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

VOL. 19, NO. 7◆◆ PORTSMOUTH, NH USA SEPTEMBER 2006 Strategy Analytics on Driver Distraction Offers Automotive Electronics Trends Huge Safety Opportunity

We recently interviewed two of the Volvo and Toyota Lead the Way veloped by Toyota Motor Corporation industry’s most experienced and best in- “Seventy-eight percent of all crashes and Toyota Central Research Corpora- formed market analysts about the state of and 65% of all near crashes involved the tion, the driver monitor is manufactured automotive electronics: Chris Webber, driver looking away from the forward by the Aisin Group, a Toyota affiliate. vice president in charge of Strategy roadway just prior to the onset of the Analytics’ automotive practice, and Ian conflict.” That is one of many important Cognitive Distraction Detection Riches, director of the automotive prac- results of the widely praised 100-Car While it is a huge problem with devas- tice. Founded in 1988, Strategy Analytics Naturalistic Driving Study, which is already tating implications, visual distraction is provides market intelligence and demand influencing safety and human-factors ex- not the only kind of distraction that leads forecasts on electronics modules, semicon- perts around the world. Prior to these re- to accidents. Experts have also come ductors, sensors, control systems, tele- sults, inattention was widely thought to firmly to the conclusion that cognitive matics and infotainment systems. contribute to perhaps 25% of all crashes, distraction—when your attention is di- Our experts noted that while global car although some experts believed the num- verted from the driving task—adds signifi- production is growing at about 3% to 4% ber was higher. Sponsored by the U.S. cantly to the safety problem. per year, automotive electronics and semi- National Highway Traffic Safety Adminis- Dr. Samantha Jamson, senior research conductor revenue totals are expanding at tration and conducted by the Virginia fellow at the Institute for Transport a rate of 8% to 10% annually, with semi- Tech Transportation Institute, the 100- Studies, University of Leeds, which coor- conductor sales growing a few percent Car Study kept track of drivers and their dinated the European Union’s HASTE faster than ECU sales. One key driver of vehicles over 12 to 13 months, recording project on safety and the human machine this growth could be the increasing pen- five channels of video during approxi- interaction, believes that cognitive dis- etration of active safety systems. Strategy mately two million miles of driving. traction is a significant safety problem. Analytics recently completed some exten- Even before the 100-Car Study was “Your eyes are fixated on the road, but Turn to Strategy Analytics, page 3 completed, Toyota was well on its way to you’re thinking about the instructions implementing technology that will help your navigation system is giving you and Percentage of New Vehicles with drivers avoid the sort of crashes caused by you are not attending to peripheral Embedded Navigation visual distraction. In March 2006, Toyota events—such as a car emerging from a by Region Where Sold introduced to the Japanese market on the side road or a pedestrian stepping out.” Lexus GS 450 hybrid a driver monitoring Dr. Trent Victor, a human systems inte- percent 50 system that uses a digital camera mounted gration engineering manager at Volvo 44 on the steering column to keep track of Technology Corp., who has been working the driver’s face. If the driver looks away on driver distraction issues for nearly ten 40 from the road for a few seconds or more, years, cautioned: “We have observed that 32 and if an obstacle is detected ahead, the a person who is concentrated on solving a 30 system alerts the driver with a warning problem on the phone is affected increas- chime and flashing light. As the car gets ingly by tunnel vision. The driver loses closer to the obstacle, the system auto- awareness of oncoming traffic, crossing 18 20 matically begins to brake. Toyota will in- cyclists or red lights, perhaps looking 14 troduce the driver monitoring system, straight ahead without really seeing very 10 9 8 which is part of Toyota’s Advanced Pre- much. This is just as dangerous as looking Collision System (APCS), in Europe this away from the road repeatedly to do some- December on the LS 460. APCS comes to thing else.” 0 the U.S. in late spring 2007, on the 2008 Last year Dr. Victor completed his doc- 2005 2010 Lexus LS 600h L. The system will be toral thesis with Uppsala University, Swe- Japan Europe NAFTA added to new vehicles as they are intro- den. In “Keeping Eye and Mind on the Data: Strategy Analytics duced each year. Based on technology de- Turn to Distraction, page 2 Distraction... Continued from page 1 Road,” he suggests that equipment that most common distraction for drivers is the measures eye movement can be used not Volvo’s second-generation Intelli- use of cell phones, which distract visually only to identify visual distraction, when gent Driver Information System will: and cognitively in equal measure. the driver looks away from the road too ◆ Manage the allocation of I/O re- NHTSA reported, “The number of often, but also to detect cognitive distrac- sources to applications crashes and near-crashes attributable to tion, because when drivers have cognitive ◆ Resolve conflicts between applica- dialing is nearly identical to the number tasks to perform they tend to stare fixedly tions with respect to their interaction with associated with talking or listening.” at the center of the road. the driver The problem with cell phones has According to Dr. Victor’s thesis, “Read- ◆ Resolve conflicts between system reached epidemic proportions. According ing emails and SMS messages, and chang- initiated events and tasks performed by the to NHTSA, at any given daylight mo- ing the zoom level and language setting driver ment in 2005, 10% of all drivers on the on a navigation system are significantly ◆ Resolve conflicts between applica- road in the United States were engaged in different from common in-vehicle tasks, tions and the driving situation phone conversations using either a such as changing radio stations. And ◆ Optimize warnings with respect to the handheld or hands-free phone. That data there was some evidence that dialing a driver’s state of distraction is based on samples of 43,000 vehicles ob- hands-free telephone is more difficult present a paper on October 9, 2006, at the served from 1,200 sites across the U.S. than dialing a handheld telephone.” ITS World Conference in London, which The survey was conducted by the Na- describes the next generation IDIS con- tional Center for Statistics and Analysis. Workload Managers cept, designed “to resolve HMI conflicts Unless the industry can come to grips Many suppliers and most carmakers between different systems or between sys- with the problem of cell phone distrac- around the world are developing workload tems and the current driving situation.” tion, laws prohibiting the use of handheld managers that help limit potential distrac- “It will behave like a person sitting and even hands-free cell phones while tions from the vehicle’s information, en- next to you, someone taking care of the driving will continue to proliferate around tertainment and warning systems, and distraction level for you,” said Mr. the world. from cell phones, MP3 players and other Broström. “The reason we are looking at Other portable devices that drivers portable devices. The state of workload this kind of system is that we see increas- bring into their vehicles such as personal manager development around the world ing functional content in the car, both navigation devices (PNDs), iPods, Black- was neatly summed up in an SAE paper by in-vehicle information systems like navi- berries and Treos also bring substantial Paul Green, research professor at the Uni- gation and traffic as well as things like safety risks. Dr. Wiel Janssen, senior scien- versity of Michigan Transportation Re- MP3 players, which all cause distraction. tist at TNO Human Factors, a market- search Institute, published by the SAE Adding to the workload are advanced continued on following page for Convergence 2004. driver assistance systems like adaptive Since the 2003 model year, the Saab 9- cruise control, forward collision warning THE HANSEN REPORT ON 3 and Saab 9-5 have had dialog managers and lane departure warning.” AUTOMOTIVE ELECTRONICS that control the flow of non-safety-critical Volvo’s interaction manager is designed messages. In the 2007 Saab 9-5 the to accommodate inputs from a variety of © 2006 Paul Hansen Associates, 150 workload manager suppresses dashboard modules that monitor the driver’s atten- Pinehurst Rd., Portsmouth, NH 03801, warnings and intercepts incoming phone tiveness, for example, a camera that tracks USA. Telephone: 603-431-5859. Fax: 603- calls when high driver workload is de- the driver’s eye and head movements, 431-5791. Email: [email protected]. tected, such as during heavy braking. and/or a camera that keeps track of the All rights reserved. Materials may not be Volvo, which started using a workload vehicle’s position within the lane, and/or reproduced in any form without written per- manager as a standard feature in 2003 on a vehicle navigation system that reports if mission. The Hansen Report on Automotive the S40 and V40 vehicles, presently de- the vehicle is approaching a difficult or Electronics is published 10 times a year, ploys the feature standard on S40, V50 dangerous intersection or rotary. monthly; July/August and December/Janu- and S80 models. The Intelligent Driver While Volvo’s existing IDIS system was ary are combined issues. The annual sub- Information System (IDIS) monitors such fairly easy to implement because it moni- scription rate is $717 (North America), $747 vehicle parameters as speed, acceleration tors data already on the vehicle’s CAN (elsewhere). Back issues are available for and deceleration, turn signal on/off, brak- network, the second-generation IDIS will $50 each; see our online index at ing, and turning angle. When driving de- require significant changes in the electri- www.hansenreport.com. Paul Hansen Asso- mands are high, it delays incoming phone cal architecture. Therefore, its introduc- ciates is a strategy and market research calls and vehicle-generated text messages. tion will likely be timed as new Volvo firm consulting to the electronics industry. What’s next at Volvo after IDIS? Rob- platforms are introduced. Publisher/Editor Paul Hansen ert Broström, a technical expert in the Managing Editor/ Brianne Wolfe HMI systems engineering department at Managing Portable Devices Circulation Manager Volvo Car Corp., has been working on According to a NHTSA press release workload managers since 2001. He will on the findings of the 100-Car Study, the ISSN 1040-1105

Page 2, September 2006 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com Strategy Analytics... Continued from page 1 sive market research that confirmed a one of the ways to bring active safety to a speed with which new technology flows high degree of consumer interest in active broader market is to dramatically reduce down from luxury vehicles to mass market safety, but only if the price is very low. the cost of sensors. It is Mr. Riches’ view vehicles. Ian Riches elaborated: The new market research program, that ten-dollar, automotive quality, wide- “Ten or 15 years ago, Bosch would de- called Automotive Buyer Dynamics, uses dynamic-range CMOS cameras will soon velop new technology for the Mercedes S- Web-based surveys of new car buyers in begin to replace high priced radar or lidar Class where it would stay for three years the United Kingdom, France, Germany sensors in blind-spot monitoring, lane before perhaps going into the E-Class. You and the United States. The research departure warning systems and forward- could always count three model genera- methodology is designed to mimic the way looking obstacle detection systems. tions before Ford, Volkswagen or consumers actually have to choose op- Navigation prices will also be pressured Chevrolet would pick it up on a main- tions—bundled in various configurations downward. “There has been a big rise in stream model. by the manufacturer. “There is huge con- the last couple of years in portable naviga- “That’s breaking down. The first lane- sumer interest in safety systems, but there tion systems like those from TomTom and departure warning product came out on is very little willingness to pay market the like,” noted Chris Webber. “That con- the Infiniti brand in the U.S., a luxury prices for them as options,” noted Mr. firms the clear consumer interest in hav- brand, sure, but one that’s ranked a bit Riches. “For a lot of features, whether it’s ing navigation systems, but again, it below Lexus, BMW or Mercedes. In Eu- a fully integrated Bluetooth hands-free comes back to the right price point.” A rope it first came out on a Citroën. Adap- system, autonomous cruise control or col- typical OE embedded navigation option is tive front lighting was standard on the lision avoidance, consumers were willing priced in the $1,000 to $2,000 range, but 2004 Opel Corsa, a B-segment vehicle. to pay around $200-$300.” Obviously to really move the customer, the price Why is this? Because all the vehicle there is a large disparity between the aver- needs to get to $500 and below. manufacturers are really having to fight to age willingness to pay and actual retail With the anticipation of lower prices, differentiate their products, especially the prices. “Our research identifies consumer Strategy Analytics expects penetration of middle-ranking brands.” segments willing to pay more, but unless OEM navigation in Europe to grow from Strategy Analytics, with headquarters option prices come down or features are 9% in 2005 to 18% by 2010. In NAFTA in Newton, Massachusetts, maintains of- made standard, many of these advanced countries, penetration is expected to grow fices in England, France and Germany. safety systems will not reach the mass from 8% in 2005 to 14% in 2010. For more information please visit market,” Mr. Riches predicted. www.strategyanalytics.net or call Chris While software is a key enabler of ac- Democratization of Technology Webber at 44 1908 423641. ◆ tive safety, and software development cost A big change in our industry Strategy is a major contributor to its high price, Analytics has noticed is an increase in the

Distraction... Continued from page 2 oriented research institute in The Nether- preoccupation we need nomadic devices ments for a portable device gateway that lands, believes one of the hottest issues in that can change their behavior based on would make it possible to dock any stan- Europe today is how to place nomadic de- what the car and driver are doing. That dard portable device and operate it in a vices under the control of the intelligence will lead to workload managers in the ve- safe manner. AIDE must complete its built into a car. Dr. Janssen advises manu- hicle and the nomadic device gateway.” work by February 2008. facturers of those devices to cooperate Motorola is an active participant with According to Motorola’s Mr. Gardner, with carmakers to solve the problem or, Volvo Technology, carmakers, suppliers, along with the Nomadic Device Forum we he predicts, carmakers will find a way in research institutes and universities in the should also be watching developments at which you simply cannot connect a no- EU-funded AIDE project, which is devel- the Digital Living Network Alliance madic device to the vehicle unless you oping models, methodologies and human- (DLNA), a consortium of more than 250 plug it into a master supervisor. interface technologies required for safe consumer electronics, computer and com- Aware of the potential harm to the cell integration of driver assistance and infor- munications companies working on seam- phone industry from legislation, industry mation systems in the vehicle. Among its less integration through a wired or leader Motorola is trying to find a techno- several activities, AIDE has organized the wireless network to share digital media logical solution to the problem. Mike Nomadic Device Forum, which is trying within the home and while traveling. The Gardner, director of intelligent systems to build consensus on the features and prospects for extending DLNA’s interop- research for Motorola Labs, sees three architecture of a “smart vehicle-portable erability standards to the auto industry components to cell phone safety: “Eyes on device gateway,” and to address safety and were enhanced recently by the decision of the road, hands on the wheel and mind on commercial issues associated with vehicle- BMW, DaimlerChrysler and Volkswagen the driving.” The first two issues are ad- device integration. At its latest meeting, to join the alliance. ◆ dressed with the hand-free phone, says May 15-16, 2006, the forum defined use Mr. Gardner, “but to address cognitive cases and wrote a definition of require- The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com September 2006, Page 3 Omron Automotive The Company Profile... Electronic Components

Thumbnail Sketch Omron Corp. Sales by Fiscal Year Omron AEC Sales by Product Omron Automotive Electronic in ¥ billions by Fiscal Year Components (AEC ) Headquarters: 6368 FY 2001 to FY 2005 CAGR: 4.1% ¥64.6 billion ¥77.6 billion Nenjyozaka, Okusa, Komaki-city, Aichi 485- 3% 0802 Japan; telephone: 81 (568) 78-6160; 4% 22% fax: 81 (568) 78-6169; www.omronauto.com 22% Products: Electronic control units, switches 23% and relays 30% FY 2005 Sales: ¥77,593 million ($678 million) 534.0 535.1 584.9 608.6 626.8 700.0 44% 52% R&D: 8.6% of sales FY 2005 Capital Expenses: ¥11.9 billion ($104 million) 2001 2002 2003 2004 2005 2006* FY 2004 FY 2005 *Plan FY 2005 Operating Loss: ¥2.0 billion Other ($17.5 million) Omron Corp. Sales Relays Employees: approximately 4,000 Switches by Business Segment FY 2005 Sales per Employee: ¥19.4 million ECUs ($169,600) FY 2005 Total Sales: ¥626.8 billion The automotive business lost ¥2 billion Other, 4.1% Automotive Electronic ($17.5 million) in fiscal 2005, a result of Omron Corp. FY 2005 Sales: ¥626,782 Components, 12.4% rising raw materials costs and the expan- million ($5.48 billion) Healthcare Equipment, sion of manufacturing facilities in St. R&D: 8.8% 9.7% Charles, Illinois, and Oakville, Ontario. Net Margin: 5.7% Industrial AEC plans to improve profitability in FY Return on Equity: 10.7% Social Automation, Systems, 43.5% 2006 by sharing R&D expenses and com- Working Capital: ¥154,446 million 14.6% ponents with other Omron business seg- ($1.350 billion) as of June 30, 2006 ments, by increasing production in China Shareholders’ Equity: ¥360,580 million Electronic Components, 15.6% and by expanding sales of high value- ($3.15 billion) as of June 30, 2006 added products like laser radar. Market Capitalization: ¥670,133 million Automotive Electronic Components AEC describes itself as a directed ($5.9 billion) as of August 2006 Omron AEC brings Omron’s core sens- source. Mike van Gendt, senior general Omron Group Employees: 27,408 as of ing and controls technologies to automo- manager for AEC Inter-Americas and March 31, 2006 tive applications. AEC was established in executive officer of Omron Corp., said, Sales per Employee: ¥22.9 million 1985 in Nagoya, Japan, originally as part “We consider ourselves almost a tier one- ($200,000) of the Electronics Components business of and-a-half, with a lot of our products be- Note: Omron’s FY 2005 ended March 31, 2006. Omron Corporation. AEC was reclassified ing showcased at the OE level. In many as a separate internal company in April cases, the negotiations are done at an OE Background 2003. With sales of ¥77,593 million ($678 level and then directed to tier ones where Omron Corporation, established in million) in the year ending March 31, appropriate.” 1933 to manufacture timer relays for x-ray 2006 (FY 2005), AEC accounted for Omron AEC employs approximately machines, had sales of ¥626,782 million 12.4% of Omron Corporation’s total sales. 4,000 people worldwide, including 916 in ($5.48 billion) in the fiscal year ending In the last three years, AEC has grown North America. Operations in North and March 31, 2006, with net margin of 5.7% sales at the rate of 9.3% per year. Its ag- South America are under the manage- and return on equity of 10.7%. Omron’s gressive sales plan for 2006 and 2007 calls ment of the Inter-Americas Automotive largest business by far is its industrial auto- for 13.5% annual growth, which means its Electronic Components group. Mr. van mation business, accounting for 43.5% of business is growing significantly faster Gendt also serves as president of Omron sales. The business makes control systems, than the auto electronics market. Fueling Dualtec Automotive Electronics, based in equipment and components for factory Omron’s growth is increasing demand for Ontario, Canada. Omron purchased automation. The company annually pro- electronic control units (ECUs) for radio Dualtec Electronics from Magna Interna- duces 700 million relays for all the indus- frequency (RF) products such as keyless tional in 1991 and used this acquisition to tries it serves. Omron stock is traded on entry and tire pressure monitor receivers, create a North American manufacturing the Tokyo, Osaka and Nagoya stock for body controls and for electric power base for automotive relays. Omron exchanges. steering. Dualtec expanded its manufacturing

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Omron AEC Sales and Omron AEC Sales by Region Omron AEC Customers Operating Margin by Fiscal Year Total FY 2005 Sales: ¥77.6 billion Top Direct Customers (alphabetical) FY 2002 to FY 2005 CAGR: 9.3% Bosch Lear Europe, 8% Delphi Magna Intier in ¥ billions North Denso Mitsubishi Heavy Rest of America, Faurecia Industries Asia, 20% 37% Hitachi Automotive NSK JCI Siemens VDO 59.5 58.8 64.6 77.6 91.0 100 Japan, 35% Top End-Use Customers (alphabetical) DaimlerChrysler Hyundai Ford Mitsubishi Motors 2002 2003 2004 2005 2006* 2007* Distinctions Claimed by Omron AEC General Motors Nissan ◆ Keyless entry system market share Honda Suzuki Operating Margin leader in Japan FY 2002 7.2% ◆ Keyless entry system market share FY 2003 1.7% leader in North America in 2007 automotive industry. Staffed initially with FY 2004 (1.4%) ◆ Automotive relay market share leader in 80 employees and set up to produce key- FY 2005 (2.6%) North America less entry systems and power window con- FY 2006* 3.3% ◆ 1.5 million electric power steering trollers, shipments from the facility controllers in service reached ¥100 million ($874,000) in the *Plan first year (January through March 2006) and are expected to rise to ¥1 billion Products: Competencies time managed eight factories in Europe, ($8.7 million) in FY 2006 and ¥15 billion RF: RF circuits, antennas, wireless sensors including four in Italy, was ranked third in ($131.1 million) for FY 2010. Omron ex- Closure Control: Simulation, ultra-small the European market for plug-in type au- pects vehicle production in China to grow motor controls tomotive relays. Along with micro ISO, at more than 10% per year, to the point Electronic Power Steering: Simulation, mini ISO relays and glow-plug relays, where it will top Japan’s annual produc- motor control, relays Bitron manufactures engine temperature tion of 7 million vehicles by 2007 or Laser Radar: Optics, object-detection switches and panel switches. 2008. algorithms The company created an automotive Relays: Fully automated production/high relay joint venture, Omron Bitron Auto- Products quality product motive Electronics, in Alatri, Italy, in Oc- ◆ Electronic Control Units (ECUs) tober 2004. Omron holds 75% of the joint ECUs for RF facilities in Ontario in 2005 to support venture now but will take over 100% of AEC’s line of electronic control units increased business with North American the company in March 2007. generated 52% of sales in fiscal 2005, and OEMs and tier ones for ECUs, HVAC Omron and Bitron created a second the majority of those ECUs end up in RF panels, flashers and switches. joint venture in February 2006, Omron products in features such as remote keyless Omron has benefited from increased Bitron Componentes Automotivos Ltda. entry (RKE), passive entry, remote start, vehicle sales in the United States by its in Itapevi, Brazil, which manufactures immobilizers and tire pressure monitors Japanese OEM customers. AEC’s North power window switches and HVAC (TPM). Omron is the number-one sup- American sales grew 37% in FY 2005, ac- switch panels. plier of RKE in Japan and claims it will be counting for 37% of the segment’s sales; in While the majority of AEC’s technol- the number-one RKE supplier in North FY 2006 the company expects North ogy comes from inside the company, its America by 2007. America will account for 40% of AEC acquisitions of Dualtec and Bitron ex- The company attributes much of its sales. Europe, according to Mr. van panded the company’s global reach. AEC success in RF systems to its technical ex- Gendt, has been a tougher market to is open to other small acquisitions, in the pertise in hardware design, including break into. “We started later in Europe range of $5 million to $30 million, if the packaging, and antenna design. Omron and the market there has been more fo- target fits with Omron’s core interests in AEC’s ability to deliver competitively cused, with each country supporting its sensors and controls. priced, high-quality wireless components domestic OEMs. We are making inroads,” Some years ago, Omron identified is also related to the parent company’s he said. China as a growth opportunity and in huge industrial automation business. In July 2004 Omron acquired the auto- January 2006 began operating a new auto- According to Jerry Bricker, vice presi- motive relay division of Bitron Industrie motive electronics production facility in dent and general sales manager of Omron S.p.A., Torino, Italy. Bitron, which at the Guangzhou, China, a global hub for the continued on following page

The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com September 2006, Page 5 Omron AEC

Automotive Electronics Inc., “Omron’s Omron AEC Products of EPS into larger, heavier vehicles as corporate specialty is factory automation. carmakers seek greater fuel efficiencies. Part of our technology advantage is that RF Products Future EPS drive motors are likely to be we not only design and develop the Remote keyless entry systems AC motors, which can provide the addi- components, but we also are experts in Passive entry electronics tional power required by larger vehicles Immobilizers high-volume, automated production and hybrids. Omron’s ability to reduce the Tire pressure monitoring receivers equipment.” Omron Corporation designs size of the override electromechanical re- Closure controls and switches most of its production and test equipment Power window switches lay used in this application is one impor- in-house. RF integrated circuits are pur- Power seat switches tant key to the company’s success. chased from outside suppliers. Accessory switches Omron is the major tier-two source of Another advantage of Omron’s RF re- Hidden switches EPS controllers for a Japanese EPS-maker, ceivers, said Mr. Bricker, is their ability to Anti-pinch controllers its principal EPS account. Omron’s EPS receive signals from various inputs. Most Power side-door controllers control modules are currently used in the AEC customers use a single receiver, Power tailgate controllers Toyota Corolla in Europe, the Ford Escape which can be either a stand-alone unit or Sensing technologies hybrid in the U.S. and by two customers integrated into a body control module, Laser radar sensors in Japan. The company is in the final depending on the carmaker’s specifica- High dynamic range CMOS imagers stages of development of EPS controllers tions. An integrated receiver can receive Relays and relay modules for larger vehicles and says it will soon transmissions from a key fob for keyless Plug-in relays have a system ready for a full-sized, eight- entry, passive entry, engine immobilizer Printed circuit board relays cylinder car or truck. Omron’s EPS uses a and remote start as well as from tire pres- SMT relays unique control algorithm the company sure monitors. Omron supplies only the Relay modules has been developing and refining over the receiver end of TPM, not the sending Electronic power steering controls last 20 years. units. The company has not seen much Electronic control units AEC also supplies ECUs for closure DC/AC inverters demand for TPM beyond the mandated controls—for power sliding doors and Body control modules U.S. market, except for a few high-end power tailgates. Multiplex electronics modules vehicle applications. Flashers ◆ Omron’s biggest competitors in RF Daytime running lights Relays ECUs are Siemens VDO, Bosch, TRW, Rear wiper controllers An electromechanical relay is an elec- Valeo, and in Japan, Alps and Denso. Rear defogger timer controllers trically activated switching device with which a high-current circuit is controlled ECUs for Body Control Modules heavy amount of integration into a single by a low-current switch. Typical automo- Omron’s very close, long term relation- module can be pretty costly. Today it is all tive applications of relays include the con- ships with its Japanese customers and its about platform engineering, and if you trol of motors, lamps, engine cooling fans, expertise in integrating electromechanical have a platform designed to go across a HVAC and window defrost systems. The relays were the company’s entrée into the wide range of vehicles, from very low-cost number-one relay supplier to the North body control module (BCM) business. with low feature content to high-end ve- American auto industry, Omron’s relay BCMs comprise the second largest seg- hicles with a lot of features and functions, product line includes both plug-in relays, ment of Omron AEC’s electronic control it may penalize the lower end vehicle to typically used in the vehicle wiring har- units business. AEC supplies BCMs for have that single [body control] module. ness and in junction boxes, and printed Mitsubishi as well as for the Honda Ac- Some carmakers want more modules so circuit board (PCB) relays, used in low- cord, Legend and Acura RL. they can add or subtract hardware, and current applications such as body control- Body control modules integrate control therefore, cost. Others are going the other lers, power window switches and memory functions such as door locking, lighting, way—where they want to integrate more seat modules. security systems and memory seat func- into a single module.” According to Jerry Bricker, while ap- tions, reducing the number of ECUs re- proximately 60% of AEC’s relay business quired and simplifying wiring. While the ECUs for Electric Power Steering today is plug-in types, the fastest-growing trend at carmakers such as GM and Electrical power steering (EPS) is the segment is PCB relays. Within the next Chrysler has been to integrate body con- third largest part of the company’s ECU five years, he expects PCB types will be trol functions into a single module, Mr. business and the fastest-growing product used in the majority of applications. Sev- Bricker said that is by no means an indus- line, according to Mr. Bricker. Omron ex- eral factors are driving the conversion. try-wide approach: “The trend is defi- pects that EPS penetration will reach 25% Suppliers can integrate PCB relays into nitely changing. Carmakers really want to of new vehicles globally by 2012, com- smaller, stand-alone modules independent use electronics and software as a way to pared with less than 5% penetration to- of the overall electrical architecture or differentiate their vehicles, and doing a day. Driving that growth is the migration wiring harness system. Further, the reli-

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stop-and-go driving (in Japan) and pre- Quality Awards from Customers Omron AEC Manufacturing Locations crash sensing for braking and seatbelt pretensioning. Delphi Pinnacle Award for Supplier All automotive products and plants are The current product offers two-dimen- Excellence certified to ISO TS 16949 and ISO 14001. sional scanning: a wide field of view, 30 AFL 1PPM Award degrees horizontal and 10 degrees vertical, CAMI Presidents Award Guangzhou, China (ECUs, switches) which compensates for elevation changes Denso Certificate of Merit Kurayoshi-city, Japan (switches) as the vehicle travels over uneven terrain. Ford Full Service Supplier/Q1 Seoul, Korea (ECUs, switches, relays) The wide field of view makes it possible to GM Targets for Excellence Ayuthaya, Thailand (ECUs, switches, relays) track the target around curves in the road. Honda Productivity Award West Midlands, UK (ECUs, switches) Omron noted it was the first company MMNA Supplier Award Alatri, Italy (relays) to produce and market a lidar sensor, be- SIA Quality Achievement St. Charles, Illinois, USA (ECUs, relays) ginning in 1996 in Japan. Omron’s lidar Toyota North America Quality Achievement Oakville, Ontario, Canada (ECUs, switches, sensors today are used for adaptive cruise Yazaki Certificate of Excellence relays) control on the new Nissan Fuga in Japan, Nissan Development Award for Intelligent phisticated control application, or they and on the new Infiniti M35/45. While Brake Assist need pulse width modulation, or slow lidar, unlike radar, is limited by its inabil- start, or some function other than a direct ity to see through heavy snow and rain, its ability and quality of electromechanical on/off.” cost advantage promises greater demand relays has improved significantly in recent for the technology. Mr. Bricker observed, years. “For us it is under 1 PPM [plant re- ◆ Switches “When we first went to market, I think it jects] today,” said Mr. Bricker, so the ease AEC takes parent Omron’s depth in was half the price [of radar]. The gap has of replacement that plug-ins provided is switch technology and focuses it on auto- closed, but there is still definitely a signifi- no longer as big an issue with engineers. motive applications—in power seat cant cost advantage, somewhere between More efficient motors, which draw less switches, power window controls and any 50% and 25% less.” current, also allow the smaller PCB de- accessory switches the driver or the pas- vices to be used in more applications. senger touches in the doors, the seats, in- ◆ High Dynamic Range CMOS As a result of AEC’s continuing im- strument panel and elsewhere. Omron’s (HDRC) Image Sensor provements in relay technology, it can switch assemblies are built using standard, In 2002 Omron formed a joint venture provide customers with smaller devices high-quality, low-cost “switch cells” on called IMS Vision with the Institute for that can handle higher loads by shorten- the inside, with customized knobs or but- Microelectronics Stuttgart to develop car- ing current paths and using fewer inter- tons on the outside. mounted HDRC cameras. Omron ac- connects. With rising materials costs, Power window switches incorporate quired 100% of IMS Vision in May 2005 especially for the copper used in relay Omron’s PCB relays, and the company’s and renamed the business Omron Auto- contacts, Omron has developed smaller anti-pinch controller meets U.S. safety motive Electronics Technology GmbH. A products that use less material. standards described in FMVSS 118. new research and development center in According to Mr. van Gendt, Omron Lindau, Germany, was set up at the end of has “very limited” business today in solid- New Products 2005 to support ongoing HDRC develop- state relays. Of the $550 million global ◆ Lidar ment efforts. automotive relay market, he estimates Omron AEC believes that sensors will Omron refers to one of those efforts as only about 5% is solid-state devices, become more and more important as the “sensor fusion,” in which it combines the largely because of their price, which can demand for driver assist systems grows. image sensor with lidar to more accurately be up to five-times higher than electrome- The company has developed a lidar (light discriminate between objects and pedes- chanical relays. And in some instances, he detection and ranging) sensor that uses trians in the vehicle’s path in low light said, carmakers have actually tried solid- Omron optics technology and proprietary and backlit conditions. Omron’s HDRC state relays in functions such as lighting, target acquisition software algorithms. camera detects light levels over an inten- fuel pump and fan control and later Lidar measures the time delay between sity range of 170 dB, the highest dynamic switched back to electromechanical. transmission of a pulse of light and detec- range on the market, according to com- “There are different solutions—but differ- tion of the signal reflected off the vehicle pany literature, compared with CCD cam- ent costs associated with those solutions, or object ahead to calculate speed and eras, which typically have a limited and there is a big push in the industry on distance. Omron’s lidar sensor can func- dynamic range of just 60 dB. No produc- cost containment and reduction. OEMs tion as a “three in one” device: long dis- tion orders have yet been booked; the continue to favor electromechanical de- tance forward sensing for ACC, short product is not likely to come to market vices over solid state unless it’s a more so- range sensing for low-speed following and until after 2010. ◆

The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com September 2006, Page 7 2007 Feature Highlights Safety and convenience features con- which automatically dampens the suspen- BMW will provide lifetime, free, real- tinue to trickle down from luxury cars to sion based on road information obtained time traffic data to U.S. customers who pur- mainstream vehicles. According to Bosch, from the navigation system. chase a navigation system on select BMW the penetration of electronic stability con- Along with a host of electronic perfor- models, beginning in the fall of 2006. Traffic trol (ESC) in the U.S. is around 35% today, mance, safety and convenience features in- data will come from Clear Channel Radio. and Bosch expects that figure to double by cluding stop and go adaptive cruise control In Europe BMW has provided traffic data 2010. Consumer Reports says ESC is avail- and night vision, Mercedes’ ninth-genera- linked to the navigation system, which al- able, either standard or optional, on 65% of tion S-Class, introduced in the spring of lows for dynamic rerouting, for several years. 2006 vehicles, compared with 60% in 2005. 2006, includes an iDrive-like multifunction Hard drives are finding their way into NHTSA recently announced a phased-in controller and display for Mercedes’ more car audio systems. The Lexus LS 460 ESC mandate, but most major carmakers Comand cockpit controls. The device has has a 30 GB hard drive to store not only have already committed to including ESC as not generated the rancorous reviews that navigation data (optional), but also music a standard feature across their model lines, followed BMW’s first generation iDrive, and and Gracenotes artist and title information. eventually. All GM SUVs and vans will reportedly Mercedes will use the controller Infiniti G35 for 2007 has a hard drive for have StabiliTrak standard by the end of in the all new 2008 C-Class, due in the music storage, and Chrysler’s optional 2007; all GM cars and trucks by end of spring of 2007. MyGig infotainment system from Harman, 2010. Ford said that all Ford, Lincoln and Mercedes’ new automatic braking system, offered in the 2007 Sebring, Dodge Nitro Mercury models for the U.S. will come with Pre-Safe Brake, is available in an option and Jeep Wrangler, has a 20 GB hard drive standard ESC by 2009. DaimlerChrysler package on the new S-Class and CL-Class. for navigation and music storage. Harman now delivers ESC standard on more than As in the previous version, if the near range also supplies a 20 GB hard drive as part of 70% of Chrysler models including all radar sensors in the front bumper detect a the Mercedes S-Class navigation system. ◆ SUVs. Toyota SUVs come with ESC, and possible collision, the system alerts the Toyota says that all models will eventually, driver and calculates the brake force that Fall 2006 Is Auto Electronics but the carmaker did not make ESC stan- will be required before the driver hits the dard on the newest generation of the Camry, pedal. What’s new is that if the driver fails Conference Season America’s top selling midsize sedan. to act, Pre-Safe Brake applies autonomous Ludwigsburg, Germany: More than 400 partici- Toyota’s Lexus LS 460 luxury sedan, partial braking equivalent to 40% of the pants are expected at the Advances in Automotive available in the U.S. in October 2006, is maximum braking force. Electronics conference September 20–21, 2006, at loaded with technological innovation— Mercedes’ adaptive brake lights flash in the Forum am Schlosspark Convention Centre in from its world’s-first 8-speed automatic emergency braking situations to warn driv- Ludwigsburg. Organized by Heinz Leiber, former di- transmission to the infrared sensors that ers approaching from behind. Studies have rector of E/E development for Mercedes, the theme for 2006 is “Systems, Components, Innovations.” monitor the body temperature of the rear shown that rapid flashing helps reduce driv- The Ludwigsburg conference, chaired this year by seat occupants. ers’ reaction times. Thomas Scharnhorst, director of vehicle system Toyota has updated its Advanced Pre- Audi’s multifunction controller, the electronics for Volkswagen AG, and Peter Thoma, Collision System (APCS), which detects MMI (Multimedia Interface) appears in supervisory board member, Elmos Semiconductor, objects and oncoming vehicles. The new Audi’s new full-sized SUV, the Q7. The Q7 is an opportunity to learn from and network with system, available now in Japan and coming also offers Side Assist blind spot detection leading industry decision makers. www.elektronik- later this year to Europe and to the U.S next and a rear view camera and parking aid that tagung.de. year, uses two forward facing cameras aided share the MMI display. by infrared projectors in the headlights to While inexpensive parking aids that use London, England: ITS World Congress will be determine if a pedestrian is in the car’s path. a variety of sensors and rearview cameras are held October 8–12, 2006, at the ExCeL London Another camera mounted in the steering widely available from carmakers and as af- conference center, organized by ERTICO and ITS wheel keeps track of the driver’s head posi- termarket add-ons, more sophisticated sys- United Kingdom. ITS World technical sessions will tion to minimize accidents caused by dis- tems are appearing on high-end cars. examine all aspects of ITS deployment, from im- traction. If the driver fails to respond to the Toyota’s Advanced Parking Guidance Sys- proving existing services to research and long term system’s alerts, APCS applies the brakes. tem, which was first introduced in 2003 on planning. www.itsworldcongress.com. In Japan, Lexus models will offer a rear- Prius in Japan, uses sonar, a camera and looking millimeter-wave radar that can de- electric power steering to automatically par- Detroit, Michigan: Convergence 2006, October tect collisions approaching from behind, allel park a Lexus LS 460; it requires only 16–18, 2006, Cobo Hall, Detroit. Don’t miss it. For more information, visit www.sae.org/convergence. alerting the driver with a warning light. braking by the driver. Mercedes’ Park Assist Sensors in the headrests detect the position system on the S-Class determines if the Paris, France: Third Annual International Automo- of the driver and front passenger and adjust parking space is big enough and guides the tive Electronics Congress October 24–26, 2006, at the headrests to minimize whiplash. The driver through parallel parking with a rear- the Sofitel Sèvres in Paris, presented by Reed rear-end crash system will not be immedi- looking video image overlaid with a graphic Business Information. Carmakers and supplier rep- ately available in the U.S., and plans for of the rear of the car. resentatives will participate in panel discussions on Europe are undecided. BMW demonstrated an automatic park- global competitiveness, profitability, quality and in- The hybrid GS 450h, launched in Japan ing system that uses ultrasound sensors in novation, and the convergence between consumer in the spring of 2006, has Toyota’s NAVI/ the bumpers to guide the car into a garage, electronics and the automotive industry. For more AI-AVS (Navigation/Artificial Intelligence- but it does not parallel park. information, visit www.automotive-electronics- Adaptive Variable Suspension) system, congress.com. ◆

Page 8, September 2006 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com