UnstoppaUnstoppabble!le! How Ricardo helped turn Hummer’s military legend into a mighty SUV for the civilian market

InterIntervieviewsws Carlos Ghosn, Nissan Martin Leach, Ford SoftwSoftwararee Version 5 expands Winter 2002/2003003 the WAVE envelope Delphi diesel technology. More responsive to the driver. More responsible to the planet.

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NEWS FEATURES QUESTIONS & ANSWERS

Industry update 4 Hummer H2 8 Nissan Motor Company: Detroit Show: Cadillac’s awesome V16; GM GM’s first application of the legendary Carlos Ghosn 6 embraces hybrids for production; Ford Hummer name for civilian use had to match Architect of one of the most spectacular celebrates centenary with sustainable the military icon’s spectacular all-terrain revivals ever witnessed in the auto hydrogen concept, and Ricardo chief ability and beat today’s luxury SUVs for business, Carlos Ghosn presides over what executive Rodney Westhead salutes comfort too – all within a record 16-month is now the world’s most profitable volume Hummer in his welcome message timescale. GM turned to Ricardo for chassis, carmaker. Julian Rendell asks Nissan’s driveline and vehicle engineering expertise – celebrated leader about the secrets of the News from Ricardo 20 and Jeremy Burne tells the story of a turnaround, and what the future holds Ricardo signs historic accord with Japan’s spectacular success Horiba; i-MoGen scoops key technology Ford of Europe: award; Detroit Technology Campus opens Software update 14 Martin Leach 16 for business; Ricardo chairman WAVE v5 is the most significant software One-time development engineer Martin Sir Noel Davies completes centenary development project ever carried out by Leach has raced through the Ford ranks to London-Brighton run in 100-year-old car Ricardo, making it the most comprehensive become European president and CEO – engine performance simulation package on and is now responsible for bringing 45 new offer. Anthony Smith reports models to market in five years. Tony Lewin asked him about the daunting Transforming transmissions 18 challenges that lie ahead The Ricardo transmissions business is poised for rapid expansion, with high-profile clients and an ever-stronger presence in top-level motorsport

Ricardo enquiries: UK: +44 (0) 1273 455611 Business development: [email protected] USA: +1 (734) 397 6666 Head office: Ricardo plc, Bridge Works, Germany: +49 (0) 711 806082-20 Shoreham-by-Sea, West Sussex Czech Republic: +42 0296331150 BN43 5FG, United Kingdom

Conceived and produced for Ricardo by TwoTone Media Ltd Editor: Tony Lewin TwoTone Media Ltd contacts: Contributors: Julian Rendell, Jeremy Burne, Anthony Smith [email protected] Lucienne Brown, Anthony Smith Tony Lewin [email protected]

Winter 2002/3 Ricardo Quarterly Review 3 ● in brief Detroit split on hybrids CAFÉ tightens on US light trucks The White House has given the New technology programmes green light to long-awaited at January’s North American proposals for tighter light-truck International Auto Show reveal fuel consumption standards in sharply differing visions of how the US. Under the proposals, engine design will evolve in the 2005 models would have to near future. average 21.0 mpg, compared General Motors, in a major with the 20.1 which has been in change of strategy, has opted force since 1996. 2006 models for gasoline-electric hybrids in will have to achieve 21.6 mpg, a bid to improve fuel efficiency. and 2007 versions 22.2. President and CEO Rick Wagoner unveiled three hybrid Driver-assist systems come powertrain families, raising the closer possibility of one million sales The European market for by 2007. driver-assist systems such as Ford threw a more Rick Wagoner night vision and intelligent speculative engine concept announces GM’s hybrid cruise control will be worth 1.4 into the ring, with its programme (above); billion by 2010, according to supercharged, hydrogen- Lexus Hybrid Synergy Frost & Sullivan. Already, BMW fuelled Model U seen, like Drive is performance has shown details of its GM’s hybrids, as a bridge oriented (right) ConnectedDrive plan, which between today’s piston- includes online parking space engined vehicles and the fuel reservation, programmed cell models of the next decade. the Dodge Durango light truck. electric motor assist to boost parking, active accelerator DaimlerChrysler, for its part, GM’s Rick Wagoner also its composite fuel efficiency by pedal and alertness monitor. declared its faith in the diesel conceded that the extra cost of up to 50 per cent, while for engine as the most realistic hybrids would be “several smaller models from 2006 a Fuel cell car struggles with and cost-effective route to thousand dollars more than single, belt-driven assist motor cost and weight reduced fuel consumption in conventional vehicles”. The will combine with VTi trans- GM’s pioneering fuel cell the North American market. three propulsion systems mission to reduce consumption vehicle, the Hy-Wire, is facing Launching the diesel version of would, he said, help explore by nearly 15 per cent. formidable cost and weight the Jeep Liberty (Cherokee in the market for the technology. Toyota, currently the world’s hurdles, according to GM vice Europe), Chrysler group CEO The first of the three leading producer of hybrid president for R&D, Larry Burns. Dieter Zetsche said that the systems to be offered will be vehicles, revealed gasoline- Quoted in Automotive News extra cost and weight of an integrated starter-generator electric versions of its new Europe, Burns said the model hybrids meant that they had on large pickups from late Highlander and Lexus RX300 was still too heavy, at 1900kg. not shown a strong, convincing 2003 for fleet custiomers and luxury SUVs. The 4WD Nevertheless, GM still believes business case. from 2004 for retail buyers. In platform is already used by the 2010 volume build target to Last year, Chrysler cancelled 2005 the Saturn Vue will Toyota for its limited-run FCHV be feasible. plans for a hybrid version of include the option of dual fuel cell vehicle.

MINI scoops US award The BMW-group MINI Cooper has been voted Car of the Year Luxury boom sparks technology war 2003 by a panel of American motoring journalists at the Detroit auto show. This is the Not to be outdone by its horsepower, more Cadillac V16: first time a British car or a European super-luxury than five times recalls firm’s model from outside the US or competitors BMW Rolls-Royce the power of heritage Japan has taken the award. and DaimlerChrysler Maybach its 1930s boasting powerful twelve- namesake. France overhauls Germany cylinder engines, GM’s Peak torque is French auto plants have pulled prestige Cadillac division stated at 1000 used for the two valves serving ahead of German factories in neatly combined company lb.ft (1356 Nm), and each cylinder, variable valve productivity, according to tradition with modern design GM claims the fully dressed timing and cylinder McKinsey & Co. France’s lead when it unveiled the sleek motor, at 311kg, weighs less deactivation help reduce fuel came as a result of greater in- Sixteen limousine concept than the group’s 8.1 litre V8. consumption under cruise house component production, powered by a V16 engine. The giant unit is said to meet conditions. GM says that the said the report, though both Displacing a mammoth 13.6 emissions requirements with V16 would make close to 20 nations still lagged Japan and litres, the aluminium engine is ease. US mpg (11.3 lit/100km) in the US in overall efficiency. claimed to give 1000 While pushrod actuation is four-cylinder mode.

4 INDUSTRY NEWS Ricardo Quarterly Review Winter 2002/3 Ford U signals change

A supercharged four-cylinder ICE engine running on hydrogen may be the headline technical innovation on Ford’s Model U concept, shown at the Detroit NAIAS show in January, but the model’s importance extends well beyond this deliberate link with A message post-2010 fuel cell power. Celebrating both Ford’s from the 100th anniversary and the Model T that made the Chief company world famous, the U Concept seeks to mimic the Executive Model T’s versatile, flexible The Hummer brand has approach, but with a 21st- developed something of an century sustainability to the at 4500 rev/min; this is allied gear shifter – it can be placed iconic status throughout North materials and processes used. to the 25kW of the modular in a variety of locations, America in the past decade, The U’s interior is fully hybrid transmission system’s though the pedals are fixed – with the first civilian reconfigurable, allowing assist motor to give a and the conversational speech derivative, the 1992 Hummer different seating and consumption of 45 miles interface, which allows full- H1, becoming both a equipment patterns, and (72km) per kilogram of vocabulary natural (rather than favourite of the most extreme permitting regular upgrades as hydrogen – which Ford claims scripted) voice control of on- off-road enthusiasts and a the vehicle goes through its is equivalent to 45 US mpg board systems. 'must have' fashion accessory life, or perhaps changes its (5.0 lit/100km). The hydrogen Safety systems include pre- of the super-rich. In the latter use; the materials employed tank can store 7kg of fuel at crash sensing, while adaptive part of 1999 Ricardo was advance a new ‘cradle to up to 10,000 psi (690 bar) lighting, active near-infrared approached by GM to assist cradle’ approach to and, says Ford, the diode laser night vision and in taking this brand forward sustainability and do not move powertrain’s efficiency is 25 cameras mounted in the side into potentially much larger down the value chain when per cent greater than that of a mirrors improve hazard markets through a completely recycled. gasoline model. CO2 perception for the driver under new and more compact Ford claims to have solved emissions are cut by 99 per adverse conditions. vehicle: the Hummer H2. the age-old problem of cent, giving compliance with The fruit of high-level While many will be familiar inadequate power from PZEV standards. collaboration with 19 suppliers, with the H2, only those close gasoline engines fed on Unusually, the second-stage the Model U’s technologies to the programme will be hydrogen. Using a centrifugal induction intercooling uses the are deliberately forward- aware of the scale of its supercharger and a two stage vehicle’s air conditioning looking and radical. The achievement: a completely intercooler, the 2.3 litre I-4 system to dissipate heat. Also vehicle is suitable for mass new, segment-defining engine gives 118 horsepower innovative are the wireless production, says Ford. vehicle developed in only 16 months. As ever, we are grateful to GM for granting its permission to bring this story World Engine adds US production site to readers of RQ.

Chrysler Group president and emissions-efficient four cylinder CEO Dieter Zetsche described as aluminium engines are claimed to “a true melting pot of cultures” the be state of the art in their design. DCX group’s plan to add a US Annual output across the three production facility to its Global facilities in Korea, Japan and the Engine Alliance programme. US will be in excess of 1.5 million, Speaking at the Los Angeles making the Word Engine Auto Show, Zetsche said that the potentially the highest volume unit plant would be co-managed by in production. executives from all three of the A decision on the US plant’s One of the most outrageous concepts shown participating companies – location has yet to be taken, but at Detroit was Dodge’s Tomahawk, described Mitsubishi Motors Corporation, the facility is set to begin as a “four-wheel, single passenger vehicle; a Hyundai Motor Company and, in production in 2005. Hyundai’s rolling sculpture.” Power comes from the Viper’s the lead, the Chrysler Group. Korean plant will be the first on The family of fuel and stream in 2004. 500 horsepower, 8-litre V10

Winter 2002/3 Ricardo Quarterly Review INDUSTRY NEWS 5 ‘Le cost-cutter’ delivers

Carlos Ghosn surprised analysts with his bold 1999 Revival Strategy for Nissan after Renault took control earlier the same year. Still more were amazed when Nissan achieved its ambitious targets a year ahead of schedule. Today, Ghosn’s Nissan enjoys the highest margins of any volume carmaker and is poised for profitable growth in partnership with Renault. Julian Rendell spoke to the Nissan CEO as the first new-generation Micras rolled off the Sunderland production line.

How would you describe the new Nissan one of the highest in the industry. When say you can’t change it. If you announce a created under your leadership? you became CEO three years ago, did you plan, you have to stick with it. It’s a company with Japanese essence, but expect to achieve this so soon? opening up and embracing global Since 1999 you can see in all my statements I The car industry is one of the most management practices. It will be the most have always said the potential is huge; I’ve regulated in the world. What are the next global Japanese company. Not in terms of the never been shy about it. And the fact that it is big legislative challenges? style of its cars, but in its management. 10.6 per cent is very refreshing. But what is I think it depends on the country. It will be very more promising is that I think there is a lot different between Europe, the US, Japan and Nissan’s total production is close to more potential. China. But I think the most difficult and Honda’s and growing. When will you challenging is going to be about the overtake Honda? Where will future growth come from? environment. It’s not our objective. We never put our Certainly the US. Our product offensive hasn’t objective to be number one, two or three. Our really started there. You’re going to have the How ready are you for this next step? objective is to be one of the most profitable G35 coupe, the Infiniti FX45 and Murano It’s not something that shocks us. But you car companies ever. Ranking is a crossovers, and the Maxima sedan. The want to make sure that the regulation on the consequence of this. If you start putting size Maxima is part of the bread and butter of environment is effective. When I say effective, as an objective, you start making the wrong Nissan. Then there’s the new Quest minivan. I mean addressing the real issue. For decisions. Now we are not participating in the minivan example, from time to time there is a segment in the US, worth 1.1m cars. confusion between the technology and the What objectives do you have? consequence. Instead, we have some quality objectives. So what does this mean for profitability? Such as being in the top three for quality. And All these cars are not entry-level models. I’m Can you explain that? profitability targets. We are very happy to talking about segments of the market that are We should be specific about the consequence have the second largest market capitalisation very profitable. But how much operating on the environment and not just specify the in the car industry after Toyota. Three years margin we will reach? I don’t know. Our technology. I don’t know if the electric car or ago we were at about number ten. It means commitment was to be at the top level of the hybrid car or whatever is the answer. I there now is a lot of shareholder trust. profitability. And we are there now. What need to know exactly what kind of emissions happens next? It depends on the economic are allowed and then I can select my If Nissan is gaining market share, is this environment, obviously. But with Nissan 180 technology. But I don’t want the regulator to through aggressive sales practices? [stage two of Ghosn’s restructuring plan] we tell me what sort of technology I should use. Our market share is going up in our main will be up there. The regulator doesn’t know the technology. It markets. But we are not getting it by putting is a tool, not an objective. The public doesn’t [out] the best deals in town. We are getting it How is the progress with Nissan 180? care about the technology; the public cares by putting out some attractive products. Very good. We have the dynamic and the about the consequences. momentum from the Revival Plan [Ghosn’s Nissan’s operating margin is 10.6 per cent, initial restructuring plan]. When I first talked Which direction do you think legislators about 180, it was May 2001. At that moment will go? [the] operating profit of the company was 4.7 Frankly, one of the challenges we face is [that] per cent. Announcing an 8 per cent operating there’s a lot of confusion between the margin was bold. consequences and the technology. What is [the level of] CO2 emissions that is Maybe you should change the acceptable? What is the fuel efficiency? What 180 plan to take account of NOx will be acceptable? And in terms of your success? regulation, there are going to be a lot of On the contrary, when I debates about this. showed our financial results to the analysts at the end of You have worked at both Renault and October, some of them Nissan. How would you rate the potential asked: ‘Don’t you think of Nissan compared to Renault? you’re going too fast.’ I Renault has a lot of potential, too. But the

6 CARLOS GHOSN Ricardo Quarterly Review Winter 2002/3 Carlos Ghosn 1976 Graduated from Ecole Polytechnique, Paris 1978 Graduated from Ecole des Mines, Paris; joined Michelin 1989 President and CEO, Michelin North America 1996 Joined Renault as executive vice president 1999 Joined Nissan as chief operating officer 2000 President of Nissan 2001 President and CEO, Nissan 2002 Appointed to Renault board; vice- president of Renault-Nissan Alliance board

assembling. This is no secret. What is important is to have a proper debate. Put all the stakes on the table. Anyway this is a decision that is going to be taken by the UK people. The government has been very clear about that. So whatever the UK people decide, they carry the consequences.

What are your hopes for Nissan’s sales in Europe next year? Hopefully next year we will have our highest volume of sales ever. Our previous highest was 550,000. We should beat that. And the new Micra will be an important part of that. We are replacing a car that is ten years old.

Are you worried about a possible slowdown in the US market next year? I am not worried because I’m expecting it and it is already part of our plan. Anything between 16m and 16.5m cars is expected and would be OK. Now, below 16m everybody is going to suffer, but I’m not seeing any sign of that. For the last four years, since I’ve been at this company, everybody has been pessimistic about the US. And each year the US becomes stronger than the year before. point is that I don’t think Renault has ever 500,000. The 500,000 capacity is much more been mismanaged as Nissan was. a flexibility, an opportunity not an obligation. Do you think Nissan’s 15 per cent cross- holding in Renault ought to change? You have installed capacity for 500,000 What is the next big decision at FundamentalIy, I believe that if you want to units at Sunderland. When will you reach Sunderland? create value, you have to respect identity. I that figure? That will be the investment for the next think nothing should be done, one way or When we need it. With the Micra, Almera and Almera. We will make a decision this summer. another. I think a full merger will destroy value. Primera we have planned 360,000 to 370,000 And frankly, when I look around at full units. So we negotiated with the unions to How will you decide? mergers, I don’t see much competition with have the possibility to have the organisation Obviously the issue of the Euro is very this statement. Look at the shareholder value approved by them in order to have the important. Although we invested in the Micra in we have created compared to mergers. 500,000. Essentially we can move from two to Sunderland, we switched most of our parts three shifts. purchasing to the Euro. We used to buy 20 per Do you feel the pressure of masterminding cent of our parts in the Euro. Now we buy 70 one of the car industry’s greatest-ever Sunderland would need another product or per cent. In some cases that meant sourcing turnarounds? derivative to reach 500,000. Is that going to on the Continent, but some UK-based Obviously I always feel the pressure. But it’s happen? companies agreed to accept payment in Euros. not outside pressure, it’s inside opportunity. We don’t talk that way. The plant is here to We have the team, the leadership to go for it. serve the product; not the other way around. So what is the long-term implication of And we’re going for it. So if we have a product we will do it. But we’re Britain staying out of the Euro? not going to fill Sunderland just to get to It is not just our parts purchasing, but also Julian Rendell is a senior car industry writer

Winter 2002/3 Ricardo Quarterly Review CARLOS GHOSN 7 The tough get going

The only thing tougher than the Hummer H2 was its design brief. GM’s first application of the legendary Hummer name for mainstream use had to match the extreme rock-crawling, river-wading indestructibility of the military icon, yet provide the on-highway luxury expected by affluent SUV customers – all from a clean sheet of paper, and in a record 16 months. Jeremy Burne recounts how GM chose Ricardo as a pivotal partner in this mighty success

ehicle manufacturers are on a constant quest to maintain competitiveness. VAmong the associated challenges are how to leverage brand identity, and how to design and develop new “must-have” products and bring them to market quicker. Equally vital is to know how to make best use of resources and how to leverage supplier capabilities. The Hummer H2 is a vehicle that has taken on all these challenges. Of course, it took some unconventional approaches to make it happen, but the end result is a vehicle that, even though it is still young, is already being credited as a huge success for General Motors. A team of engineers from Ricardo became central to the project at an early stage, and shared in the experience of helping GM achieve some significant industry firsts as this programme was brought to fruition. The genesis of the H2 lies firmly in the Hummer brand identity, and in General Motors’ recognition that the brand could be developed into the next- generation military spin-off for enthusiastic off- roading consumers. The Hummer brand including belonged to AM General, a contractor with a the High Mobility long history of building military vehicles, Multi-Purpose Wheeled Vehicle (HMMWV) commonly know as the “Humvee”. This vehicle spawned the Vehicle performance consumer version Hummer (now known as the H1) in 1992 – a favourite for hard-core off- roaders that was glamorised by celebrities GM quickly saw a market niche and ● Best-in-class off-road such as Arnold Schwarzenegger. initiated negotiations with AM General. At first performance It seemed a good idea to GM’s product GM wanted to license the brand only, but AM ● Climbs 16-inch (400mm) vertical planners to try to develop a less intimidatingly General had determined that it would like to wall vast – and thus more practical – model that expand its manufacturing business. A ● Fords 20-inch (500mm) river married Hummer ruggedness and off-road memorandum of understanding was signed in ● Scales 60 per cent slope authenticity with the comfort and utility of June 1999, and a final agreement between the ● Traverses 40 per cent slope today’s ubiquitous sport utility vehicles. After all, two companies was reached six months later. ● Seats 6/7 DaimlerChrysler had successfully co-opted the GM would design what was to become the H2, ● Range 567km military heritage of the Jeep into a modern while AM General would manufacture it on ● No direct competitor brand icon, so why shouldn’t the same GM’s behalf on a fee basis. possibilities exist with the Hummer brand? In many ways, that was the easy part. The

8 HUMMER H2 Ricardo Quarterly Review Winter 2002/3 principals at GM and AM General had set introducing a barrage of “must-have” new themselves some tough challenges that would products with innovative design, of which the Programme performance need to be overcome in bringing their shared H2 was one of the first tantalizing offerings. vision to reality. These were some of the Bringing in Bob Lutz as vice chairman ● 16 month programme from styling absolute essentials in the H2 equation: underscored the company’s desire to fulfill this freeze to Job 1. Usual GM process promise. GM’s reputation was at stake. is 36 to 48 months ● Brand integrity: it was paramount that the ● Unique programme processes and H2 embody the rugged mobility of the Hummer ● Speed to market: GM had wanted to reduce rapid tasking through existing GM IT brand. It needed to excel in the most extreme its vehicle development programme times from and component release systems. off-road conditions. It would have to prove to 48 to 24 months. The H2 was to go even ● Brand new truck in a new brand the automotive media and consumers that the further – 16 months from design freeze to portfolio for GM H2 was not just a badge-engineered sports “Start of System Fill” – when production parts ● Ricardo engineering team utility. The HMMWV gained massive exposure first arrive at the plant. This was assembled within two months from from the Gulf War – the H2’s military ancestry unprecedented for a GM vehicle. the UK and US is the basis for its brand heritage. ● Ricardo team did all chassis and ● Leveraging resources: GM needed to powertrain engineering, design, ● Driveability: The H2 needed to be a leverage both outside suppliers and existing analysis, validation sign-off comfortable and pleasant drive on the highway truck platforms to reduce the cost base and to ● Set performance requirements and around town. meet the demanding schedule of deadlines. suitable for broad ability spectrum of Tackling these challenges head-on was the truck further complicated by the lack of internal ● Full portfolio of corporate & federal resources that faced both GM and AM testing and validation General. Neither company could contribute ● Addressed all resulting engineering sufficient staff to complete the project internally, requirements in less than 12 so it was imperative that outside expertise be months brought in to become part of the team and ● Testing of mule vehicles in move the process along. mountains and deserts It rapidly became clear that the only way ● Located suppliers who could react to achieve the objectives to timing and integration performance requirements ● Production launch engineering and production support

career’s worth of experience in trucks, and made him programme engineering manager for the H2. He recalls getting the offer to take on the task: “I was approached by the boss who asked me ‘would you like to be the leader of this project – oh – and other than [the fact that] it’s going to be a new Hummer – you are on your own!’ “That’s quite some challenge,” remarks Knapp. “It’s got to be a Hummer, look like a Hummer and act like a Hummer – oh, and by the way we want you to do it faster than any other programme we have ever done at GM! Not only that, but you have to work with a partner, AM General, with whom we’ve never worked before, and we are going was through a dedicated team of to build a brand new plant in a greenfield professionals from all disciplines, drawn somewhere! from GM, AM General and suppliers. The “So I said, ‘sure – I’ll give it a shot!’ It is a whole team needed to share the vision, share once-in-a-lifetime opportunity for anyone in the ● Manufacturing: Production of the H2 would the work and share the urgency that was automotive industry to work with a greenfield necessitate a brand new greenfield required to meet these challenges. plant, an exciting new brand, and a brand new manufacturing plant dedicated to the product, product. You can either walk away and think it with an all-new workforce. Jumping in at the deep end would drive you crazy or you can take it on and While there were many who contributed to the see what you can do. ● Marketability: it needed some rugged sex successful H2 programme, every team “The first thing we had to do was nail down appeal to reach its intended customer base. requires a leader. exactly what we wanted this product to be,” GM could not afford the exterior design to be When you have multiple teams, you need continues Knapp. “I did not have a background anything but totally authentic. Furthermore, GM a diplomatic leader. GM appointed Bill in off-road vehicles. From a technical had been promoting an aggressive strategy of Knapp, a long-time GM employee with a perspective I had to do some learning on my

Winter 2002/3 Ricardo Quarterly Review HUMMER H2 9 own as to what it means to build an off-road vehicle. You have a wide range of what people think off-roading is, from a dirt two-track cottage lane to some of the most extreme trails that we put this vehicle through during the development process.” Bill Knapp and his small team of GM colleagues assigned to the programme set up office in Pontiac. There they began the first key process of finding the partners needed to provide the manpower and engineering expertise for the project. “This programme was put together really fast – when you go back in time from a GM resource perspective this was a project created in a hurry. When we looked around we had a lot of other things going on at the time: from the truck business side of it we had the GMT- 800 product still in the development stage and we were just one year into the GMT 360 line – so from a resource and technical perspective we were tapped out. “We didn’t have the design-release engineers, we didn’t have the development engineers to pull this project off.”

Building the H2 team “At the time [autumn/winter 1999],” remembers Knapp, “we only had a half dozen technical people we could assign to it – and that’s where the second part of the marriage came into it with Ricardo and EDAG. The target was set in December ‘99 – we wanted a vehicle in production by the first quarter of 2002. So I took as much liberty as I could and set a start of production date as March 29, 2002. “That meant we had two years to gather up a team, design and develop a vehicle, and support the building of a greenfield plant, while Beyond traction control: the H2’s seven clever transmission modes

Electronic management of the H2’s four wheel drive transmission, its transfer gearbox, engine Driving conditions Mode What the system does throttle control and ABS braking system allow Street and highway, 4HI Permanent four wheel drive, high ratio exceptional on and off-highway performance, moderate off-road even under extreme conditions. The system’s intelligence allows it to On and off-road, snow, 4HI-LOCKED For semi-slippery areas, eg boat launch ramp. distinguish between different types of surface sand, wet surfaces Locks front and rear outputs at same speed to select the appropriate parameters for the Severe off-road use; 4LO-LOCKED Low-ratio crawler gear for tricky conditions; more drive and braking system, while five driver- negotiating logs, rocks torque, more measured throttle response curve; selected transmission modes cater for maximum power to all four wheels everything from highway driving to deep mud and sand or climbing over logs and boulders. Deep sand or mud 4LO-LOCKED+TC2 TC2 traction control map allows extra wheelspin Selecting low ratio puts the engine’s drive-by- to drive through loose surfaces wire throttle onto a different map, with a Off-road, long, steep 4LO-LOCKED+ Optimises rear traction for optimum slow-speed deliberately more gradual response to the grades, rocks REAR DIFF climbing performance over tricky obstacles pedal. There is even a special throttle response LOCKED setting designed to optimise towing performance, while an additional traction Deep sand or mud 4LO-LOCKED+ As above, but with additional tractive effort for control mode, TC2, allows what experienced REAR DIFF loose surfaces off-road drivers already know – that a certain LOCKED+TC2 degree of deliberate wheelspin is useful in When H2 is being towed NEUTRAL Allows H2 to be towed with all four wheels on getting through loose or deformable surfaces the road such as sand.

10 HUMMER H2 Ricardo Quarterly Review Winter 2002/3 fenders out of wheel wells and trying to make “From a GM perspective doors open again and so forth. We had a there was never a project wrap-up meeting to discuss what we had learned and to determine the key product that was developed, characteristics that had to be carried over into designed, released and the H2. The H1s had been off-road all day and they were ready to go home after a good wash brought to fruition as – nothing else required. That’s where we quickly as this wanted the H2 to be. As an H2 customer you should be able to go out and do whatever you – Bill Knapp, GM want to do all day long and the only thing you need to do to get ready to drive home or to church is wash the truck. And so that was always kind of a focus for the performance of the vehicle.” working with an outside source that we’d never remembers the challenge of working with worked with before – not only the design people from such a variety of countries: Process violations permitted! engineers but AM General: we had never “It was almost comical at times – the Bill Knapp knew early on that in order to bring worked with them before, either. They were in Japanese guys trying to speak to the this programme to fruition, it would mean the same boat in that they had hired a whole Hungarian guys in English: sometimes it got a breaking a few rules. “I told Bob Lutz that to new workforce too. little weird. Many of the people hadn’t worked get this done I would probably end up in GM “I had experience with many of the in the GM system before and the idea was for jail because I was breaking every process rule companies who bid for the project, such as Tom Reedy and his colleagues at Ricardo to in GM that’s documented. He laughed and said Magna, MSX, Hawtal-Whiting. I had come in and function as GM engineers. The if you can pull this off, that’s the kind of people experience with everyone except EDAG and product was released into the GM engineering I want working here. So he took his business Ricardo,” continues Knapp. “I had heard of system, they created the bill of materials, GM card and signed on the back “Process Violation Ricardo but had never personally worked with found and contracted all the suppliers and then Permit – Bob Lutz” and he told me ‘anytime them in the past. So I did what anyone would the parts were sent on consignment to AM anyone gives you a hard time about breaking a do when they put their career on hold for three General – we would build the vehicle and then rule on the project, you have them give me a years – I made a few phone calls. I called send it back to them. We never took ownership call and we’ll talk about it.’ Fortunately I didn’t some people I know in GM Europe and some of the parts, which all belonged to GM. So the have to use this card for anything, because I people in the Detroit area, and discovered only function AM General were providing at this was given the green light to do whatever it took Ricardo had been doing work in the engine point was the vehicle assembly. We had to to get this project done.” side of the business with GM but not so much train all these people from diverse John Smreker and the team not only had to in the chassis end of it. All I got was positive backgrounds to work in the GM system and to learn the GM system, but how to get around it. feedback, so within a week we made the perform all the GM quality checks, engineering “GM has various vehicle-building templates. decision that this was the team to go with.” and management functions. And of course on When we got there they had typically done a With an engineering group manager and a the AM General side we didn’t know anything 48-month programme. They were executing multi-disciplinary team of chassis, powertrain about those processes either!” some 24-month programmes that were not and CAE engineers drawn from three separate Bill Knapp also recalls the early days in the completed yet, so they didn’t know if that was Ricardo offices, the Ricardo team was charged programme: “The main struggle during the first with designing and integrating all of the chassis four to five months was to find a common and powertrain systems, including the language and culture. In the early days I had Hummer H2 and H1 compared completely new front and rear axles, transfer people speaking Japanese in one corner, case and driveline, traction control system, German in another corner and the English Hummer H2 Hummer H1 suspensions, chassis frame, induction, exhaust guys in another corner and sometimes I didn’t Engine V8 gasoline V8 turbo diesel and fuel systems. understand any of them! The positive that Horsepower @ rpm 316 @ 5200 195 @ 3400 The decision to appoint the Ricardo team came out was that we got back to basics – we Torque @ rpm 488 Nm@ 4000 583 Nm@1800 was clearly one that Knapp does not regret. started calling things what people really call Length 4821mm 4674mm “From a GM perspective there was never a them, we didn’t start making acronyms – we Wheelbase 3119mm 3302mm project that was developed, designed, released called a fender a fender, not an outer body Width 2062mm 2197mm and brought to fruition as quickly as this project panel. Basic language.” Vertical wall climb 406mm 559mm – and that’s a first for General Motors.” To gain early hands-on experience of the Wading depth 500mm 750mm demands that would be placed on the vehicle, Incline climb angle 60% 60% The United Nations of H2 the team of engineers from GM, Ricardo and Incline traverse angle 40% 40% GM’s choices for partners led to an AM General decided to do some testing. Approach angle 40.8 deg 72.0 deg international team of dedicated engineers that Taking a small fleet of Hummer H1s and a Departure angle 41.8 deg 37.7 deg became jokingly known as the “United range of North American trucks, the team went Breakover angle 27.5 deg 35.0 deg Nations”. The team was comprised of off-roading in Kentucky. John Smreker recalls Ground clearance 272mm 406mm Americans, Germans, British, Irish, Czechs, the immediate impressions after testing: Fuel tank 32 US gal 25+17 US gal Polish and Japanese. Ricardo sent in Tom “At the end of the day, all the H1s were Kerb weight 2909 kg 3252 kg Reedy, its engineering group manager for GM, parked in one area and the regular trucks in Trailer weight 3182 kg 2955 kg to team up with Bill Knapp – and AM General’s another. The AM General technicians simply Price from $49,190 $117,500 director of engineering, John Smreker, was got out the garden hose to wash off the H1s to Source: Hummer, GM. busy with building the new plant and the get back on the road and drive back. H2 figures include optional air suspension; manufacturing engineering issues. He Meanwhile the GM technicians were beating H1 figures are for wagon version

Winter 2002/3 Ricardo Quarterly Review HUMMER H2 11 Rocker tubes “The H1s had been off-road all day and they were ready to support the whole to go home after a good vehicle weight wash. That’s where we wanted the H2 A key part of the H2’s chassis is its rocker protection, essential for extreme to be.” off-road applications. Ricardo was – John Smreker, challenged to find the optimum configuration for the rocker tubes: AM General Knapp: “On the chassis we knew that the rocker panels on our trucks got damaged in extreme use from pivoting around rocks, and needed to be strengthened. We had about three or really going to work. They had a template for many components on the H2 that were already four iterations of the tubes along the 18 and they wanted us to do the 18. proven in GM vehicles, most required some side of the truck.” “We found out later if you read the form of modification. Smreker: “There are two tubes that assumptions that it says ‘Thou shalt never build “The first critical step was rough packaging. are mounted into the frame very a new plant on a 24-month schedule.’ Well, we The first rule in building an off-road car is you securely – we tried it on the body, and went to the 18-month schedule and built a new get the biggest tyres you can, then get even the body is itself extremely robust; we plant with a new workforce, so we were even bigger ones, and essentially we started out tried various configurations and it more aggressive than that. And then one day from a ground-up philosophy. Then we started turned out it needed to be mounted on the design manager at GM said he had been on the chassis, which is where Ricardo comes the frame. We went through a number doing a little arithmetic and that this 18-month in, while the designers set to making it look like of iterations to make it strong enough to programme is actually a 16-month programme a Hummer.” Tom Reedy knew that Ricardo survive.” when you go back and start counting. would have a significant technical challenge in Reedy: “The rocker protection is “I was the only on-site AM General person at engineering and integrating the complex GM unusually strong. It’s really part of an Pontiac so I would get all the calls. My task Class II controlled chassis and powertrain extreme off-road protection package for there was to look after the design of the vehicle systems, given the H2’s performance targets: the truck, which not only protects the – and to participate as a consultant on the “The H2 is coming into the marketplace with chassis frame and the driveline manufacturing issues. But early on I spent a lot some unique selling points which give it what I components but also the bodywork, of time just trying to unravel the GM system for would describe as a new, previously since it sticks out either side of the our guys back in South Bend. It was kind of unexplored market niche. These are that it’s a chassis frame. It took a phenomenal like reading a mystery novel. very broadly capable SUV because it performs amount of design resource. It may be “Bill Knapp knows the GM systems inside like a Cadillac Escalade on the freeway – just a tube, but it’s a phenomenally out; he wrote some of the procedures. But for a drives very smoothly, very competently and strong tube. lot of us this was the first experience, so we handles beautifully around city roads and in We used a significant amount of would be bouncing along thinking we were in traffic – while off-road it is enormously design analysis to model this as a pretty good shape and then Bill Knapp would competent. We engineered the H2 to perform structural system as part of the chassis come along and ask if we were prepared for a well on Class I to Class V trails in the US. This frame. You can actually jack the truck ‘Quality Valve’ meeting next week. ‘What’s the typically spans a sand-gravel desert track up off the ground at any point along this Quality Valve, Bill?’ It’s actually a meeting where you can exceed speeds of 85mph over rocker bar without the bar deforming where you decide whether or not to go forward bumps, potholes and washboard features – to or bending. You can hinge the truck with the project. GM does that on all its a two-day rocker-bar-grinding crawl over the around rocks and boulders by projects. So we’d have to scurry off and figure 8.5 mile Rubicon Trail with huge boulders, 100 skidding the rocker tube along rocks out what that was and what we had to do to per cent grades, desperate side slopes, and boulders – and that’s what it’s prepare for it. Then we’d get by that hurdle and eighteen inch multiple steps and deep holes. there for.” it would be “How many guys do you want for Our first Rubicon and Moab test trucks had the your FE event? Then we would have to go off and learn about that!

Chassis design Getting through the GM system was, of course, only one of the hurdles. The engineering team had to meet the significant chassis design challenge. Bill Knapp and the team from AM General and Ricardo started to look at what parts from existing platforms could be utilised in the H2, and what needed to be developed from Structural analysis was used to scratch. While the H2 was a “clean sheet” design rocker tubes strong design, it made commercial sense to integrate enough to support the whole existing parts from GM’s family of trucks where vehicle weight without damage possible – this would help reduce development time and costs. However, while there were

12 HUMMER H2 Ricardo Quarterly Review Winter 2002/3 standard H2 9000 pound winches fitted and we never needed to use them.” Full articulation: To achieve that mix of performance in a vehicle means that you have to consider and suspension design integrate particular technologies in the chassis and drivetrain system which may not be on a for extremes vehicle that, for instance, is more highway- biased, such as a Toyota Sequoia, Range The suspension system presented several Rover, Ford Explorer or Lincoln Navigator. engineering challenges. To achieve “The mule vehicles, the first ones we ever optimum integration of the axle Ricardo did built, started off with orthodox truck suspension a significant amount of advanced ADAMS but we rapidly found that we needed to do pre-analysis work. Ricardo specialists some tuning work,” says Reedy. “So we used analysed the elastic and kinematic offers extreme cargo-carrying capacity. So ADAMS analysis.” performance of the suspension, changed all a decision was made relatively early on to ADAMS is a tool Ricardo uses to model the bush rates and all the jounce (bump make this about an 8600lb (3900kg) GVW chassis and powertrain mounting systems to stop) and rebound stop rates, and made truck. determine compliance, loading and modal the brackets as stiff as possible. They also Tom Reedy: “The decision to use the performance. It enables engineers to optimise had to accommodate an air suspension five-link suspension in the 2500 powertrain mountings for refinement and option. configuration was made in advance. But structural performance and tweak suspension John Smreker: “One of the hallmarks of the rear-beam axle was a fundamental systems for vehicle dynamics. the Hummer is that it’s ‘overbuilt’ and clean sheet redesign that we did from Tom Reedy and his team from Ricardo set scratch – all we had was the ring and up a full-vehicle ADAMS model – starting with pinion to start with – it’s a brand new rear front and rear suspension models, which were axle. We also then took the existing links eventually joined together as a complete and fundamentally re-engineered the vehicle system. Ricardo did a significant geometry of the rear axle – where the links amount of ADAMS work to design the mount on to the axle, where they mount geometry of the suspension, which was onto the chassis frame, the angle of completely re-thought at the rear and tweaked Rear axle: clean inclination, to give us this full articulation at the front. sheet design ability on the axle.” “Of all the design analysis work we did early on, probably about 70 per cent of our time and effort went into designing the chassis frame – “It’s a very broadly capable and wherever possible we strove to lead the design with the analysis. For example, we SUV because it performs would look at a basic package layout of a like a Cadillac Escalade on bracket and its requirement for performance stiffness and mobility, we’d analyse it, we’d look the freeway – handles at the weak points on that bracket and we’d beautifully around city redesign it and start committing to soft tools, then go off to test the vehicle with the soft tool roads and in traffic – while part on it. Because we led the design with off-road it is enormously analysis and because we had defined what the truck had to do from the start, we could get a competent.” lot of things right first time. – Tom Reedy, Ricardo “We took some of the very expensive parts from the GMT-800, where it made sense from a performance point of view, and used them on The H2 delivers programme experience, was confident to take the H2. That’s basically the hydroformings, the In the end, the team from GM, AM General, on board.” bent parts of the chassis. We built the rest of EDAG and Ricardo is rightfully proud of its Bill Knapp also credits this highly flexible and the frame around those accomplishments. The H2 has been well integrated approach as a success factor. “One hydroformings. We made the received by the media and consumers alike, of the good things was that Ricardo was frame extremely stiff so that the and looks set to meet all expectations. extremely responsive to the need for people. If suspension can be tuned to the For Ricardo Vehicle Engineering managing we got to a pinch point in the programme ultimate performance without director Dr Clive Hickman, the Hummer H2 where somebody was overloaded, they were worrying about the frame programme was a key success, not only on a very good at bringing someone in to get the moving around. That’s crucial technical level but also in terms of rapid- programme back on track. for both on-road refinement and response integration with a major customer’s “Ricardo provided a great team of engineers, off-road performance and systems and procedures. “The Ricardo they worked extremely hard and they had a mobility.” Some of the more engineering team was assembled within two great attitude. intricate chassis challenges months from the US and the UK to work within “As the manager of the programme,” added were the chassis and the GM system to deliver this new product,” Knapp, “I found that extremely helpful to me underbody protection shields, says Hickman. “The targets were immensely and it’s one of the things I learned that I took rocker bars and general off- tough in what was an exceptionally wide- back to GM – that if you can bring people in road protection. ranging challenge, perhaps, but one which and out in a timely manner as needed, you can Ricardo, with its extensive vehicle engineering really move things along.”

Winter 2002/3 Ricardo Quarterly Review HUMMER H2 13 The new WAVE

t’s approaching midday on November 20th WAVE v5 is possibly the most significant software development and about 40 Ricardo CAE staff at project ever carried out by Ricardo, dramatically upgrading the IShoreham are awaiting the start of an internal briefing by Ricardo Software. The market-leading engine performance simulation package. timing represents a compromise between the working day needs of Greenwich Mean, US Anthony Smith attended an internal company briefing on the Eastern Standard and Central European Time new product and afterwards, spoke with Ricardo Software zones as the presentation is being simultaneously webcast over a secure internet President, Dr. Richard Johns, about WAVE v5 and his plans for link to Ricardo technical centres throughout future development Europe and North America. The subject of the briefing and the reason for this level of interest is the latest – and potentially the most development project ever undertaken by highly specialised diesel combustion CFD significant ever – release of Ricardo’s market- Ricardo and that the new product will be solver) at a price comparable with that of a leading WAVE engine performance simulation released to customers on November 26. typical current installation. Johns believes that package. Achieved in the space of only 18 months, this this puts the complete WAVE v5 installation in Ricardo Software President Dr. Richard development has been a tightly co-ordinated a very competitive market position and, as he Johns introduces the briefing by announcing effort by a team of 25 multi-skilled software puts it, “with the capabilities available in WAVE that WAVE v5 has been the largest software engineers based at the Chicago, Shoreham v5, the product offers an unprecedented level and Prague technical centres. The result has of functionality at a modest price.” And for New features in WAVE v5 been the most significant root and branch existing licensees, too, there will be some development of the product since its first pleasant surprises as they receive Pre-processing: launch in the late 1980s. improvements both in the functionality of the ● CAD mesher from STL import modules they already license, together with ● Component design and database Co-ordinated roll-out access to the remainder of the package across ● Graphical turbocharger maps The launch of WAVE v5 is being supported by the whole of their installed user base. preprocessor a programme of user seminars in Europe, ● Model auto-calibration and design space North America and Japan based on similar Competitive strategy explorations using built-in DoE material to this internal briefing, backed up by a But what is the competitive strategy for WAVE ● Intelligent defaults for input parameters number of individual in-company sessions. The in the marketplace? Johns is bullish about ● Auto-calculation of junction geometric aim of all of these sessions is to bring users future prospects, identifying two distinct areas. data quickly up to speed on the new features Firstly, he is clear in his determination to ● Parametric design available to them in WAVE v5. In addition, a support the existing user base: “We have many ● Input fields formulae evaluation range of training options are offered and a long standing and loyal customers and our first ● 3D component modeller and automatic comprehensive WAVE v5 web site has been responsibility is to provide them with the mesher launched at www.ricardo.com/WAVE5 capabilities and level of support that they need ● XML input file format providing details of new features, applications, to maintain their products at the leading edge.” training courses and a range of other essential Secondly, he wants to extend the market both Physical models: information for users. into new areas of application and to penetrate ● 3-Way catalyst geographical territories not previously served ● Diesel 3D (built-in CFD solver) Commercial Changes well by commercial simulation products (the ● Improved driveline modelling Apart from the many technical enhancements, distribution agreement with Sumisho ● New gasoline hydrocarbon emission WAVE v5 signals some significant commercial Electronics Co Ltd of Japan is just one element model changes in approach for Ricardo Software. in this strategy). ● Variable Geometry Compressor (VGC) Previous versions of WAVE have been offered On technology strategy, Johns feels that he model with a range of optional modules from which now has an infrastructure in WAVE which is ● Variable Valve Timing (VVT) the customer could select – and pay for – just open to development in a far more flexible enhancements those which would be of use to each individual manner than ever before. He also claims to ● Load-compensating heat transfer model licensed seat. This led to some very confusing have achieved the optimal balance between licence structures for both customers and operating a market-focused software company Post-processing: Ricardo. Moreover, from a marketing stand- while benefiting from its positioning within a ● WAVEPOST - completely integrated with point, prospective customers would sometimes leading edge engineering services business. WAVE output tend to add the cost of all the modules together “We are able to review all of the research and ● Integrated design space optimization – even those that they would never use – and development work going on throughout ● Animated network dynamic plots would be put off by what Johns terms “sticker Ricardo and can pick which areas we want to ● Turbine and compressor operating point shock”. In a bold move which matches the incorporate within WAVE, where necessary visualisation significant technical enhancements, Ricardo drawing upon the expert assistance of ● Exporting engine model networks to has decided to bundle the complete WAVE v5 specialists from those areas to support our image formats including JPG and PNG product as a single package (excepting the development team.” With this approach, Johns

14 WAVE v5 Ricardo Quarterly Review Winter 2002/3 claims that he is able to leverage a massive Above (left-right): The new CAD knowledge base from within the global Ricardo mesher, 3-way catalyst model and organisation and integrate new developments intake/exhaust noise results. Right into WAVE that would be impossible without (middle-bottom): Spray structure and the strengths of the Ricardo engineering combustion in the diesel CFD model business. WAVE v5 also contains functionality that is found in other third party products, such as CFD and optimization. “We’re not trying to replicate commercial general purpose product that there will be further enhancements to functionality,” says Johns, “but aim to embed WAVE as signposted by the features such as within WAVE an integrated and easy-to-use the beta release of the WAVEBUILD 3D level of functionality that is required by most module. Clearly Johns believes that he now users in order to make the process of analysis has the correct mix of skills and technology at and optimisation as straightforward, effective his disposal in order to keep WAVE ahead of and efficient as possible.” the game. As competitors vie to emulate the But where does WAVE go from here? Johns innovations in WAVE v5, Ricardo Software will views development as a continual process of no doubt be busy keeping the enhancements communicating with customers, understanding coming – and staying ahead of the game. their needs – present and future – and The one undeniable truth is that in a delivering against them. The new version of dynamic market place where the customer can WAVE is a significant step forward in the only benefit, WAVE v5 has significantly raised market for engine performance simulation, but the bar for the future efforts of both Ricardo it’s not the end of the story. There is little doubt Software and its competitors alike.

in the component design database. This Physical models WAVE v5 innovations includes the ability to store and cross Like all CAE analysis packages, WAVE is reference model data using information, essentially a mathematical idealisation of a There are far too many technical such as part numbers, not required in the physical system, of which the quality, improvements to cover in the space analysis but nonetheless extremely useful accuracy and usability of its physical available in this magazine. The following is to design teams. models are its ultimate measure. WAVE v5 therefore a brief overview of the main For optimisation studies, WAVE v5 is not short on innovations in this area. points. As ever, full details are available on contains an integrated Design of A new 3-way catalyst model has been the website www.ricardo.com/wave5. Experiments (DoE) and Optimiser module, implemented, based on the results of enabling users to either auto-calibrate research work carried out by the Ricardo Pre-processing models to known or target data or to technology research team. This model will Some of the most immediate improvements optimise the design. The pre-processor will enable a much wider range of detailed certain to be noticed by WAVE v5 users are automatically set up and manage the runs investigations to be carried out on catalyst in the pre-processing options. The CAD needed to populate the design space with systems including, for example, warmup mesh generator allows geometry to be data and the user can then perform “what if” and the evaluation of the effects of catalyst directly input using the industry standard experiments in the post-processor. poisoning or degradation. For the STL format. Once the CAD data is Of less immediate impact but of great increasing use of WAVE for drive cycle imported, the user defines how the major benefit to all users, is the incorporation of evaluation, an improved driveline model is geometric sections are to be broken up and ‘intelligent defaults’ for input parameters. included in which the vehicle is able to the mesher generates the WAVE network Here the user is offered a range of hard follow a defined mission profile. data. A second level of 3D pre-processing is and soft variable limits which provide traffic- also available in the automatic 3D mesh light style visual warnings of the Post-processing generator WAVEBUILD 3D, released in appropriateness of the values chosen by A single graphical post-processing utility beta form in WAVE v5 and ultimately the analyst. Given the workloads that CAE has now been implemented in WAVEPOST. planned to replace the pioneering but now staff typically work under these days, and This incorporates the functionality of the eight-year old KADOS system. the cost of getting it wrong, this simple previous RPLOT, TCMAP and, in version Component-based data is a major theme enhancement offers real benefits to hard- 5.1, WAPP into a single user-friendly of WAVE v5, with the ability to manage data pressed users. environment.

Winter 2002/3 Ricardo Quarterly Review WAVE v5 15 Team value manager

Martin Leach, 45, became president and chief operating officer of Ford of Europe in August 2002. He devised Ford’s revival programme for 45 new models in five years and is respon- sible for over 40 per cent of Ford’s worldwide output and half of all planned growth in developing markets. Tony Lewin spoke to him for RQ

How have Ford’s relationships with suppliers changed since the start of the revival programme? I would say first that the relationships are slightly different on either side of the Atlantic. Our relationship with our suppliers in Europe is cordial and constructive. There is a huge mutuality in having a successful Ford and we are working with them to eliminate waste: we have a deep-seated feeling that there is no mileage in us trying to make a grab for supplier profitability. We need them to be viable and profitable to be with us for a result of that. We were definitely pushing the “A lot of people when they the long term. boundaries and in some cases we’ve had to look at our experiences and ask ourselves first saw the StreetKa Is supplier viability one of your key whether we can now see a better way. So we principles? are now fine-tuning that strategy the whole concept questioned We are trying to manage our relationship with time and it will result ultimately in Ford bringing whether Ford would ever the suppliers with that as an overriding some work back inside the OEM; in other principle — but that’s not to say we are not areas it will involve more work going to the do the car” focused on value. We have done a lot of suppliers. I think what we have learned is that benchmarking since we started down the road there isn’t a ‘one size fits all’ relationship. of our European Transformation Strategy, and relationships, that becomes a nightmare to co- we launched at the end of last year a new What might be taken back inside – are we ordinate. So where things are important for approach to value management in Europe. We talking anything major? total vehicle integration it makes sense to call it TVM – Team Value Management – and We are looking at a number of things – those control that within the vehicle integration we get the purchasing people, the engineers, areas where at the total vehicle integration function as opposed to having to manage it the suppliers and the cost estimators working level it is necessary to really control the across supplier relationships and commercial together to truly understand the value chain competencies. One example might be in the relationships as well. and to eliminate waste. It is yielding significant area of suspensions. We are very proud of the savings opportunities – way beyond the things way our vehicles drive and that is a leadership Is there much more cost to take out of we have seen previously. attribute for us. So we are looking at making business? sure we have competence right through all of You mean is there the opportunity to take cost Could this be perceived as a pressure on the components and systems that get us to out? There is, and this team value the suppliers? driving quality. management approach is proving very I think it is a pressure of doing business, but it effective in doing that. We’ve taken over 1.2 is not the OEM putting pressure on the What happens at the moment? billion dollars of net cost out of our business suppliers. It is looking at the value chain and On suspensions, on some products we have since we started in 2000, and that is a whatever part of the business we are looking moved to a full-service supply relationship with significant amount. I think we will continue at at, and understanding how do we optimise that a full modularity, where the suspensions are that pace as we look to the future. and make it work for everybody who has a sourced as a module. Maybe what we need to piece of the action in between. do is break that down. It’s driven by practicality, How far have you moved on flexibility in not necessarily by business per se – and I’ll terms of introducing new products and Do you think that Ford has perhaps asked give you a fairly simple example. Vehicle speed to market? the suppliers to do too much and to put too dynamics are important for Ford, and a key In 2000 when we first announced 45 in 5 [45 much technological and innovation power attribute of the vehicle dynamics could be the models in five years], we were under an awful in their hands? rear wheel toe compliance. [Let’s say] we have lot of pressure and people did not have a good Ford in Europe was the leading manufacturer a situation where the toe compliance is outside word to say about Ford and particularly about in terms of a move towards full-service supply of our target range. How do we address that? Ford’s product. We were being criticised for not type relationships. I think there is a common Well, we could address that in the bush, in the being bold, nimble and quick enough. I think understanding between Ford and the suppliers arm, in the body structure. If all of those the StreetKa is a clear example of how that is that there were a number of growing pains as systems are managed within different supply not a valid criticism now. This is because there

16 MARTIN LEACH Ricardo Quarterly Review Winter 2002/3 was a concept, we were very nimble and “With C-Max we’ve trailed flexible in establishing a business equation, a partnering arrangement with Pininfarina, and the way of where we are got on with the programme. It’s not even two years later and we are in the production launch going in the segment. It phase of the StreetKa. I think that is based upon our demonstrates that a number of things have changed at Ford. One is that we had the plans for the future as boldness and drive to do it: a lot of people when they first saw the StreetKa concept opposed to looking questioned whether Ford would ever back into the past” do the car. With C-Max we’ve trailed the way of where we are going in the segment, and I’m very pleased with the result. It is based upon our in importance? plans for the future as opposed to looking back Yes I do. We’ve seen a significant into the past. strengthening of Ka this year and Ka is segment leader. As we get more and more Will it be built in Saarlouis? On the same traffic congestion and inner city line as the regular Focus? restrictions, I think that there is a natural When we introduce the production level vehicle pressure on small cars from that we start the process of changing Saarlouis dimension. Unfortunately that slightly over to our fully flexible manufacturing concept. conflicts with the other major It’s basically the same concept as Cologne, market trend, which is a trend to fully interchangeable, and that’s what we will more space in vehicles — and change over at that time. that trend is a global trend. I have my own How are you going to arrest Ford’s decline hypothesis: I think that in the D-sector? space is the ultimate Martin Leach I think it is important to understand a little bit luxury these days, 1979 Joined Ford as body engineer about the dynamics behind what is going on in because the cost of 1982 Analyst, Ford of Europe Car Product Planning group that sector, particularly in the UK. A couple of space appears to go 1985 Product specialist, Ford of Europe Marketing and Sales things have really happened this year. We, as up, whether it is 1988 Member of Jaguar transition team a matter of policy, decided to heavily restrict housing or whatever. 1993 Director of Sales and Marketing for Commercial Vehicles the number of Mondeos that went to the rental 10/94 Business director, Ford Light Truck Vehicle Center, Dearborn companies. As a result of that we’re almost So what you are saying 07/96 Director, cycle planning, Mazda Motor Corporation entirely responsible for the decline in the is that in future cars 07/97 Managing Director, product planning and design programs, segment, so you have to ask yourself what will have to be cleverer, Mazda comes first. If you look at that segment in the but low in price and big 01/00 Vice president, product development, Ford of Europe UK it is still a larger share of the market than is on space? 08/02 President and CEO, Ford of Europe more usual on the continent of Europe, and I I think they will. They will think that is still tied in with the company car always have to deliver value at the consumer the Fiesta platform? culture in the UK. With the change in company level and I think you’re right they will have to be I think it’s too early to say anything on that. car taxation at the beginning of the year, we cleverer. I think you’ll be seeing a trend toward Rest assured that whatever it is, we think it will did see a dramatic strengthening of diesel flexibility, adaptability and ease of use. be successful. demand, which we are very well positioned for. I think over time it is not unreasonable to Are you also saying that the present Ka is Returning to cost, taking out $600 million expect that the UK market structure will more perhaps too small? per year. How long can you continue that? closely resemble the market structure on the No: it’s interesting, we did extensive research with Is it declared policy to take out that much continent as we see more people becoming Ka buyers. They are so in love with their Ka that for the foreseeable future? user-choosers. they say don’t change it, keep it the way it is and I I think for the foreseeable future, yes. For two will buy new ones. I will be very happy! to three years we’ll continue to target net cost Is that not more threatening in a sense that down. people are buying increasingly on brand, But you will have a replacement for that however good the Mondeo might be? model? Are you competitive in terms of cost per I do think that some of the premium brands I always say that it has become an icon for us. vehicle, say with GM in Europe? have got a bit of a problem with ubiquity. For I believe we are, but we are [still] not satisfied. me, you can’t resist the market dynamics: if And aren’t icons notoriously difficult to We anticipate the market pressures will you try to resist them, you fail. I think what you follow up? continue. It is a market of winners and losers, have to do is adapt and evolve. With the Yes they are: I agree with that, but we will [no longer] a historical growth market where compact minivan segment you see a lot of continue to worry about that segment and everybody who’s playing is winning. We people trading out of the D segment, so we are continue to nurture Ka. believe there is still enough opportunity out optimistic that with C-Max we would pick up a there for the best competitors to have a very number of customers. Will this be a European product or will you good solid business. announce some input from other A version of this interview was published Do you expect the sub-B segment to gain continents on it? Will it be a derivative of previously in Automotive Sourcing.

Winter 2002/3 Ricardo Quarterly Review MARTIN LEACH 17 Transforming transmissions

Now in its fifth year at the Midlands Technical Centre To illustrate the strength of the RDTS design and and less than six months since its acquisition of the research capability, for example, he points out that the company has registered approximately 30 patents in the operations of Gemini Transmissions, the Ricardo past two years alone.

Driveline and Transmissions business is in extremely Rationale for Gemini acquisition good shape for growth. Anthony Smith spoke to So what was the logic behind the acquisition of the Brackley-based Gemini Transmissions business in July managing director Gerald Andrews about the rapid 2002? Was it to reinforce the motorsports presence with development of the business and high profile new product lines, to strengthen the technology and skills base, or to add additional manufacturing capacity? programmes such as the Bugatti Veyron (right) According to Andrews it was all of these things – and much more besides. “What we have achieved in a very short space of time is the complete integration of the two businesses into a much more powerful, flexible and well he Midlands Technical Centre has been a equipped entity.” spectacular success for Ricardo. Since opening in He goes on to claim that it would have been an all-too- Tlate 1998 it has provided a secure base for the easy option to continue running Gemini as a successful formation and development of two new divisions, has but separate offshoot. This, he says, would have missed become central to the company’s well publicised work on the real opportunity of restructuring to gain the maximum the MINI programme, and is now the focus of arguably operating efficiency for the merged business. “We now the world’s leading independent transmissions have a single, integrated and highly efficient technology business. manufacturing capability spread over our two sites,” he It has always been well known and respected for its says, “Brackley handles most of the pre-heat treatment work in the area of motorsports but, as managing activity and MTC concentrates on finishing operations.” director Gerald Andrews explains, the Ricardo Driveline This separation of activities has involved the relocation and Transmissions Systems (RDTS) division is about of equipment and people between the two sites, but their much more than this. “In RDTS our mission is to provide relative proximity has undoubtedly helped in the an extremely high-quality design and development transitional period. Summing up the overall benefits of service together with a turnkey and niche production the acquisition, Andrews cites “a stronger presence in capability relating to all driveline and transmissions the motorsports sector, increased capacity for major application areas. Naturally, people know us best for motorsports design and manufacturing programmes up motorsport,” he continues, “and that is significant for us – to and including F1, and a world class prototyping but it’s far from being our only core business area.” capability” as its most significant impacts.

Mitsubishi Pajero Evolution

On its rally raid debut in the United Arab Emirates Desert Challenge in November 2002, the Mitsubishi Pajero Evolution, driven by Frenchman Stéphane Peterhansel, led from start to finish, winning by a staggering 42 minutes. In what is one of the most demanding forms of motorsport this was no mean feat – and it is an achievement that was helped by a transmission system designed and manufactured by Ricardo. The unit is a six-speed sequential or optional five-speed sequential with high/low range configuration. Commenting on the design of the unit, Mark motorsport drivelines and transmissions. With Following its phenomenally successful debut Barge, director of motorsport transmissions, a completely new car in an increasingly in the UAE, the car will see action in January said: “We at Ricardo were asked to become competitive field, the Mitsubishi Motorsports 2003 in the most arduous event in the rally involved in this project on the strength of our team wanted to be sure they had the best raid calendar – the famous Dakar rally across reputation for bringing high technology to and most reliable technology at its disposal.” the deserts of North Africa.

18 TRANSMISSIONS Ricardo Quarterly Review Winter 2002/3 Bugatti Veyron our own efforts, but in “Naturally, people know fairness we’ve had our Ricardo was chosen by Bugatti as its us best for motorsport – share of good fortune also. engineering partner for the complete There is little doubt in my transmission and driveline system for but it’s far from being mind that the availability of its prestigious new Veyron supercar. our only core business the MTC site gave us The company’s involvement in this exactly the right location at project goes back to 2000 with the area” just the right time.” development of initial concepts, Gerald Andrews, Ricardo And it seems that the including the building of a technology MTC site is to be the focus demonstrator. In addition to the of future development. “We mechanical system design, Ricardo is Spectacular growth have an agreed substantial also responsible for the design and The physical evidence of business development is capital investment plan development of the complex clearly apparent in the new test facilities and the capacity which will provide for a new mechatronic system. This controls the delivered through the acquisition of Gemini. “We’ve heat treatment facility, a seven-speed Dual Clutch managed to grow this business in terms of headcount by new gear grinding machine Transmission as well as all the active over 50 per cent since 2000 alone” says Andrews, “and and a host of other 4WD driveline units, including all new we have charted a sustainable growth path.” manufacturing and test algorithm and software development But even if RDTS is now possibly the largest equipment early in 2003,” and a new control unit design. independent provider of driveline and transmission says Andrews. technology, does this imply a steadying of the growth While this will represent curve, or is the market still developing? Andrews remains very much the technical bullish as to future prospects. “It’s arguable that there is centre of gravity of the division, increasing numbers of still considerable market development potential in the staff will operate from the other Ricardo technical centres area of driveline and transmissions. in Europe and the USA. “We feel strongly that we now “We are extremely fortunate in having been able to have the right mix of products and services, an develop a large and stable presence in this market in immensely strong technology base, and an infrastructure time to benefit from this growth potential,” he continues. which will enable us to continue to grow at a significant But does he see this as a matter of luck, good and sustainable rate”, says Andrews. On the basis of the judgement, or a mixture of the two? “Clearly there was a developments of the last four years, an impressive list of lot of careful planning and foresight in our development high profile projects and a dominant position in of this business and I’d love to say that it was all down to motorsports, he may well be proven right.

Winter 2002/3 Ricardo Quarterly Review TRANSMISSIONS 19 Ricardo signs historic accord with Japan’s Horiba icardo and the top well placed to serve the Japanese testing Japanese auto industry R equipment specialist objectively and confidentially. Horiba have signed an Horiba and Ricardo will act, exclusive agreement of co- as usual, under conditions of operation. The two companies utmost secrecy in all business will work together to build an matters with Japanese improved automotive customers. The two companies consultancy service to the are confident that this new Japanese car makers and cooperation will greatly benefit related industries. customers in Japan by This agreement means that, providing improved as appropriate, Ricardo will use communications and Horiba resources in Japan in resources. the form of staff, regional offices Ricardo Software sales and and test facilities. support are unaffected by this Horiba and Ricardo both agreement, this activity pride themselves as continuing on behalf of Ricardo independent companies and are through Sumisho Electronics. Text of the announcement of the co-operation agreement i-MoGen wins technology award

he Ricardo i-MoGen mild hybrid vehicle has scooped a top-level T engineering award from the prestigious Royal Automobile Club in London. The coveted Dewar Trophy for innovation in automobile development was presented to Neville Jackson, Ricardo Technology Director, at a ceremony in London. The RAC felt the innovation met the Trophy's strict judging criteria of being 'the most outstanding British technical achievement in the automotive field' in 2002.The Club’s judges singled out i-MoGen's ability to achieve fuel consumption of less than 4.0 l/100km (70 UK mpg) whilst retaining the capability to achieve exhaust emissions 50 per cent lower than proposed Euro IV levels. These, the judges said, were particularly relevant to the changing face of motoring by Neville Jackson (right) of Ricardo receives the Dewar Trophy from Stephen Hammerton of conserving energy and reducing the RAC environmental impact. The Club's Motoring Technical "The Dewar Trophy has been a "To develop a powertrain that Committee judged the award using five celebration of British technological combines such excellent fuel economy key criteria of technical achievement, achievement since it was first awarded and low emissions that can be installed innovation and uniqueness, relevance in 1906 and this year Ricardo has in Europe's most popular size of vehicle and significance, value and cost saving shown that it is already well on the way and comfortably accelerate to 100km/h and practicality and applicability. After to accommodating the needs of in 12 seconds is an impressive feat. We short-listing the 14 entries, the tomorrow's motorists," explained also commended the fact that it can be technical committee visited the three Stephen Hammerton, chairman of the manufactured at a cost level that makes top candidates to investigate their Royal Automobile Club's Motoring full scale production a real possibility submissions in more detail. Committee. rather than just a dream," he added.

20 RICARDO NEWS Ricardo Quarterly Review Winter 2002/3 Detroit Technology Campus opens for business

arking a major step in the development of its North MAmerican business, Ricardo announced the opening on January 2 of the Detroit Technology Campus. With the completion of the new 77,000 sq ft (7150 m2) two-storey office and engineering facility, the total build area of the site has increased by nearly 100 per cent and the expanded 11 acre (44,500m2) campus provides useful capacity for future growth. “This significant investment demonstrates the confidence Ricardo places in the future success of its growing North American business,” said Jeremy W. Holt, president of Ricardo, Inc. “Our expanded Detroit Technology Campus will help us take automotive technology to the next level and meet the growing demand for globally competitive technical expertise in such areas as advanced powertrain development, works on major customer programmes and includes secure and confidential vehicle and systems integration as well as and shares its knowledge and technology vehicle evaluation and assembly areas to diesel and hybrid technology.” among engineering teams. meet specific project demands. Ricardo, Inc. has grown steadily both The new building will be used for The building is designed to organically and through targeted design, computer-aided engineering, complement the extensive powertrain acquisitions since 1989 and currently thermo-fluids, vehicle refinement, controls testing operations that will become the employs 350 people. It expects continued and calibration engineering teams. This focus of the original facility within the growth over the next three to five years as space also includes conference rooms, campus. With the development of the automakers embrace strategic product project offices, a technical library and an Detroit Technology Campus the development outsourcing. According to area for the company’s administrative and company has been permitted by the Holt, this expansion builds the critical support staff. The high-bay area and local authority of Wayne County to mass necessary for the company to vehicle workshop occupies more than rename the main entrance road to the maximize its operational efficiency as it 23,000 square feet of additional space campus ‘Ricardo Drive’.

New appointments to Ricardo board

ith effect from January 1, 2003, two powertrain and vehicle engineering. He Stephen Parker, who was appointed in W new directors, Clive Hickman and joined Ricardo in 1997, having formerly August 2002. Gerald Andrews, were appointed to the held senior positions with Rover and Stephen Parker has been tasked with main board of Ricardo plc. Respectively subsequently MIRA where he was the development of the consultancy the managing directors of the Ricardo engineering director. service offered by Ricardo to encompass Vehicle Engineering and Ricardo Driveline Gerald Andrews is a specialist in strategic issues of critical interest to its and Transmissions Systems divisions, transmission systems engineering. OEM and Tier 1 customers. they will continue with the responsibilities Having held senior positions within the He is well known and respected in the of their existing roles in addition to those former FFD group, he has led the driveline area of strategic consulting, and before of their new plc board appointments. and transmissions business since the joining Ricardo served as principal of the Clive Hickman is a mechanical engineer acquisition of FFD by Ricardo. AT Kearney automotive practice in with wide ranging experience in On the main board they will be joined by London.

Winter 2002/3 Ricardo Quarterly Review RICARDO NEWS 21 100-year-old car completes historic run or Ricardo chairman Sir This one-of-a-kind 1902 James and Noel Davies, Sunday FNovember 3rd was a Browne has driven the famous London- cold English winter’s day that Brighton run countless times – but the would be special for more than just its unseasonally 2002 event was unusually special bright and clear sunshine. Not only was the immaculate maroon machine in fine shape commented, with more than a bought for the princely sum of for its hundredth birthday and hint that this was perhaps the £40 in 1934. its 68th running of the 59 mile reason behind his gearbox Sir Noel was also given the London to Brighton course, rebuild. honour of taking a goodwill but Sir Noel would also be re- Other controls are relatively message from the Lord Mayor living his student days almost conventional, but the hand of London to the Mayor of half a century earlier when he throttle and ignition controls Brighton. Before the early himself drove the car, demand frequent attention, morning start he said: “The survivor of two built by the nicknamed Boanerges, or Bo, often from the passenger – journey will be a reminder of James and Browne company to Brighton. making it seem as if two my happy years at Imperial of Hammersmith in 1902. It is “I had done the run twice as people are driving. during the 1950s. I’m powered by an underfloor- driver or co-driver,” said Sir For the 2002 run Sir Noel delighted to see how well Bo mounted 2500cc twin cylinder Noel, “and I have a special travelled as an honorary has been maintained over the engine developing around 9 attachment to the car – it passenger, rather than driver. last 50 years.” horsepower and consuming needs a lot of maintenance As chairman of Ricardo and As for the run itself, the car fuel at the nowadays and once as a student I spent an alumnus of Imperial ran smoothly and without unfashionable rate of about 12 most of the summer vacation College, London, he had been major hitches all the way, mpg or 23 litres per 100km. rebuilding the engine and invited by the students of the successfully coming through a Maximum speed, as Sir transmission.” City and Guilds College at heavy rainstorm half way. “It Noel testifies, depends heavily Alarmingly, according to Sir Imperial to participate in the rained again in Brighton, just on the terrain: “Up Pyecombe Noel, Bo has two gearboxes – centenary run for Boanerges, as we were taking the Mayor hill everyone has to get out one for first and third, the who – the students insist on for a ride,” added Sir Noel. and push: it bounces a bit but other for second and fourth. treating the car as a person – Boanerges, whose name it’s fine at 20 mph if you are “It’s operated by twin levers has been owned and comes from the New very careful – especially with and it is possible to get two maintained by the Imperial Testament and means “Sons the brakes, which are almost gears at once,” he students ever since ‘he’ was of Thunder,” is the only non-existent.”

22 RICARDO NEWS Ricardo Quarterly Review Winter 2002/3 SAFE SORRY

Check One.

We’ve chosen to focus on a driver’s safety whenever they get behind the wheel. As a global leader in integrated active and passive safety systems, TRW Automotive is constantly looking out for their well-being. Which is why we’ll continue to pioneer work in areas like vehicle stability control, electric steering, smart restraints and driver-assist systems. Because we know that, given the choice, safe is preferred over sorry.