The automotive industry is expected to undergo massive transformation over the next years. Car sharing on demand is already bringing the future of the mobility industry to the present and autonomous vehicles will have a strong positive impact on the concept of car sharing. It is estimated that autonomous vehicles will account for 40% of the personal mileage driven in Europe by 2030. The future of mobility is more flexible, more individual and more convenient. The car of the future is autonomous, shared, and - like its passengers - always connected.
Before we can experience that future, however, there are a few roadblocks to be overcome. Here we’ll take a look at some of the current challenges facing the automotive industry and propose how these issues can be addressed using our unique peaq architecture.
Counterfeit automotive parts are a big problem in the global market. Estimated to be a $45 billion U.S. dollar problem globally. Manufacturers don’t have any control beyond their immediate vendors. When there is no verifiable transparency mechanism in place, counterfeiters are easily able to sell their fake parts as legitimate.
Frequently counterfeited parts include brake pads, airbags and filters. For consumers the use of these illegitimate parts can cause severe safety issues. Accidents are far more likely to happen in vehicles fitted with fake parts.
peaq could eliminate counterfeit parts in the auto supply chain by registering them on the peaq DAG, enabling companies to track unlimited quantities of auto parts and check their current and past locations, transaction records, past and future repair dates and origins in seconds, in full confidence that the data has not been tampered with.
If a shipment of brake pads, for instance, isn’t verified on the peaq DAG network, the car company will have immediate confirmation that the parts in question are counterfeit and can choose not to accept them. When we bring car companies and auto part suppliers together using peaq, the supply chain becomes more transparent and there can be greater trust among all parties involved.
The auto industry is facing a growing recall problem. GM recalled a total of 23 million vehicles in the U.S. alone to remedy ignition switch issues which cost them $4.1 billion U.S. dollars. Takata spent $1 billion U.S. dollars on defective airbags and it cost their clients, such as Honda, billions more. 2016 was a record year for recalls. Around 20% of all registered vehicles in the U.S. were affected (see figure 1). Most recalls involved faulty components or defects in electronic systems - the basis for the comfort and safety features modern cars demand. Recalls involving electronic systems have grown 30% per annum in recent years.
The number of electric vehicles on the road will keep growing. Defects in electronic systems will likely become even more commonplace as the market grows, which will likely cause even more recalls in the future. System-based recalls often affect 100% of implicated vehicle models, unlike manufacturing defects. There is far lower variation in electric vehicle content due to global platform adoption by most auto OEMs. Recall notices will involve millions of vehicles. The cost implications for OEMs and auto companies will be considerably large if no solution is found in the near future.
Using peaq we can track and trace each defective part from its source and detect exactly which vehicles are in need of recall. In the case of a specific supplier delivering defective parts we can identify with great accuracy which factory the faulty parts came from. Those cars containing parts from the specific factory can then be recalled. The difference between identifying the actual faulty vehicles instead of calling in millions of vehicles is the kind of effective and cost-efficient difference to the automotive industry that peaq can provide.
Accidents Involving Autonomous Cars
With the rise of autonomous cars, control is shifting from the driver to the car itself. Safety and integrity of electrical components are of vital importance. Allowing cars to drive on the road autonomously requires immense amounts of trust in the technology powering and controlling the vehicles. There are still plenty of fears regarding the safety risks associated with autonomous vehicles. People want to be certain that the computers and sensors in their cars are going to function perfectly every single time. There is a need for a secure, decentralised system which dependably shows the real-time overall condition of the vehicle and allows car owners to be able to verify the exact condition of each individual part, as well as when they need to get their cars serviced. Such a system must also be completely hack-proof. The peaq DAG will have the capability to store the data pertaining to each individual car part, along with live data on maintenance and upgrading requirements. All the car maintenance information can be verified in real-time, especially important when dealing with autonomous cars. Computer systems installed in cars are of course vulnerable to attacks, and the use of a decentralised trust-less network, such as peaq, protects against this sort of issue.
Lack of Transparency
There is a distinct lack of trust among consumers of companies in the automotive industry - whether it be dealerships or insurance companies. Former CEO of Hyundai Motor America, John Krafcik, famously proclaimed that “Americans would rather go to the dentist than visit a car dealer.” As a result, service requirements and recalls are often met with skepticism by car owners who are are left out of the loop due to their lack of expertise.
The peaq project will implement a DAG base-layer with smart contracts, on top of our DAG. Smart contracts will allow manufacturers to automatically release purchase orders at different stages of the manufacturing process, and additionally allow for the potential to approve buyer financing based on smart contracts which will evaluate credit ratings without any human intervention being necessary.
Any agreements between a car dealership and a consumer can be recorded in a peaq smart contract, ensuring that the agreement reached is final while eliminating trust issues between the two parties. Auto parts can be registered to cut out trust problems in the supply chain. By cutting out the middleman, large amounts of time and money can be saved while increasing access to vital information and improving data accuracy.