Nick Carey

LONDON (Reuters). Wherever you are. Where you stop. You stop. The music you listen too. How you look at the world. Your good habits. Your bad habits.

European and international companies are competing for the control of your vehicle’s information, the crown jewel of connected car technology.

This is a crucial phase of the contest as EU regulators try to make the world’s initial laws on the expanding industry surrounding web-enabled cars. They will pit carmakers against a consortium of insurance companies, leasing firms, and repair shops.

Sources within the European Commission said that the EU executive should start an industry consultation this week on in-vehicle information. This could result in legislation later this year, which would be the first such global initiative.

Data is often seen as the most valuable commodity in the digital world. However, data can be more like air or water for many companies.

Tim Albertsen (CEO of ALD Societe Generale) is the CEO of ALD Car Leasing Division, which has millions of vehicles.

“You won’t be efficient. You’ll lack the right services.

Protecting the data that their cars can access, car manufacturers have refused to allow specific regulations on in-vehicle data. They claim protecting customers is more important than keeping them in check.

According to a spokesperson of the European Automobile Makers’ Association (ACEA), “Europe’s automobile industry is determined to give access to the data produced by its vehicles.” However, uncontrolled access of in-vehicle information poses serious safety (cyber), security, privacy and data protection threats.

However, the firms lining up against them claim that limiting access to vehicle data and charging unfair fees for it could reduce competition among carmakers.

They claim that carmakers have begun to restrict access to vehicle data, and are charging more for independent repair shops.

Sylvia Gotzen is the CEO of FIGIEFA (International Federation of Automotive Aftermarket Distributors), which forms part of an broader alliance of parts and repair shops that has 3.5 million employees in Europe.

They get all the food, and we only get some of it.”

CARMAKERS: DATA SHARE

Automobile manufacturers are investing heavily in data.

Stellantis is the No. 1 carmaker in the world. By 2030, the software and subscription services will generate 20 billion euros annually. General Motors (NYSE 🙂 plans to double its annual revenue to $280 billion by offering such offerings.

Volkswagen (DE) stated that data has become a “key source for value creation and innovative”, and customers are “full-control” of it. It cited vehicle security as the main focus.

BMW rejected the suggestion that it withheld data.

According to the German company, it is able to share almost 100 data points with drivers if they request it. It could also make additional available if there was a business demand for it or if it were willing and able take on cybersecurity risk. FIGIEFA and other auto suppliers claim that vehicle manufacturers can have access to thousands upon thousands of data points.

BMW spokesmen said that the automaker wants all sides to reach an agreement on data points. They would be happy to work with mediators such as the European Commission.

Carlos Tavares (CEO of Stellantis) told reporters Friday that the carmaker aggregated data and needed to be compensated for this. Stellantis data is sold to cities by the company to determine which anti-lock brake systems are most frequently engaged at intersections.

Tavares explained that it’s not just about gathering data. “It’s also about crunching it in a way which is going to generate value for somebody who is willing to spend it,” Tavares added.

DATA IS ABSOLUTELY KEY

ALD is one of many companies that are part of the auto industry, and they wish the European Union would ensure an equal playing field.

ALD is currently buying Dutch competitor LeasePlan in order to have a combined fleet totaling 3.5 million cars. A car-sharing service will run diagnostics and check the fuel gauge, as well as switch between vehicles.

The insurance company also has a product where you can lower your premium due to good driving habits – such as monitoring how well you accelerate and brake.

Albertsen, CEO stated that “access to data is essential for us to offer the services we provide today.”

ALD inserts a wireless dongle into its vehicle to collect car data. Vinli pays ALD for the privilege of operating the platform. Albertsen explained that ALD is at disadvantage because other carmakers can access the same data, which could put ALD at an advantage.

Stellantis for example offers car rental or sharing through its Free2Move service. Volkswagen may takeover Europcar, a rental car company. This would allow customers to use subscription and car-sharing services.

Most major carmakers own their own leasing units such as BMW’s Alphabet, (NASDAQ:), and Mercedes-Benz’s Athlon.

Albertsen from ALD stated that major fleet customers are willing to pay data, but that regulations were needed to make sure ALD’s car sharing unit pays the same amount as Stellantis’ Free2Move division.

RISES FOR REPAIR SHOPS

Car repair shops and insurers agree that it is crucial for drivers to be able to choose which person has access their vehicle’s data.

    “There is a need to regulate this, as you cannot leave this in the hands of car manufacturers,” said Nicolas Jeanmart, industry group Insurance Europe’s head of personal and general insurance. Each driver should decide how they wish to use their data.

FIGIEFA’s Gotzen explained that it would be possible for car owners and their cars to be connected to their preferred repair shop so they can run remote diagnostics, if necessary. This is an alternative to relying only on manufacturer’s suggestions.

She said that while technically this was possible right now, car companies prevent us doing it.

According to her, FIGIEFA members will adopt the cybersecurity requirements and processes of carmakers. However, she suggested that cybersecurity might be used as an excuse by carmakers for limiting access.

Richard Knubben (deputy director general) of Leaseurope which represents Europe’s car leasing and rental companies, stated that the EU taking longer to pass car data legislation meant more repair shops will be out of work due to having no access to the information.

Knubben stated that “by the time we have legislation, we might already be stuck with an inequality that we cannot fix anymore.”