THE HANSEN REPORT ON AUTOMOTIVE ELECTRONICS. A Business and Technology Newsletter

VOL. 18, NO. 3◆◆ PORTSMOUTH, NH USA APRIL 2005 Bose Corp. Connecting Vehicles to the Moving Beyond Highways Sound Systems Car-to-Infrastructure and structure. Promoters argue that if vehicles Car-to-Car Data Communications were linked by a high-speed data commu- Communications/Infotainment nications network, thousands of traffic Systems Next The idea of cars communicating with fatalities would be prevented each year, The dashboard and center-stack is the roadway infrastructure is certainly not and commuters would spend far less time probably the most hotly-contested real new. “Intelligent Vehicle/Highway Sys- stuck in traffic jams. estate in the car today. Traditional suppli- tems” were tested and promoted in the Americans spend, on average, 46 hours ers of radio head units and audio systems 1980s. Advances in wireless communica- per year stuck in traffic. More than an in- compete with navigation and car informa- tions technology and the proliferation of convenience, traffic congestion costs the tion/entertainment systems suppliers, as wireless networks in this decade, however, average traveler who drives during peak well as interior systems integrators, for have carmakers and traffic safety propo- periods $1,150 per year, according to a that limited area within the driver’s and nents taking another look at the potential publication from U.S. representative front passenger’s reach and line of sight. benefits of vehicle data communications. Henry Hyde of Illinois. Unless innovative The market is already crowded with giants Vehicle Infrastructure Integration solutions are found soon, the amount of like Bosch, Delphi, Denso, Aisin Seiki, (VII), a coalition of carmakers, state de- time and money lost will only rise, since Siemens VDO and many technically pro- partments of transportation and the U.S. new highway construction cannot keep ficient audio and navigation suppliers Department of Transportation, has been pace with increasing highway use. from Japan such as Alpine, Panasonic and working for about a year trying to decide if The VII coalition proposes that with a Pioneer. carmakers should install data communica- sufficient number of vehicles on the road Bose Corp. (Framingham, Massachu- tions platforms in vehicles, and if the coa- transmitting their speed and location, the setts) sees potential in this automotive lition should ask the U.S. Congress to infrastructure could collect and aggregate market segment and is beginning to move invest $3 billion to $5 billion or more in the data to assemble perfect real-time beyond its traditional line of high-end an automotive communications infra- Turn to Connecting, page 2 sound systems. While keeping a very low Potential Applications of Dedicated Short Range Communications (DSRC) profile, Bose is selectively exploring mul- timedia systems and component opportu- ◆ Public Safety Emergency vehicle video relay nities with carmakers in the United Approaching emergency vehicle warning Border clearance States, Germany and Japan, and develop- Emergency vehicle signal preemption On-board safety data transfer ing navigation equipment, network inte- Road condition warning Vehicle safety inspection gration and the human machine interface. Low bridge warning ◆ For the last couple of years the Bose Work zone warning Private Imminent collision warning Access control Automotive Systems Division has been Curve speed assistance (rollover warning) Drive-thru payment hiring engineers away from carmakers and Stop light assistance Parking availability and payment infotainment suppliers, including Ford, Intersection collision warning/avoidance Data transfer Alpine and Johnson Controls, to beef up Railroad collision avoidance Traveler information its product development capabilities in Cooperative collision warning Diagnostic data audio and beyond. Alpine makes audio Green light – optimal speed advisory Repair service record systems and is a key supplier of navigation Cooperative vehicle system (platooning) Vehicle computer program updates systems to Honda. Interior module sup- Cooperative adaptive cruise control Map and music data updates plier Johnson Controls has been develop- Vehicle-based probe data collection Video uploads ing hands-free cellular phone car kits Infrastructure-based probe data collection Data transfer/commercial vehicle/truck stop based on Bluetooth for Chrysler. Infrastructure-based traffic management Enhanced route planning and guidance Presently there are openings at Bose for Toll collection Rental car processing 23 full-time engineers and product plan- Traffic information Commercial vehicle fleet management ners with experience not only in acoustics Transit vehicle data transfer Transit vehicle refueling management Turn to Bose, page 3 Transit vehicle signal priority Data: GM, Ford, DaimlerChrysler, compiled by Renesas Connecting... Continued from page 1 traffic information. If vehicles were oping extensions to the basic 802.11 radio the production line in 2012, something equipped with a simple display or other standards that will form the basis of the like that,” he speculated. user interface, local authorities could di- DSRC system to provide communications Also among the unknowns in VII are rect traffic around accidents or road con- in the 5.9 GHz spectrum. Generally, the number and cost of the roadside radio struction. Drivers could also be directed to 802.11 addresses the physical and media beacons. According to one estimate, available parking. access control layers of the OSI (Open 500,000 roadside units costing $6,000 Speed and location data could be used Systems Interconnect) networking frame- each would be needed—a total invest- to determine when traffic has suddenly work. The 802.11b standard is the physi- ment of $3 billion. But that is under de- stopped and approaching vehicles could cal layer spec from which Wi-Fi was born. bate, says Mr. Wilson: “That number was be warned to slow down. That could pre- Wi-Fi gives laptop computers wireless ac- prorated based on estimates for Florida, vent nasty high-speed vehicle pileups that cess to the Internet, to other computers which is laying fiber [optic cable] in sand; are sometimes triggered by severe fog. and to wired networks. Colorado doesn’t think that figure is ap- Vehicular braking systems that monitor propriate. But even if the estimate is off wheel speed vs. vehicle speed can ascer- Think Long Term by a factor of ten, $30 billion is not that tain the extent of wheel slippage. That Carmakers and suppliers interested in much if you prorate it over the problem. data could be used to inform oncoming taking advantage of DSRC should not We’ve got a $300 billion a year safety vehicles of slippery road conditions ahead. wait around for the U.S. government to problem and a $100 billion a year traffic A communications infrastructure de- invest the billions of dollars necessary to problem.” ployed along the nation’s roadways could develop a communications infrastructure However, with deficit spending at an also be a critical element in preventing that covers the nation’s highways. The all-time high, it’s hard to imagine the U.S. intersection and road departure collisions, VII coalition will take at least until 2008 government making huge investments in which factor into 50% of all crashes and or 2009 to decide how much investment communications equipment, unless by the fatalities on U.S. roads. is required and whether the carmaker time the next highway appropriations bill members will agree to simultaneously in- is submitted, spending on the war in Iraq Technology Is No Longer an Obstacle stall the mobile equipment necessary to ends and tax revenues surge—not likely. Advocates of Vehicle Infrastructure take advantage of the communication in- The present highway bill has been stuck Integration point to a confluence of tech- frastructure. in Congress since October 2003 when the nological developments already com- Participants still don’t know exactly prior legislation expired. The next bill, pleted or well underway: In October 1999 what equipment should be installed in which would be the one to contain alloca- the U.S. Federal Communications Com- each vehicle. “A lot of questions are still tions for vehicle integrated communica- mission allocated 75 megahertz of spec- unanswered,” declared Bonnie Reid, a tions infrastructure, isn’t due until 2009. trum in the 5.9 GHz range for intelligent GM program manager who has been par- continued on page 3 transportation services to improve high- ticipating in VII. “We haven’t figured out way safety and efficiency. That spectrum, the necessary penetration [of radio THE HANSEN REPORT ON between 5.850 GHz and 5.925 GHz, was equipped vehicles], we haven’t figured out AUTOMOTIVE ELECTRONICS intended for a variety of Dedicated Short the final architecture, we haven’t figured © 2005 Paul Hansen Associates, 150 Range Communications (DSRC) uses out what the density of roadside units Pinehurst Rd., Portsmouth, NH 03801, such as traffic-light control, traffic moni- should be.” According to an email from USA. Telephone: 603-431-5859. Fax: 603- toring, traveler’s alerts, automatic toll col- Ford’s VII representative Ralph Robinson, 431-5791. Email: [email protected]. lection, detection of traffic congestion, Ford hasn’t decided yet what its position All rights reserved. Materials may not be emergency vehicle signal preemption of on VII should be. “We are developing that reproduced in any form without written per- traffic lights and electronic inspection of vision internally, but it will take another mission. The Hansen Report on Automotive moving trucks through data transmissions year before we know where we need to Electronics is published 10 times a year, with roadside inspection facilities. Engi- be,” he wrote. monthly; July/August and December/Janu- neers in the American Society for Testing Chris Wilson, vice president of ITS ary are combined issues. The annual sub- and Materials (ASTM) and IEEE stan- strategy and planning for DaimlerChrysler scription rate is $717 (North America), $747 dards groups have been working for nearly Research and Technology North America, (elsewhere). Back issues are available ten years on DSRC and expect to have along with Nissan’s Ron Heft, is described online for $50 each; see our online index at the bulk of the standards ready for product as a champion of the VII initiative. Mr. www.hansenreport.com. Paul Hansen Asso- development before the end of 2005. Wilson tries to keep a realistic perspective ciates is a strategy and market research Among some 38 entities listed as partici- on the timing. “Let’s say we (the VII) de- firm consulting to the electronics industry. pants in DSRC standard writing are cide by 2008 to go ahead and the govern- Publisher/Editor Paul Hansen DaimlerChrysler, Denso, GM, Motorola, ment money becomes available fairly Managing Editor/ Brianne Wolfe Nissan, Visteon and ITS America. quickly, then in 2009 or 2010 you could Circulation Manager Coincident with those developments, roll out the infrastructure. Maybe the IEEE 802.11p working group is devel- equipped vehicles could begin rolling off ISSN 1040-1105

Page 2, April 2005 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com Connecting... Continued from page 2 Without a massive infusion of govern- work on a European standard for car-to- think about offering to our customers in ment funding, industry leaders expect au- car communications systems based on the next upper-class vehicles, perhaps by tomotive Wi-Fi-like applications to wireless LAN (802.11) components. They 2009.” ◆ develop, but even more slowly. “My sense will also promote the use of a royalty-free is this technology will happen in pockets,” radio band exclusively for auto and push said Anand Ramamoorthy, manager of the to harmonize standards worldwide. For VII Coalition Members CIS/Telematics business unit of Renesas more information visit www.car-2-car.org. BMW Technology America. “There will be some According to Will Specks, in charge of DaimlerChrysler counties and states that will be more ag- electronics research for Volkswagen Ford gressive than the rest.” Private enterprise Group, Volkswagen didn’t decide to fully General Motors will also set up hotspots as business cases participate in car-to-car communications Nissan are made. research until recently. “What changed is Toyota wireless LAN, which has spread quite sig- Volkswagen European Carmakers Follow Suit nificantly in the consumer electronics U.S. Department of Transportation In August 2002 Audi, BMW, Daimler- world.” While the many potential safety FHWA (Federal Highway Administration) Chrysler and Volkswagen founded the benefits of car-to-car communications NHTSA (National Highway Traffic Safety Car2Car Communication Consortium. won’t be realized for a long time, Dr. Administration) Renault and Fiat joined the group in Specks believes that soon people will be FMCSA (Federal Motor Carrier Safety 2004, along with suppliers NEC, Philips ready to use their home computer’s wire- Administration) and Fraunofer Fokus; PSA signed on in less connectivity to send music files to 10 State Departments of Transportation March 2005. With the help of a German their vehicles. “Home-to-car communica- government grant, the consortium will tions is something that we have begun to

Bose... Continued from page 1 and audio, but also in telematics, naviga- which they are factory installed. Bose de- none were on Mercedes vehicles. Three tion, human interfaces, automotive net- signs its own digital signal processing and brands from Bose’s top competitor, works (including J1850, CAN, MOST equalization circuits. “The result is much Harman International, also made the list. and Bluetooth), OnStar/TeleAid applica- more than sound designed for a particular Bose now appears to be getting ready to tions, real-time embedded hardware and car. The vehicle itself becomes part of the leverage that brand appeal by expanding software, EMI susceptibility, video circuits sound system,” writes Bose on its Web its product line and moving up the supply and/or systems engineering and integra- site. Bose designs the speaker system and chain to take on responsibility for more— tion. Some of the positions call for bilin- manufactures speakers and amplifiers. or all—of the infotainment system, in- gual English speakers who are also fluent Bose isn’t known for playback mecha- cluding its integration into the vehicle in German or Japanese. Bose is said to pay nisms, head units, navigation, displays or communications network. well for engineering talent, particularly by infotainment systems integration. It is my view that Bose will proceed Detroit standards. Along with its ability to deliver notice- slowly by cherry-picking projects tied to Bose engineers have been working on a ably better sound quality than most of its luxury brands, so it can charge premium variety of development projects with sup- competitors, Bose has maintained high prices. By focusing on the upscale vehicle pliers of microcontrollers, map databases brand awareness among automotive cus- continued on page 7 and speech recognition software. Bose en- tomers. According to the Bose Web site, Top 10 Sound Systems in Cars Over gineers had been in discussions with oper- “For the second consecutive year, Bose is $30,000 for 2005 ating-system maker QNX, but they recognized as having the highest brand backed off when Harman International score in the United States among audio Listed alphabetically acquired QNX. Bose might well be devel- brands included in the J.D. Power and Acura RL (Bose) oping radio-navigation products like those Associates 2004 Automotive Component Acura TL (Panasonic) made by Harman-Becker. Bose does a Branding Study. The study measures the BMW 7 Series (Harman Kardon*) great deal of sound-system business with relative strength of select audio brands Cadillac STS (Bose) Mercedes; Harman supplies radio-naviga- based on unaided awareness, aided aware- Chrysler 300C (Boston Acoustics) tion systems to Mercedes. ness, and impression of the brands recog- Jaguar XJ-Series/KJR (Alpine) nized by consumers.” Land Rover Range Rover (Harman Kardon*) Strategy: Leveraging the Bose Brand Evidence of the brand’s credibility can Lexus LS 430 (Mark Levinson*) Bose is known for its high-performance be found in Edmunds.com’s 2005 list of Porsche Cayenne (Bose) speaker systems, which are customized to the ten best sound systems in cars that Volvo S80 (Dolby Pro Logic) fit the physical layout and acoustic finger- cost over $30,000 in the U.S. Three of *Harman International brands print of the particular vehicle model in the top ten were Bose systems, although Source: www.edmunds.com The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com April 2005, Page 3 The Company Profile... Marquardt

Thumbnail Sketch Marquardt Group Sales by Year Marquardt Group Sales by Market e e Headquarters: Schloss-Str. 16, 78604 in millions ($ millions) 2004 Sales: 323 million ($417 million) Rietheim-Weilheim, Germany; telephone: 1999 to 2004 Annual Growth Rate: 6.1% 49 (74 24) 99-0; fax: 49 (74 24) 99-23 99; Automotive, Power www.marquardt.de 66% tools, 22% 2004 Group Sales: €323 million ($417 million) Principal Products: Switches and 240 261 271 282 296 323 Household appliances, communications electronics (310) (337) (350) (364) (382) (417) systems, industrial applications, 12% Key Markets: Automotive, followed by power tools Marquardt Group Employees* 2004 R&D: 7% of sales 1999 2000 2001 2002 2003 2004 Employees: 2,909 1999 to 2004 Annual Growth: 1.6% 2004 Automotive Sales: €210 million Marquardt Group Sales by Region ($271 million) 2004 Sales: e323 million ($417 million) Automotive Products: Driver authorization systems, switching systems and switches America, Asia, 6% Top Automotive Customer: Mercedes 10% 2,685 2,823 2,919 2,917 2,834 2,909

Background Rest of Europe, Marquardt was founded in 1925, by Germany, 65% 1999 2000 2001 2002 2003 2004 19% two unrelated men named Johannes *Average at the end of each quarter Marquardt, to supply “electrical parts and fine mechanics.” Their first customer was Each Marquardt family owns 50% of can lose some of their customers.” a vacuum cleaner maker. The new com- the company. Harald Marquardt is CEO As a private company Marquardt is pany began making switches in 1926— and runs the automotive business unit. able to fund growth from cash flow and and switches remain its primary product The other family is represented by from bank borrowing. “We don’t give that today. Marquardt expanded rapidly in Mathias Marquardt, who is in charge of much money to shareholders; our divi- Germany after the Second World War finance and administration. Also on the dends are extremely small,” Dr. Marquardt and by the end of the twentieth century four-person management board are two said. The company has been modestly had manufacturing subsidiaries in France, non-family members: Ernst Kellermann, profitable for 80 years. While Dr. Spain, Switzerland, Northern Africa, the who runs Marquardt’s original appliance Marquardt insists the company is not United States and Asia. and white-goods switch business as well as looking for investment partners, he added, The company began production of the entire technical department, and “we never say never.” If someone wanted electronics systems in 1968, and during Detlef Kirsch, who runs the power tools to join forces with Marquardt, the com- the following decade diversified its prod- switch business. Marquardt says it is the pany would talk, “particularly if it in- uct line to serve the automotive industry. world’s largest supplier of power tool creases our business in Asia or the U.S.” Electronics content in automotive switches. Marquardt is overseen by a Marquardt’s headquarters in Rietheim- switches is increasing. Today, on average, seven-member advisory board; two board Weilheim, Germany, are located about about 60% of the value of Marquardt’s members represent the Marquardt fami- 100 km south of Stuttgart, home to product line is electronics content, 40% lies. Mercedes, Marquardt’s largest automotive mechanical content. Roughly 200 engi- Harald Marquardt believes that small customer. The production and administra- neers in Germany are dedicated to elec- family businesses survive in Germany be- tion facilities at Marquardt headquarters tronics, including hardware and software. cause they are “harder driven by dedicated occupy approximately 38,000 square Marquardt is still family-owned today, and committed shareholders, who are also meters. There the company manufactures a rarity in the light-vehicle parts business, in the top management.” He noted, plastic, punched metal parts and printed where major corporations own nearly “Managers of small companies can be circuit boards for all Marquardt produc- 100% of the market. Other privately held closer to the needs of customers than big- tion plants worldwide, including for auto- German suppliers include Hella (light- company managers can. Big companies motive systems. The plant is certified to ing), Brose (window regulators), Kiekert are usually more interested in growing the ISO/TS 16949:2002. (lighting) and Kostal (switches and elec- business through acquisitions. In the time Since 1999 Marquardt sales have tronics). it takes to integrate the new business, they grown by 6.1% annually while the number

Page 4, April 2005 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com The Company Profile Continued

Marquardt Automotive Sales Marquardt Automotive Sales Automotive Switch Types/Applications in e millions ($ millions) by Switch Type Switches Driver Authorization 1999 to 2004 Annual Growth Rate: 13.0% 2004 Automotive Sales: With and without Systems e210 million ($271 million) integrated Electronic keys Driver authori- electronics Electronic ignition Control devices, 3% zation system, Bus-capable starter switches Rocker Keyless-Go compo- 46% Application,* Toggle nents 114.2 127.3 146.1 161.1 184.4 210.0 27% Slide Electronic steering (147) (164) (189) (208) (238) (271) Push button locks Snap-action Control Panels Waterproof snap- Control Devices 1999 2000 2001 2002 2003 2004 Control panel, 24% action Convertible roof *Application switches include microswitches and Multifunction Door latching of employees has grown by just 1.6% an- snap-action switches used inside the door or Instrument panel Subassemblies nually. That increase in productivity is a trunk latch, similar to relays. These switches are Center console Seat control switch result of an increasing reliance on auto- usually not seen or operated by the driver. Interior and exterior Other mation in high-labor cost countries such lighting as the U.S. and Germany. Marquardt has Marquardt Customers Heating and air- conditioning also built factories in low-labor cost coun- Top OEM Customers tries such as Tunisia, India and China. In Seventy-five percent of Marquardt’s auto- York, which currently makes mostly early 2006 the company will begin pro- motive sales are made directly to carmak- power-tool switches and a small quantity duction in Sibiu, Romania. By the end of ers. Approximately 40% of automotive sales of automotive switches for General Mo- 2006 the facility will employ more than are from DaimlerChrysler. tors. But if Marquardt is successful in 250 people. #1 Mercedes landing some major pieces of automotive Marquardt’s toughest competition for #2 VW/Audi Group business it has in the works with GM and automotive switches comes from Kostal, #3 BMW others, in five years the Cazenovia facility Valeo, Siemens VDO, Huf, Delphi, Others (alphabetically) could be producing over $40 million dol- Methode Electronics plus the Japanese Bentley PSA lars worth of switches, including $20 mil- suppliers Alps and Omron. Dr. Marquardt Chrysler Renault lion in automotive switches annually. observed that the Japanese companies are Karmann Scania Getting more business with Chrysler making inroads in the market in Germany Porsche is important to Marquardt. It recently and the rest of Europe. picked up a new order from Chrysler for Top Tier One Customers (alphabetically) an accessory switch bank, but Dr. Bosch JCI SAS Developing Markets Marquardt acknowledges that the com- Brose Keykert Sidler In the last two decades, Marquardt has pany faces tough competition from Delphi Kostal Takata Petri become increasingly focused on the auto Methode Electronics (Chicago, Illinois), Faurecia Lear TRW industry. Ten years ago, the automotive Chrysler’s long-time switch supplier. Hella Magna Valeo market took 10% of Marquardt’s ship- In China, Marquardt expects its auto- ments. By 2004, that percentage had automotive sales will grow faster than the motive business to grow to between €7 grown to 66%. In five years the automo- market for the company’s automotive million ($9.0 million) and €10 million tive market’s share of company sales is products, which is expected to grow annu- ($12.9 million) in five years. Its Shanghai expected to grow to 80%. “When you pick ally at the rate of 5% to 6%. manufacturing and administration facility up a new piece of automotive business you Since Marquardt is a relatively small was recently doubled in size, to a total get to multiply a $5, $10 or $20 part by company, it initially had to be careful to area of about 3,900 square meters. 300,000 units a year, which gives you as focus on only a few automotive customers, In Germany, Marquardt is picking up much as $6 million in new sales,” ex- starting with Mercedes, which today is new business outside of Mercedes. For ex- plained Dr. Marquardt. “The power tools Marquardt’s largest customer by far. Now ample, the company was recently awarded business yields smaller figures: If Black & the company is working to develop busi- a contract to make the electronic steering Decker develops a new drill and we supply ness with other carmakers and tier one lock for the new Audi A4, which will be them completely, the numbers are lower. suppliers, especially those in Germany, launched in 2007. Through tier-one sup- Even if they sell 500,000 or 1 million China, Japan and the United States. plier Krupp Presta, Marquardt’s steering units a year, if the switch costs, for ex- To illustrate the company’s progress, lock will be installed in the new VW ample, $2—the most that business will Marquardt cited its U.S. manufacturing Passat. Marquardt sells the electronic ig- yield is $2 million.” Marquardt believes its facility near Syracuse, in Cazenovia, New continued on following page

The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com April 2005, Page 5 Marquardt

Technological Competencies Marquardt for electronic ignition starters products. Marquardt designed and manu- because of the substantial cost savings the factures the updated iDrive switch avail- ◆ Sensors: Flow, turbidity and displacement product affords. It also provides a high able as an option on the BMW 1 series ◆ Mechatronics degree of theft protection through the use and 3 series vehicles. ◆ RF/IR data communications (driver of rolling codes—more than 100 million Operated much like a computer mouse authorization systems) codes are possible, with a code change or touch pad, the iDrive switch has mul- ◆ Microprocessor applications every time the engine is started. The tiple functions, which are activated by ◆ SMD assembly “key” that starts the engine is electronic turning, sliding or pressing the main con- ◆ Through-hole assembly (no metal needed) and can be made as a trol knob. Marquardt doesn’t make the ◆ Selective soldering under inert gas smart card or it could take many other much-maligned iDrive switch used in the ◆ Laser labeling and soldering, plastic forms. “We actually give the customer the 7 series. That’s made by Alps. According welding functionality he wants and just surprise to Dr. Marquardt, his company’s version of ◆ Solder-free (Action-Pin) connecting him with a new idea of what the key can the switch, less expensive than the origi- ◆ Injection molding of thermoplastic and look like,” said Dr. Marquardt. nal, is a new benchmark for iDrive be- duroplastic materials Marquardt’s system allows drivers ac- cause the switches inside the device were ◆ Test techniques including RF/IR testing, cess to their vehicles and engine starter as designed to have the right feel. The im- in-circuit testing, force and travel long as the battery-operated transceiver proved haptics makes operation of iDrive measurement key is in their possession. To gain access more intuitive for drivers. To come up ◆ Printed circuit board painting to the vehicle, you walk up to the car and with its version for the 1 and 3 series, nition starter switch for the Passat directly pull on the handle to activate a switch. Marquardt looked at all of the switches to Volkswagen. BMW is Marquardt’s The car will then look for the proper key, accessible to the driver. While the iDrive third-largest OEM customer. which could be in the driver’s pocket can substitute for a number of switches when operating in RF mode. The elec- that clutter the dashboard, Marquardt Automotive Products tronic key used with Mercedes’ system took a wide view of all driver-accessible Automotive switches have much more operates in both RF and IR transceiver switches and suggested which ones should to do than simply close or open electrical modes, for backup. The battery lasts for stand as single-purpose switches separate connections. They have to be easy for the five to seven years. The driver starts the from iDrive, for easier driver access. driver to locate and operate under varying car by stepping on the brake and pressing Over time, as more carmakers apply lighting conditions, and their on or off a switch. Keyless-Go is Mercedes’ (some- multifunction, touch-pad-like switches, status must be easy to discern. They must what misleading) trade name for the sys- the demand for single-purpose switches feel right to the operator and be aestheti- tem supplied by Marquardt. Keyless-Go, will decline. “In some vehicles you can cally pleasing as well. which includes electronic key, antennas really see that drivers were overwhelmed ◆ Driver Authorization: Marquardt’s and control devices, is installed on the by too many switches; multifunction largest product group, accounting for 46% Mercedes CLK Cabrio and Coupé, the E- switches can help with that,” explained of sales, is driver authorization systems class and the Maybach. Marquardt also Dr. Marquardt. “Nevertheless, you will and components, which include elec- supplies a similar system to Volkswagen always need a base of dedicated switches tronic ignition starter switch, electronic car lines and to Porsche under the trade that you use every day, for example, igni- key, electronic steering lock, antenna, name Kessy (for Keyless Entry Start Sys- tion, hazard, horn, seat-heater and light door-handle sensor and control units. tem). Audi markets its version as Ad- switches. While headlamp switches can Marquardt began supplying Mercedes’ vanced Key. Marquardt supplies BMW automatically be turned on and off, many electronic ignition starter switches in with an ignition starter switch system, but people like to switch on their headlamps 1996, and that success has led to business not the electronic key. when they want,” he elaborated. with other carmakers: for the Audi A8, Since the late 1990s, Marquardt has ◆ Bus-Capable Switches: Taking ad- the new Audi A6, VW Phaeton, VW reduced the cost of its electronic key and vantage of its ability to combine software, Touareg, Bentley Continental and the starter systems to the point where they electronics and mechanical expertise, Porsche Cayenne. can now be used in small cars. “With Marquardt provides switches that are Today, electronic ignition starter prices now ranging down to as low as €30 linked into networks using CAN and/or switches are one of Marquardt’s two fast- ($39), in ten years time, with further cost LIN protocols or its in-house developed est-growing products. Less expensive than decreases, 60% to 70% of all cars world- MAXIS bus protocol used on trucks and a fully electromechanical switch, the elec- wide will be equipped with a Keyless-Go commercial vehicles. Marquardt is seeing tronic ignition switch is comprised of an type of system, standard,” predicted Dr. rapid growth in the demand for bus-ca- 8-bit microcontroller, some software, elec- Marquardt. pable switches. tronics and some switches. ◆ iDrive Multifunction Switch: Mul- “In some Mercedes models 100% of the According to Dr. Marquardt, all three tifunction switches like the iDrive are the switches we make for them are connected Detroit carmakers are in discussions with second of Marquardt’s two fastest-growing to a bus,” said Dr. Marquardt, who told us

Page 6, April 2005 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com The Company Profile Continued that one of the greatest advantages of this Marquardt’s Automotive Production Facilities product line is the way it can reduce the inventory of switches held at the car- Location Production Size Certification Products maker. Mercedes can wait until one day Start in m2 before it needs the switches on the factory Rietheim-Weilheim, 1925 38,000 ISO/TS 16949:2002 Assembly parts such as floor to custom order a bank of CAN-ca- Germany plastic and punched parts, printed circuit boards forall pable switches from Marquardt. Each plants worldwide bank of switches comes with a CAN elec- Boettingen, Germany 1955 7,400 ISO/TS 16949:2002 Snap-action swithces and tronics module in which an EEPROM is subassemblies programmed to give each heretofore exact Trossingen, Germany 1984 2,900 ISO 9001:2000 Tools and molds same switch its unique address. Each Cazenovia, N.Y. USA 1981 5,700 ISO/TS 16949:2002 Small quantity of automotive switch is then labeled according to its switches function by Marquardt’s patented process Tunis, Tunisia 1991 9,500 ISO/TS 16949:2002 Switches for laser etching the plastic. Shanghai, China 1996 3,900 ISO 9001:2000 Automotive switch production While Marquardt’s customers have to start soon. used plenty of CAN switches, they are quickly transitioning to the newer LIN No deterministic time behavior Manufacturing standard, which is less expensive than High flexibility Most automotive manufacturing is CAN. According to Marquardt, each Up to 1 Mbps at 40m network done at Marquardt plants in Rietheim and CAN node costs at least €5.30 ($6.84) for dimension Boettingen, Germany, and in Tunisia. the microcontroller and chip set, com- Dual wire system Marquardt is proud of the fact that it pared with LIN nodes starting at about Up to 8 data bytes per message designs and manufactures most of its pro- €1.65 ($2.13) for the microcontroller and Broadcast transmission possible duction equipment in-house, including chip set. Given the cost of each node, it Multi-master system tools and dies, special purpose machines, makes sense to network only if a mini- and equipment for inspection, measuring mum of five switches are linked to the Local Interconnect Network (LIN) and testing. With in-house designed tools, node. Because the LIN network requires Time-triggered communications Marquardt improves productivity and only one wire to connect the nodes com- Bus access with delegated token quality by leveraging its expertise in the pared with two wires for CAN, LIN would Deterministic time behavior mechanical, electronic and software pro- require half the number of connection Low safety of data duction processes required to meet cus- terminals. Up to 20 Kbps tomers’ needs. Dr. Marquardt has a great Single wire system deal of confidence in his engineers and a Comparison of Network Features Up to 8 data bytes per message dedicated workforce in Germany. “We are Controller Area Network (CAN) Broadcast transmission possible very flexible, we are innovative, we have Event-triggered communications Single master and multiple slave nodes good ideas and we are very focused on Priority controlled bus access what we’re doing,” he said. ◆

Bose... Continued from page 3 segment, Bose will protect the value of its gests to consumers that Bose is responsible the wheels on the road and also allows brand by limiting its availability. One of for the entire system. Poorly performing power to be returned to the motor as the Bose’s sound-system customers recently components within the system can easily wheel rides up, for example, coming out of told me that he is a little worried about sully the brand. a pothole. As a result, the Bose active sus- the Bose brand getting watered down be- pension system requires less than one- cause it is so widely available. Bose sound Electromagnetic Suspension third the power of a typical vehicle systems can be purchased not just on While Bose has been very secretive air-conditioning system. High power de- luxury models made by Acura, Audi, about its infotainment developments, its mands have severely limited the penetra- Cadillac, Mercedes and others, but also on new electromagnetic suspension system tion of active suspension systems into many moderately-priced Chevrolet, has been seeing plenty of press. Still quite vehicles. Bose has been developing the Mazda and Nissan models. expensive, the system promises to com- suspension system for more than 24 years. By moving up the supply chain, Bose bine passenger comfort and vehicle con- A private company, Bose invests heavily will be better able to control the quality of trol—two suspension attributes that have in R&D and is not forced to show quick the entire infotainment system. Even been mutually exclusive. Regenerative investment returns. According to Fortune though the company makes only speakers power amplifiers allow power to flow into magazine, Bose annually ships about $1.7 and amplifiers today, the Bose brand sug- the linear electromagnetic motor to keep billion worth of products. ◆ The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com April 2005, Page 7 Honda, Hyundai, Subaru—Best E/E Reliability Percentage of Light Vehicles with Electrical Systems Problems Each April we review Consumer Re- ports’ used car reliability scores published 2002 2003 2004 in the magazine’s annual auto issue. The Honda/Acura 1.0 1.0 1.0 most recent scores are based on roughly Hyundai/Kia 1.0 1.3 1.0 810,000 responses to Consumer Reports’ Subaru 1.0 1.1 1.0 survey of its subscribers, many of whom Toyota/Lexus 1.0 1.0 1.1 report on serious problems they had with General Motors 2.5 2.8 1.7 their 2004 vehicles. To calculate our rank- Nissan/Infiniti 1.3 1.4 1.8 ing, we weight the electrical system scores Mazda 1.0 1.5 1.9 with U.S. sales of 2004 models published Ford 2.5 2.1 1.9 in Automotive News or provided by the Chrysler 2.2 2.5 1.9 carmakers. DaimlerChrysler 2.3 2.8 2.0 Of the eleven carmakers we track, six BMW 3.5 4.0 3.1 improved their electrical system reliabil- Mercedes 2.8 4.9 4.4 ity, four slipped from last year and one, Volkswagen 4.1 2.7 4.7 Honda, stayed the same. Subaru and Hyundai tied with Honda for this year’s 2005 claims that Mercedes is “now pro- list of cars classified as “good bets” and top ranking. GM moved up from ninth to ducing the best product quality ever,” but “bad bets,” based on the model’s overall fifth place, trailing Toyota by 0.6%. When acknowledges problems with a voltage reliability over the years. The good bets we first ranked the carmakers in 1993, regulator and battery control unit soft- have better-than-average overall reliabil- 5.9% of GM vehicles showed electrical ware. Electrical glitches affecting lights ity; the bad bets have shown much worse- system problems. and switches also prompted big recalls for than-average reliability. Of the 54 good A March 31, 2005 press release from Ford and GM. bets listed, 47 are Japanese makes and the Mercedes announcing the recall of 1.3 For customers considering buying a rest are U.S. makes. No Japanese models million vehicles built between 2001 and used car, Consumer Reports also includes a were included in the bad bets list. ◆ Auto Electronics Conference in Germany Telematics Update Detroit Eight hundred automotive electronics Industry executives who want to keep VIP presenters include: professionals are expected to attend up with the latest trends or network with Karl-Thomas Neumann, Board Mem- Telematics Update’s Detroit 2005 event, top industry officials, especially the Ger- ber, Continental which will be held at the Laurel Manor, th mans, should attend the 9 International Jürgen Leohold, Director Electrical/ Livonia, Michigan, outside of Detroit. Congress, Advances in Automotive Elec- Electronics, Volkswagen AG Starting on May 16 the two-day confer- tronics. Automotive electronics experts Dr. Willibert Schleuter, Director, ence offers a full agenda of panel discus- will convene in Ludwigsburg, Germany Electrical/Electronics, Audi sions, keynotes, workshops, case studies, (near Stuttgart), June 21–22, 2005. Bill Mattingly, Vice President Electri- and interactive roundtable discussions, as “This conference is like Convergence cal/Electronics Core, Daimler- well as an exhibition. Exhibitors include used to be,” said Heinz Leiber, former di- Chrysler Freescale Semiconductor, Siemens VDO, rector of electrical and electronics devel- Patrick Popp, Director, Electrical and Wind River, QNX Software Systems, opment at Mercedes-Benz, who helped Controls Integration Lab, General Networkcar and Bluetooth expert, organize the meeting. “It deals with the Motors Parrot. big picture; all of the presenters are direc- Karl-Heinz Gaubatz, Director, Chassis On May 16, Paul Hansen will moder- tors or vice presidents.” Systems, BMW Group ate a morning plenary panel discussion During the single-track event, 18 Shiro Baba, General Manager Auto- called “Partnerships That Increase speakers will cover a variety of important motive Semiconductors, Renesas Telematics’ Value Proposition.” Panelists subjects including: complexity manage- Technology Corp., Tokyo include John Slossar, director of electron- ment, diagnostics, model-based develop- ics systems, Visteon; Stell Patsiokas, ex- ment, driver-assistance systems, third- Simultaneous translation to English is ecutive vice president, XM Satellite generation infotainment systems, archi- available. To register for the €1,295 Radio; George Salmi, business develop- tecture, safety systems, vehicle dynamics, ($1,671) event and exposition, please ment executive with the IBM telematics microcontrollers, trends in energy man- visit www.elektronik-tagung.de or call and asset-monitoring group; and Paul ◆ agement and hybrid vehicles, modularity 49- (0)-8191-125-573. Drysch, vice president of sales for M2M and systems integration. (machine-to-machine) connectivity pro- vider Aeris.net. For complete details, please visit www.telematicsdetroit.com. ◆ Page 8, April 2005 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com