Gartner G2 Says European Car Manufacturers Need To Exploit Increased Spend On Technology
Why hybrid services and increased customer contact are critical to success in the motor vehicle industry
Gartner market research shows that worldwide car manufacturers increased spending on semiconductor technology used to build on-board computers by 24% in the past year. However, GartnerG2 says that in Europe this technology is currently only being used to deliver 'optional extras.' Instead, car manufacturers should use it as a means of increasing customer contact in order to maintain and grow their market share.

GartnerG2 recommends introducing hybrid in-car, online and mobile phone-based customer information services to increase manufacturer involvement in the vehicle ownership cycle, and promote brand loyalty.

Today, manufacturers show little desire to form lasting post-sale relationships with their customers. Initiatives to promote loyalty and on-going contact are dominated by web portals already popular as sources of motoring information. Manufacturers' websites are missing a trick by not providing post-sale information, motoring tips, travel advice and community areas for likeminded consumers.

Success of portals providing value added service vs car manufacturer web sites
UK - Multimap.com route planning and map site Attracted 850,000 unique visitors in July 2001
UK - Automobile Association web site Attracts 300,000 regular visitors monthly
UK - Royal Automobile Club web site Attracts 200,000 monthly
Germany - ADAC the motoring organisation Attracts 510,000 online visitors a month
Leading car manufacturers' sites Average 50,000 visitors a month
Source: Nielsen/Net Ratings July 2001

Michael Dornan, automotive analyst at GartnerG2 says, "For European car manufacturers, customer relationships largely end once a sale is made, so they are failing to realise the obvious brand and repeat sales benefits of longer term customer contact. Car manufacturers must leverage their own brand by using in-car technology, mobile phones and the Internet to develop exclusive hybrid services and build ongoing customer relationships."

GartnerG2 recommends that manufacturers move quickly to develop their own portals, by using specialist partners as content providers. It says they should develop services that integrate proprietary information sources such as route planners, traffic news and business finders as well as services like email, and make them available in a way that is useful to customers.

GartnerG2, launched in June 2001, is a new research service from Gartner that helps business strategists guide and grow their businesses. For more information, visit www.GartnerG2.com.

About Gartner, Inc.
Gartner, Inc. is a research and advisory firm that helps more than 10,000 clients understand technology and drive business growth. Gartner's divisions consist of Gartner Research, Gartner Consulting, Gartner Measurement and Gartner Events. Founded in 1979, Gartner is headquartered in Stamford, Conn., and has 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide. The company achieved fiscal 2000 revenues of $855 million. For more information, visit www.gartner.com.

Contact:
Laurence Goasduff
+44 1784 487 331
laurence.goasduff@gartner.com