Fixed Ops Journal - December 2019 - F11

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ADAS

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could see revenue drop for two key reasons.
First, the 37 percent of franchised dealerships that operate body shops are likely to
get fewer accident-damaged vehicles to fix.
With advanced driver-assistance systems,
fender benders are projected to decline
and the severity of crashes is expected to be
reduced by automatic braking systems that
can detect unavoidable collisions and slow
a vehicle before impact.
A joint study this summer by the Insurance Institute for Highway Safety and the
Highway Loss Data Institute shows that vehicles equipped with a forward-collision
warning system and automatic braking reduce rear-end crashes by half compared
with vehicles that don't have these systems.
Automakers that sell 99 percent of new light
vehicles in the U.S. have pledged to make
forward-collision warning and automatic
braking standard equipment by 2022.
Second, dealerships that don't operate
collision centers but do sell repair parts to
independent body shops are likely to see
those sales decline along with crashes.
Some electronic repair parts will be more
expensive, but fewer accidents will likely
result in lower sales overall.

Complex repairs
Professional services firm EY is studying
how advanced driver-assist will affect dealership profitability. Two opposing trends
have emerged, says automotive principal
Hanno Lorenzl.
Because the systems are complicated, Lorenzl says, service customers are more likely to seek factory-authorized repairs from
dealerships than go to independent shops.
Dealerships also could see more customer-pay service business from drivers of such
vehicles because there will be far fewer
fixes that do-it-yourselfers can perform.
What isn't yet known, Lorenzl says, is how
much dealership maintenance such vehicles will require. Some fixes to connected
cars will be made by over-the-air software
updates provided by automakers. Even as
dealership repairs of those vehicles increase, he says, body shop revenue is in
danger of being dented.
"As ADAS penetration grows, repair and
collision work should go down," Lorenzl
told Fixed Ops Journal. "We are building a
model to estimate the impact of those factors on the dealer's profit and loss. We're
not quite at the point where we can say
what the trend is. But certainly, I think there
is going to be a little bit of balancing."

Dealerships can recover some of the revenue loss from collision-damaged vehicles
in other ways. The key to preparing for the
disruption, says Lee Harkins, CEO of fixed
ops consultancy M5 Mangement Services,
is to persuade customers to return to the
dealership for service even after factory
warranties expire.
"Dealers have to start with the customers
they have now and start promoting maintenance by offering a menu of services," Harkins says. "The misconception about automated cars and electric cars is that there is
no maintenance, but that is not 100 percent
true. You still have tires and brakes. It all
comes back to the same thing: retention."

Specialty techs
Almost all franchised dealers have invested
in service technician training, facilities and
diagnostic and calibration tools to repair vehicles equipped with advanced driver-assistance systems. But as the electronic complexity of the systems continues to grow, these investments will become even more vital.
Automakers are first to offer technician
training and the latest tools for their vehicles' newest technologies. Technical
schools such as Universal Technical Institute, along with the National Institute for
Automotive Service Excellence, which tests
and certifies technicians, are adding advanced driver-assist and EV repair instruction to their curricula.
"As this technology and usage become
more mainstream, we expect our manufacturer and employer partners will require
these skills in their entry-level technicians,"
says Walt Langley, UTI's vice president of
see ADAS, Page 12

Main parts of advanced driver-assistance
systems:
 Adaptive cruise control: Uses radar, a
camera or a laser sensor - usually
installed in the grille - to detect vehicles
ahead and adjust speed to keep a safe
distance.
Skills needed to service: Diagnostic,
electrical, body repair
 Automatic braking: To avoid a collision with
another vehicle, pedestrian or other object,
sensors including lidar, radar and cameras
apply the brakes. Some systems bring the
vehicle to a complete stop.
Skills needed to service: Brake, diagnostic,
electrical
 Brake assist: The system's sensors in the
accelerator and brake pedals determine
when the driver is making an emergency
stop. It applies full braking force until the
antilock system engages, slowing the
vehicle more quickly than the driver could.
Skills needed to service: Diagnostic,
electrical
 Blind-spot warning: Most vehicles with this
feature use radar or cameras mounted in
the rear, usually in the bumper, to detect
vehicles on either side that are out of the
driver's view. The driver receives an audible
or visual warning when the system detects
an object.
Skills needed to service: Diagnostic,
electrical
 Cross-traffic warning: Blind-spot alert
systems can see only a few yards of the area
near the vehicle, but cross-traffic warning
uses longer-range radar, usually mounted in
the rear bumper, to detect moving objects at
distances 50 yards away or more.
Skills needed to service: Diagnostic,
electrical, body repair
 Forward-collision warning: Using radar, lidar,
sonar or cameras, the system alerts the
driver to an impending collision with a
vehicle or object so that he or she can take
evasive action or apply the brakes. The
alerts can be audible, visual or tactile.
Some systems can also detect pedestrians.
Skills needed to service: Diagnostic,
electrical, body repair
 Lane-departure warning/lane-keeping
assist: A camera reads lane markers and
alerts the driver when the vehicle drifts out
of the lane or automatically steers the car
back to the center of the lane. Skills needed
to service: Diagnostic, electrical
 Pedestrian detection: Cameras mounted
around the vehicle detect pedestrians and
warn the driver. Skills needed to service:
Diagnostic, electrical

DECEMBER 2019

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Fixed Ops Journal - December 2019

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