Will Autonomous Vehicles Put the Brakes on the Collision Parts Business?
For an upcoming story, Fixed Ops Business spoke with Joe Schneider, managing director for KPMG, about how relations between collision repair facilities and insurance companies will forever change once autonomous vehicles become commonplace.
During that conversation, Schneider touched on a recent KPMG report, "Will autonomous vehicles put the brakes on the collision parts business?" in which the authors discuss how a reduction in vehicle crashes will, undoubtedly, have an enormous effect on automakers and repairs. A large portion of automakers' profits comes from replacement parts—the new fenders, hoods, windshields, etc., that go to repair vehicles damaged in accidents—and the service fees that repairs provide.
And if self-driving cars lead to a big reduction in road accidents—and studies indicate they likely will—OEMs and service providers will need to transform to find ways to make up for this knock to their profitability.
And this report takes a look at what that future could look like.