Whatever next?
Will the principles of free competition be able to withstand the increasing security measures being imposed on the aftermarket?
By Neil Pattermore |
Published: 04 August, 2022
In the February issue of this most illustrious publication, I wrote about the imminent implementation of cybersecurity in vehicle Type Approval regulations and the potential impact that this could have on the UK aftermarket.
However, the automotive world is getting ever more complicated, not just in the way that vehicles are being designed, or the use of data to support diagnostics or repair processes, but also in the way that the vehicle is becoming the basis of its own service-centric functions using vehicle generated data.
The traditional ‘we-can-work-on any-car-that-comes-through-the-door’ business model was the basis for competing workshops, with different skill sets, hourly rates and a choice of replacement parts to offer consumers the ability to choose where and how their vehicles were repaired. Unfortunately, this basic business model is increasingly difficult to maintain in the face of the rise in vehicle complexity – and with it, new ways to diagnose, service and repair vehicles.
Free competition
The principles of free competition allowed the ‘we can work on anything’ to be possible, as legislation has existed since 2002 to ensure that non-discriminatory access to the vehicle, its data, technical information, diagnostic tools – in fact almost everything the aftermarket needed to offer the consumers’ choice was enacted. However, this legislation was workshop-versus-workshop but now does not address the changes created by the remote access to data that is an integral part of almost all new vehicles.
Critically, there are wider legislative requirements that will be needed to support the aftermarket. This is not just the MVBER renewal, but the technical implementing Acts (known as secondary legislation) that need to be created and implemented for the legislation that includes the full repair and maintenance (RMI) for the aftermarket which is contained in (EU) 2018/858. This legislation is used in both the EU and the UK for vehicle Type Approval, but the details of how and what needs to be put in place as secondary legislation for the independent sector’s access to RMI have yet to be discussed – which coming from the basis of the UK government’s approach of ‘not intending to use the EU’s implementing legislation’, is very concerning.
Also in the EU, the European Commission has published its long-awaited (generic) legislative proposal on access to data – the EU Data Act – which includes the rights of the product’s owner to access that product’s data. This also includes the principles of data portability and contractual principles for business-to-business data exchange, but although the Commission opened a consultation for automotive sector requirements in March (which runs until June), there is a strong call from the aftermarket to have robust legislation to address fundamental concerns. For example, the vehicle owner may have the right of access to the vehicle (the product) and its data, but how would they access and use that data if no software (applications) have been developed to allow services, such as diagnostics, service, maintenance and repair jobs? This is an increasingly important issue when many new aftermarket services are based on remote access to the vehicle when it is being driven, such as predictive diagnostic and service functions. A key aspect would be to ensure that these service providers can access the details of a vehicle’s data and resources to allow applications to be developed which are then chosen by the vehicle owner, using the data generated by their vehicle (i.e. ensuring that the horse is before the cart). These are no longer just EU legislative developments, but also now happening in North America, Australia and South Africa, the UK has catching up to do.
Wider changes
With all this in mind, what is the UK government doing to address these wider changes in the way that vehicles, their data and functions can be accessed?
In September 2021, the Dept of Transport issued a consultation document entitled The Future of Transport Regulatory Review Consultation. This described their intended approach to a future legislative framework that included key elements for “regulating safety, security and environmental performance’, ‘tackling tampering’ and ‘improving compliance, safety and security.”
Although this included aspects particularly focused on “automated vehicles,” which may be seen as a future requirement, the reality is that automated systems already exist on today’s vehicles and the consultation document includes “approval and in-use obligations for software and cyber-security requirements” which would also apply to “suppliers of replacement parts.” The consultation document is far from clear in relation to what this would mean for any aftermarket replacement part which could then fall under the “tampering” aspect, as this could lead to only OEM replacement parts being fitted with the corresponding requirement for an independent workshop to meet the vehicle manufacturer’s criteria to enable that replacement part to be both fitted and integrated into a vehicle.
This aspect of “tampering” was challenged by the motorsport and classic vehicle sector and the consultation document was amended to explicitly exclude these sectors, but for normal repair and maintenance the original approach remained. As an example, there are currently problems with aftermarket replacement parts that have been Type Approved, but which cannot be fitted and integrated into a vehicle as they are not accepted by the vehicle manufacturer and only that vehicle manufacturer’s replacement part can be fitted and coded using that VM’s proprietary diagnostic tool.
Concerns
Subsequently, even though wording had been changed, such was the concern in the motorsports and classic vehicle sector around this issue of tampering, that a Parliamentary petition was started, which was signed by over 115,000 people, automatically triggering a Parliamentary debate.
This debate took place on 25 April and these concerns were raised with the Department of Transport, who appeared to take note, not only for the motorsport and classic vehicle sector, but also for the wider aftermarket repair sector, with a particular call to ensure a much-needed clarity of tampering to avoid unintended restrictions.
However, the UK aftermarket is being increasingly threatened by changes to vehicle design and functions, the change of business aftermarket models that use remote access to dynamically generated vehicle data and the rise of cybersecurity to protect the vehicle. Currently, these are all under the control of the vehicle manufacturers, so existing legislation that supports the aftermarket needs to be urgently revised to address how innovation, competition and consumer choice can continue. How the detail of this may be included in both the primary and secondary legislation is yet to be discussed.
- Vehicle Type Approval revisions: Threat or opportunity?
Following last month’s article concerning the evolution of the whole aftermarket value chain, based on remote access to a vehicle, the importance of the recently revised Vehicle Type Approval legislation should not be underestimated – and nor should the efforts involved in achieving some of these changes be taken for granted.
This is important on several levels – firstly on the technical requirements that this new legislation contains, secondly on what this means for both today’s and tomorrow’s aftermarket and thirdly why the UK government needs to be committed to continuing that these new legislative requirements are in place after Brexit.
Vibrant, innovative and competitive
The aftermarket represents over two thirds of the vehicle repair and maintenance sector in the UK and the UK government must ensure that this vibrant, innovative and competitive sector can not only continue how it operates today. The sector must also be able to develop future business models as evolving vehicle technology impacts the different ways of accessing the vehicle, its data and the customer.
The existing (Euro 5) legislation contains important rights of access to repair and maintenance information (RMI). These rights have been (mainly) transferred over into the new EU whole vehicle Type Approval that will come into force in Sept 2020 for new models entering the market. This revised Type Approval legislation (it has not yet been allocated a document number) is based on the existing Type Approval requirements, but also introduces some important new requirements that help the aftermarket. This new legislation will considerably improve the system of access to repair and maintenance information (RMI), for example:
The continued possibility to communicate with the vehicle’s technical information/data via the standardised on-board diagnostic connector, which is now better clarified and which makes clear that third party service providers should not be barred from accessing vitally important vehicle data when the vehicle is in motion (for read-only functions). This is a good first-step towards the adaptation of our sector with the digital economy and the connected vehicle: “For the purpose of vehicle OBD, diagnostics, repair and maintenance, the direct vehicle data stream shall be made available through the serial data port on the standardised data link connector... When the vehicle is in motion, the data shall only be made available for read-only functions.”
The information needed for preparation or repair of vehicles for roadworthiness testing has been included into the RMI definition, as this information was not available via the Roadworthiness Directive 2014/45/EU and new test methods that will use the ‘electronic vehicle interface’ will require more technical information;
An adaptation of the format of the RMI to the state-of-the-art, which means the technical repair information can also be obtained in an electronically processable form – especially useful for technical data publishers and replacement parts catalogue producers;
A new paragraph that recognises the fast-pace of change of vehicle technologies: Technical progress introducing new methods or echniques for vehicle diagnostics and repair, such as remote access to vehicle information and software, should not weaken the objective of this Regulation with respect to access to vehicle repair and maintenance information for independent operators.
A new definition of ‘non-discrimination’ that not only includes authorised repairers, but also now the vehicle manufacturers themselves if they also provide repair and maintenance services, “...so as to ensure that the independent vehicle repair and maintenance market as a whole can compete with authorised dealers, regardless of whether the vehicle manufacturer gives such information to authorised dealers and repairers or uses such information for the repair and maintenance purposes itself, it is necessary to set out the details of the information to be provided for the purposes of access to vehicle repair and maintenance information.”
Empowered
The revised Type Approval legislation will also introduce increased market surveillance requirements that is aimed at not only checking vehicle emissions compliance following the Dieselgate scandal, but also for the Type Approval of replacement components related to both emission and safety related systems.
The European Commission will also be empowered to consider the remote connection to a vehicle; “...to take account of technical and regulatory developments or prevent misuse by updating the requirements concerning the access to vehicle OBD information and vehicle repair and maintenance information, including the repair and maintenance activities supported by wireless wide area networks,” (this is using the mobile ‘phone operator networks, as already used for today’s ‘connected car’).
So, the EU aftermarket associations – ably assisted by their UK members, have fought to get some important elements in the new legislation. This is good but – and there is always a ‘but’ – this legislative text provides a good basis to address some of the key issues facing the aftermarket today, but there is still work to be done – both in Brussels and here in the UK concerning the government’s position to ensure that the requirements of this European legislation remain applicable in the UK after Brexit.
As is often the case, the ‘devil is in the detail’ and in the case of the new Type Approval legislation, this will become part of the ‘technical requirements’ that will be developed and defined in the ‘Delegated Acts and Technical Annexes’ which will be discussed as part of the implementation of this new legislation. This will include important topics, such as using security certificates to access data via the OBD port, which must also include a legislative process to avoid vehicle manufacturers implementing difficult, restrictive, anti-competitive or costly schemes, or simply mandating that you register your customers with your competitor (the VM) before you can offer your services.
There will also be other legislation which may impact the technical requirements of this Type Approval revision, such as GDPR (much vehicle generated data is considered personal data), the digital single market, B2B platforms – all of which will also become familiar aspects of your new business models in the future. [ends]
Clearly, much new EU legislation is on the way and it is vital that the UK Government ensures that these important RMI provisions are ‘carried over’ in the vehicle Type Approval, as well as in other related legislative requirements, after Brexit.
The future of the aftermarket is rapidly moving into being part of the wider digital economy – and the aftermarket cannot survive in this ‘shark infested’ sector without legislative support – so support the aftermarket associations – they have done good work so far, but there is still much work yet to be done.
xenconsultancy.com
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