How STAR is paving the way for equitable auto industry standards

The last time we spoke to Andy Wright, Managing Partner of Vinart Dealerships, we discussed standardized technology across the automotive industry to compete effectively. This is the mission of STAR, the Standards for Technology in Automotive Retail, a non-profit, dues-paying organization that develops voluntary industry standards. Andy joins Inside Automotive today to dive deeper into this area with Rafael Maldonado, Chairman of STAR.

STAR has been operational for about 20 years, and Maldonado has been Chairman for about three. In those three years, Maldonado has strived to take STAR to the next level and bring the organization into the 21st century. Even during the pandemic, STAR has been able to make significant progress. 

Wright says one of the biggest frustrations for car dealers is the ties they have to OEM mandated vendor programs. The attempts from OEMs to create uniform customer experiences and gain insight into retail customers are understandable reasons to have vendor programs, explains Wright. The problem is how contracts are awarded to the vendors and the lack of incentives for them to continue innovating.

This topic is important for dealers because Wright believes there is another way for all parties to get what they want. With the proliferation of connected car technology and the need to work closely with OEMs to deliver the customer experience, the industry must work together more effectively. Step one is getting everyone on the same page to standardize data protocols.

Without standardized data and security protocols, it’s nearly impossible for car dealers to comply with some of the regulations around privacy at the state level. Maldonado explains that there is no set of standards to apply to all of the transactions.

“Imagine a world where every Bluetooth device was different and could not connect to one another,” says Maldonado. “That’s exactly what we have in the automotive industry.”

STAR’s success impacts every single member of the automotive ecosystem. OEM tech stacks become more streamlined and secure as standards get set. Vendors can write their integrations to one standard rather than multiple different standards. Car dealers can then provide customers the experiences they want without spending much money integrating all the different systems.

STAR crowdsources its knowledge from the brightest minds in the industry. The organization is backed by the many major OEMs, NADA, and several DMS providers who support STAR’s mission. However, the standards will only be adopted if they are enforced, which means it is critical for everyone in the industry to get on board and enforce them.

“If we can get this right, our lives as dealers and as operators will be so much easier. Same goes for the OEMs, same goes for the vendors,” says Wright. “At the end of the day, the most important thing that everyone needs to keep in mind is this will lead to a better customer experience for our customers and that should be the primary motivation for all of us.”

To learn more about STAR and get involved with the organization, visit STARStandard.org.

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