Australia

A survey of public opinion about connected vehicles was recently conducted by the University of Michigan Transportation Research Institute (UMTRI). That survey, authored by Brandon Schoettle (project manager) and Michael Sivak (research professor), revealed that the majority of people surveyed in three predominately English-speaking countries (US, UK, and Australia) had not heard about connected-vehicle technology, but most expressed a positive initial opinion of the same.

Connected-Vehicle Survey

The researchers conducted an online survey through SurveyMonkey.com in March 2014 with the results published early the following month. The team developed a questionnaire to assess participant familiarity and their general opinion about connected vehicles.

As defined by the US Department of Transportation Research and Innovative Technology Administration, connected vehicles represent an initiative that aims to enable safe, interoperable networked wireless communications among vehicles, the infrastructure, and passengers’ personal communications devices. When fully operational, the technology is expected to reduce accidents, improve mobility, and provide environmental benefits.

With connected vehicles you wont be
blowing past stop signs.

The researchers also addressed topics related to the expected benefits of connected vehicles, concerns about the technology, the importance of certain connected-vehicle features, and participant interest in owning and their willingness to pay for connected-vehicle technology. The same core survey was conducted in all three nations with slight variations for spelling and currency.

Some 1,596 completed applications were accepted with the United States accounting for 576 responses to 520 from the United Kingdom and 500 from Australia. The researchers claim that the populace of the respective nations were represented minus people that do not have Internet access.

First Impressions

The researchers first asked the survey participants, “Had you ever heard of connected
vehicles before participating in this survey?” Overwhelmingly that answer was no, with only 21.9 percent affirming that they had.

Once they understood what connected-vehicle technology was, 62.4 percent expressed either a very positive (23.4 percent) or somewhat positive (39 percent) opinion about connected vehicles. Approximately one-third (32.6 percent) of the participants were neutral with just 4.9 percent offering negative (3.9 percent) or very negative (1 percent) opinions.

University of Michigan Transportation Institute

Source: Brandon Schoettle and Michael Sivak, University of Michigan Transportation Research Institute

Connected Vehicle Benefits

The UMTRI moved on to ask, “How likely do you think it is that the following benefits will occur when using connected vehicles?” That third question covered a number of topics including fewer crashes and a reduction in injuries, improved emergency response time, reduced traffic congestion, shorter travel time, lower vehicle emissions, improved fuel economy, lower insurance rates, and fewer driver distractions.

Some 85.9 percent of the participants believed that fewer crashes were very likely (28 percent) or somewhat likely (57.9 percent). Nearly as many (83.7 percent) believed that crash severity would fall as well.

As far as the impact on insurance rates, approximately two-thirds (67.4 percent) believed that insurance rates would fall, but an even 25 percent thought it somewhat unlikely. And despite connected vehicles doing much of the driving, nearly 40 percent were skeptical that it would cut down on distracted driving.

University of Michigan Transportation Institute

Source: Brandon Schoettle and Michael Sivak, University of Michigan Transportation Research Institute

Safety Consequence and Other Concerns

The fourth question asked, How concerned are you about the following issues related to connected vehicles?” That question also covered a number of topics including the safety consequences of equipment failure, driver legal liability, system and vehicle security as pertains to hackers, data privacy, pedestrian and cyclist interaction, learning how to operate these vehicles, potential distractions, performance in certain weather conditions, and the drivers reliability on the technology.

Some 82.1 percent of the participants expressed some level of concern about equipment or system failure. Just over two-thirds were concerned about potential legal liability for the driver or the vehicle owner, while three-quarters of the respondents believed that drivers would rely too much on the technology.

Pay Up or Not

The researchers concluded that the answers were very uniform across the three countries surveyed with high levels of agreement in a number of areas. Most participants expressed their interest in having connected-vehicle technology in their cars, although half said that they weren’t willing to pay for it. Of those willing to do so, those amounts ranged from US$20 to US$1,500.

Founded in 1965, UMTRI is a leader in motor vehicle research related to injury biomechanics. The institute has conducted more than 1,000 short- and long-term projects in a variety of areas including accident data collection and traffic safety analysis. UMTRI is also committed to advancing safe and sustainable transportation.

Steep National Tariffs

Like many nations, Australia has long had tariffs in place on a number of goods. Tariffs are a tax or a duty paid on imports or exports, typically put in place to protect local manufacturing.

Earlier tariffs of 54 percent made it worthwhile for foreign manufacturers to build and maintain plants in the country. And as long as those tariffs were in place, then a handful of automakers would and did build locally, reaping a competitive advantage in a relatively small national market.

Yes, Australia’s population is small: the country is home to 22.7 million people. Australia’s population has grown by 50 percent in the last three decades. Canada, with 34 million people, has automotive manufacturing plants too. However, the US and Canada have had trade agreements in place for decades what allows cars and parts to move primarily between Michigan and Ontario free of tariffs.

Globalization and the End of Tariffs

Globalization is a word used commonly today, but its roots go back many decades. The second Random House definition for the word may best explain what is going on in Australia today, indeed in the rest of the world, …the emergence since the 1980s of a single world market dominated by multinational companies, leading to a diminishing capacity for national governments to control their economies.

In Australia, it was the Button Car Plan of 1984 that ushered in the gradual demise of local automotive manufacturing. An Australian publication, Manufacturers Monthly took a look at its impact in 2011, tracing the industry’s subsequent decline. Specifically, the plan was adopted in a bid to force industry consolidation, thereby making it more efficient.

The plan as crafted and later adopted forecast increased competition from imports, in an effort to improve the industry. Declining tariffs would play a significant part in that change, falling to 30 percent in the 1990s, then down to 15 percent by 2004. By 2010, tariffs dropped to 5 percent, but the rate comes in even lower when various trade agreements with other countries are factored in.

Declining Local Production

Perhaps the most telling change in recent years is the big decrease in local production, currently at half of the 409,000 units produced as recently as 2004. Even so, most of the cars built in Australia are exported including the Chevrolet SS, sold as the Holden Commodore in Australia. It represents a dying breed of large, rear-wheel drive models that sates the appetites of a limited number of buyers around the world. Meanwhile, Australians are embracing the many smaller and less costly models imported from abroad including Thailand, Malaysia, Korea, and China.

Many Australians are upset over the auto industry’s demise and rightly so: tens of thousands of direct and feeder jobs will go away. Likely, Australia’s brimming economy will take a hit its current 6 percent unemployment rate may rise. Even so, one group of retailers car dealers will find a way to roll with these changes.

The pending changes to Australia’s automotive industry will have some effect on dealers. Nevertheless, dealers such as DVG in Perth will continue to serve their customers with a wide variety of products from different manufacturers, said a spokesman for the DVG Automotive Group. The company has 38 dealerships in nine locations and counts current local producers Toyota and Holden (GM) among its 18 new car brands.