LONDON/PARIS: Carmakers including Renault, Jaguar Land Rover and Peugeot have boosted revenues by over US$1 billion in the past decade by using sophisticated pricing software, according to sales presentations prepared by the software vendor, Accenture, and other documents filed in a court case. The software works, Accenture told prospective clients, by identifying which spare parts in a manufacturer's range customers would be content to pay more for, how much to raise prices by and which prices should not be hiked. The latter would include, for example, radiators and body parts that may feature in French automotive insurer group SRA's basket of parts that measures them for inflation, according to a court filing by the software creator, Laurent Boutboul. Documents relating to the case were obtained by French news site Mediapart and shared with Reuters and EIC, a network of European investigative news outlets. … [Read more...] about Insight: Software and stealth
New car replacement insurance
By Philip Reed The Associated Press Mon., April 30, 2018 You’re looking at a $1,200 repair estimate for your ailing car when an ad catches your eye: a brand new set of wheels for a mere $450 a month. At first, dumping your old car might seem like a no-brainer — and you can’t help picturing how good you would look in that new car. But automotive experts say you’ll almost always come out ahead — at least financially — by fixing old faithful. There are, however, other important considerations when deciding whether it’s time to say farewell. Costs of the new “Even though the repair cost might hurt, you really have to think about buying a new car as a tremendously more expensive proposition,” says Jim Manelis, head of direct lending for Chase Auto Finance. At the very least, for a reliable used car, expect to spend a minimum of $2,000, plus tax and registration fees, says Mark Holthoff, editor at Klipnik.com, a … [Read more...] about Should you fix up or break up with your car?
BEIJING/DETROIT: Chinese ride-hailing giant Didi Chuxing is exploring ways of collaborating with established automakers and parts suppliers to jointly develop cars purpose-built for its services, the company said on Tuesday.Pay-per-use services such as car-sharing and ride-hailing are starting to challenge traditional car ownership in some in some of China's most congested cities, such as Beijing and Shanghai, while global automakers are starting to bill themselves as "mobility" companies that do more than just build and sell vehicles.Didi officials said the disruptive change sweeping the industry meant there was a clear mutual interest in new players like itself and traditional manufacturers working together to develop and improve ride-hailing and sharing platforms."Traditional automakers have different skillsets and understanding of the market, and those are all valuable to us," Kevin Chen, general manager of Didi's automotive service platform, told Reuters in an interview."It's not … [Read more...] about China’s ride-hailing firm Didi wants to develop ‘purpose-built’ cars with automakers
By Colin Perkel The Canadian Press Sun., March 11, 2018 Workers at auto body shops deliberately damaged cars, installed used parts but billed for new ones, or invoiced for phantom repairs, according to an investigation by a Canadian insurer that is calling on government to help in curbing the problem. Aviva Canada found about half the total expenses submitted for repairs to crashed vehicles during its investigation in Ontario were bogus — an amount the company estimates adds up to hundreds of millions of dollars a year. “Nobody has ever really sampled the extent of fraud with any kind of accuracy,” Gordon Rasbach, Aviva Canada’s vice president of fraud management, said in an interview. “This is the first time in Canada that we’re aware of that anyone has actually taken a sample, albeit a small one, at random, and used actual cases in progress to put some kind of numbers on it.” In its investigation — results are to be … [Read more...] about Fraud at Ontario auto body shops is ‘pervasive’, insurance company finds
Car insurance premiums may drop by 25% in the next four years, drastically reducing their role in the insurance business, as car ownership shifts to corporations and autonomous vehicles make driving safer. The first fully driverless car will hit the road by 2022. By 2050, every car on the road will be driverless, said Guillaume de Gantes, a partner at McKinsey’s Jakarta office.Driverless cars will make driving safer, dramatically reducing the 1.2 million car accident fatalities worldwide. They will also change who owns the vehicles and who takes responsibility for them.As cars become safer, insurance premiums will drop by 25% in the short term, and suffer a “massive impact” by 2030 or 2040, according to McKinsey. In the short term, revenues will be compensated or more than compensated by a drop in accidents, he said.In the long term, car insurance will represent a much smaller portion of insurers’ business, but some are looking at the possibility of replacing … [Read more...] about Driverless cars to shake up insurance industry