Moore says: “The challenge is how does the OEM make the data accessible? It could build its own internal platform or it could partner with someone. We can aggregate the data.”

On the commercial vehicle side, Ford has already partnered with Telogis to provide telematics in the Crew Chief in America.

Telogis is also engaged with a number of European-based manufacturers. 

Navman Wireless agrees that software is crucial element missing from manufacturers’ skills-sets.

“They don’t have their own telematics software and there is a growing need for third-parties,” says Neill. 

Fleet managers may want choice

Another consideration is whether fleet managers will want choice.

Margerison suggests that manufacturers may produce cars that are telematics-enabled with the fleet manager able to choose which provider they want.

“You could put a Sim card in and then hook up to the service you like,” he says.

Consolidation in the marketplace could make it easier to choose a provider.

“There will definitely be fewer suppliers in the future,” Margerison says.

“The mobile phone industry is a good analogy. It was fragmented, then it consolidated and the giants emerged. Now there are probably six major suppliers that you spend your money with.”

Neill agrees: “It’s already happening and we’re seeing it on a global basis. We were recently acquired by a US corporation, Danaher.”
Cost-wise, telematics providers see the market moving more towards a subscription model.

Navman Wireless already offers a pick and mix approach and suggests some providers have been slow to take this approach because they still want payment upfront for the hardware.

In theory, factory-fit telematics could mean manufacturers absorb the hardware costs.

The leasing company view

ALD Automotive has fitted telematics as standard in its vehicles for 10 years in order to record mileage and ensure vehicles are serviced on time.

Customers can upgrade from the basic fitment to a full telematics solution for a fee.

Drivers can choose how much data is shared with their employer: all data, business journeys only or no data. If it’s the latter it usually leads to a discussion between the employee and employer.

The vast majority of drivers accept that business journeys should be made visible to their employer.

Although other leasing and fleet management companies, such as Motiva and Fraikin, offer a telematics product, no provider has followed ALD’s lead by fitting telematics as standard.

That could be about to change as Zenith trials a telemetry device in 30 of its own company cars with a view to installing it on its risk fleet.

Its focus is on service, maintenance and repair costs rather than tracking or driver behaviour.

Changing monthly contract hire fee

Like ALD, Zenith is not planning to offer full driver behaviour telematics as standard: customers would choose which elements to have.

Fitting telematics as standard may allow Zenith to change the way that its monthly contract hire fees are structured.

“We’re looking at a pay structure that rewards people who drive within manufacturer tolerances,” says Ian Hughes, commercial director at Zenith.

At the moment the trial is a data-gathering process with Zenith trying to establish whether the quality is sufficient.

Hughes adds: “If we prove it’s viable I can see other leasing companies adopting it.”

However, he believes that ultimately car manufacturers will fit telemetry as standard in order to keep customers within their dealer networks.

“We’re an interim solution,” he says. “In the short term we’re making up for what the manufacturers will start adding as standard in the medium to long term.

“If telemetry has been fitted as original equipment we’ll take data from that. If not, we’ll put a black box in. For the fleet manager it’s seamless.”

Lex Autolease believes that leasing companies have a role to play in telematics uptake but it isn’t in a rush to fit it as standard to its risk fleet.