The AA launches connected-car JV

05 January 2016

The AA

The AA launches connected-car JV with international roadside assistance clubs and market-leading technology partner

The AA today announced the launch of Intelematics Europe, a JV to develop connected-car software for services and products to be provided by roadside assistance clubs for their consumer and business markets. Intelematics Europe benefits from the scale and technical expertise of its owners, the AA; roadside assistance clubs in the Netherlands (ANWB) and in Austria (OAMTC); and Intelematics, a subsidiary of the Australian auto clubs and market leader in connected-car services and products in Australia. Intelematics has a similar JV with Auto Club Enterprises, the largest AAA affiliate in the US, to provide connected mobility solutions to AAA members in North America.

Connected-car technology is critical to the next phase of innovation for vehicles. The AA's Members and customers will benefit from the wide range of services that this technology enables by delivering information via the internet from a small device embedded in the vehicle. Such information can improve the safety and security of vehicles and their occupants, and reduce driving costs by monitoring them. It will also help the AA both pre-empt and diagnose breakdowns, improve deployment of appropriate assistance and enable more accurate and faster service. In addition, the tracking of information on driving could allow the provision of cheaper car insurance.

Vehicle manufacturers are embracing connected-car technology and the AA will build on its strong relationships with approximately 70% of the UK's manufacturers to make the most of the opportunities this technology presents.

Intelematics Europe has advantages arising from its ability to develop products, rather than buy white-labelled services, and its international ownership and access. These are as follows:

· Products will be developed by roadside assistance clubs which will share experience and expertise;

· Intelematics Europe will benefit specifically from access to existing Australian and US products and services which are already at market-leading standards and which can be reconfigured rapidly for European markets with a simple, standardised platform for integration by manufacturers;

· The development of an international solution will give access to manufacturers at the requisite global level; and,

· The scale and international scope of the JV will improve buying power and add to the potential to sell these services more widely.

The international nature of this JV gives it significant scale and scope to work with multi-national car manufacturers, many of which are already business partners of the AA in the UK. The AA and other European JV owners are members of ARC Europe, the European association of roadside assistance clubs.

Intelematics Europe will be located adjacent to the AA's offices in London enabling a close working relationship in the development of new products.

Bob Mackenzie, Executive Chairman of the AA said:

"We are excited to launch this platform for developing our connected-car proposition, sharing best practice with an international group of clubs. This is a powerful partnership - it gives us access to existing solutions which are tried, tested and widely adopted; it gives us reach across international manufacturers at a global level; and it gives us the ability both to roll out existing solutions fast and develop ever more sophisticated solutions in time.

"The AA is embracing connected-car technology so that our Members will benefit directly through advancements in safety and security, and information to help reduce driving costs. Connectivity will improve both timing and diagnostics of the AA's roadside assistance services and enable us to increase efficiency. We also value the potential for greater integration with our manufacturer partners and, combined with what we are doing with fleets through Trakm8, connected-car capability will enhance our already strong position across our business partnerships. Better information also provides the potential for wider adoption of telematics for insurance by the AA.

"This international telematics platform, combined with our extensive relationships with manufacturers and strong relationships with our international partners, strengthens our ability to innovate and take the AA to the next level of digital capability."

For further information please contact

Investors - The AA IR

Jill Sherratt +44 (0) 2073957301

James Curran +44 (0) 2073957301

Media - Headland Consultancy

Howard Lee +44 (0) 203805 4822

Francesca Tuckett +44 (0) 203805 4822