in your engineers’ training.
The Importance of Trained Telematics Engineers for Companies
Telematics engineers are the masterminds behind the conception, creation, and upkeep of these intricating telematics systems, meticulously fine-tuning them to operate optimally and with precision. They play a crucial role in identifying and addressing potential roadblocks such as data inaccuracies, system outages, and security breaches. With their skills, they can also develop sophisticated algorithms and models, allowing them to uncover valuable insights from the massive troves of data, granting businesses a significant advantage over their competitors.
Furthermore, they are swift to identify and implement solutions, minimizing downtime, and fine-tuning the system’s overall performance to ensure peak efficiency.
The Financial Benefits of Having Trained Telematics Engineers
The high demand for skilled telematics engineers has driven up salaries in the industry. Nevertheless, companies that invest in training their engineers can enjoy substantial financial gains. With a team of well-trained engineers, companies can expect to receive more precise data, which can lead to smarter business decisions, product improvements, and greater profitability.
Companies with trained telematics engineers can gain a competitive edge by fostering a culture of innovation, enabling them to create cutting-edge products and services. By tapping into their skills and knowledge, trained engineers can design and develop novel telematics solutions that set them apart from their competitors and attract new customers. This can translate to increased profitability and revenue, as companies establish themselves as leaders in the telematics industry.
In addition, telematics companies with trained engineers can broaden their horizons by tapping into new markets and verticals. With their expertise, these engineers can gain valuable insights into the distinctive needs and demands of various vehicles and devise tailor-made telematics solutions to fulfil these needs. This opens up fresh avenues for revenue and expansion, helping companies achieve sustained growth and profitability.
In conclusion, the lack of well-trained telematics engineers is a major hurdle that companies must overcome in this field. Nevertheless, organizations that take the bold step to invest in their engineers’ training will reap substantial financial gains, such as enhanced product quality and accurate data. By strategically addressing the shortage of trained engineers, companies can secure the talent they require to not only survive but also thrive in the burgeoning telematics market.
Keep up with this series of articles where we discuss the potential solutions that can help telematics companies mitigate the risks and overcome the challenges they face when facing a shortage of trained engineers. If you need an expert hand to help you with implementation or installations, you can always count on us. We’re just one click away!
From skyrocketing rollout costs and inaccurate data to lost time and damaged cars, telematics companies are skating on thin ice without experienced engineers. In this blog post, we’ll dive deep into how this tech expert shortage is causing havoc in the industry, the risks at hand, and the challenges companies face in overcoming them. Brace yourself for a rollercoaster ride through the impact of this trend!
The Impact of Lacking Experienced Engineers
Picture this: a telematics company’s rollout is delayed for months due to a lack of experienced engineers. When the project is finally completed, the data is inaccurate, the costs have skyrocketed, and there’s even been car damage. This is just one of many scenarios that have become all too common in the telematics industry as the shortage of tech experts continues to worsen.
#1 Delayed Rollout Times
When a telematics company lacks experienced engineers, it can result in significant delays in the rollout of new products or features. This delay can have serious consequences for the company, including losing market share to competitors, missing out on potential revenue, and damaging its reputation.
#2 Inaccurate Data
In the telematics industry, accurate data is key for making informed decisions and providing valuable insights to customers. Without experienced engineers to oversee the collection, analysis, and interpretation of data, the quality of the data can suffer, resulting in incorrect conclusions, missed opportunities, and unhappy customers.
#3 Higher Costs
A shortage of experienced engineers can lead to higher costs for telematics companies. For example, companies may need to spend more money on recruitment efforts, training programs, or outsourcing projects to third-party vendors. These increased costs can attack a company’s profit margins and make it harder to remain competitive.
#4 Increased Risk of Car Accidents
Telematics systems rely on accurate data to make decisions about driver behaviour, vehicle performance, and road conditions. Without experienced engineers to ensure that the data is accurate and reliable, there is an increased risk of car accidents due to incorrect information. This can have serious legal and financial consequences for telematics companies.
#5 Missed Opportunities
The telematics industry is rapidly evolving, with new technologies and trends emerging all the time. Without experienced engineers to stay up-to-date on the latest developments and identify new opportunities, companies may miss out on chances to innovate, expand their market share, or gain a competitive edge.
The Risks of Incorrect Installations
For telematics companies, incorrect installations of their products can lead to a range of risks and challenges. First and foremost, incorrect installations can compromise the safety of drivers and passengers by providing inaccurate data on vehicle performance and road conditions. This can lead to serious accidents and legal liabilities for the company. In addition, this can result in higher costs for the company, as they may need to spend additional resources on repairs or replacements.
Finally, having an untrained engineer dealing with these issues might harm your company’s reputation and disrupt customer trust, and even bankruptcy, as customers may become dissatisfied with the product’s performance or safety. As such, it’s critical for telematics companies to prioritize installation training and ensure that their products are installed by experienced professionals to mitigate these risks.
Over the course of this series of articles, we’ll dive deeper into the challenges facing telematics companies and explore potential solutions to mitigate these risks. Stay tuned to learn more!
Video telematics is a rapidly growing technology revolutionising how fleets are managed. It is a combination of hardware and software that uses in-vehicle cameras, GPS tracking, and other sensors to monitor driver behaviour and vehicle performance. Video telematics provides fleet managers with real-time data and insight into driver behaviour, allowing them to improve safety, reduce costs, and increase productivity. With its numerous benefits, it’s no wonder why video telematics is on the rise. In this blog post, we will explore why video telematics is becoming increasingly popular and how it can benefit fleet management in a way that was never anticipated.
A deep understanding of Video Telematics
Video telematics is a powerful combination of cutting-edge dashcams, advanced analytics, and fleet tracking technology that is revolutionising the way fleet managers operate. Designed to provide real-time data and insights, video telematics helps fleet managers make better decisions and optimize their operations.
By using dashcams, managers receive alerts when drivers engage in risky behaviours or exhibit poor driving performance, which helps ensure the safety of drivers and vehicles while also improving efficiency and reducing costs. Video telematics also offers numerous other benefits, such as fuel savings, enhanced driver safety and compliance, and increased visibility into fleet activity.
With video telematics, fleet managers can monitor driver activity, set up geofences to control speed and location, and leverage sophisticated video analytics to identify unsafe driving practices such as hard braking or distracted driving.
How Video Telematics can skyrocket your business
As stated before, video telematics is a game-changing tool that enables fleet managers to take their operations to the next level. With real-time insights into the performance of vehicles, drivers, and fleets as a whole, video telematics provides a powerful suite of benefits that can help businesses stay ahead of the curve. These benefits include:
#1 Streamlined Operations
With video telematics, fleet managers can reduce fuel costs and other operational expenses by monitoring and optimizing vehicle routing, driver behaviours, and maintenance schedules. This helps to ensure that vehicles are used efficiently and that operational expenses remain low.
#2 Enhanced safety
Video telematics helps to ensure that drivers are adhering to safety regulations and minimizing distractions while on the road. This helps to reduce the risk of accidents and provides an extra layer of safety for drivers.
#3 Improved Accountability
By adopting video telematics in your Fleet Management strategy, you ensure that drivers are held accountable for their actions. You can monitor driver behaviour in real time, allowing them to quickly identify and address issues before they become bigger problems.
#4 Optimal Maintenance
By collecting data from vehicles, fleet managers can better plan and optimize maintenance schedules. This helps to keep vehicles in optimal condition and reduce downtime due to unexpected repairs or maintenance.
By collecting data from vehicles, fleet managers can better plan and optimize maintenance schedules. This helps to keep vehicles in optimal condition and reduce downtime due to unexpected repairs or maintenance.
Video telematics is rapidly becoming an indispensable part of fleet management operations. But to have access to accurate data, you will need more: by integrating our CANbus Library into your video telematics you will add value to your services, delivering more, faster and better to your users! CANGO’s all-in-one solution provides real-time telematics data correlated with the environment and uses predictive artificial intelligence as a real-time coach in recording incidents. Monitoring and tracking drivers have never been easier. If you are looking for a way to Integrate our solutions into your video telematics and get access to comprehensive data from the field, schedule a call with Bianca and let’s explore the endless possibilities that come with this spectacular technology.
In November 2022, the European Commission officially announced its proposal for new emissions regulations for road cars, known as Euro 7/VII. The Euro 7 rules will apply to both light-duty (cars and vans) and heavy-duty vehicles (trucks and buses) sold in the EU.
What exactly does the Euro 7 standard imply, and how will it impact the automotive industry?
What is new in the Euro 7 emissions standard?
Updated emission limits, broader boundary conditions for RDE testing, extended emission durability periods, first-ever limits for particle emissions from brakes, and rules on microplastic emissions from tires are all part of the Euro 7 proposal.
There will be higher limits on emissions for vehicles with the Euro 7 standard. For example, vehicles certified as Euro 6 must comply with emission standards for the next 5 years or 100,000 kilometers. The proposed rules require compliance with Euro 7 emission standards for 10 years or 200,000 kilometers.
According to European Commission, the Euro 7 emission standards are needed to set more ambitious limits for air pollutants. But, the impact of future CO2 goals for heavy-duty vehicles needs to be addressed, as is the rapidly accelerating transition to zero-emission cars.
How do vehicle manufacturers see the outcomes of Euro 7?
Producers of vehicles have raised objections to the Euro 7 proposal. The European Automobile Manufacturers’ Association (ACEA) said that the “environmental benefit of the Commission’s proposal is very limited, whereas it heavily increases the cost of vehicles. Moreover, it focuses on extreme driving conditions with hardly any real-life relevance.”
We have winners, but we have losers also, and the losers seem to be heavy trucks and buses. For example, a report from Morgan Stanley found that Europe’s biggest automaker, Volkswagen Group, could face 400 million euros in compliance costs on car sales.
All diesel-powered trucks and buses must cut their NOx emissions by 78%, from 400 mg/km to 90 mg/km. The European Commission estimates that this will increase the cost of complying with the law by €2,700 per car. But vehicles like these are more expensive than regular cars. Still, the money saved on gas could have been used to fund electrification, batteries, or even hydrogen fuel cells, making transport and shipping more expensive for everyone.
As a result of this situation, we asked other industry specialists’ opinions on the subject, on a LinkedIn poll. Our question was “What kind of outcome needs more attention when it comes to Euro 7 standards and their impact on the automotive industry?” and their answers didn’t surprise us, as they only support the concerns presented above.
Increasing costs is the biggest concern of those operating in this industry, just as Oliver Zipse- President and CEO of BMW, says: “Unfortunately, the environmental benefit of the Commission’s proposal is very limited, whereas it heavily increases the cost of vehicles.”
Some are worried about time goals that they need to see as realistic. The proposed implementation dates are July 2025 for cars and vans and July 2027 for heavy-duty vehicles. The implementation of new production technologies needs to be developed, engineered, tested, and type-approved, which means an investment of time in addition to that of costs.
What about EVs? Will they also be affected by Euro 7?
Euro 7 accentuates fuel-powered cars’ emissions and forces producers to invest in new production lines instead of letting them move forward with the production of electric vehicles. This comes with a paradox compared to the past regulations to stimulate the production of electric cars.
Ford Motor Company, which has two separate businesses, Ford Blue for internal combustion engine automobiles and Ford-e for electric vehicles, has expressed concern that the proposed regulation “has the potential to compromise the significant progress Europe has achieved in converting to electric mobility.” CEO says that “We should not be diverting resources to yesterday’s technology and invest in zero-emission instead.”
For EVs (electric vehicles), the proposal includes limits on particles produced by tires and brakes. Euro 7 places an obligation on manufacturers to design, construct and assemble vehicles to comply with certain emission limits: a limit of 7 mg/km on brake particle emissions (particles emitted by the brake system of a car) until 2035, and then a limit of 3 mg/km after that.
The proposal also includes regulations on battery longevity. The Commission thinks these rules are necessary to boost consumer confidence that EVs will maintain performance after years of use and to promote a strong second-hand market for EVs.
All this considered, what is the purpose of the Euro 7 standards? Will they be implemented even if there are many controversies related to their adoption? Will they receive the approval of the European Parliament and the member states?
We do not know what will happen in the future or which scenario from those presented above will be implemented. But what we know for sure is that throughout the 20 years, we have developed custom solutions in telematics to be prepared for anything that comes up.
As for any battery-operated device, cold temperatures affect the battery range. Is it also available for Electric Vehicles (EV’s)?
Yes, but the cold weather alone is not the direct factor, the other processes needed to supplement in cold temperatures. The cold weather doesn’t necessarily make a vehicle’s battery drain faster. Any aspect that significantly drains the battery, such as increased usage or the warming air conditioning on full blast, could affect range.
How Much Battery Range is Lost in EVs During Winter?
The good news is that this temporary range loss is not permanent, and as the ice melts and temperatures rise, your vehicle’s expected range at full charge should return to normal. Studies show that 20 degrees Fahrenheit weather could reduce an EV’s range by 10 to 12 percent, while the use of in-vehicle climate control might amplify range loss to 40 percent.
And this is backed up by this chart of EVs created by Autoblog.com.
There are two main reasons why this happens to electric vehicles during cold weather:
In cold temperatures, chemical and physical reactions in a battery occur more slowly.
We’ll dig into some physics and chemistry lessons, but we’ll be short. In cold weather, ions flow through the battery cells more slowly than in warm weather, causing lithium to build up outside the node and turn into an inert metal. This metal disrupts the future flow of energy and uses up some of the lithium that is supposed to power the battery. In single-cell observations, this can lead to a decrease in power and range.
Heating systems during the cold season
Traditional cars use internal combustion engines (ICE), which are rather inefficient. The energy that ICE cars don’t use to propel them forward is lost as “waste heat” which is typically just lost energy. In cold weather, however, ICE cars redirect this waste heat from the engine to warm the cabin. On the other hand, an electric vehicle (EV) has a much more efficient motor that does not generate as much heat. In the cold, available motor heat is routed to warm the battery itself, meaning that cabin heating requires a power source. Cabin heaters generally draw from the high voltage battery, reducing how much battery is left for driving.
Do EV tires wear faster during the wintertime?
EVs have a different weight distribution, and their torque and acceleration put fossil-fueled cars to shame. Accelerations like that can, however, wear out the tires over time. In addition, their added weight and its distribution, with the bulk of the battery weight often located toward the rear tires, can lead to increased and uneven tire wear.
The discussion around whether the tires wear faster on EVs is highly debatable, as tire producers run tests that show that the wear could be less damaging than on conventional vehicles.
However, any fleet owner is responsible for knowing in advance such parameters: as tire usage, battery range, and available energy.
Does your Telematics Provider offer all the necessary information for your EV fleet during winter?
You can easily face all your telematic challenges with a large spectrum of parameters for electric and hybrid vehicles. Cango Mobility has developed an entire fleet management system with Electric and Hybrid Fleet Operators in mind.
Parameters such as Battery Remain Capacity (Wh), Battery Temperature (%), Range (km), Torque Maximum, Battery Voltage, and All tires pressure(bar) are meant to help drivers and fleet managers get through winter with ease and prevent any incidents from happening.
Disclaimer: This article doesn’t show an opposition for the electric and hybrid solutions. Please take it as a writted debate on whether an electric vehicle means a more sustainable way of driving.
The electric and hybrid vehicles represent one of the most popular ways to fight climate change caused by carbon dioxide emissions, which can be also implemented on the personal level, not only by companies and governments. As transportation accounts for almost 25% of the global GNG emissions, the people started to be concerned about the environmental aspect and embrace the ideas of hybrid and electric vehicles. Let’s see how much of an impact this measure could have on the environment, economy and society.
The double-edged sword of switching from conventional to electric and hybrid cars
Electric vehicles seem to be a greener option to combustion vehicles, but are they the best alternative? The number of electric vehicles sold by 2021 reached 16 million units, accounting 9% of the global sales, mainly from North America, Europe and China. Leading us to one of the concerns.
Who actually pays for switching the world to electric vehicles? The named markets are the most prosperous in the world, but how much of the cost of becoming “greener” are they willing to pay? The footprint on the environment made by the production of electric vehicles is mainly due to the mining of the necessary metals and rare earths for lithium-ion batteries, which consumes a lot of energy and water and releases toxic compounds.
The top 5 countries that extract lithium are Bolivia, Chile and Argentina followed closely by Australia and China. Out of these countries, the biggest consumer is China and most of the resources are stored in reserves from Chile. Here are some environmental and social concerns of lithium exctraction:
Approximately 2.2 million litres of water is needed to produce one ton of lithium
The extraction of lithium has caused water-related conflicts with different communities, such as the community of Toconao in the north of Chile
Lithium extraction inevitably harms the soil and causes air contamination (a FoE report shows)
3.2 tonnes of CO2 are produced in the manufacture of the battery for an electric vehicle
Is there an alternative to the alternative?
According to the European Parliament, “the production and disposal of an electric car is less environmentally friendly than a car with an internal combustion engine.” And that’s because they analyzed the whole process: the extraction of the materials, the manufacturing and transportation, the energy needed to charge the batteries, and the management of waste at the end of their lifecycle made us consider the impact on the environment.
The final question is whether the full life cycle of an electric vehicle is less harmful to the environment compared to conventional cars.
There are some voices that claim that 80% of the electricity comes from fossil fuels. In an ideal future, all vehicles run on 0 carbon emissions power. The populations in the busy cities may benefit from a less congested atmosphere, but to make sure that the electric cars represent the best alternative, the solution stands in making energy the clean “fuel” for electric cars.
Until then, technology advances in researching and developing alternatives to the alternative: hydrogen vehicles, BioNGV or Biomethane, Biofuels. We’re keeping an eye on the producers to announce their innovations in terms of cleaner transportation.
Our telematics solutions are able to read data from electric, hybrid and fuel cell vehicles as well. If your company switched to an electric fleet, make sure you use the right telematics to collect accurate and reliable data.
Bianca is here to hear more from you and help understand which solutions fit your needs and how are they created in order to offer you the best insight.
No matter the size of your fleet, using telematics adds value from day one of implementation. The managers unlock the possibility to understand how their vehicles (no matter what type – cars, trucks, trailers, ships and many more) can become an important data provider for their business. Simply put, telematics supports fleet tracking, management and prediction of what will happen to various parts of the vehicles. That being said, the expenses with a qualitative telematics system is a long-term investment that proves its efficacy from day one of implementation.
Improved Fleet [add your needs] Depends on Better Data
You can complete the sentence with “real-time visibility”, “KPIs”, “operating costs”, and more. Better data means accurate data. Once you choose the telematics provider that is able to read all your fleet data in an accurate manner, your “everything” related to your fleet will improve.
A telematics system is way beyond GPS Tracking. While this technology alone is very powerful for any fleet manager, with benefits such as reduced fuel consumption and maintenance costs (leading to higher revenue), a mature fleet management system provides data that help improve almost every aspect of a fleet, from driver behavior to vehicle performance.
Added to the cost advantage, fleet managers can benefit from many more aspects when choosing accurate telematics. Our top advantages, based on the opinion of our customers, are described below:
We would call this aspect the most important, as we speak here about human lives. Not only drivers’, but also the other participants in the traffic. Telematics solutions such as Driver behavior automatically tag both bad and good driving events and provide a monthly safety score for the entire fleet and individual drivers. Based on this data, fleet managers can train and support drivers to obtain better scores and thus, increase safety.
The complicated set of trucking and other vehicle regulations could be hard to follow by fleet managers and drivers as well. Telematics help fleets comply with those regulations by monitoring driving hours, and managing logging systems. By relying on a complex and effective Fleet management system helps avoid penalties and drivers sidelining.
Reduced vehicle breakdowns
Vehicle maintenance is hard to track manually. It means that somebody would technically check each vehicle manually after each trip. Telematics do this automatically, eliminating the guesswork and increasing the tracking maintenance based on the miles driven and events instead of calendar dates. Once you install a telematics system that diagnoses early errors and issues, your fleet works at high efficiency scores and you avoid any minor issue become an expensive problem.
How much money are companies willing to spend for a qualitative fleet management system?
No matter the size of your fleet, telematics are aimed to support fleet tracking and management and provide real-time data, to help managers detect issues and errors… only if they are optimized correctly and use quality data.
The most discussed topic when it comes to telematics is their price. Our CMO, Bianca Barbu, often wears conversations around this subject.
“I hear pretty often comments related to pricing when it comes to telematics. The most common lines are: “ohhh, it’s expensive” (compared to what), “I have now different prices from X” (yes, you do, but the present solution that you have didn’t solve your problems), “I don’t need so many features” (you do not use all the features from your smartphone, but you are prepared and you buy a new smartphone every year- not to mention the price).
When we make a buying decision for ourselves we consider high-quality products even if they are expensive because they look better, they last longer and they fit our needs.
I am curious to know about the buying decision when it comes to telematics products and services.”
This situation created the need to consult other fleet managers’ opinion on the subject. Asked “What a reasonable price for a telematics solution means to you?” on a poll, here is what they answered:
In order to deliver the promised results and add value to the insights offered, fleet managers need to acknowledge how important it is to opt for a qualitative solution. You can see here how much an inefficient solution influences the data obtained, in an example on fuel measurement.
What does a good telematics provider offer?
Let’s start with answering the question What does Cango Mobility not offer? Poor data. We strive to improve our solutions continuously to track and manage our customers’ fleet efficiently and adjusted to the real parameters. While it is important to note that telematics are not a one-size-fits-all solution, be sure that they can be optimized and personalized to any company’s needs.
No matter what parameters you wish to optimize, track and manage, the only important thing to keep in mind is that they need to offer qualitative data (meanig real data), so you can instantly intervene and fix any error.
If you are willing to understand and maintain your fleet efficiently, do your company a favor and opt for a qualitative telematics solution.
Bianca is here to hear more from you and help understand which solutions fit your needs and how are they created in order to offer you the best insight.
With the chip shortage crisis nowhere near the end, manufacturers and governments are focusing on building more capabilities in the supply chain. The Taiwan Semiconductor Manufacturing Company has already started and plans to invest close to $100 million to improve delivery capacity over the next three years. Joining TSMC’s efforts, Samsung, SK Hynix, and the South Korean government have promised a huge investment of $451 billion to help supply and incentivize chip makers. And despite these massive investments being made, the need to diversify the component supply chain in order to avoid dependency on Taiwan and South Korea is all too clear. US President Joe Biden has pledged support for the American semiconductor sector as part of his “Build Back Better” plan. The support is backed by both US parties and includes a massive technology funding bill. The bill was introduced in June 2021 with $52 billion being set aside for American chip production alone.
Besides the US government, others are also looking to stabilize the situation. Intel plans to grow its manufacturing volume and will spend $20 billion on two new plants in Arizona. This is part of their own efforts to combat the shortage while reducing reliance on imported components. The European Union (EU) plans to step up efforts to grow component building capabilities across all EU territories in Europe. On the other hand, the UK government is lagging behind when it comes to creating a strong and effective strategy that can support the semiconductor sector.
But the question remains: until the supply chain is stabilized, how can fleet managers take care of their fleet and stay competitive in the market?
How to improve your approach in managing your fleet?
These new challenges have forced those in the field to quickly adapt and form strategies that can prevent losses as much as possible. Some of these solutions are meant to keep things under control in the present and near future, while other solutions aim to change the industry and make it more resilient to these types of crises.
Many companies chose to redesign their existing products to adapt to the new conditions and try to use as little as possible the components which are difficult to get. For example, some non-essential features were removed for the time being, minimizing product customization.
Shifting the focus
Another efficient short-term solution is focusing on the products which use available chips. The chip shortage impact is somewhat minimized by simply choosing products that are not affected by the crisis.
Flexibility is the best weapon against abrupt changes. Being able to immediately adapt to new industry requirements is bound to help companies be better prepared for any unforeseen circumstances. By having fewer parts in a product, developing and using a standard design and even reusing components, the products can be more easily adapted to crisis situations such as the one the industry is currently facing.
Managing this crisis takes time and significant financial efforts. A way to speed up the process of balancing the supply and demand is by leveraging AI. Automatization can raise efficiency and lower the risk of human error. Lessening the defects, poor processes and the unnecessary hold-ups that may occur, AI could prove to be one of the key factors in building back the industry and making it more resilient.
But these short-term and long-term solutions mainly focus on handling the supply chain. Fleet managers also need to know how they can directly improve their fleet management strategy.
And the good news for those navigating this challenging period is the rising availability of new connected car technologies and platforms. In short, fleet managers have a variety of options for accessing and managing fleet data in light of the current shortage of telematics devices. That is why it’s so important to take advantage of the existing platforms and technologies to minimize any disruptions to your fleet. In addition, changing your approach to fleet data management and adding to what you already have will help you overcome component shortages.
Here are four ways to improve your fleet management strategy, and how:
Use one simple source for all the data:
New connected vehicle platforms can correlate data from original equipment manufacturers (OEMs) and telematics devices in non-connected vehicles, offering a single overview. Therefore, when examining connected vehicle platforms, it is crucial to ensure that they have easy-to-use features such as:
A list and map view of all vehicles registered on the system.
Visualization of data on drivers and vehicle utilization.
Driver reports showing behavior, workday reports, health, and historical trips
Fully customizable trip reports for each and all vehicles.
When connected vehicles go offline, you can see right away.
Comprehensive information on individual vehicles, including wear and tear.
Make fully informed route and vehicle decisions.
Real-time data fleet-related data is crucial when it comes to choosing the best routes and being aware of the state your fleet is in. And connected technologies such as telematics provide a deep understanding of these aspects and make it easier to track and display the location of connected cars. This provides the ability to track real-time driver location, travel history, vehicle status, and movements. When looking for platforms for connected vehicles, make sure they offer a map-based interface that displays the current state of each vehicle. It’s important to know which vehicles in your fleet are on routes, which are on the way back, and which are parked and not in use.
Protect your vehicle from dangerous behavior that can cause accidents, excessive vehicle wear, or damage.
Safety is a paramount concern of any business that operates a fleet of vehicles. An essential aspect of maintaining the safety of drivers and assets is the visibility into the driver’s behavior. Dashboard reports that show driver safety metrics, overspeed incidents, hard braking, and acceleration are often preconfigured on new connected vehicle platforms. This offers you a clearer view of your drivers’ behavior on the road so that you can provide the right training to drivers if and when they need it. Overall, this helps reduce the safety risks in your fleet while upskilling staff simultaneously. To add, connected car technology such as CANGO can also tell the difference between speed zones to know the severity of speed violations.
Assure your assets remain within their service area.
Geofencing is a powerful tool that can give you a clearer picture of what your fleet is doing at all times. When implementing geofencing, you can define the zone of a specific vehicle and then receive notifications when that vehicle leaves the predefined area. With this feature, you can see where your assets are at all times and block drivers from using vehicles for personal errands. This saves money on fuel not intended for work and lowers asset misuse.
Unrivaled value for fleet owners
CANGO has supported fleet owners globally for over two decades of evolution in the telematics industry. And the component challenges we are still facing today is another wave that our innovation and partnerships will help us see out. One way we’re doing this is through the latest edition to our product lineup, CANLibrary. The solution combines both hardware (the existing client’s hardware) and software; a hardware-agnostic component that acts as the physical base of the solution, with a software platform-independent middleware layered on top of it. This 100% non-intrusive technology removes unnecessary hardware elements to give you greater flexibility over your fleet management than ever before. With it, you can easily add on any of our CANGO Mobility solutions to your CANLibrary setup, so you only ever need to include the applications you need when scaling your setup:
It really is that simple! Pick and choose the solution you need and add it to your CANLibrary. Your CANLibrary can host any and all of the CANGO mobility Solutions critical to your operations, including car sharing, anti-theft, driver scoring, driver performance assistant, security apps and more. It gives fleet owners greater flexibility and control over their fleet network while reducing the need for additional hardware. Reducing the knock-on effects of physical component supply shortages, for faster and better deployment. It offers a means to seamlessly gather data and support over 3000 vehicles in real-time, better understand the driver behavior, and ultimately deliver faster and better services.
More than this, CANLibrary is 100% non-intrusive technology, but what makes the difference is that it can be integrated with most applications and run even on highly constrained embedded systems found in vehicle ECU’s. And just like that, with CANLibrary you can have a built-in database with automatic synchronization with a wide range of analytics and services
With no sign that global semiconductor production will stabilize anytime soon, fleet managers will need to continue adopting an agile and robust fleet management strategy to stay competitive in the market. This crisis has proved that market conditions can shift in an instance, and the faster businesses are able to adapt the more likely they are to succeed. We’ve been a leading technology partner for Vehicle-to-X Solutions for more than 20 years and we’ve been delivering integrated telematics solutions for fleet managers across many sectors including logistics and transportation to construction, oil & gas, and more.
Start your telematics journey with CANGO Mobility and stay on top of any changes and challenges the industry might face!
Semiconductors such as memory chips or processors are the foundation for modern technology, from vehicles and smartphones to washing machines and TVs. They are the base material for the microchip, essential for manufacturing almost every electronic device that we use today.
For electric vehicles especially, the chips are at the center of the industry and they determine how well the entire electric system will perform. Some of the biggest trends in the newest vehicles are possible with the help of semiconductors: GPS tracking, sensors for safety and assistance functions. And according to Deloitte, electronics will account for half of the cost of a new vehicle by 2030. The cost of Semiconductors is projected to reach $600 (£436) per vehicle by that point, almost double the 2013 price of $312.
But just as more and more cars and trucks went digital, the industry had been hit with a shortage of semiconductors.
But why did it happen and how did the shortage affect the auto productions?
What’s Behind the Global Component Shortage?
The component Industry has more than doubled in value over the last two decades.
The chip market’s continued growth and incredible demand has put a massive strain on the industry’s ability to cater to all. In 2021 the Semiconductor Industry Association (SIA) endorsed the World Semiconductor Trade Statistics (WSTS) global semiconductor sales forecast, which projected the industry’s worldwide sales to be $553.0 billion in 2021, a 25.6% increase from the 2020 sales total of $440.4 billion. WSTS projects year-to-year increases in Asia Pacific (26.7%), Europe (25.6%), the Americas (24.6%), and Japan (19.5%). The global market is anticipated to post moderate growth of 8.8% in 2022, to reach $601.5 billion in annual sales.
The global chip shortage began with the breakout of the Covid-19 pandemic
In 2020, the auto industry saw a considerable drop in demand. On the other hand, the demand for personal electronics drastically increased once remote work and home-schooling became the norm. Laptops and servers were needed more than ever and sales rose in a way that was not anticipated, resulting in a market that was not ready to face this new development. This created a situation where, while the auto industry drastically cut chip orders, other sectors were met with an increased need. And in the second half of 2020, when the auto sector’s demand rebounded sharply in spite of the predictions for the year, the semiconductor industry was already focusing on meeting the demand for electronics for other applications.
More than this, Covid-19 brought to light another critical issue, this time relating to the global supply chain. There are only two companies responsible for most of the global chip manufacturing, Taiwan’s TSMC and South Korea’s Samsung. These two are the dominant players in producing leading-edge chips used in mobile devices or for military applications.
Taiwan suffering its worst drought in more than 50 years
In 2020, Taiwan was hit with one of its worst droughts in more than 50 years. As a result, many of its reservoirs were at less than 20% capacity, and in the most extreme cases, the water level fell below 10%.In one of the primary sources for Taiwan’s $100 billion semiconductor industry, the drought caused the water level to be at one of the lowest levels it had ever been – only 7% full. While the industry was heavily relying on the chips manufactured in Taiwan, TSMC was struggling to get the needed quantities of water.
The rise of 5G and overlapping chip demand
According to some experts, the switch from 4G to 5G is believed to have also contributed to the global chip shortage. The rise in 5G has also increased the demand for semiconductors. An expensive 5G rollout requires quite a large amount of chips which need to be manufactured at the same size as those used for automobiles. For the auto industry, the high amount of overlap between chips used in 5G and those used for vehicles became another factor on a growing list that contributed to the crisis.
Geopolitical Power Dynamics
The rivalry between the United States and China has also had a say in the crisis, with neither of the states being independent enough to have a supply chain of their own. As a result, companies from third countries were drawn into this geopolitical competition of sorts, further worsening the shortage.
The war in Ukraine has also negatively impacted the global supply of neon gas, which is used to make semiconductors.
The Chip Shortage and Its Effects on the Telematics Industry and Fleet Managers
The motor vehicle industry appears to be most affected by the chip shortage. According to market intelligence group LMC Automotive, around 10 million fewer vehicles were produced in 2021 as a result of supply chain issues. The component shortage affecting the automotive sector has affected the development of telematics technologies. Making it tough for fleet customers to use telematics solutions to acquire telematics hardware, tablets, new vehicles, and more. Data from some of the world’s largest component makers indicate an increase in lead times from 10 weeks to 17 weeks, according to Bloomberg.
How it impacts fleet managers
With the rise in vehicle costs as a result of the component shortage, fleet managers are paying up to 18% to 20% more than they are accustomed to.
Low or no stock
Fleet managers can expect dealerships to have very little excess inventory, and it is anticipated they will run out of stock towards the end of the year.
Reduced incentives and product availability
When manufacturers sell all the merchandise they have produced, there is little scope left to offer fleet incentives. Plus, there could be big changes to both rebate programs and fleet availability in 2022.
The high demand for fitting materials such as steel and plywood is pushing prices up around the world, affecting more than just the global supply chain of chips.
Responses to the Crisis and Predictions for the Future\
The responses to the shortage have been varied, with most car manufacturers adapting to the new situation as best as they could. For example, there is General Motors which has decided to temporarily suspend the seat heat on a portion of its vehicles, while promising to retrofit this feature when the required chips will be available. On the other hand there is Mercedes, which had to pause the production of its GLC, while Mazda had to cut its production up to 7.000 cars in the first quarter of 2021.
But there is one auto manufacturer that managed to adapt to the chip shortage in record terms. Tesla registered an 87% increase in its 2021 deliveries, compared to those from 2020. But that was only possible as they build the vehicles from scratch, unlike the other automotive companies. More than this, Tesla has also been able to quickly rewrite some of its software and integrated alternative chips.
And while it is difficult to accurately predict the end of the crisis, as any new development could significantly impact the situation, most experts believe that the chip shortage will not see an improvement before 2023. However, there is a real possibility that the crisis will slowly improve as companies had time to adapt and had become much better in managing the supply chain.
And despite these severe shortages, the good news is the rising availability of new connected car technologies and platforms. In short, fleet managers have a variety of options for accessing and managing fleet data in light of the current shortage of telematics devices.
CANGO Mobility has supported fleet owners globally for over two decades of evolution in the telematics industry. And the component challenges the ongoing pandemic has created is another wave that our innovation and partnerships will help us see out.
One way we’re doing this is through the latest edition to our product lineup, CANLibrary. The solution combines both hardware (the existing client’s hardware) and software; a hardware-agnostic component that acts as the physical base of the solution, with a software platform-independent middleware layered on top of it.
Remain competitive on the market and navigate this challenging period with CANGO Mobility’s solution!