OEM Powertrain Integration Will Reshape Telematics Market, DTNA Says

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Transport Topics / May 6, 2015

Truck makers’ increasing emphasis on powertrain integration and remote diagnostics will have a heavy influence on the telematics industry in the years ahead, an official at Daimler Trucks North America said.

Matthew Pfaffenbach, DTNA’s director of telematics, said he envisions original equipment manufacturers developing telematics offerings that complement the services provided by third-party technology suppliers rather than duplicating them.

“Our focus as OEMs should be on information about your truck which only we can provide,” Pfaffenbach told attendees at the ALK Technology Summit here May 5.

Much of the data that could be most useful for fleet customers tends to be proprietary, he said, but that’s not necessarily information that engine and transmission manufacturers want to share with each other.

“This is where I see OEMs playing a much larger role,” Pfaffenbach said. “Once they have both the engine and the transmission working in concert, that data blockage no longer exists.”

In DTNA’s case, the integration of its in-house Detroit brand engines and transmissions has put the truck maker in a position where it is gathering more and more data, he said.

However, Pfaffenbach drew a distinction between the types of services that will be provided by OEMs versus those provided by telematics firms.

He said he has “no desire” to develop “traditional” telematics offerings such as those already on the market, including driver performance monitoring and reporting.

“What’s been developed in the telematics industry is already well-established, and not only is it well-established, it’s well-integrated with customers’ back-office systems,” he said. “OEMs do not need to replicate anything.”

The role of the OEM, he said, will focus more on “connectivity,” including more advanced vehicle diagnostics, vehicle-to-vehicle and vehicle-to-infrastructure communication and autonomous driving.

DTNA introduced its Virtual Technician remote diagnostics system in 2011. That offering, developed through a partnership with telematics company Zonar Systems, proactively monitors fault codes to help fleets better manage maintenance and repairs on their Freightliner and Western Star trucks.

Chris Hines, Zonar’s executive vice president, pointed to the growth of vehicle diagnostics systems in the trucking industry in the years since then, saying that “everyone else has gotten into the game.”

All of the major North American heavy-duty truck makers have introduced their own remote diagnostics systems.

Pfaffenbach said DTNA’s vision for its Detroit Connect telematics platform, which includes Virtual Technician, will focus on safety, fuel efficiency, uptime and performance, and will connect with multiple telematics providers.

Today, remote diagnostics technology enables fleets and dealers to streamline repairs, but the next step could be the ability to predict when particular components will fail and prevent problems before they occur.

“These things are ideas that we definitely have in mind and are working on,” he said.

That predictive failure analysis also could lead to flexible service intervals and strategies for vehicles in the future, he said.

Pfaffenbach also said truck makers will need to develop integrations with telematics service providers.

He said OEMs have an opportunity to help the industry by establishing platforms that can run software provided by third-party telematics firms and allow fleet customers to select which applications they want to run on the vehicle.

That approach , Pfaffenbach said, could help fleets solve the challenge of managing their telematics hardware as they replace their vehicles.