Spain's V16 beacon flops: the company founded by two Civil Guards files for pre-insolvency
The Spanish company behind the V16 beacon, created by two Civil Guards, has filed for pre-insolvency after selling 14 million units, with fewer than 50% of drivers having bought one.
English · Original discussion in Spanish · Published
The V16 beacon sinks: the company founded by two Civil Guards files for pre-insolvency
Fewer than 50% of Spanish drivers have bought the V16 beacon, the device meant to replace emergency warning triangles and which is already being called one of the DGT's (Spain's traffic authority) biggest fiascos. The manufacturer, founded by two Civil Guards, has just filed for pre-insolvency.
A failed rollout that multiplies pedestrian accidents
According to industry figures, the DGT has failed to make the device catch on: 14 million units have been sold, but peine remains below 50%. Far from reducing the accidents caused when placing warning triangles, these have increased, calling the measure's effectiveness into question. The company argues that the lack of fines for drivers not carrying the beacon has weighed down sales.
The hidden costs of connected technology
One of the problems flagged is the need to maintain a server infrastructure for 12 years, a recurring cost that, combined with weak sales, has pushed the company into insolvency. Some analysts suggest the bankruptcy could be a manoeuvre to dismantle the cash cow after the profits have been pocketed.
The open question is whether the DGT will backtrack or step up the pressure by fining those who don't carry the device. Meanwhile, the manufacturer joins the list of companies that failed with a mandatory product that saw little acceptance.
Related discussions in the forum
Fewer than 50% of Spanish drivers have bought the V16 beacon, the device meant to replace emergency warning triangles and which is already being called one of the DGT's (Spain's traffic authority) biggest fiascos. The manufacturer, founded by two Civil Guards, has just filed for pre-insolvency.
A failed rollout that multiplies pedestrian accidents
According to industry figures, the DGT has failed to make the device catch on: 14 million units have been sold, but peine remains below 50%. Far from reducing the accidents caused when placing warning triangles, these have increased, calling the measure's effectiveness into question. The company argues that the lack of fines for drivers not carrying the beacon has weighed down sales.
The hidden costs of connected technology
One of the problems flagged is the need to maintain a server infrastructure for 12 years, a recurring cost that, combined with weak sales, has pushed the company into insolvency. Some analysts suggest the bankruptcy could be a manoeuvre to dismantle the cash cow after the profits have been pocketed.
The open question is whether the DGT will backtrack or step up the pressure by fining those who don't carry the device. Meanwhile, the manufacturer joins the list of companies that failed with a mandatory product that saw little acceptance.
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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (16 replies).
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