NEWSPAPER APRIL 27,2015 and beyond. name intheNorthwest business modelandstore wants tospreadthat powered dealerships Auto’s twoInternet- The buyerofDaveSmith plans toexpand Dave Smithbuyer D with ahuman to interface dilemma: How Driverless car > the motoriststaysalert.Some, ferent techniquesto ensurethat concepts beingtried.” schools ofthoughtandmany David Caldwell. “There are many ment,” saidCadillacspokesman lenging parts of the develop- of engineers. an eventthatattractedthousands the annualSAEWorldCongress, nology ofdriverlesscarsduring auto executives debated the tech- tainly ahottopiclastweekhereas be ConundrumNo.1.Itwascer- handle thehumaninterfacemay industry, thematterofhowto is MegatrendNo.1intheglobal do so. he orshemaybetoodistractedto — heavenforbidtakinganap, if amotorististextingspouseor ters anunexpectedobstacle.But to takeoverifthevehicleencoun- however, sodriversmustbeready out themotorist’sintervention. themselves onthehighway with- Automakers havedeviseddif- “This isoneofthemostchal- Indeed, ifautonomousdriving The technologyisn’tfoolproof, SAE WORLDCONGRESS see steer, accelerateand brake ETROIT —Soonwe’llbe driving vehiclesthatcan | PAGE8 David Sedgwick [email protected] AUTONOMOUS , Page ‘Rational exuberance’ while SubaruandAudisuppliesare overs somanybuyersnowfavor, and tick off reasons to worry. looking U.S. Highway 127 here. aru stores he owns on two lots over- for the Audi, and Sub- feels pretty good about the future [email protected] Neal E.Boudette revelsingoodtimesbutmanagestoavoidoverdoingit Industry 34 VW doesn’thavethesmallcross- But he can still hold up a hand LANSING, Mich. — Jeff Williams PACE black-tiecelebration. Our photogallerycapturestheexcitementat21stannual companies won14AutomotiveNewsPACEAwards. were thefocusofagalaeveningonApril20,when12supplier fuel thatdrivescompetitivenessinthisindustry.Theyalso and broughttomarketasanautomotiveproduct—arethe Game-changing innovations—newideas,executedwell Celebrating innovation > AUTOMOTIVE NEWSPACEAWARDS HEADED industry’s future seemedtocomeintosharpfocus. future industry’s What a week! From theShanghai autoshowtothe What aweek!From HR WE’RE WHERE Entire contents©2015CrainCommunicationsInc.Allrightsreserved. SAE engineering extravaganza in Detroit, the SAE engineeringextravaganzainDetroit, SAE coverage Shanghai autoshowcoverage rise ofsubprimelending ■ “People waittoseetheoutcome, through early2017. bring alullinsalesthatwilllast presidential electioncampaignwill And he’sconvincedthatthecoming his customers’purchasingpower. edge up,pinchinghisfinancesand tight. Interestratesareboundto SUMMITS INCROSS-GENERATIONAL EDUCATION | PAGE23 “It alwayshappens,”hewarns. Comment: gen | PAGES 32,33,39| cellence e Experts debatethe | PAGES 4,25,27| | PAGE 14 | | PAGE22 nomic threatsaroundthecorner. he’s alsothinkingabouttheeco- ation toseizeonthecurrentboom, he’s investinggenerouslyinhisoper- of cautionWilliamsespouses.While the mostreassuringsigniskind tive, sustainabletrack,butperhaps the U.S.autoindustryisonaposi- off bigpurchases.” whichever wayitgoes,andtheyput Most manufacturersarewalking There aremanysignssuggesting autonews.com/SummitSeries Solve yourMillenials saleschallenge DEALERS: S for theU.S. car strategy China’s cheap Priced tosell: > goals, notingthemanyChinese Wall MotorCo.andBYDAuto similar pronouncementsbyGreat China carsintheU.S.,following floating planstosellmade-in- the latestChineseautomaker goes bytheabbreviation GAC,is importers anddistributors. already isseekingU.S.dealers, price, itshouldbecompetitive.” auto show. “Considering the low Automotive News popular inthemarket,” Wutold crossover sometimein2017. U.S. launchofhiscompany’sGS4 ment pricingstrategywiththe will betestinghisbargain-base- same segment. percent cheaperthanrivals inthe His carswillhavetobepriced 30 says hehasthatmagicnumber: Automobile GroupMotorCo., aspiring U.S.entrantGuangzhou ceed inAmerica? Skeptics oftenpooh-poohsuch Guangzhou Automobile, which The company’s top executive “We areconfident.Itcouldbe If everythinggoeshis way,Wu Wu Song,generalmanagerof SHANGHAI AUTOSHOW HANGHAI —Howmuch to discountitscarssuc- plant, whereitbuildsthecompact off 700workersatitsWayne,Mich., to getaheadofthemarket. cesses thatinthepastcausedthem stopped shortofthekindsex- overreaching, andsofartheyhave new capacity,theyremainwaryof for highersalesandinvestingin this sameline.Although pushing will aChinesebrandneed Just lastweek,Fordsaiditwilllay [email protected] Hans Greimel autonews.com see see $159/YEAR; $6/COPY CHINA at theShanghai EXUBERANCE , Page See page29 33 , Page 37 ® 20150427-NEWS--0022-NAT-CCI-AN_-- 4/23/2015 12:50 PM Page 1

22 • APRIL 27, 2015

20AUTOMOTIVE15NEWS PACE AWARDS

The PACE Award winners by category PRODUCT ■ BorgWarner TorqTransfer Celebrating Systems, Auburn Hills, Mich.: Front-wheel-drive electronic limited-slip differential ■ Continental Automotive, Auburn Hills, Mich.: Printed circuit innovation board substrate technology for transmission electronics PACE Award winners: Front row, from left, Steffen Hoppe, Federal-Mogul; Philippe Masson, Valeo Electrical ■ Continental Automotive, Auburn Hills, Mich.: Multiapplication Systems; Michael Godwin, OSRAM Opto Semiconductors; Rick Smith, ; Bruce Warren, Magna Closures; unified sensor element Jochen Adelmann, Mahle; and David Jones, Sika Automotive. Back row, from left, Mike Gerulski, Federal- ■ Denso Corp., Southfield, Mich.: Highly standardized Mogul; Martin Baumeister, Continental; Michael Mueller, FTE automotive; Kregg Wiggins, Continental; Dave automotive heating, ventilation and air conditioning control unit Anderson, ; Hans Engström, BorgWarner TorqTransfer Systems; and Ray Kuczera, GKN Driveline. ■ Federal-Mogul Corp., Southfield, Mich.: MicroTorq seal ■ FTE automotive, Auburn Hills, Mich.: Hydraulic gear shift actuator module ■ GKN Driveline, Redditch, U.K.: Two-speed gearbox for electric vehicle applications ■ Magna Closures, Holland, Mich.: Pure View seamless sliding window ■ Mahle Engine Systems and Components, Stuttgart: Evotec 2 lightweight piston for gasoline engines ■ Nvidia, Ann Arbor, Mich.: Tegra visual computing module ■ Osram Opto Semiconductors, Northville, Mich.: Black flat 2 multichip family for mass market ■ Sika Automotive, Madison Heights, Mich.: Ultra-high modulus 4 adhesive for mixed material bonding ■ Valeo Electrical Systems, Creteil, France: EG efficiency generator 1 MANUFACTURING PROCESS ■ Federal-Mogul Corp., Southfield, Mich.: Low-friction DuroGlide piston ring pack

In addition, three automakers were honored for fostering innovative partnerships with their suppliers: ■ Audi AG for partially coated multilayer steel transmission separator plates with Dana Holding Corp.; printed circuit board substrate technology for transmission electronics with Continental Automotive; and hydraulic gear shift actuator 3 module with FTE automotive ■ BMW AG for ultra-high modulus adhesive for mixed material Thrill of victory: PACE winners celebrate, thank their teammates and hold high their awards: bonding with Sika Automotive 1. Bruce Warren, Magna Closures and Randy Miller, EY 2. Magnus Olsson of Volvo making remarks after ■ Volvo Car Corp. for RACam integrated radar/vision system winning the innovation partnership award with Delphi 3. Franz Linner of BMW Group pumps his fist after with Delphi Automotive winning an innovation partnership award with Sika Automotive 4. Martin Baumeister of Continental with his PACE trophy PHOTOS BY JOE WILSSENS Innovation inspires suppliers along with industry Bradford Wernle dustry’s long history of partnership and in- here. The awards are sponsored by EY, the [email protected] More PACE novation in accepting his company’s award Transportation Research Center Inc. and ETROIT — Great innovation does on the Web for its Tegra visual computing module. Automotive News. more than just make better vehicles. ■ Summaries of 14 winners, “It’s also kind of cool to be here in Detroit Twelve suppliers won 14 awards. Conti- It can inspire companies to trans- with judges’ comments and 36 finalists because this is a new point in time in history nental Automotive and Federal-Mogul Dform themselves and create jobs. autonews.com/pacewinners to see other companies like our own coming Corp. won two awards each. That’s what happened to Magna Closures, into this industry and lighting a fire around Seven of the 14 winners of the competi- ■ Video clips of the winners which won a 2015 Automotive News PACE new innovation,” said Anderson, senior tion, which recognizes game-changing new autonews.com/pacevideo Award for its Pure View sliding rear window manager of automotive integration at products and processes, were honored for for the 2015 Ford F-150 pickup. Nvidia. efforts that will help their customers meet Bruce Warren, general manager of Magna That was the same factory that we had shut “A hundred years ago that same type of in- tougher mileage and emissions rules. Glass and Sealing Systems, told an awards earlier due to a downturn in the economy.” flux of innovation was happening with two “A new level of efficiency is being achieved ceremony crowd of about 500 last week that The PACE Awards kicked off the SAE 2015 of the pivotal figures in Detroit,” Thomas with basic science — new materials and his company had dreamed of winning a World Congress here, and attendees were Edison and Henry Ford, he said. “A lot of the electronics,” said J Ferron, director of judg- PACE Award several years ago. welcomed by Jeff Hemphill, chief technical electrical innovation that became part of ing for the PACE Awards. “But it was just a dream. Our business was officer of North America Ford’s vehicles was fundamentally created For instance, one of Federal-Mogul’s shrinking due to outdated product lines and who also is SAE International’s vice presi- out of that partnership.” awards was for a piston-ring coating made a difficult industry. Our chance came when dent of automotive. He welcomed similar partnerships be- of a carbon material with properties of dia- Ford opened the design competition for the He summed up the challenges facing the tween Detroit and Silicon Valley to bring mond, which cuts friction up to 20 percent. completely new F-150 sliding window. We industry as it strives to boost fuel economy “the same level of innovation into the interi- As part of the event, three automakers weren’t the incumbent, so we knew we had and prevent accidents: “This industry needs or of your vehicle, redefining the cockpit were awarded Innovation Partnership to do something really special to win. innovation like never before.” and user experience.” Awards for fostering innovations with sup- “The most important thing is we created Dave Anderson of Nvidia Corp., a Silicon The 21st annual awards were handed out pliers: Audi AG, BMW AG and Volvo Car 125 jobs at the factory in Holland, Mich., Valley computer chipmaker, invoked the in- April 20 at the Max M. Fisher Music Center Corp. c APRIL 27, 2015 • 23 SUPPLIERS PICK UP THE PACE AND PARTY o with sales rocking, automakers Recession now find it’s a great time to paying well for innovative have automotive expertise. Their skills Sproducts and new factories going are in high demand to improve every up, what’s a supplier executive to do? corner of the automobile. That’s easy: Have a party. Do you have an idea to save a gram At last week’s gala evening to hand of weight? Let’s talk, say automakers. out the 2015 Automotive News PACE Can you add a tenth of an mpg to a Awards, suppliers toasted their powertrain? Let me buy you a cup of The envelope please: Teams from PACE finalists wait for their success. coffee. company to be named a winner. Engineers who stuck out the Great Times are good. Time to celebrate.

Keith Crain, editor-in-chief of Automotive News, welcomes supplier execs and their guests.

Michael Mueller of FTE automotive accepts the PACE trophy from J Ferron, right, PACE director of judging, and Jason Stein, publisher of Automotive News.

Eugene Mann plays the saxophone at the reception.

Above, from left, from Ford Motor Co.: Carlene Bills, Nicole Petite, Julia Woodhouse, Keith Combs and Chris Alberty. At right: Jeff Basas of Axalta Coating Systems and his wife, Karen Basas.

PHOTOS BY JOE WILSSENS Lynn Tilton, CEO of Dura Automotive Systems, and Dura execs, from left, Martin Becker, Jerry Lavine and Pierre Beyer. 28 • APRIL 13, 2015 Competition is intense for PACE Awards Here are summaries of eight finalists for the 2015 Automotive News PACE Awards, which honor > Piston coating reduces friction up to 20% innovations in products, manufacturing processes and information technology. Federal-Mogul Corp. ■ WHAT: Automotive News PACE Awards, which ■ WHAT: DuroGlide piston ring honor innovation by automotive suppliers coating ■ INNOVATION: Federal-Mogul’s ■ CO-SPONSORED BY: EY, Transportation Research DuroGlide piston ring coating cuts Center Inc., Original Equipment Suppliers Association friction up to 20 percent. The and SAE International coating is a durable carbon ■ WINNERS ANNOUNCED: April 20 material with properties of diamond that resists abrasions ■ WHERE: Max M. Fisher Music Center, Detroit and scuffing. Fuel savings can be ■ OTHER FINALISTS: up to 1.5 percent. autonews.com/pacefinalists ■ FIRST CUSTOMER: Volkswagen 1.6-liter and 2.0-liter BlueMotion models, 2014 ❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙ ■ WEBSITE: federalmogul.com

> Variable steering helps parking > Compact EGR valve is easy to package and high-speed cruising BorgWarner Takata Corp. ■ WHAT: Gasoline exhaust gas recirculation module ■ WHAT: Active steering ■ INNOVATION: To help control emissions of direct-injection gasoline turbocharged ■ INNOVATION: Variable ratio steering has engines, BorgWarner engineers developed an exhaust gas recirculation valve with a been limited mostly to luxury vehicles new type of steel that can withstand exhaust gas temperatures above 750 degrees because it’s expensive. While parking, Celsius, or 1,382 degrees Fahrenheit. The new valve, which features an it causes substantial steering changes intercooler, is smaller and more compact than existing EGR valves, which with little movement of the steering makes it easier to package on engines. wheel. But while cruising at high ■ FIRST CUSTOMER: Fiat 3.6-liter Pentastar V-6 gasoline speeds, it causes only small steering engine, March 2015 changes with the same steering wheel ■ WEBSITE: .com rotation. Takata’s solution embeds a gear set, electrical motor and computer controls in the steering wheel. This achieves variable ratio steering inexpensively for mass-market vehicles. ■ FIRST CUSTOMER: Ford, March 2015 ■ WEBSITE: www.takata.com/en

> Completely recyclable — and fancy stitches, too > 1 sensing device, many powertrain uses Inteva Products Continental Automotive ■ WHAT: Olefin soft-stitch instrument panel ■ WHAT: Multiapplication unified sensor element ■ INNOVATION: Inteva developed a complete instrument panel — skin, foam and ■ INNOVATION: Continental developed a sensing device that can be substrate — made of olefin, a recyclable synthetic fiber. The instrument panel is programmed to act as five powertrain sensors. For example, a efficiently recycled with no scrap. The material is soft, wrapable and permits decorative camshaft position sensor can become a crankshaft stitching on the full skin of the position sensor via a programming change. An instrument panel. Robotic added bonus: The element does not require rare- stitching cuts earth materials. It uses ferrite magnets, which manufacturing time to a cost 70 percent less than the magnets used by a few minutes from up to typical sensor. three hours. ■ FIRST CUSTOMER: 2.0-liter gasoline direction injection ■ FIRST CUSTOMER: 2013 and 2.4-liter turbo direct injection engines in the Hyundai Sonata and Santa Buick Enclave, Chevrolet Traverse and GMC Fe Sport and Kia Optima and Sorento, January 2014 Acadia ■ WEBSITE: conti-online.com ■ WEBSITE: intevaproducts.com > Lightweight awd > 2nd gear saves for small fwd vehicles fuel for GKN Driveline electrified ■ WHAT: Awd disconnect system ■ INNOVATION: GKN’s compact and lightweight vehicles drive system is suitable for a range of small GKN Driveline front-wheel-drive vehicles. It connects the rear ■ WHAT: Two-speed gearbox wheels when needed for traction and for electrified vehicles disconnects them for high-mpg cruising. It meets ■ INNOVATION: The all of Jeep’s Trail-Rated off-road requirements. > Precise manufacturing typical electric ■ FIRST CUSTOMER: Jeep Renegade, Fiat 500X, powertrain uses a 2014 cuts bearing friction one-speed electric- ■ WEBSITE: gkn.com Federal-Mogul Corp. drive transmission, ■ WHAT: High precision bearing profiling which takes the vehicle ■ INNOVATION: Federal-Mogul engineers found that to a certain speed, then engine-bearing friction can be reduced if bearings disconnects. GKN’s have a slight convex shape. The weight of the two-speed eTransmission crankshaft on the bearing flattens the convex allows optimal powertrain surface, reducing friction. The company’s precise performance with electric manufacturing creates a convex surface just a few propulsion for high speeds, too. In the BMW i8, which microns higher in the middle of the bearing than goes from 0 to 60 mph in 4.4 seconds, the on its edges. (A micron is one-thousandth of eTransmission, guided by innovative computer 1 millimeter.) The surface can be customized controls, stays engaged with the vehicle’s six-speed for different bearings without loss of automatic transmission up to the vehicle’s manufacturing productivity. programmed limit of 155 mph. ■ FIRST CUSTOMER: Hyundai’s A2 inline-four ■ FIRST CUSTOMER: BMW i8, 2014 diesel engine, 2012 ■ WEBSITE: gkn.com ■ WEBSITE: federalmogul.com 20 • APRIL 6, 2015 Game-changing suppliers seek PACE Awards Here are summaries of seven finalists for the 2015 Automotive News PACE Awards, which honor innovations in products, manufacturing processes and information technology. ■ WHAT: Automotive News PACE Awards, which honor innovation by automotive suppliers ■ CO-SPONSORED BY: EY, Transportation Research Center Inc., Original Equipment Suppliers Association and SAE International ■ WINNERS ANNOUNCED: April 20 > Special ■ WHERE: Max M. Fisher Music Center, Detroit coating on pins ■ OTHER FINALISTS: Featured weekly through the April cuts chain wear 67% 13 issue and online at autonews.com/pacefinalists BorgWarner ■ WHAT: Inverted tooth silent timing chain ❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙ ❙❙❙❙ ■ INNOVATION: Timing chains in turbocharged gasoline direct-injection engines tend to wear out early due to severe oil conditions. BorgWarner’s new chain, with specially coated stainless steel pins, reduces wear by 67 percent over a chain using traditional chromium > Less expensive LEDs carbide coated pins. for mass-market cars ■ FIRST CUSTOMER: Volkswagen AG’s 1.4-liter GTDI engine, May 2015 Osram Opto Semiconductors ■ WEBSITE: borgwarner.com ■ WHAT: Oslon black flat multichip family ■ INNOVATION: LEDs create elegant auto lighting. But the diodes and related parts are complex electronic > Engine, transmission converse devices that have been restricted mainly to luxury vehicles because of high costs. Osram’s family of LEDs, by reducing to boost fuel efficiency complexity and cutting manufacturing costs, are suitable for Eaton and mass-market vehicles. ■ WHAT: SmartAdvantage Powertrain ■ FIRST CUSTOMER: Audi, 2015 ■ INNOVATION: Engineers at Eaton and Cummins took their ■ WEBSITE: osram-os.com long-standing cooperation to a higher level by devising advanced computer controls to operate the Cummins heavy-duty engine and Eaton 10-speed transmission. By sharing data, the engine and transmission determine the torque curve and power needed to match the load, which optimizes fuel economy and performance. ■ FIRST CUSTOMER: CalArk Inc., September 2013 ■ WEBSITE: eaton.com, cummins.com

> Hydroforming creates artful Lincoln liftgate Amino North America Corp. ■ WHAT: Sheet hydroformed clamshell liftgate ■ INNOVATION: Lincoln wanted a liftgate that wrapped around the rear corners to lend styling > Only one HVAC unit elegance to the MKC. Conventional stamping could not do the job. So Amino used high- for SUVs, minivans pressure water to bend sheet steel, a method called hydroforming. The process also forms a recess in the liftgate for Delphi Thermal one unbroken light bar from side to ■ WHAT: Integrated front and rear side. HVAC unit ■ FIRST CUSTOMER: ■ INNOVATION: SUVs and minivans Lincoln MKC, 2014 typically have two units, front and ■ WEBSITE: back, for heating, ventilation and air aminonac.ca conditioning, or HVAC. Delphi’s single unit in the instrument panel saves weight and meets all heating and cooling requirements for the entire cabin while still permitting front and rear passengers to control temperatures. ■ FIRST CUSTOMER: 2014 Acura MDX ■ WEBSITE: delphi.com > Coated steel plates replace paper gaskets > Multiple sparks cause Dana Holding Corp. complete combustion ■ WHAT: Steel transmission separator plates Delphi ■ INNOVATION: Automatic transmissions with up to 10 speeds need high fluid pressure ■ WHAT: Multicharge ignition to operate clutches, valves and other internal parts. Under high pressure, traditional paper ■ INNOVATION: Modern direct injection of gasoline causes an uneven mix of gaskets can leak or foul transmission fluid. Dana’s multilayer steel plates replace paper fuel and air in the cylinder. The uneven mix requires expensive, high-energy gaskets with technology found on cylinder head gaskets. The steel plates are coated with ignition coils. Delphi’s computer-controlled coils provide multiple sparks for a flexible sealing compound, preventing leaks and contamination. complete combustion without increasing the size or weight of the coils. ■ FIRST CUSTOMER: 2014 Audi A4, A6 ■ FIRST CUSTOMER: Mercedes four- and six-cylinder engines, April 2011 ■ WEBSITE: dana.com ■ WEBSITE: delphi.com 18 • MARCH 30, 2015 Game-changing suppliers seek PACE Awards Here are summaries of seven finalists for the 2015 Automotive News PACE Awards, which honor > Improved traction innovations in products, manufacturing processes and information technology. for fwd vehicles ■ WHAT: Automotive News PACE Awards, which honor BorgWarner innovation by automotive suppliers ■ WHAT: Limited-slip differential ■ CO-SPONSORED BY: EY, Transportation Research for front-wheel drive ■ Center Inc., Original Equipment Suppliers Association INNOVATION: When a drive wheel hits a slippery spot, and SAE International such as ice, the limited- ■ WINNERS ANNOUNCED: April 20 slip differential sends ■ WHERE: Max M. Fisher Music Center, Detroit torque from the wheel ■ OTHER FINALISTS: Featured weekly through the April on ice to the wheel with better traction. 13 issue and online at autonews.com/pacefinalists BorgWarner, working with VW Motorsport, devised a cost-effective limited-slip differential for fwd vehicles. It uses ❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙ ❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙ BorgWarner’s controls and clutch actuation to operate the front differential. ■ FIRST CUSTOMER: Volkswagen Golf GTI, November 2013 > Steerable rear wheels ■ WEBSITE: borgwarner.com ZF Friedrichshafen AG ■ WHAT: Active rear axle kinematics ■ INNOVATION: With steerable rear wheels, a vehicle is more stable at high speeds and more maneuverable while parking. ZF’s system uses an electric motor, sensors and a control computer to activate rear steering when it’s needed. ■ FIRST CUSTOMER: 2014 911 GT3 ■ WEBSITE: zf.com

> Elegant rear window Magna Closures ■ WHAT: PureView seamless sliding window ■ INNOVATION: A typical pickup’s rear window has two panes of glass that slide on an exterior track. Magna’s single panel slides inside the rear window. It gives the rear window a clean, elegant appearance, and it reduces manufacturing complexity. ■ FIRST CUSTOMER: 2015 Ford F-150 > Standard HVAC ■ WEBSITE: magna.com units for many vehicles Denso Corp. > Low-cost substrate for transmission computers ■ WHAT: Standardized HVAC unit Continental AG ■ INNOVATION: Most vehicle heating, ventilation and air conditioning ■ WHAT: Printed circuit board for transmission control units units are designed for specific models. Denso’s standardized unit can ■ INNOVATION: Computer control units for transmissions typically use ceramic substrates. But ceramic is be used in a variety of models, cutting design and tooling costs. The expensive and time consuming to cure. Also, the same substrate cannot house logic circuits, which perform innovation also reduces the unit’s size, weight and power operations on data, and power circuits, which transfer and control higher amounts of electricity. consumption. Continental’s nonceramic substrate solves these and other problems. ■ FIRST CUSTOMER: , December 2013 ■ FIRST CUSTOMER: Mercedes-Benz seven-speed transmission, February 2012 ■ WEBSITE: densocorp-na.com ■ WEBSITE: conti-online.com

> On-board calls for service appointments Xtime Inc. ■ WHAT: ServiceTelematics ■ INNOVATION: The cloud- based system connects dealers’ service departments with vehicles. If, say, a check engine light comes on, a driver can use the on-board system to make a service appointment with a dealership. > Better bird’s-eye view for driver ■ FIRST CUSTOMER: Hyundai vehicles equipped with Blue Link, September 2012 Valeo ■ WEBSITE: xtime.com ■ WHAT: 360Vue 3-D Surround View System ■ INNOVATION: Current bird’s-eye camera views of a car’s surroundings have a significant limitation: They show only about seven feet around a car. The Valeo system shows a larger area, and presents it to drivers in 3-D. The system uses four cameras mounted in the rear, grille and exterior side mirrors. ■ FIRST CUSTOMER: 2015 Volkswagen Passat ■ WEBSITE: valeo.com 18 • MARCH 23, 2015 Game-changing suppliers seek PACE Awards Here are summaries of seven finalists for the 2015 Automotive News PACE Awards, which honor > Seal for shafts cuts innovations in products, manufacturing processes and information technology. friction losses ■ WHAT: Automotive News PACE Awards, which honor Federal-Mogul innovation by automotive suppliers Powertrain ■ CO-SPONSORED BY: EY, Transportation Research ■ WHAT: MicroTorq seal for rotating Center Inc., Original Equipment Suppliers Association shafts and SAE International ■ INNOVATION: The elastomeric seal for today’s high-pressure and high- ■ WINNERS ANNOUNCED: April 20 heat crankshafts and other rotating ■ WHERE: Max M. Fisher Music Center, Detroit shafts reduces friction losses up to ■ OTHER FINALISTS: Featured weekly through the April 80 percent compared with competitive 13 issue and online at autonews.com/pacefinalists seals. It is customizable for different engines and boosts fuel economy by about 0.15 mpg. ■ FIRST CUSTOMER: Volvo, August 2013 ❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙ ■ WEBSITE: federalmogul.com

> Alternator eliminates voltage drop, boosting efficiency Valeo Electrical Systems ■ WHAT: Efficient alternator ■ INNOVATION: Auto alternators universally use diodes to change alternating current into direct current. Valeo uses transistors, which eliminate voltage drop and boost fuel economy. The alternator’s efficiency is increased by 10 percent, or the equivalent of 0.7 mpg. ■ FIRST CUSTOMER: 2016 Audi A6 ■ WEBSITE: valeo.com

> With coolant, turbo cuts weight, > Programmable computer keeps extends life of catalytic converter infotainment fresh Continental AG Nvidia Corp. ■ WHAT: with aluminum housing ■ WHAT: Tegra visual computing module ■ INNOVATION: Continental’s double-walled aluminum ■ INNOVATION: Consumers want up-to-date software and housing surrounds the hottest area of the turbocharger with entertainment in their autos on a par with their smartphones. coolant water. The coolant allows the housing to be made of Nvidia’s programmable computer module for auto infotainment aluminum, which cuts weight and reduces heat. It also cools the and navigation accepts software updates and new features after exhaust, which extends the life of the catalytic converter. it is installed in a vehicle. ■ FIRST CUSTOMER: BMW, 2015 ■ FIRST CUSTOMER: Tesla Model S, June 2012 ■ WEBSITE: conti-online.com ■ WEBSITE: nvidia.com

> Cooling gallery makes piston more durable Mahle GmbH ■ WHAT: Evotec 2 lightweight piston ■ INNOVATION: The piston for gasoline engines combines lightweight aluminum and high structural strength. A key feature is an advanced cooling gallery to increase durability and performance. ■ FIRST CUSTOMER: Audi, February 2012 ■ WEBSITE: mahle.com

> Knee airbag built into Mustang’s glove box Faurecia ■ WHAT: Active glove box/integrated knee airbag system ■ INNOVATION: This airbag to protect > Flexible adhesive holds i3 together the front passenger’s knees is built Sika Automotive into the glove box’s door. The airbag is ■ WHAT: Adhesive for mixed material bonding not made of the usual fabric. It’s a ■ INNOVATION: BMW needed to bond the i3’s carbon fiber- plastic bladder. reinforced plastic body to an aluminum chassis. Sika’s adhesive ■ FIRST CUSTOMER: Ford Mustang, flexes after curing, maintaining the bond as the plastic and fall 2014 aluminum expand at different rates with changing temperatures. ■ WEBSITE: faurecia.com The adhesive is still strong to withstand crashes. ■ FIRST CUSTOMER: BMW i3, September 2013 ■ WEBSITE: sika.com MARCH 16, 2015 • 17 Game-changing suppliers seek PACE Awards ith pressure mounting to save fuel, cut weight, improve ■ WHAT: Automotive News PACE Awards, which honor safety and connect to the Internet, automakers increas- innovation by automotive suppliers Wingly are turning to major suppliers for solutions. ■ CO-SPONSORED BY: EY, Transportation Research Suppliers are responding with substantial r&d budgets and cre- Center Inc., Original Equipment Suppliers Association ative ideas in everything from basic materials to software wizardry. and SAE International But while the technology is complex, the motivation is plain: Suppli- ers with the most attractive technology typically command the best ■ WINNERS ANNOUNCED: April 20 prices for their products and deepen their relationship with au- ■ WHERE: Max M. Fisher Music Center, Detroit tomakers. ■ OTHER FINALISTS: Featured weekly through the April Here are summaries of seven of the 36 finalists for the Automotive 13 issue and online at autonews.com/pacefinalists News PACE Awards, which honor innovation in products, manufac- turing processes and information technology.

❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙❙

> More efficient torque converter Schaeffler

COURTESY FORD MOTOR CO. ■ WHAT: Torque converter with piston back pressure compensation ■ INNOVATION: Most torque converters, which transmit power from the > Paint method eliminates primer baking engine to the transmission, have two or three fluid circuits. Axalta Coating Systems Schaeffler created a torque converter with four circuits. Fluid pressure from the fourth acts on a piston that locks the ■ WHAT: 2-Wet Monocoat coating system converter’s moving parts, the impeller and turbine, over a ■ INNOVATION: Since about 2000, autos have been coated with a basecoat and a broader range of speeds. The result is higher fuel economy. clearcoat. But the method can be costly. Axalta’s system permits paint shops to apply ■ FIRST CUSTOMER: Mazda2, July 2014 a wet coat over another wet coat, eliminating the primer baking step and ■ WEBSITE: www.schaeffler.us the clearcoat. ■ FIRST CUSTOMER: Ford Transit, August 2013 ■ WEBSITE: axaltacs.com > Lightweight gear shifter for Audi FTE automotive GmbH > Dry clutch works smoothly ■ WHAT: 2Polymer as temperature varies hydraulic gear shift actuator Valeo ■ INNOVATION: The ■ WHAT: Dry friction facing formulation polymer actuator, ■ INNOVATION: In 2007, VW introduced dry mainly for double-clutch clutch facings for its dual-clutch transmissions, uses transmission to cut costs and fuel hydraulic pressure to shift consumption compared with wet plates. But gears. With high-tech plastics, dry-plate transmissions are difficult to tune the module is 35 percent lighter because friction changes with temperature. than comparable units that use steel Valeo’s facing, a dry mix applied to a steel and aluminum. Using polymer facilitates back, is stable at different temperatures. molding-in cavities for sensors and connectors. That’s not feasible with ■ FIRST CUSTOMER: GM, August 2014 machined aluminum. ■ WEBSITE: valeo.com ■ FIRST CUSTOMER: Audi, June 2014 ■ WEBSITE: fte-automotive.com

> Detector keeps driver’s hands on wheel IEE SA ■ WHAT: Hands-off detection ■ INNOVATION: Under European law, a driver must maintain control of a vehicle, even if the vehicle is under control of an automated system. IEE’s system detects, with a conductive layer in the steering wheel, when a driver takes his or her hands off the wheel, ensuring the driver can regain control if necessary. ■ FIRST CUSTOMER: BMW i3, September 2013 ■ WEBSITE: iee.lu

> Compact package for radar vision > Automatic Delphi Automotive park lock for electric vehicles ■ WHAT: RACam integrated radar Dura Automotive Systems ■ INNOVATION: Vision systems to ■ WHAT: Compact shift-by-wire park lock for EVs control automated driving typically ■ INNOVATION: The system uses software, sensors and have three parts: radar, camera other technology to actuate a locking pawl in the gearbox and control electronics. Delphi to prevent backward creep on a hill. The system detects combined all three in one the speed of the vehicle and other conditions on an incline compact package that fits at a traffic light and automatically puts the gearbox into between the windshield and rearview park-lock mode. mirror. ■ FIRST CUSTOMER: BMW i3, September 2013 ■ FIRST CUSTOMER: Volvo XC90, January 2015 ■ WEBSITE: duraauto.com ■ WEBSITE: delphi.com OCTOBER 13, 2014 • 33 2015 AUTOMOTIVE NEWS PACE AWARDS 36 supplier innovations named finalists hirty-six innovations in a diverse range emia and business. The independent judges will The awards are sponsored by EY, the Trans- from adhesives to vision systems are finalists evaluate the innovations for creativity and market portation Research Center Inc. and Automotive for the 2015 Automotive News PACE Awards. impact. News. SAE International and the Original Equip- T The awards honor supplier innovation in Next spring, the finalists’ innovations will be fea- ment Suppliers Association provide further sup- product, manufacturing process and information tured in issues of Automotive News. port. technology. Winners will be announced April 20 at the Max PACE stands for Premier Automotive Suppliers’ In the coming months, the finalists will host M. Fisher Music Center in Detroit, kicking off SAE Contribution to Excellence. PACE judges, who are experts from industry, acad- World Congress week. Here are the finalists’ innovations, by category. ●●● > PRODUCT IEE SA 360Vue 3D surround view system Axalta Coating Systems Contern, Luxembourg Clinton Township, Mich. Steering wheel hands-off detection ZF Friedrichshafen AG 2-wet monocoat coating system Northville, Mich. Inteva Products Active rear axle kinematics for BorgWarner Emissions Systems Troy, Mich. passenger cars Auburn Hills, Mich. Soft-Skin stitched full instrument panel system Gasoline EGR module > MANUFACTURING PROCESS BorgWarner Morse TEC LuK USA Amino North America Corp. Auburn Hills, Mich. Denso Corp. Wooster, Ohio St. Thomas, Ontario Inverted tooth silent timing chain Southfield, Mich. Torque converter with piston back Sheet hydroformed clamshell for GTDI engines pressure compensation Highly standardized automotive liftgate > INFORMATION HVAC control unit TECHNOLOGY BorgWarner TorqTransfer Systems Magna Closures Federal-Mogul Corp. Xtime Inc. Auburn Hills, Mich. Dura Automotive Systems Holland, Mich. Southfield, Mich. Redwood City, Calif. Fwd electronic limited-slip Auburn Hills, Mich. Pure View seamless sliding window High-precision bearing profiling Service telematics differential Shift-by-wire park lock actuation system for EVs Mahle Engine Systems and Continental Automotive Components Auburn Hills, Mich. Eaton Corp. Stuttgart Turbocharger with aluminum Southfield, Mich. Evotec 2 lightweight piston for gasoline engines turbine housing Eaton and Cummins SmartAdvantage powertrain Continental Automotive Nvidia Auburn Hills, Mich. Faurecia Interior Systems Ann Arbor, Mich. Printed circuit board substrate Auburn Hills, Mich. Tegra visual computing module technology for transmission Active glove box/integrated knee electronics airbag system Osram Opto Semiconductors Northville, Mich. Continental Automotive Federal-Mogul Corp. Black flat multichip family for mass Auburn Hills, Mich. Southfield, Mich. market Multiapplication unified sensor MicroTorq seal element Sika Automotive Federal-Mogul Corp. Madison Heights, Mich. Dana Holding Corp. Southfield, Mich. Ultrahigh modulus adhesive for mixed material bonding Maumee, Ohio DuroGlide piston ring pack Partially coated multilayer steel TK Holdings Inc. transmission separator plates FTE Automotive Auburn Hills, Mich. Auburn Hills, Mich. Active steering wheel Delphi Automotive Hydraulic gear shift actuator Auburn Hills, Mich. module RACam integrated radar/vision Valeo system GKN Driveline Creteil, France Redditch, U.K. EG efficiency generator Delphi Automotive 2-speed gearbox for EV Bascharage, Luxembourg applications Valeo Multicharge ignition Cergy Pontoise, France GKN Driveline Dry friction facing formulation Delphi Automotive Redditch, U.K. Lockport, N.Y. Awd disconnect system Valeo Integrated front and rear HVAC unit Bietigheim-Bissingen, Germany

Body-in-lightTM Performance gained with every pound you lose.

Shiloh delivers the leading technology solutions that eliminate weight without compromising performance.

We produce lightweight solutions in aluminum, magnesium, steel and steel alloys, offering the broadest portfolio of products through our expertise in die casting, joining and stamping.

Strong. Quiet. Safe. Green. shiloh.com autonews.com

® OCTOBER 13, 2014 Entire contents © 2014 Crain Communications Inc. All rights reserved. $159/YEAR; $6/COPY Acura takes page from Subaru the other hand, Acura has Fukuo presented the committee’s Awd could anchor revival strategy renewed all its volume evolving strategy to the Mo- Hans Greimel Acura has sold in the U.S. nameplates in the last tor board here on Tuesday, Oct. 7. [email protected] this year, could be offered three years. That cadence Much of the game plan is in flux, TOKYO — Acura, trying to rein- as a standard technology means that shifting to an he said. But elements are emerg- Celebrating the best vent itself yet again, is taking a cue on all vehicles. all-awd lineup may take ing. Acura plans more powerful en- Automotive News will honor from one of America’s hottest-sell- “I think that’s the way we years. gines, but it won’t be tempted into the Best Dealerships To Work ing brands. should go,” said Koichi The awd plan is one of big V-8 or V-10 powerplants, Fukuo For on Wednesday, Oct. 15, Honda Motor Co.’s premium Fukuo, Acura’s top global Fukuo: Seeking several ideas backed by a said. It also will stay clear of rear- in Chicago. Check brand wants to position all-wheel executive. “clear direction” new U.S.-based Acura wheel-drive layouts. autonews.com/bestdealer drive at the center of its revival bid, Linking the brand’s im- Business Planning Office Acura had planned to roll out an ships2014 at 10:30 p.m. EDT much the way Subaru did in the age to the technology would dove- formed in February to rethink the rwd V-8 but scrapped the idea when that day to see rankings of 1990s, to great success. tail with the arrival of next-genera- brand and stoke stagnating sales. the top 101 finishers as well Awd, already on half the vehicles tion awd technology on Acuras. On None of those ideas is finalized. see ACURA, Page 49 as feature stories and video.

INSIDE TODAY Can Facebook move metal? Facebook is a fine way to connect with friends or waste an afternoon. But can it really help sell cars? Dealers are divided on that question. | MARKETING: PAGE 24 | Steel pipes stacked within sight of auto dealerships in Marietta, Ohio, will soon carry energy that had been trapped in the shale below. A HEAVY-DUTY ENERGY 36 innovations vie BOOM FOR DEALERS for PACE Awards ustomers who couldn’t get financed on a $5,000 car three The finalists for the 2015 months earlier pay cash for a $60,000 pickup. A Automotive News PACE CChevrolet dealership’s heavy-duty pickup sales skyrocket. Awards have been chosen. A controversial energy boom — hydraulic fracturing, or fracking — The awards honor supplier

innovation in products, is pouring vast sums of money into rural communities across the manufacturing processes and U.S. Automotive News’ Larry P. Vellequette looks at what information technology. See happens to auto dealerships when the white pickups of energy PHOTOS BY LARRY P. VELLEQUETTE the 36 finalists on | PAGE 33 | exploration companies come to town. | PAGES 36, 38, 39 |

“Why would I spend the time and the Cherry-picking or brand building? “ effort to structure by manufacturers in buy-sell transactions. “It’s a costly a complex Factories, dealers clash over first refusal Franchise agreements have long given thing, but we transaction only to Amy Wilson his lawsuit. But in general “right of first most automakers the right to refuse the [email protected] do it when it’s find out a refusal has a chilling effect on the buy- original buyer on a dealership transaction When Mercedes-Benz scuttled Jona- sell market,” he told Automotive News. and assign the sale, with no changes to the necessary and manufacturer is than Sobel’s $30 million deal to buy a New “Why would I spend the time and the ef- terms, to a dealer of its choosing. it’s right.” going to use their Jersey dealership last year by exercising its fort to structure a complex transaction In the past couple of years, automak- Anna-Lisa Corrales, right of first refusal right of first refusal, Sobel sued. And he only to find out a manufacturer is going ers are exercising that right at an un- Jaguar Land Rover “to cherry pick my got a lot more cautious about where he’d to use their right of first refusal to cherry precedented level, say dealers, buy-sell North America best deals?” buy more dealerships to add to his stores pick my best deals?” advisers and dealer lawyers. in New York. Sobel is one of many dealers caught up Dealer Jonathan Sobel Sobel declined to discuss specifics of in the increasing use of right of first refusal see REFUSAL, Page 46

DON’T MISS the next BIG event!

See speaker lineup on page 37. NEWSPAPER