THE HANSEN REPORT ON AUTOMOTIVE . A Business and Technology Newsletter

VOL. 13, NO. 8◆◆ RYE, NH USA OCTOBER 2000

Driver Distraction Carmakers Unable to Deliver Issue Threatens Full Potential of Auto Electronics Market The theme for Convergence 2000, “Automotive carmakers whose have varying Electronics, Delivering Technology’s Promise” degrees of electrical and electronics reli- inspired the following article. ability—the same supplier, but very differ- A worried NHTSA official, speaking While electronics has gone a long way ent results. anonymously about cognitive distraction, toward making vehicles safer, more envi- Electrical engineers who have worked was emphatic: “Tell all the people that ronmentally friendly, more comfortable for carmakers say there are three major read your newsletter that this could be the and fun to drive, carmakers have not yet problems limiting electronics develop- big cloud on their horizon. They shouldn’t come close to realizing electronics’ full ment: (1) Top management doesn’t really minimize it. They should pay lots and lots potential in the . The gap between understand electronics and its promise; of attention to the safety aspects of new the promise of automotive electronics and (2) Therefore, carmaker organizations and telematics features.” That National High- its actual application must be closed by boards are not set up to implement elec- way Traffic Safety Administration official the carmakers themselves. tronics in ways that will allow fundamen- did not want to be quoted by name, but Suppliers are in a position to do only so tal and beneficial changes in vehicle the deputy administrator of NHTSA, much. Optimizing electrical and electron- design; and (3) There are not enough Rosalyn Millman, went on record last July ics applications involves the architecture electrical engineers at carmakers to get the with her concerns: “Drivers should not of the entire vehicle, by which we mean job done. Simply put, carmakers are not talk on the phone or use electronics de- real top-down engineering, where the providing the resources and support to vices while their vehicles are in motion. ... electrical and electronics systems are bring about the full potential of electron- Hands-free devices will not solve the dis- among the first things considered, not the ics. One top electrical engineer believes it traction problem.” last. The importance of the carmaker is will be five to ten years before carmakers While those comments from NHTSA evidenced by electrical-distribution system realize how important electronics is to the will not slow down the potential multi- maker Yazaki, which makes wiring har- vehicle and place electrical engineers on billion-dollar U.S. telematics industry, nesses and connectors for numerous their management boards. they should give pause to the telematics Turn to Delivering, page 8 and the automotive industries alike. Some in the telematics industry will voluntarily The Promise of Auto Electronics: Unrealized Potential agree to restrictions on using telematics ◆ devices while driving, probably in the Worldwide, one million people are killed deployed, around 2005, electronics will heavily each year in vehicle crashes. Electronics devices factor into the control of every aspect of the en- hope of keeping governments from impos- that address lane-change crashes, rear-end gine—spark, air intake, and ex- ing more stringent mandates. Verizon, crashes, roadway-departure crashes and drowsy- haust—for the ultimate in performance and energy the largest cellular phone provider in the driver related crashes would save hundreds of efficiency while minimizing emissions. United States, broke ranks with other thousands of lives each year. Obstacle detections ◆ If the auto were better companies and supported legisla- systems that help avoid crashes even in fog and organized around standards—giving suppliers a tion in Illinois that would forbid the use heavy snow are an example. crack at marketing the same product to all ◆ of hand-held cellular phones while driv- The transition to 42-volt power supplies will carmakers—more suppliers would be interested in lead to better fuel economy and lower emissions; it serving the industry. The result: appealing, up-to- ing. Verizon instead favors hands-free de- will provide sufficient power for numerous new date electronics features brought to market much vices, according to the Wall Street Journal. electronics features. faster at surprisingly affordable prices, comparable Nevertheless, as Ms. Millman suggests, ◆ Better powertrain efficiencies: Electronics to today. Infotainment sys- NHTSA is considering evidence that could control all functions currently run by belt- tems that keep drivers informed and productive hands-free phones are just as dangerous driven motors. while driving safely and motorists entertained are as hand-held phones. ◆ With the electrification and integration of all but one example. ◆ Other countries are not waiting to issue vehicle control systems, not only would costs be Low-speed multiplexing will improve reli- reduced, but controls throughout the vehicle would ability and flexibility as it cuts down on wiring. wireless technology mandates. According be optimized: and transmission controls, ◆ Better price-earnings multiples for automo- to a publication by NCSL (National Con- electric steering, electric braking and electric sus- tive stocks ference of State Legislatures), “Cell pension. Once electromechanical valve timing is Turn to Distraction, page 2 Distraction... Continued from page 1 Phones and Driving: 2000 State-Legisla- 1999 has been explosive, 26.3%, the an- A NHTSA project will compare voice tive Update,” 14 countries now restrict or nual growth rate of motor-vehicle deaths interfaces with visual/manual interfaces prohibit cell phones and other wireless in the United States has declined very and assess their potential to distract. The technology in motor vehicles: Australia, slightly, minus .6%, during that period. study will look specifically at retrieving Brazil, Chile, England, Germany, Israel, But in Japan, after hand-held cell phone email messages, tuning and wireless Italy, Japan, Portugal, the Philippines, restrictions were imposed November 1, phone-call initiation over an AutoPC on Singapore, South Africa, Spain and Swit- 1999, as part of an amendment to the a test track. zerland. Warnings about distractions have Road Traffic Act, the number of accidents appeared in a 1999 European Commission and fatalities associated with cell phones Restrictions Would Take 3 to 4 Years statement of principles on the human- declined dramatically, according to con- Even with reliable data, given how the machine interface, dated December 21, sultant Norio Komoda. (Please see tables legal process generally unfolds in such 1999: “Information and communications on page 3.) cases, the federal government probably systems intended for use by the driver There is also evidence that hands-free would not issue mandates for at least three while driving must not distract, disturb or devices do not add as much to safety as or four years. To date, public protest overload drivers.” one might assume. In 1997, a study pub- against cell phones is focused mainly at lished in the New England Journal of Medi- the state and local level, but with enough More Research Needed cine found that hands-free units offered no pressure, it will move to the federal level. The industry knows there are a lot of safety advantage over hand-held units. In Matt Sundeen, a transportation policy drivers out there making calls. There were another study on hands-free devices, even specialist for NCSL, has looked at cell 103 million wireless subscribers as of Oc- the driver listening to email being read phone legislation. “Since 1995, 37 states tober 1, 2000, and 70% of wireless calls was found to be mentally distracting have considered bills, and on top of that are made from vehicles, according to Gen- enough to cause an accident. there are upwards of 300 local jurisdic- eral Motors. A NHTSA survey found 44% A top NHTSA psychologist respon- tions considering measures on cell phones of drivers carry phones with them in the sible for researching driver distraction told and driving. ... Any time now, you will see vehicle, 7% have access to email and 3% us: “We really don’t know the safety con- a state pass something and that will be the can receive faxes. sequences of the various in-vehicle archi- beginning of the process. You are also Not enough is known, however, about tectures. Without more data, we can’t do starting to see the federal government take what circumstances make telematics dis- the cost-benefit analysis that’s needed.” public comment on the issue, an impor- tracting enough to cause accidents, and NHTSA, part of the U.S. Department of tant step in the process.” some existing data seem downright con- Transportation, will spend about $2 mil- Just when and to what degree NHTSA tradictory. While the annual growth rate lion researching the topic; preliminary and governments get restrictive depends of U.S. wireless subscribers from 1995 to results could be ready by Spring 2001. continued on following page

1999 Worldwide Automotive Convenience Motors Driving THE HANSEN REPORT ON Market Growth in Automotive Motors AUTOMOTIVE ELECTRONICS by Supplier © 2000 Paul Hansen Associates, 11 Went- worth Road, Rye, NH 03870, USA; Tele- Total Motors Per Vehicle 133 Convenience phone: 603-431-5859. Fax: 603-431-5791. 1999 Total Worldwide Market: $10.2 Billion Safety/Advanced E-mail: [email protected]. All rights Basic reserved. Materials may not be reproduced in any form without written permission. The Others, Motorola SPS, 14.6% 37.9% Hansen Report on Automotive Electronics is STM, 6.7% 70 published 10 times a year, monthly; July/ 59 August and December/January are com- NEC, 6.6% 47 bined issues. The annual subscription rate is $577 (North America), $617 (elsewhere). 27 , 6.5% 25 Back issues are available for $40 each; see , Infineon, 6.0% our online index at www.hansenreport.com. 3.2% Paul Hansen Associates is a strategy and Philips, 5.4% , 4.2% market research firm consulting to the elec- TI, 4.6% 1995 2000 1995 2000 1995 2000 Bosch, 4.3% tronics industry. Economy Luxury High Luxury Publisher/Editor Paul Hansen Data: “Automotive Semiconductor Vendor Market Source: Nick Rossi, Johnson Electric Group, Shelton, Senior Editor Heather Parker Shares - 1999,” by Strategy Analytics Automotive Connecticut; 203-447-5362. Presented May Managing Editor/ Brianne Wolfe Electronics Service, Luton, UK; Telephone 44-1582- 24, 2000 to the MIT Consortium on Advanced 405-678. For more information, contact Chris Webber: Automotive Electrical/Electronic Components and Circulation Manager [email protected]. Systems. ISSN 1040-1105 Page 2, October 2000 The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com Distraction... Continued from page 2 with voluntary guidelines, after which a Why are U.S. Fatalities Down and Cell Why Did Accidents and Fatalities in review by experts in the areas of Phone Use Up? Japan Go Down Dramatically with telematics, academia and safety will deter- Restrictions on Hand-Held Cell Phones? Motor-Vehicle Deaths in the U.S. mine if more research is needed. AAM 1995 to 1999 Annual Growth: -.6% 48000 Traffic Accidents Related to Cell Phones members are BMW Group, Daimler- Prior to Restriction Chrysler, Fiat, Ford, General Motors, 1997 1998 Isuzu, Mazda, Mitsubishi Motors, Nissan, 42,013 Porsche, Toyota, Volkswagen and Volvo. 41,817 41,471 42000 Accidents with Injuries 2297 2648 +15.3% 42,065 40,800 Fatalities 25 33 +32.0% 40000 Total Injuries 3328 3814 +14.6% What Should Be Done 1995 1996 1997 1998 1999 The following are some suggestions Data: National Safety Council which could help alleviate concerns about Traffic Accidents Related to Cell Phones driver distraction. U.S. Wireless Subscribers in Millions After Restriction ◆ Suppliers of new telematics prod- 1995 to 1999 Annual Growth: 26.3% 11/98 11/99 ucts should support their product offerings 120 Accidents with Injuries 223 62 -72% with “human-factors” expertise that au- 103.3 Accidents with Fatalities 3 2 -33% thoritatively addresses safety implications. 100 ◆ Carmakers should take control of all 86.0 Data: The National Police Agency, Japan, 80 telematics products that affect safety and provided by Norio Komoda Consulting Services on offer an integrated -centric approach 69.2 60 Intelligent Transportation Systems, Information that delivers communications and infor- 44.0 55.3 Technology and Automotive Control Systems, mation to the driver only when he can Nagoya, Japan 40 safely handle the distraction. Since por- 33.8 accounts, 25% of all accidents, albeit not table products with small screens and diffi- 20 1995 1996 1997 1998 1999 2000 by cell phones alone—one would think cult ergonomics are theoretically not as Data: CTIA (As of 10/01/00) that by now the telematics and automo- safe to use while driving, carmakers should tive industries in the United States would offer safer on-board systems or compo- not only on research and public opinion, have done more to respond. If govern- nents that complement portable products. but also on the U.S. presidential elections ments issue mandates, results can be both ◆ If the automotive industry could next month, since the new administration positive (fewer accidents), and negative agree to standards like those being devel- will appoint a new NHTSA director. (industry growth would slow and drivers oped by AMIC (Automotive NHTSA’s stance can also be swayed by would find themselves with fewer op- Collaboration), carmakers will have more high-profile news. If a horrible collision tions). Here’s what the industry has done control of the driver interface to tele- occurs between, say, a driver downloading so far: matics and communications equipment. email and a busload of children, things ITS America last May set up the Li- ◆ The automotive industry needs to could change fast. ability Task Force consisting of 27 mem- develop standards for speech, as well as bers, most from government, academia, visual and manual interfaces to the driver. What’s Been Done So Far consulting companies and trade associa- ◆ Research is needed that analyzes the The first of several research reports that tions. There is one representative from causal effects on safety, both positive and indicated an association between mental Chrysler, who is an attorney, and suppliers negative, of various telematics products distractions and the risk of crashes was Navigation Technologies and Panasonic and services to compare telematics distrac- published in February 1997 by the New have one representative each. The task tions with other distractions, like reading England Journal of Medicine. It concluded force was to have its first meeting by the a paper map or eating a Big Mac or refer- that the risk of collision when using a cell end of September 2000, and if it commis- eeing a spat between kids in the back seat. phone was four times higher than the risk sions a study, results will not be released ◆ After such research is completed, when a cell phone was not being used, and for at least a year. the telematics industry should conduct that hands-free units offered no safety ad- CAMP (Crash Avoidance Metrics educational campaigns to teach drivers vantage over hand-held units. Yet the Partnership) was set up in 1995 by Ford how to safely use their products and ser- 1997 study’s authors cautioned against us- and GM. CAMP has been looking at how vices. Had carmakers done that with ABS, ing their conclusions to restrict the use of drivers respond to ACC systems, and it is drivers in emergency situations would cellular phones, since that would also re- now trying to put together a three-year have known not to pump the brakes, but duce the safety benefits. Witness the thou- project with Toyota and Nissan to study rather to stand hard on them. If the public sands of life-saving cell phone calls that driver workload issues. A budget for the had been educated, ABS-equipped ve- are made each year from vehicles to emer- project has not yet been established. hicles would have had a better safety gency 911 dispatchers. Alliance of Automobile Manufactur- record than vehicles without ABS— Given the potential for injury and loss ers plans to look at its members’ practices rather than the other way around. ◆ of life caused by distractions—by some regarding telematics design and come up The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com October 2000, Page 3 The Company Profile... Johnson Controls Inc.

Thumbnail Sketch JCI Sales and Operating Margin JCI Sales and Operating Margin by Segment Corporate Headquarters: 5757 N. Green Bay Avenue, P.O. Box 591, Milwaukee, WI 1995 to 1999 Annual Total 1999 Sales: $16,139.4 Million Sales Growth: 21.5% 53201 USA; telephone: 414-524-1200; Automotive Systems Group, 75% www.johnsoncontrols.com Controls Group,* 25% 1999 Sales: $16,139.4 million Seating Operating margin: 5.3% Systems R&D: 2.1% $ millions and Interior Top customers: DaimlerChrysler, with 16% 7,400.7 9,210.0 11,145.4 12,586.8 16,139.4 Systems, of total JCI sales; Ford, 13%; GM, 13% 69% Employees: 95,000 (FY-end 1999), of 1995 1996 1997 1998 1999 Batteries, whom 68,300 were hourly and 26,700 were 6% salaried Operating Margin Note: Johnson Controls’ 1999 fiscal year ended 1995 1996 1997 1998 1999 September 30, 1999. Operating Margin 5.3% 5.2% 4.7% 5.3% 5.3% 5.7% Automotive Systems Group 4.2% JCI Sales by Region *Products and systems for buildings that improve energy Thumbnail Sketch efficiency, maintain temperature, monitor fire, safety and security and integrate facility management Headquarters: 49200 Halyard Drive, Total 1999 Sales: $16,139.4 Million Plymouth, Michigan; telephone: 734-254- business, 68% was domestic and 25% was Other, 5% 5000 North America, European. JCI sees further opportunities 1999 Sales: $12,075.1 million 65% in Europe, where carmakers still build Operating Margin: 5.7% Europe, 25% of seats in-house. JCI Automotive Products: Seat systems, interior systems 30% Systems Group has been largely excluded and batteries from the Japanese domestic market, focus- Employees: 65,000 ing almost entirely on North American Sales per employee: $186,000 and West European customers. Top Electronics Products: HomeLink Far more than other OEM suppliers, Universal Tranceiver, followed by electronic JCI has shown a predilection for branding compasses, then trip in the United States, Germany and Japan. its products. Probably the best known of 1999 Electronics Sales Estimate: very At the technical centers, 5,000 employees its current generation electronics product roughly $100 million, all with OEMs are involved in engineering, design, R&D, names is HomeLink Universal Trans- Electronics Integration BU Employees: prototyping, product testing, sales, mar- ceiver, a built-in remote device that opens Currently over 200, of whom about 150 are keting and administration. garage doors and controls home security engineers Automotive sales for the first nine systems. Other JCI brand names include months of fiscal 2000 were $9.0 billion, up PathPoint (digital compass), AutoVision Background 9% over the first nine months of 1999. (rear-seat entertainment system), Johnson Controls began as a manufac- Despite softening vehicle production in TravelNote (electronic memo recorder) turer of controls for building environ- Europe and the United States, strong de- and PSI (tire pressure monitor). ments in 1885. The company began to mand for batteries, seating and interior diversify into the automotive industry systems—especially in North America— Major Acquisitions through acquisitions and internal means accounted for 75% of the increase. In July 2000, JCI purchased Nissan after 1978. Today, automotive products Johnson Controls is involved more than Group seat supplier, Ikeda Bussan Co. account for 75% of sales. ever in electronics as electrical and elec- Ltd. (Tokyo Japan), seen as an entrée into The Automotive Systems Group as- tronics content in seat and interior sys- Nissan in Japan. The price for Ikeda sembles and/or manufactures batteries, tems grows, particularly as carmakers Bussan was ¥10.7 billion ($102 million) in seating and interior systems in 275 loca- slowly turn over development, parts pro- cash, and the assumption of ¥9.1 billion tions worldwide and delivered interior curement and modular assemblies to spe- ($86 million) in debt. Ikeda’s 1999 sales systems for approximately 23 million MY cialists such as JCI. were ¥130 billion ($1.2 billion). JCI and 2000 vehicles. The company has more Over the last three years, approxi- Ikeda have worked together since 1986 than 1.5 million square feet in four Auto- mately 55% of automotive sales went to and today operate two joint ventures that motive Systems Group technology centers DaimlerChrysler, Ford or GM. Of this supply seats to Nissan, one in the States

Page 4, October 2000 The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com The Company Profile Continued and the other in the United Kingdom. The company aims to leverage its Distinctions Claimed by JCI Ikeda has about 4,200 employees, one-half strengths, while minimizing investments ◆ 53 consecutive years of sales increases of whom work outside of Japan. JCI would in new technology and manufacturing as- ◆ Nine consecutive years of increased income like to sell its complete product line to sets. According to JCI, it will not simply ◆ 24 consecutive years of increased dividends Nissan and expand to other Japanese ◆ Industry Week Magazine’s “World’s 100 Best add a markup to its partners’ efforts but carmakers. Development of the Japanese Managed Companies” for five consecutive will add value by applying its strengths: market is likely to take a decade or more. years developing outstanding new product Purchased for about $1.3 billion in ◆ Supplier to the world’s top 10 automakers ideas, seamlessly integrating electronics 1996, Prince Holding Corporation (Hol- ◆ Global leader in automotive seating and and trim, and continuing “human-factors” land, Michigan) was a supplier of automo- interiors engineering, which ensures a safe interface tive interior components and systems, ◆ Largest automotive battery supplier in North between the driver and the electronics. and South America including overhead systems/consoles, door While JCI has chosen to remain less ◆ Introduced the world’s first automotive panels, floor consoles, visors, armrests and compass in 1984 vertically integrated, some of its competi- some niche electronics. Before the pur- tors have chosen more vertical integra- chase, JCI had little electronics capability. “About a year ago, we [at JCI] signifi- tion. For example, Delphi manufactures At the time of the purchase, Prince had cantly expanded our vision for electron- its own electronics (Delco Electronics) 4,470 employees and about $850 million ics,” Mr. Geschke told us. “Historically, and wiring harnesses (Packard Electric). in sales. The electronics Prince marketed our electronics had been focused on high- Interior- and seat-manufacturer Lear has included HomeLink Universal Transceiv- value niche electronics—things that the its own in-house wiring harnesses and ers, electronic compasses and trip comput- car could operate without—like the body controller businesses, since it ac- ers, now JCI’s top selling electronics Home-Link Universal Transceiver. We quired United Technologies Automotive products. were successful with that and had a good last year. Relying on outside suppliers In July 1998, JCI purchased Becker reputation in the market for bringing cre- means lower fixed costs, so JCI reasons it Group, (Sterling Heights, Michigan) a ative new features to OEMs. ... Increas- will more easily weather economic down- major supplier of interior systems, for ap- ingly, customers became comfortable with turns while maintaining access to new proximately $548 million, plus the as- our electronics capability, and they began electronics technology. sumption of $372 million in debt. Johnson asking us for more. Our vision now in- In the next year or so, JCI will add Controls sold those Becker Group busi- cludes everything in the interior. We aim more Peer Partners; JCI’s partners so far nesses it did not consider core; their sale for market leadership in automotive inte- include: brought in about $212 million. rior electronics. ... To execute our vision ◆ Jabil Circuit (St. Petersburg, to be a leader in interior electronics, we Florida), a longstanding partner of The Aim: Market Leadership in Auto had a number of choices: We could or- Johnson Controls, produces all of the Interior Electronics ganically grow significantly, vertically in- electronic assemblies that JCI sells, in- Recently, JCI reorganized some of its tegrate everywhere, invest hundreds of cluding HomeLink. Jabil Circuit will also major product areas into worldwide busi- millions of dollars and hire thousands of work more with JCI on designing elec- ness units: Cockpit Systems, Door-Panel engineers, or we could use our significant tronic circuit boards. Systems, Overhead Systems, Seat Systems, core design and development capability ◆ Gentex (Zeeland, Michigan) is a Integrated Interiors and Electronics Inte- (150, or so, electrical engineers) and start manufacturer of rear- and side-view gration. While each new BU has its own leveraging outside partners.” electrochromic, automatic-dimming mir- P&L for sales and expenses, including rors. JCI’s HomeLink remote garage-door EBIT (earnings before income taxes), Peer Partners: Electronics Alliances opener and JCI’s electronic compass can these P&Ls are secondary to the Rather than develop electronics tech- be integrated into Gentex’ automatic- company’s customer business unit P&Ls. nology and manufacturing solely in-house, dimming rearview mirrors. Gentex has an In North America, JCI has customer busi- Johnson Controls has chosen to rely on exclusive license to integrate HomeLink ness units for Ford, GM, DaimlerChrysler, strategic relationships with a number of transceivers into its mirrors. Toyota and Honda. Jim Geschke is JCI key electronics and electrical part suppli- ◆ Yazaki North America (Canton, vice president and general manager of ers, known as Peer Partners. These alli- Michigan) will work with JCI to integrate electronics integration, responsible for ances are loose arrangements that permit wiring into the interior assemblies JCI of- engineering, sales, marketing, manufactur- JCI’s Peer Partners to work outside the fers to its customers. With headquarters in ing, quality and purchasing of all electron- alliance, that is, with JCI’s competitors. Susono, Japan, Yazaki is one of the world’s ics that sell separately or are integrated Together, JCI and its partners will create top suppliers of electrical distribution sys- with other JCI products. An electrical en- features that integrate electronics and tems. Yazaki and JCI have worked jointly gineer, Mr. Geschke joined JCI from electrical parts into JCI’s overhead sys- on 42-volt architectures that include JCI Prince Corporation when Prince was ac- tems, door panels, seats, floor systems and interior components and battery and quired. cockpit/instrument panels. continued on following page The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com October 2000, Page 5 Johnson Controls Inc.

Yazaki wiring and power conversion elec- JCI’s Principal Competitors putting out more power for quick starts. tronics. in Europe and the U.S. While still spirally wound, Optima’s plates ◆ Tokai Rika (Aichi, Japan), a are closer in size to the plates in conven- Toyota Group supplier of switches, keys tional batteries, so Optima can provide and locks and remote keyless entry sys- Batteries Interior Systems greater energy than Inspira. Energy is tems, provides a smart switch for JCI’s Exide Corporation Lear Corporation needed to supply key off-loads for long i-Seating program. Tokai Rika has been Delphi Automotive Delphi Automotive periods and to supply other onboard elec- working on other input devices, for ex- Systems Systems trical loads beyond the capability of the ample, speech recognition and a touch- Visteon . “Inspira batteries, available in pad point-and-click device. Seating Systems Textron 2.4, 4.5 and 6.5 amp-hour sizes, supply ◆ Microchip Technology (Chandler, Lear Corporation Sommer Allibert modest amounts of energy,” explained Jim Arizona) is a manufacturer of PICmicro Faurecia Industrie Gracyalny, sales director advanced battery RISC , which serve 8- Magna International Magna International systems. “But Inspira can put out more and 16-bit embedded control applications, power than Optima, so Inspira batteries and the company specializes in program- are well suited for stop/start vehicles that mable memory, like the security code- teries through electronics. While few bat- must reliably crank even at –30 degrees C. hopping technology used in JCI’s universal teries today have electronics content, Our Optima battery is a good solution for garage door openers. manufacturers increasingly will package some of the initial 42-volt architectures ◆ Nokia (Helsinki, Finland) will electronics integrally with the battery, as that will use belt-driven , in- work with JCI to integrate wireless tech- with the Diehard Anti-Theft battery (see stead of integrated starter alternators, and nology into vehicle interiors. Nokia, a ma- below), or package electronics in a sepa- require less power for cranking.” jor global mobile-phone maker, was rate control unit for the battery. For in- Until mid-2001, JCI is the exclusive among the five companies who founded stance, if future luxury vehicles come with licensee of Inspira technology from Bolder the Bluetooth consortium. Any product a high-power battery for cranking and a Technologies (Golden, Colorado). Op- equipped with a Bluetooth transceiver can high-energy battery to cover all other tima batteries are manufactured in Au- wirelessly connect to any other Bluetooth- loads, electronics will be needed to keep rora, Colorado. equipped product. track of the state-of-charge and state-of- Sears Diehard Anti-Theft Battery: In ◆ Royal Philips Electronics health of these two batteries. Electronics January 2000, Johnson Controls began (Amsterdam, the Netherlands) supplies will provide the same function for batter- shipping to Sears retail outlets an anti- the flat-panel LCD monitors and video ies of dual-voltage systems when car- theft battery equipped with RF receiver, players installed in JCI’s rear-seat enter- makers add 36-volt batteries (for 42-volt high-current electromechanical switch tainment system, AutoVision. The com- systems) to today’s 14-volt systems. The and chip. When leaving the pany is working with JCI to integrate transition to 42-volt systems in light ve- vehicle, the driver presses a key fob associ- other consumer electronics into interiors. hicles will take a couple of decades to ated with the battery; it sends a rolling ◆ SAGEM (Paris, France) is a Euro- complete, starting in 2002 with feature- code to the battery that cuts current for pean supplier of instrumentation, elec- loaded luxury vehicles and with niche ap- ignition. To start the engine, the driver tronic control units, ignitions and plications, like the energy-saving 42-volt must press the fob a second time. Elec- emission controls. JCI will work with integrated starter alternator. Eventually, as tronics in the battery also monitor the SAGEM on cockpit electronics and in- the demand for current grows in the typi- battery’s state of health, for instance, if strument clusters. cal vehicle, 36-volt batteries will be com- headlights are left on, the battery auto- mon in all vehicles. matically turns itself off when dangerously Batteries New 36-Volt Batteries: Johnson Con- low of sufficient charge to start the en- JCI makes original equipment batteries trols will soon have two lead-acid, 36-volt gine. Once installed in the vehicle, the for Ford, Chrysler, Nissan and Toyota; battery lines, which can be applied to 42- battery learns how much energy it needs replacement batteries for AutoZone, volt applications. One is the Inspira, the to start that vehicle by keeping track of Costco, Interstate and Wal-Mart; plus, the other, Optima, comes from Gylling Op- the vehicle’s start profile. Sears has 24 company makes the Diehard line of bat- tima Batteries AB (Danderyd, Sweden). months exclusive marketing rights to the teries for Sears. The replacement battery JCI announced its acquisition of Optima anti-theft battery. market accounted for approximately 85% for $62 million in August 2000; the pur- of battery sales in 1999. Batteries ac- chase is expected to be completed at the Major Electronics Products counted for about $1 billion in sales in end of November 2000. HomeLink: JCI’s biggest-selling elec- 1999, roughly 36 million batteries sold for Because both these batteries use spiral- tronic product is the HomeLink Universal about $25 each. wound plates that are thinner and have Transceiver, a wireless electronics device Since its purchase of Prince, JCI has more surface area than conventional lead- that remotely activates gates, garage doors, been exploring ways to add value to bat- acid batteries, both lines are capable of home security systems and lighting. By the

Page 6, October 2000 The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com The Company Profile Continued end of fiscal 1999, JCI had sold roughly 5 built for the 1999 Grand Cherokee a new nected to the bus. Mr. Geschke explained, million HomeLink systems since its intro- overhead console that integrates an 80x16 “That will let the carmaker easily add new duction in 1994, and the company expects dot-matrix display and the following: features to seats at the time of refresh to sell about 3.5 million HomeLink trans- HomeLink, a compass, trip computer and without having to throw away the wiring ceivers in FY 2000. graphic message center. Using a menu- harness.” A three-button remote device that is driven user interface, drivers can personal- Door Module Assemblies: Oxford and both a transmitter and a receiver, ize up to 13 different vehicle features; for Johnson Controls have been working to- HomeLink learns the proper RF signal by example, have the doors lock automati- gether since 1999 to develop complete listening to the signal that the original cally as the vehicle is shifted into drive, or door module assemblies, including the remote device transmitted. It operates in program the horn to chirp when the key painted exterior door and interior trim the RF frequency range of 286 megahertz fob is pressed. integrated with motors, window and lock- to 440 megahertz. HomeLink can be inte- ing mechanisms, switches, wiring and grated into the sun visor, overhead con- Promising New Electronics Products speakers. Oxford’s expertise is the metal sole or mirror. It is available on 120 MY AutoVision: JCI’s first-generation rear- exterior, JCI’s the interior. 2001 vehicle models from the following seat entertainment system consists of a PSI Tire-Pressure Monitoring: name plates: Acura, Audi, BMW, Daim- portable videocassette player and 6.4-inch According to JCI and SAE, improperly ler-Chrysler, Ford, General Motors, LCD TV monitor, with headphone and inflated tires cause about 260,000 acci- Honda, Infiniti, Jaguar, Lexus, Land video game jacks; the monitor pulls down dents in the U.S. each year. JCI’s tire-pres- Rover, Mitsubishi, Nissan, Shelby, Toyota from the headliner. Mr. Geschke told us: sure monitor, called PSI, uses four (or five, and Volvo. “Rear-seat entertainment systems are if the spare is monitored) low-mass pres- Compass: In 1984, Prince brought to pretty hot right now. It’s a feature that sure sensors mounted on the inner wheel market its first electronics product, an au- anybody who has ever gone on long trips rim and connected to the valve stem. The tomotive compass that today is JCI’s with kids can relate to. ... By 2003, sales of tire’s pressure reading is sent via RF to a second biggest selling electronics product. AutoVision could potentially eclipse all receiver; the system indicates loss of tire Integrated into the sun visor, overhead other electronics products that have come pressure with an audible signal or an alert console or mirror, the compass is also sold before.” That’s partly because AutoVision message on a visual display. The receiver to Gentex for installation in its mirrors. units sell for several hundred dollars each, can be a separate, dedicated receiver or “While it started out as a minor product, considerably more for each unit than JCI’s JCI’s HomeLink III Universal Transceiver. we now sell millions of them annually,” earlier electronics products. Soon available to carmakers, the company declared Mr. Geschke. JCI will sell over 100,000 AutoVision will also target the aftermarket, a first for a Trip Computers: An outgrowth of the systems in FY 2001. AutoVision is now JCI electronics product. A dealer would compass business, the trip computer today available as a factory-installed option on be able to install the wheel-rim sensors, is the company’s third-largest-selling elec- the 2001 Ford Windstar, Mercury Villager, and the display has been integrated with a tronics product. The device includes an Nissan Quest and Ford Econoline, and battery into a manually-dimmed, pris- outside-temperature sensor (added by JCI) second-generation systems are destined for matic mirror for the aftermarket. The and also takes account of the vehicle’s several factory-installed applications in company expected deployment on several speed, fuel level and other data, giving the MY 2002. The MY 2002 system will use a MY 2001 luxury vehicles but delayed de- driver details like the number of miles DVD player integrated into a 7-inch, 16x9 ployment to MY 2002. that can be driven given the remaining aspect ratio LCD display in the headliner; TravelNote Phone Connection Via fuel. The trip computer is packaged to- that will simplify wiring. By 2003 or 2004, Bluetooth: Because JCI’s TravelNote (see gether with a small display and has many JCI plans to have a portable version of its above description) has a microphone built versions; it is often installed in an over- DVD unit. into the interior of the cabin, the addition head electronics console. Integrated Seats: JCI will begin ship- of a Bluetooth transceiver chip could en- TravelNote: At the touch of a button, ping seats that include some controllers, able hands-free cell phone operation. Sup- TravelNote digitally records reminder motors and heaters. In MY 2001, GM will ported by hundreds of companies, messages for later replay, allowing the use JCI seats that have seat-position con- Bluetooth is an emerging worldwide stan- driver to concentrate on driving rather trollers packaged under the seats. Planning dard for linking electronics devices to than reaching for pen and paper. more deeply embedded seat integration, each other without wires. If carmakers TravelNote, which first appeared on sev- Johnson Controls has introduced its choose to do so, Bluetooth-enabled cell eral 1999 Ford vehicles, has a microphone i-Seating concept, which integrates con- phones could also be connected to the built into the interior of the cabin near troller logic into the seat’s switches and vehicle’s display for access to the Internet. the driver, in the visor or overhead con- integrates controller relays into the mo- In production by 2002, JCI hopes to be sole. JCI will sell a few hundred thousand tors. Motors can be connected to the first to market with Bluetooth hands-free TravelNote recorders in FY 2000. control bus and to power by simply con- cell phone capability. ◆ Overhead Console: JCI designed and necting to a motor that already is con-

The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com October 2000, Page 7 Delivering... Continued from page 1 Too Few EEs checked, 15% to 20% of the vehicle com- The same problems exist at Toyota, Dr. Peter Thoma, BMW’s top electrical prised electrical or electronics parts, only agreed Scott Andrews, a key engineer who engineer until September 15, when some- 10% of engineers at Mercedes were elec- recently left in frustration; Mr. Andrews what frustrated, he left BMW to join trical engineers, fewer at VW and BMW. advised the carmaker on new multimedia German semiconductor manufacturer According to BMW’s Dr. Thoma, the per- and telematics products. “Most of Toyota’s ELMOS, told us recently: “Electronics is centage of the vehicle’s value that is elec- senior executives are from the chassis and exploding ... and so much [at BMW] was trical or electronics is currently 35% at engine side of the business, so they don’t exciting—new powertrain controls, 42- BMW, even on the 3-series. “It’s definitely really understand electronics. That is dis- volt systems, infotainment, safety, integra- a gap: Only 6% to 7% of the 6,000 total turbing, especially since electronics moves tion of all vehicle controls, networking. ... engineers are EEs.” Those low percentages so quickly, and is growing in im- Still it was impossible at BMW to get also exist in the United States. At portance. There’s no hope of [them] ever enough resources to do all that needed to DaimlerChrysler Auburn Hills, only understanding.” be done.” At ELMOS, Dr. Thoma will sit about 10% of engineers are electrical engi- on the management board, and will have neers, says Denny Florence a top electrical Auto Electronics Lags Way Behind responsibility for sales and engineering of engineer at Chrysler, who took early re- Consumer Electronics automotive . tirement last year. According to the top electronics engi- At BMW, Dr. Thoma needed another neers we spoke with, the result is a lack of 400 to 500 electrical engineers over the Electronics Isn’t Core Technology at support for electronics, and therefore, far next three years but was not permitted to Carmakers Worldwide too little innovation at carmakers. “Go go out and hire them. “The reason for so “At the old Chrysler,” revealed Denny into any Fry’s Electronics store, or Best few EEs is that there is a legacy of me- Florence, “electronics wasn’t considered a Buy,” Mr. Andrews advised, “and you can chanical engineers, and too many are still core function: Body was core, powertrain find a PlayStation or Sega Dream- onboard today,” explained Dr. Thoma. was core, styling was core but not elec- cast that costs about “At BMW you either have to convert a tronics.” The same situation exists in Ger- $200 ... for a gigabyte drive, a 300 MIPS mechanical engineer to an electrical engi- many, according to Heinz Leiber. “None graphics processor, 4 serial I/O ports and neer or you have to wait for a mechanical of the German carmakers see electric/elec- video driver, although no screen. Compare engineer to retire.” tronics as a core competence. I know this that to the Toyota navigation unit in the Heinz Leiber, who was Mercedes’ top because everywhere top management new LS 420, Lexus sedan: A 100 MIPS electrical engineer until he left several comes from classic mechanics, not elec- processor and instead of 4 I/O ports, there years ago, sympathizes with Dr. Thoma. tronics.” At BMW, Dr. Thoma saw this are some soft key switches.” Mr. Andrews Not long ago, Mr. Leiber compared engi- lack of understanding of electronics pro- wonders, “How can the Lexus navigation neering headcounts with his peers at duce some troubling results, among them: unit cost 10-times more, $2,000?” With BMW and Volkswagen, and concluded “There is a love-hate relationship between price and performance discrepancies like that all three carmakers had fewer electri- the mechanical and electrical engineers. that, we can be assured that competition cal engineers than you would expect con- Mechanical guys love the EEs because from outside will increasingly find its way sidering the value of electronics in the they need them, but they hate them be- into the automotive industry. ◆ typical auto. While at the time he cause EEs do stuff they can’t understand.” Important Study on 42-Volt Power

By 2009, 1.5 million vehicles will have In 2002, carmakers worldwide will start higher can provide acceleration boost 42-volt alternators installed—accounting limited production of vehicles with inte- from a stopped position. for only about 2% of the world’s new ve- grated starter alternators. These early ISAs ◆ Low-emission starting: ISAs will hicles. A new study by Paul Hansen, 42- will supply 3 to 6 kilowatts at peak power, help reduce pollution by keeping the en- Volt Power: An Opportunity to Redefine the plenty for increased electrical loads. ISAs gine from stalling, while retarding ignition Vehicle, deals with two trends that are will come to play a major role in energy timing. That leads to hotter exhaust gas- driving the industry to a higher voltage: conservation and a cleaner environment ses, which quickly heat the catalytic con- demand for more electrical power aboard by facilitating these new applications: verter to light-off temperature, and that in the vehicle and the need for more fuel- ◆ Stop-start saves fuel as the engine is turn, reduces cold-start emissions. efficient vehicles that pollute less. Jim turned off at stops and the ISA instantly ◆ Regenerative braking: Several years Gracyalny, sales director, advanced battery restarts the vehicle when the gas pedal is will pass before affordable 36-volt batteries systems, for Johnson Controls Inc., told depressed. are capable of capturing regenerative brak- us: “I have avidly read your study ... and ◆ Boost-assist saves fuel because ing energy. passed it along to our management. They carmakers can use smaller internal-com- To order this study for $397, or for were impressed with the conciseness and bustion run more often at open more information, please call 603-431- broad range of things you hit on.” throttle. The ISAs that supply 6 kW and 5859 or visit www.hansenreport.com. ◆

Page 8, October 2000 The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com