The landscape of connected car technology is facing a downturn as Automatic, a prominent name known for its Automatic Obd2 Adapter, has announced its closure. Citing the ongoing COVID-19 pandemic as the primary reason, the company will be discontinuing its services and hardware, leaving users of its popular car adapter in a lurch. Effective May 28th, at 12 PM PT, Automatic’s OBD2 adapters will cease to function, and the accompanying smartphone app will no longer be supported.
In a statement posted on their website, Automatic explained the difficult decision: “Just like many other companies in the United States, the COVID-19 pandemic has adversely impacted our business. With fewer consumers purchasing and leasing vehicles and drivers on the road, we unfortunately do not see a path forward for our business. These are unprecedented times, and with so much uncertainty ahead, we have made the difficult decision to discontinue the Automatic connected car product, service and platform.” This announcement marks a significant setback for the connected car market and highlights the far-reaching economic consequences of the global health crisis.
Automatic first entered the market in 2013 with the Automatic Link, their initial automatic OBD2 adapter. Priced at $100, this first-generation device offered users the ability to track trips, monitor fuel consumption automatically, and access basic vehicle diagnostics. Expanding on their initial offering, the company released a second-generation adapter a few years later, accompanied by the launch of an app store, aiming to create a more comprehensive ecosystem for connected car applications. However, in a move that foreshadowed current events, Automatic had previously announced the end of support for their first and second-generation adapters, rendering those devices obsolete.
While the automotive industry has witnessed product delays and project cancellations as a result of the pandemic, such as the postponed Hummer EV reveal and iRobot’s scrapped robotic lawn mower project, complete company shutdowns remain less common. Automatic’s closure serves as a stark reminder of the pandemic’s profound and multifaceted impact on businesses across various sectors. As the economic repercussions of the pandemic continue to unfold, it is likely that more companies will face similar difficult decisions.
For users who have integrated their Automatic accounts with third-party applications, access will remain available until June 28th. Automatic users with connected PayTollo accounts will receive separate instructions from PayTollo regarding their accounts and service continuity. The shutdown of Automatic’s automatic OBD2 adapter service underscores the volatility of the current economic climate and the challenges faced by companies reliant on consumer spending and vehicle usage.
