9 is the new 7!
Hi there dear readers,
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Let me start off by apologizing. I have not been a faithful writer to you the last few weeks, I will try to keep a better pace in the future. The more readers, the bigger my incentive, so feel free to forward my musings to anyone you think is interested in them.
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Toyota was in the news not that long ago with an interesting evolution. They will extend the sales cycle of their best selling models to 9 years! Coming up from around 7 right now. As we roll into the age of software defined vehicles, they consider it easier to keep the vehicle fresh through tweaks from a distance than changing the hardware.
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Let's be clear, if there is one manufacturer out there that can risk extending the sales cycles of their cars it is Toyota. It might be lost on us a bit in Europe, but superstars like the RAV4 are ageless and keep selling pretty well year after year. If you are looking for a new Land Cruiser chances are you have to wait several years to get your hands on one. Whether they have the DNA to improve their vehicles through a rolling upgrade of the software suite remains to be seen. We all know that manufacturers trying to act like Apple has not been a winning strategy.
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From a residual value perspective we should also be happy as consumers. There is a big difference between hardware and software in that the hardware is set when the vehicle leaves the factory. You can add some new rims or spend a pretty penny pimping your ride, but it is expensive and only for a very limited crowd. With software updates all existing owners, new and second hand, get to enjoy the opportunity to own a vehicle that feels fresh. The car you are buying is not the one you will be selling at the end of its chapter with you.
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One thing is worrying though. With all that focus on SDVs (Software Defined Vehicles), I can't shake the feeling that we are in for a disappointment. We all know how "fresh" our phones are after only 4 years, let alone 9. What happens when the chips just aren't robust enough to run the newest software, or there is a spell of cost savings that prevents the manufacturer from updating "old" versions. You only need to look at the frustration caused by Microsoft ending the support on Windows 10 to get the queasy feeling that cars that stay fresh through bits and bytes might also get old and vulnerable in a big hurry.
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Nikei Asia Article
Grtz
Pieter
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