The landscape of connected car technology is facing a significant shift as Automatic, a company renowned for its innovative on-board diagnostics (OBD-II) dongle, has announced its closure. Citing the adverse effects of the COVID-19 pandemic on its business, Automatic will discontinue its services and hardware, leaving users of its Automatic Obd2 adapter seeking alternatives. This decision marks the end of an era for one of the early pioneers in bringing vehicle diagnostics and connectivity to the everyday driver’s smartphone.
In a public statement, Automatic explained that the economic downturn caused by the pandemic, characterized by decreased vehicle sales and reduced driving activity, has made their business model unsustainable. Effective May 28th, the company ceased operation of its dongles and associated app, rendering its automatic OBD2 adapters unusable. Customers are advised to dispose of or recycle their devices. For users who have linked third-party applications with their Automatic account, access will remain until June 28th. PayTollo account holders connected through Automatic are expected to receive direct instructions from PayTollo regarding their accounts.
Automatic’s journey began in 2013 with the introduction of its first-generation Automatic Link device. This initial automatic OBD2 adapter offered users the ability to monitor trip data and fuel consumption, albeit with basic diagnostic capabilities. Priced at $100, it represented an early foray into making vehicle data accessible to consumers via their smartphones. Building on this foundation, the company launched a second-generation adapter a couple of years later, expanding functionality and even introducing an app store ecosystem around their automatic OBD2 offerings.
However, in a move that foreshadowed potential challenges, Automatic had previously announced the discontinuation of support for its first and second-generation automatic OBD2 adapters in the spring of 2019. This decision to render older devices and their associated apps obsolete signaled a shift in strategy, perhaps towards newer hardware or service models. Ultimately, the unforeseen economic pressures brought on by the COVID-19 pandemic appear to have been the final blow, leading to the complete shutdown of the company.
While the pandemic has caused delays and cancellations across various industries, the complete closure of Automatic is a stark reminder of its profound economic impact. As the automotive sector and broader economy continue to navigate these uncertain times, the demise of Automatic serves as a cautionary tale. For users of automatic OBD2 adapters and connected car enthusiasts, this event underscores the volatility in the tech market and the importance of considering the long-term viability of services and products in this rapidly evolving space. The market for OBD2 adapters, however, remains active, with numerous alternatives available for those seeking to maintain vehicle connectivity and diagnostics.
