Novatel Wireless to provide telematics services to UK’s RAC

M2M module maker Novatel Wireless is to begin supplying telematics products to RAC Motoring Services, the two companies have announced.

The UK motoring organization – which provides roadside assistance, insurance, vehicle inspections and checks, legal services and traffic and travel information to approximately seven million customers – aims to cater to a broader range of drivers’ needs through the deal.

M2M module maker Novatel Wireless is to begin supplying telematics products to RAC Motoring Services, the two companies have announced.

The UK motoring organization – which provides roadside assistance, insurance, vehicle inspections and checks, legal services and traffic and travel information to approximately seven million customers – aims to cater to a broader range of drivers’ needs through the deal.

The agreement will see Novatel (San Diego, CA, USA) provide telematics devices, device-management software and hosting services to the RAC (Walsall, UK), which plans to incorporate the Novatel technology into its RAC Advance solution.

As a result, the RAC will be able to provide what it describes as “leading-edge vehicle telematics and advanced crash detection technology in a range of solutions for fleet, insurance and breakdown applications”.

“The RAC is committed to providing the very highest levels of service to our customers,” said Kerry Michael, the RAC’s commercial director. “We will target our members, insurance clients and corporate fleet customers with this new service including advanced crash detection, remote vehicle diagnostics, fuel saving, driver scoring, and fleet management.”

Peter Leparulo, the chief executive of Novatel, says the deal comes after several months of cooperation between the two organizations.

The combination of Novatel’s products with RAC Advance could allow the RAC to identify certain vehicle faults before they lead to a breakdown, claims Novatel.

RAC members will also be able to check on performance information via applications installed on smartphones or other mobile devices.

Novatel is trying to boost sales of M2M-related products and services amid signs of weakening demand for its range of mobile computing products.

Last week, the company reported an 11.1% dip in quarterly revenues, compared with the same period of 2012, and a widening of its net loss.

Despite the headline decline, however, Novatel was able to report a 4.1% increase in sales of M2M product and services.