April/May 2003

A group of truckmakers has published a joint statement clarifying the basis on which telematics systems can be fitted without affecting vehicle warranties. is this helpful advice or restrictive to third-party systems? robin meczes reports

A potential problem has arisen that could upset the market for third-party telematics system suppliers looking to grab a slice of this lucrative market (which consultants Frost & Sullivan say could be worth 4.7 billion euros by 2009). That problem, in a word, is warranties.

The issue was brought to prominence last year following a dispute between Leicester-based haulage company Widdowson Group and Minorplanet over the fitting of its VMI system in 100 vehicles. That raised the general question of whether fitting telematics and similar systems could have an effect on vehicle warranties. Now whole subject has attracted wider attention.

This has culminated in the publication by MAN ERF, Iveco, Volvo and Scania of a joint statement clarifying their position on fitting telematics systems. It says among other things that telematics systems not fitted in accordance with their requirements can and will invalidate vehicle warranties, as well as potentially affecting residual values and buyback arrangements. Those wishing to avoid this must meet two main requirements, says the statement. These are that:

 

• Third-party telematics equipment must be fitted in full compliance with individual bodybuilding manuals. Failure to do so is likely to result in parts of the warranty becoming invalid, particularly where antennas are installed in vehicle roofs or when equipment is connected to a vehicle's electrical supply.
• In addition, where vehicles use a CANbus, third-party equipment must be approved by the vehicle manufacturers for use on specific models, and vehicles must be equipped with an appropriate manufacturer's FMS standard (firewall) interface to protect the CANbus from possible corruption. Proven corruption of the CANbus by a third-party telematics system, say the manufacturers, will render the supplier and installer of the third-party equipment liable for damage to the vehicle and any associated claims.

Mike Leeming, general manager of MAN Telematics and chief protagonist in the production of the statement, suggests most of the major truck builders have already had experience of the underlying issues. "We have all encountered this problem," he says - a point confirmed by a source at one of the other manufacturers, who admits his firm alone has seen "six or seven cases in the last couple of months."

The truck makers' document also highlights the need to check on ownership of vehicles before system fitting takes place - something Leeming says vehicle operators and third parties often forget to take into account, despite the high percentage of trucks supplied on contract hire, leasing or rental arrangements.

Future MAN ERF contract hire agreements, he says, will now include a clause as a result that specifically requires customers to obtain the vehicle owner's permission before having a system fitted. Customers who don't could be forced to pay for repairs, and those seeking to fit an unapproved system could be vetoed, he adds.

Interestingly, two of the largest truck makers - Daf and DaimlerChrysler-owned Mercedes-Benz - have not put their names to the statement. But Richard Case, managing director of Mercedes-Benz's group subsidiary VeMIS, reveals that Merc's policy over this issue is arguably even stricter than the others'. "An interface with the CANbus is the only Mercedes-approved method," he confirms.

Daf, meanwhile, says it agrees with everything in the statement, but simply finds it "a bit too formal". "It might imply there is some horrendous problem out there and I just don't think that's true," says marketing director Tony Pain. His firm, he adds, has had no serious problems relating to third party telematics systems - but he stresses that telematics providers do need to fit systems in accordance with Daf's bodybuilder guidelines, and strongly advocates the use of an FMS interface where vehicles are fitted with a CANbus.

Understandably, some third-party system suppliers suggest all this is simply a ruse by the vehicle manufacturers to protect sales of their own telematics systems at the expense of third-party suppliers. And of five third-party suppliers spoken to for this article, all denied they had had any similar problems over warranties. "You have to remember that some manufacturers are looking to market their own systems," said one.

MAN's Mike Leeming, however, denies there is any attempt to corner the market. "We will approve other systems, as long as they are installed properly," he says. "We're not looking to ring-fence the market - we just want the job done professionally and safely."

VeMIS in effect has a foot in both camps, and the company's Richard Case suggests: "There are a lot of inexperienced suppliers out there, and fleets should check the credibility and experience of any potential telematics supplier."

Some third-party suppliers seem ready enough to support the truck maker's position. Steve Clark, sales and marketing director of Thales Telematics, comments: "Responsibility for the performance of the vehicle and its safety lies with the manufacturer. Anything fitted within the vehicle must therefore comply with the requirements of that manufacturer." In light of this, says Clark, the truck builders' joint statement is "absolutely reasonable".

Minorplanet for its part points out that its own system, unlike those of some suppliers, does not interface with the CANbus, but merely taps into the vehicle's earth, ignition and positive power supply. It adds that all its systems are fitted in full accordance with the recommendations of the independent Vehicle Systems Installation Board (VSIB).

While the debate simmers on, at least the good news is that there's no evidence yet of any similar problems emerging in the van or car sectors. Manufacturers including Toyota, Citroën, Ford and Vauxhall have all confirmed recently that the fitting of a third-party telematics system may at least partially invalidate their vehicle warranties if done in a manner that affects normal operation or causes other damage; but all have also said they have little or no experience of such problems so far.

Despite this, the potential for continuing conflict between telematics system providers and vehicle manufacturers is clear. The two would do well to put their heads together quickly to ensure their common customers - vehicle operators - do not suffer as a result.

In between, Mike Leeming says customers approaching third parties for telematics systems need to check three things. "Customers should ask: Is the equipment approved? Are the installers trained to install in this type of vehicle? And will it invalidate any warranties?"