In EU car data tussle, insurers and others brace for delays, disappointment

Ayvens SA

16/02/2023 06:00

By Nick Carey
       LONDON, Feb 16 (Reuters) - A broad coalition of
insurers, leasing companies, car repair shops and others are
calling on the European Commission to propose rules for fair
access to valuable vehicle data soon, fearing further delays
could see the initiative shelved after European Parliament
elections in 2024.
    Companies in Europe and beyond are vying for control of the
crown jewels of the connected car era, namely car manufacturers'
data covering everything from driving habits, to fuel
consumption and tyre wear which can be used to target
cash-generating services.
    Although the EU is currently haggling over the Data Act, a
draft law governing the use of consumer and corporate data,
insurers and others are pushing for auto sector-specific
regulation. A proposal is expected soon after the European
Commission launched a consultation last year.
    Tim Albertsen, chief executive of leasing company ALD
 ALDA.PA , which relies on vehicle data for a wide range of
services, said if sector-specific legislation was tabled now, it
could be passed before the 2024 election. 
    After that there is the risk that a new commission, likely 
with new priorities, would put it on the backburner, potentially
delaying the matter for years. 
    "What we understand is that in the proposal that is supposed
to be tabled, there will be no sector-specific legislation,
which we believe is a major problem," said Albertsen, who
earlier this month appealed directly to EU antitrust chief
Margrethe Vestager to support in-vehicle data regulation.
    Ten industry groups also wrote to European Commission
President Ursula von der Leyen in January urging an end to
"repeated delays".
    The Commission is currently working on an impact assessment
for its proposal, a spokesperson said. "At this stage we cannot
prejudge the content of the final impact assessment, and
consequent timeline," they added.
    A spokesperson for the European Automobile Manufacturers
Association (ACEA) said the Data Act would guarantee fair 
access to car data, so "additional legislation on access to
in-vehicle data is unlikely to achieve more".   
    ACCESS TO DATA
    Once Societe Generale  SOGN.PA  unit ALD completes its
purchase of Dutch rival LeasePlan, it will have a fleet of 3.3
million vehicles. The company's car-sharing platform currently
collects data via wireless devices to run diagnostics, read
odometers, check fuel gauges and switch cars between users.
    The leasing company also operates a "pay-how-you-drive"
insurance product that rewards good driver behaviour, as does
rival Arval, a unit of BNP Paribas  BNPP.PA .
    "We just want the data to be made available in an
economically viable way," said Arval deputy CEO Bart Beckers,
adding that companies like his are happy to pay carmakers for
it.
    French technology company Munic  ALMUN.PA  is another that
fits wireless devices to fleet vehicles to collect data.
    "If there's no more access to data," said CEO Aaron Solomon,
"we'll have to find a different business".
    But a spokesman for BMW  BMWG.DE  said the carmaker has had
a system in place since 2018 allowing customers to share data
with any third party.
    "Unfortunately, many players who are arguing publicly that
they need access to in-vehicle data never tried to use the
system," he said.
     Meanwhile, automakers such as world No. 3 Stellantis
 STLA.MI  have their own big data plans. It expects to generate
20 billion euros ($21.4 billion) annually by 2030 from software
products and subscription services.
    Leaving data in the hands of the big vehicle manufacturers 
"does not enhance any competition", said Christoph Lauterwasser,
managing director of the Allianz Center for Technology, a
research institute owned by Allianz  ALVG.DE .
    Michelin  MICP.PA  Executive Vice President Lorraine Frega
said a wide variety of startups have sprung up to offer services
using car data, but those small companies cannot raise capital
until there is clarity from the European Commission.
    "We are very concerned," Frega said. "Just delaying in
itself is really harmful to the overall economy as well." 
 ($1 = 0.9335 euro)
 (Additional reporting by Victoria Waldersee in Berlin; Editing
by Kirsten Donovan)
 ((nick.carey@thomsonreuters.com; +44 7385 414 954;))