Why is German WiFi important to UK auto retailers?

AM's regular columnist Professor Jim Saker, president of the Institute of the Motor Industry, notes that external factors are increasingly forcing a change of thinking in a traditionally insular motor industry.

Occasionally a news item will arrive that on the surface looks of little interest. It is only later when you reflect on what it said that you suddenly realise that this may have implications for our sector.

In July the German government announced that it was fading out any component parts from China in it's 5G wireless network rollout. They are banning parts primarily from Huawei and ZTE. The decision they argue is based on national security concerns including sabotage and espionage.

German officials said that their telecom network must be protected from cyber-attacks calling it an existential threat and are ensuring that only parts supplied within Germany and the EU are used within their infrastructure.

The obvious question is why does this matter to us as an industry?

For too long our sector has seen itself as an entity with its own bespoke and unique challenges. Go to any car industry conference and the topics covered are very insular. Within the structure of Government legislation, the car industry has historically been inward-looking tackling its own challenges.  

It has only been with the rise of issues based on climate change that the industry has had to take this into account and change its powertrains and modus operandi.

The challenge now is that there is an increasing interdependency of factors that are forcing a change of thinking.

One area that is going to become increasingly important is the connectivity required for the next generation of cars. The move to semi and autonomous vehicles is predicated on having a secure 5G network.

Read more of Professor Saker's past musings here.

By forcing the companies that are working on the 5G networks to only use locally produced components the German Government not only generates more business for that sector of their economy it also enables their cyber infrastructure to be less vulnerable to attack from a country that they see as a threat.

With respect to the car industry, by having a secure 5G network on which to operate gives the German car manufacturers a greater incentive to develop greater autonomy within their vehicles without their being the threat of outside interference.

In the same way as the move to EVs has been slowed by the lack of a proper charging infrastructure so when it comes to future technological developments in autonomy its progress will either be enhanced or deterred by having a secure and reliable infrastructure.

The car industry is increasingly dependent on other sectors to provide services on which it can build its own future.

Unless we can gain leverage with Government and influence organisations that provide the UK infrastructure, our future will be dictated by others.