2. CAS of New England N.A.S.T.F. 2009 “What’s Happening With The Independent Auto Repair Industry Regarding Scan Tools?” Charlie Gorman “What’s Happening With The Independent Auto Repair Industry Regarding Scan Tools?” Charlie Gorman

3. CAS of New England Who is CAS ? Connected Automotive Systems 15+ years in business Employ 18 full time / 7 part time Three focus areas: Diagnostic Scan Tools Technical Training & Technical Support Management Training… Connected Automotive Systems 15+ years in business Employ 18 full time / 7 part time Three focus areas: Diagnostic Scan Tools Technical Training & Technical Support Management Training…

4. CAS of New England Our Mission Statement To provide only the best quality tools, information and training solutions to the automotive repair aftermarket thru a network of professional automotive consultants. To ultimately provide assistance to repair facilities in helping each shop and individual customer achieve both their own personal and professional goals… Our Mission Statement To provide only the best quality tools, information and training solutions to the automotive repair aftermarket thru a network of professional automotive consultants. To ultimately provide assistance to repair facilities in helping each shop and individual customer achieve both their own personal and professional goals…

5. CAS of New England Our Sales Channels Direct in-field Employee Based Reps Direct in-field Independent Agents Web Presence: www.OEMTools.com Ebay Store: OEMTools Word of Mouth!… Our Sales Channels Direct in-field Employee Based Reps Direct in-field Independent Agents Web Presence: www.OEMTools.com Ebay Store: OEMTools Word of Mouth!…

6. CAS of New England Our Product Focus Scan Tools & Accessories (Laptops) OEM Applications Tech-2 / IDS / StarMobile / HDS / Heavy Duty Truck General Purpose Aftermarket Apps Hanatech Ultrascan OTC Genisys Specific Purpose Aftermarket Apps VCDM iScan-II JPro HD PCRetriever J2534 Motorcycle… Our Product Focus Scan Tools & Accessories (Laptops) OEM Applications Tech-2 / IDS / StarMobile / HDS / Heavy Duty Truck General Purpose Aftermarket Apps Hanatech Ultrascan OTC Genisys Specific Purpose Aftermarket Apps VCDM iScan-II JPro HD PCRetriever J2534 Motorcycle…

7. CAS of New England Our Typical Customer? Aftermarket repair shops Fleet Garages Vocational Schools Government Agencies New and Used Car Dealers… Our Typical Customer? Aftermarket repair shops Fleet Garages Vocational Schools Government Agencies New and Used Car Dealers…

8. CAS of New England Scan Tool Landscape Topic Areas General Purpose vs. OEM Scanners Hardware platforms Delivery of product updates/cal files Issues and Opportunities… Topic Areas General Purpose vs. OEM Scanners Hardware platforms Delivery of product updates/cal files Issues and Opportunities…

9. CAS of New England Scan Tool Landscape General Purpose vs. OEM 1980’s - GP Handheld Scanners 1990’s - Start of OEM Handhelds GM Tech-2 Ford NGS Chrysler DRB Vetronix Mastertech Toyota/Honda/Kia/Isuzu 2000’s - PC Proprietary OEM apps GM Ford Chrysler Toyota Honda Nissan… 1980’s - GP Handheld Scanners 1990’s - Start of OEM Handhelds GM Tech-2 Ford NGS Chrysler DRB Vetronix Mastertech Toyota/Honda/Kia/Isuzu 2000’s - PC Proprietary OEM apps GM Ford Chrysler Toyota Honda Nissan…

10. CAS of New England Scan Tool Landscape General Purpose vs. OEM Shops Reactions? 80’s – Big Box analyzers  Handheld GP Scanner 90’s – 1 HH Scanner  Multiple HH Scanners 2000’s Typical Scenario in Shop One General Purpose HH Scanner SnapOn – OTC – Hanatech - Vetronix Second Special Applications Scanner (HH or Laptop) RossTech – ProgRama – Autoland - Launch Additional OEM App laptop scanners as issues occur Typically multiple apps on one laptop I expect this trend to continue for the next 5 yr… Shops Reactions? 80’s – Big Box analyzers  Handheld GP Scanner 90’s – 1 HH Scanner  Multiple HH Scanners 2000’s Typical Scenario in Shop One General Purpose HH Scanner SnapOn – OTC – Hanatech - Vetronix Second Special Applications Scanner (HH or Laptop) RossTech – ProgRama – Autoland - Launch Additional OEM App laptop scanners as issues occur Typically multiple apps on one laptop I expect this trend to continue for the next 5 yr…

11. CAS of New England Scan Tool Landscape Hardware Platforms Because of CAN protocols we have been in a 5 year state of transition Virtually every scan tool had to be retro fitted or redesigned for CAN The impact on Dealers was less significant than on Aftermarket shops Example: Chrysler DRB-III  StarScan/StarMobile… Because of CAN protocols we have been in a 5 year state of transition Virtually every scan tool had to be retro fitted or redesigned for CAN The impact on Dealers was less significant than on Aftermarket shops Example: Chrysler DRB-III  StarScan/StarMobile…

12. CAS of New England Scan Tool Landscape Hardware Platforms Today’s Typical Hardware Platform: Vehicle hardwired to Vehicle Interface Module VIM Hardwired or Wireless to Laptop PC Laptop Running OE software App PC connected to Internet for updates/reflashing PC in some cases running OE app remotely… Today’s Typical Hardware Platform: Vehicle hardwired to Vehicle Interface Module VIM Hardwired or Wireless to Laptop PC Laptop Running OE software App PC connected to Internet for updates/reflashing PC in some cases running OE app remotely…

13. CAS of New England Scan Tool Landscape Delivery of Product Updates Scan Tool Updates and Flash Calibration files Typical 90’s delivery method was a either a software card replacement or a CD / DVD subscription Nothing ‘Timed out’, users could update every few years as the newer vehicles presented themselves Tech-2 w/TIS-2000 NGS w/Ford Flash DRB-III w/ CD’s Typical 00’s delivery method is internet based (but sometimes DVD) with functions timing out Ford Flash w / IDS every 60 days for a DVD or Flash times out GM TIS-2-Web subscription must be current Scan Tool Updates and Flash Calibration files Typical 90’s delivery method was a either a software card replacement or a CD / DVD subscription Nothing ‘Timed out’, users could update every few years as the newer vehicles presented themselves Tech-2 w/TIS-2000 NGS w/Ford Flash DRB-III w/ CD’s Typical 00’s delivery method is internet based (but sometimes DVD) with functions timing out Ford Flash w / IDS every 60 days for a DVD or Flash times out GM TIS-2-Web subscription must be current

14. CAS of New England Scan Tool Landscape Delivery of Product Updates The trend of ‘Timing out’ internet supplied applications is a double edged sword On one side the method ensures access to the latest version scan tool software and updates On the other side is the escalating ‘cost of ownership’ for OEM tooling that many shops can’t justify for the # times they need latest application data… Fortunately or Unfortunately we also see this trend continuing for the next 5 years… The trend of ‘Timing out’ internet supplied applications is a double edged sword On one side the method ensures access to the latest version scan tool software and updates On the other side is the escalating ‘cost of ownership’ for OEM tooling that many shops can’t justify for the # times they need latest application data… Fortunately or Unfortunately we also see this trend continuing for the next 5 years…

15. CAS of New England Scan Tool Landscape Issues & Opportunities Issue: Security Access Why do most shops buy an OEM app? Better coverage of vehicle data compared to Aftermarket Better bi-directional testing compared to Aftermarket The ability to reflash and perform any ‘resets’ after a flash Access to security systems At issue are two items: Access to security levels even with an OEM level scanner Quick access to security PIN codes when reflashing… Issue: Security Access Why do most shops buy an OEM app? Better coverage of vehicle data compared to Aftermarket Better bi-directional testing compared to Aftermarket The ability to reflash and perform any ‘resets’ after a flash Access to security systems At issue are two items: Access to security levels even with an OEM level scanner Quick access to security PIN codes when reflashing…

16. CAS of New England Scan Tool Landscape Issues & Opportunities Issue: Technical support in timely manner With an internet based delivery channel for OE tooling there is limited access for support issues I have a problem! Is it my…. V.I.M.?  My Cables?  My Laptop Hardware? My router?  ISP provider?  The OEM Web site? The Vehicle?  Tech Skills?  Windows/Java/IE? Just keeping up with the changes can be a challenge for most owners, let alone finding a total support channel when there are issues… Issue: Technical support in timely manner With an internet based delivery channel for OE tooling there is limited access for support issues I have a problem! Is it my…. V.I.M.?  My Cables?  My Laptop Hardware? My router?  ISP provider?  The OEM Web site? The Vehicle?  Tech Skills?  Windows/Java/IE? Just keeping up with the changes can be a challenge for most owners, let alone finding a total support channel when there are issues…

17. CAS of New England Scan Tool Landscape Issues & Opportunities Issue: CLONES The internet makes the world flat and transparent Software can be easily copied and hardware can be cloned for low dollars in other countries Many international internet marketers do not respect the US legal system of copyrights and patents Constant direct marketing goes out to techs every day via the web….USA based resellers just make it worse… Issue: CLONES The internet makes the world flat and transparent Software can be easily copied and hardware can be cloned for low dollars in other countries Many international internet marketers do not respect the US legal system of copyrights and patents Constant direct marketing goes out to techs every day via the web….USA based resellers just make it worse…

18. CAS of New England Scan Tool Landscape Issues & Opportunities Issue: Mandated PC Hardware All current OEM apps are PC based Some OEM mandate that a laptop be purchased with the OEM tooling Shops with the identical laptop model already in place must purchase a duplicate to gain access Typically this is an ‘Asian’ car line issue Higher then needed ‘entry fees’ limits OEM access… Issue: Mandated PC Hardware All current OEM apps are PC based Some OEM mandate that a laptop be purchased with the OEM tooling Shops with the identical laptop model already in place must purchase a duplicate to gain access Typically this is an ‘Asian’ car line issue Higher then needed ‘entry fees’ limits OEM access…

19. CAS of New England Scan Tool Landscape Issues & Opportunities Issue: Total Cost of Ownership for multi lines Initial costs for hardware coupled with on-going subscription renewal fees make multiple tool ownership not feasible for many shops Driving OEM’s to keep subscription costs in line with delivery costs makes sense Driving OEM’s to keep hardware costs more in line with what the dealer is charged makes sense Driving OEM’s to a ‘day pass’ type of access for reflashing makes sense… Issue: Total Cost of Ownership for multi lines Initial costs for hardware coupled with on-going subscription renewal fees make multiple tool ownership not feasible for many shops Driving OEM’s to keep subscription costs in line with delivery costs makes sense Driving OEM’s to keep hardware costs more in line with what the dealer is charged makes sense Driving OEM’s to a ‘day pass’ type of access for reflashing makes sense…

20. CAS of New England Scan Tool Landscape Issues & Opportunities Opportunity: Competitive Advantage! The Playing Field between Dealer and Aftermarket can be made more level with access to OEM level diagnostics. It is possible to be identical in technical capabilities to the local franchised dealer if the right tools and systems are in place. The Perfect Scan Tool? It may just end up being your laptop!... Opportunity: Competitive Advantage! The Playing Field between Dealer and Aftermarket can be made more level with access to OEM level diagnostics. It is possible to be identical in technical capabilities to the local franchised dealer if the right tools and systems are in place. The Perfect Scan Tool? It may just end up being your laptop!...

21. CAS of New England ? QUESTIONS ? John Jenkins CAS of New England

22. CAS of New England N.A.S.T.F. 2009 “What’s Happening With The Independent Auto Repair Industry Regarding Scan Tools?” Charlie Gorman “What’s Happening With The Independent Auto Repair Industry Regarding Scan Tools?” Charlie Gorman