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Auto innovation

Car sales have collapsed since the recession took hold. One way of encouraging customers back into the market is to make the decision to buy easier

First published: 28/05/2009 | By: Neil Baker

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Car shopping has always been a nervy business, with the worry that the new car won’t really live up to expectations.

A new technology could remove some of that anxiety.

Most buyers do not opt for the basic model, and want to personalise their car by choosing a mix of features, such as leather trim, paint finishes and alloy wheels.

The problem is that uncertainty about whether they’ve picked the right mix can lead them to endlessly defer a decision to buy. The uncertainty is even worse when money is hard to come by.

Researchers behind the EU-funded CATER project say they have found a better way to show customisation options to customers and help them decide what they want: three dimensional virtual reality.

Instead of flicking through catalogues or having a dealer click through options on a computer, potential car buyers visiting dealerships fitted with an “immersive vehicle configurator” could visualise all the options in high∞resolution 3D, presented on a television, a wall display or even what they call a “virtual reality cave.”

“By giving people the chance to immerse themselves in the car in 3D virtual reality, they can better understand what the options are and how they look and will feel more confident about making a purchase,” says project coordinator Manfred Dangelmaier.

High technology costs have stopped dealers from using this technology in the past, but the CATER project says it has found a much cheaper way of doing it.

The hardware costs about €10,000 and the software runs on a normal PC. Moreover, it would do away with the need for large showrooms, as dealers would only need to organise cars for test drives, not to show off different finishes and options, says Mr Dangelmaier.

Could this kind of technology save the car industry?

Competition is growing from newcomers offering pared down, plain vanilla models, such as the $2000 Nano car from Tata.

Traditional players that want to offer multi-option cars will need cheaper and more efficient ways of enticing customers.

Mr Dangelmaier is confident that manufacturers will see the benefits of the CATER system.

“The auto industry is not one to go backwards in terms of innovation,” he says.

How many car dealers will go bust before they even get a chance to install the technology is another question.

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