Vol. 27, No. 9 u hansenreport.com u November 2014

Wireless Device Speech Interface Concerns

Charging Not Yet Last month the American Automobile synthetic/computerized voices and pre- Association’s (AAA) Foundation for Traffic recorded natural human voices. Mainstream Safety issued phase two of its report, Mea- u Siri, the natural language interface suring Cognitive Distraction in the Automobile. developed by Apple, “had the lowest rating Wireless device charging was the fourth Among its conclusions are these: of intuitiveness and the highest rating of most-wanted automotive feature in the J.D. u Voice-based interactions in the vehicle complexity of any of the conditions tested. Power 2014 U.S. Automotive Emerging Tech- may have unintended consequences that … [Its] idiosyncrasies resulted in overly nologies Study. Sixty-six percent of U.S. con- adversely affect traffic safety. complex interaction.” The system tested sumers said they “definitely” or “probably u Confirming what was learned in was customized to be completely hands- would” buy a wireless charging station phase one of the study, composing emails and eyes-free. priced at $75 retail. Despite its appeal, or text messages by voice demands a mental wireless device charging is offered on only a workload more than three times greater Texting by Voice Not Recommended few Toyota and Chrysler car models and than the single task of driving. It is clear to everyone that manually on three 2015 Cadillacs: the ATS, CTS u Comparing six OEM voice-based info- texting while driving is a very dangerous and Escalade. tainment systems—five from model year activity, so carmakers have been exploring Wireless charging in automotive has two 2013 and one from model year 2012—re- ways to let drivers text using speech-to-text big hang-ups: The industry has not yet co- searchers found “striking differences in the technology. Nuance, the leading provider alesced around a single charging specifica- cognitive demand incurred through voice of speech interface solutions for carmakers, tion and not enough devices are sold that interactions with different OEM voice- asserts that if texting doesn’t involve visual provide the feature. , the standard devel- based systems.” Of the six systems, Toyota or manual distractions, it is no more dis- oped and promoted by WPC (Wireless Entune was the least cognitively demand- tracting than controlling anything else in Power Consortium), and the PMA (Power ing. Chevrolet MyLink was the most de- the car with speech. But, says AAA, “We Matters Alliance) standard, are the two that manding. (See chart below.) now have evidence to appeal to the public have the most traction among carmakers. u Issuing simple commands such as ad- to not use these voice-to-text features while Both are designed to support inductive justing the climate controls is about as cog- their vehicles are in motion.” charging technology as the means to trans- nitively distracting as listening to an audio Bryan Reimer, a research scientist at the fer energy from the charger to the device book: 1.75 times more distracting than the Massachusetts Institute of Technology via inductive coils. The transmitting coil is single task of driving. AgeLab and a leading authority on the au- part of the charging pad; the receiving coil u Speech technologies have advanced to tomotive speech interface, agrees that text- is part of the or other device. the point where there is no difference in ing by voice while driving is not a good While both are stan- mental workload between listening to idea. “Text messaging or using social media dards, they have their differences. “The is not stuff we need to be differences between WPC and PMA have doing in the vehicle right Cognitive Workload of Six OEM Voice-Based Systems not yet been resolved,” said Jeff Schroeder, now. The problem is, all Compared with Single Task of Driving a portfolio manager for Visteon. “They are the work we have done still in competition. Everybody in the in- with voice interfaces sug- dustry realizes that that is an inhibitor to gests that there are fre- adoption and would like the difference to quently visual demands disappear, but I see no resolution in sight.” associated with the voice Fifty-two phone models from , interaction. You speak, you Motorola and Nokia, among other makers, look at a display to confirm are Qi Ready, meaning wireless charging your words were under- capability that conforms to the WPC speci- stood. What happens if fication is integrated in the phone. Only you remove that visual two phone models from Kyocera come feedback? All I can tell you with integrated charging that conforms to is with any of the speech the PMA specification. PMA charging is systems I’ve worked with, Baseline Toyota Hyundai Chrysler MyFord Mercedes Chevy done via charging cases or the Powermat Entune Blue Link Uconnect Touch COMAND MyLink even those on our smart- phones that are highly Turn to Charging, page 2 Source: AAA Turn to Speech, page 3 The Hansen Report on Automotive Electronics, www.hansenreport.com Page 1, November 2014 Charging… Continued from page 1 Ring, accessories that are sold separately. multiple devices to be charged at the same Three Competing Standards For example, PMA Powermat of- time. fers a wireless charging case for the Before it is adopted by the automotive Wireless Power Consortium (WPC), Qi iPhone5. Thus far no industry, a number of issues with magnetic Qi has the widest support among phone makers and carmakers. The CE4A consortium of five come with integrated charging that resonance charging such as electromagnetic German carmakers recommended this inductive conforms to either specification. compatibility and whether or not the tech- charging standard in September 2013. Toyota, While GM is a strong backer of the nology poses health risks need to be ad- Chrysler and GM offer a few models with wire- PMA standard, Visteon’s wireless charging dressed. The Alliance for Wireless Power less charging based on Qi. Fifty phone models system for Cadillac is compatible with both (A4WP) is promoting a standard based on are Qi Ready, not including Apple iPhones. WPC PMA and WPC standards. “The coil con- magnetic resonance. In February 2014, was the first to issue transmitter specifications. figuration [between the coil in the car that A4WP and PMA agreed to establish in- Power Matters Alliance (PMA) transmits the energy and the coil in the teroperability of these two wireless power The PMA was founded in 2012 by Proctor & device that receives the energy] to support standards. The A4WP’s next spec is due at Gamble and Powermat Technologies. GM is an each standard is similar,” said Sam Khoury, the end of 2014. investor in Powermat Technologies. AT&T, Dura- a business development manager at Vis- Delphi, which is a member of all three cell and Microsoft are members of the PMA. teon. “We are able to detect whether the alliances, A4WP, PMA and WPA, said it is Powermat charging stations are located in Star- device being charged is WPC or PMA com- offering a device charging system that con- bucks and McDonald’s stores. Three 2015 Cadil- lac models offer a wireless charging system patible and apply that software. … The forms to the three specifications. “Reso- based on Powermat, but which also supports Qi RFQs we are receiving from carmakers in- nant technology can enhance the user phone charging. For most devices, a charging dicate that both standards should be sup- experience by offering more positional free- case or other external interface to the phone is ported.” dom,” said George Powell, global product required. PMA is an inductive charging standard. A second approach, magnetic resonance manager for wireless charging at Delphi. charging, which transfers power between “We see a trend toward that technology in Alliance for Wireless Power (A4WP) A4WP is the de facto standard for resonant wire- two inductors that are tuned to the same both the consumer and automotive mar- less charging, which can charge at a greater natural resonant frequency, allows charging kets. In the next couple of years, there is range than inductive charging. A4WP members from a greater distance, offering an alterna- going to be a lot of activity and technology include Samsung, Qualcomm, Broadcom, Intel, tive to non-resonant inductive charging. merging and that will lead to more wide- Renesas, Texas Instrument, Denso, Delphi and More power can be transferred, allowing spread acceptance of our products.” u Visteon. In February 2014 the A4WP and PMA signed an agreement aimed at establishing in- teroperability between their two standards.

Good Times for Automotive Electronics Suppliers Serving U.S. Markets © 2014 Paul Hansen Associates, 150 Two of the main components for auto- year. Between 2009 and 2014 they expand- Pinehurst Road, Portsmouth, NH 03801 motive electronics market growth in the ed at 2.9% per year. Given the current USA. Telephone: 603-431-5859; fax: 603- United States—unit sales of light vehicles SAAR (seasonally adjusted annual rate) 431-5791; email: [email protected]. and retail sales prices for those new vehi- projections, U.S. light vehicle sales will All rights reserved. cles—are up significantly. Growth in auto- reach 16.4 million in 2014, an increase of Materials may not be reproduced in motive electronics is constrained by the 9.5% annually since 2009, which was a par- any form without written permission. need to keep new vehicle transaction prices ticularly difficult year for the automotive The Hansen Report on Automotive low enough to attract buyers. From 2000 to industry at the peak of the recession. Electronics is published ten times a year at 2010, retail prices grew at just 2.1% per www.hansenreport.com. July/August and Average Transaction Price of New December/January are combined issues. U.S. Vehicles Up 2.9% per Year U.S. Light Vehicle Sales in Units Back issues are available for $50 each. Sin- up 9.5% per year gle and multi-user electronic subscription information and a searchable index are 16.43 million available at www.hansenreport.com. Paul Hansen Associates is a strategy and market 10.43 million research firm consulting to the electronics industry. Publisher/Editor Paul Hansen Managing Editor Brianne Wolfe 2009 2014 Data: Power Information Network® (PIN) from Director of Marketing Michelle Long Data: Autodata Corp. J.D. Power ISSN 1046-1105

Page 2, November 2014 The Hansen Report on Automotive Electronics, www.hansenreport.com GM’s EE Architecture Strategy Unaffected by Transition to Four Platforms Announced last month, GM’s planned dash grommets, miscellaneous wiring har- GM vehicles are shipped to more than reduction of global vehicle platforms (vehi- ness components, and the mounting brack- 150 countries. In some markets, especial- cle sets) from 26 to four by 2025 will affect ets for electronics modules can be ly China, where the market for advanced very few electrical or electronics parts. The commonized.” features has not yet developed, the old consolidation to four platforms grouped The commonizing of GM’s electronics electrical architecture with grandfathered according to similar physical layouts—front- control units has been underway since 2007 parts is sufficient. wheel drive vehicles, rear-wheel drive vehi- when the carmaker announced it would GM’s plan to transition to its Global cles, crossovers, and SUVs and trucks—will transition to its Global A architecture. The B platform, based on the latest Autosar create big economies of scale for the pur- intention then was to create fewer, highly version, has been delayed for a couple of chase and production of physical compo- integrated, high-volume common electronic years. Production of the first new plat- nents, but only a few of those parts are modules and components. In GM’s words, form with ECUs that conform to Global electrical or electronic. “Global A will yield massive economies of B is now set for 2017. Like Global A, the “Fewer vehicle sets will lead to more scale, reduce costs, improve warranty perfor- rollout of Global B across all GM vehi- consistent packaging,” said Matt Schroeder, mance, smooth new vehicle launches and cles will take ten years or more. “Autosar in charge of electrical systems engineering improve engineering productivity.” will enable some new features and help at GM. “There will be opportunities to Today between 60% and 80% of the to more efficiently execute some existing share some fuse and junction boxes. Some ECUs GM buys conform to the Global A features,” said Mr. Schroeder. u of the wiring harness channels, front of architecture, according to Mr. Schroeder.

Speech… Continued from page 1 advanced, I wouldn’t send a text to my wife “Voice interfaces are not cost free. They MIT AgeLab and Touchstone Evaluations without reading it first.” are multimodal interfaces; they have visual to better understand and accurately mea- demands associated with them,” cautioned sure the costs and benefits of multimodal Benefits and Costs Dr. Reimer. “Through all the measures we HMIs in the vehicle. The group now also It would be wrong to conclude from are looking at, the cognitive costs are lower includes Honda, Subaru and Jaguar Land AAA’s research that all speech interactions than our expectations, but the visual costs Rover. Accurately accessing demands on make driving dangerous even if they do are much higher.” driver attentiveness will be helpful as more elevate the driver’s cognitive workload. Dr. Reimer was driving along Interstate advanced driver assistance systems and au- “For a lot of activities, the speech interface 89 in Vermont talking to me from a hands- tomated driving functions transform the is far safer compared with doing the task free phone for the extent of our interview. I task of driving in the future. primarily manually and/or visually,” Dr. asked him if he felt perfectly safe while do- “What we label as distraction today is Reimer pointed out. “For example, dialing ing that. “Yes,” he answered. “Talking on going to be far different in five or ten the phone through a speech interface is the phone while driving can at times be years,” Dr. Reimer predicted. “As automa- much less visually demanding than using a protective, meaning you are safer being on tion at various levels reduces driver work- touch screen or keypad. My concerns about the phone than not depending on how you load, we are going to need to do other the cognitive demands of phone dialing manage it. As I am talking to you on the things to stay alert and awake in the car. It while driving are quite secondary if the phone right now I am driving slower, fol- is not a viable investment any longer to in- driver is not even looking at the road.” lowing the car in front of me. My eyes are vest in the understanding of pure distrac- MIT’s research also showed that tuning a looking forward. I’m not messing around tion. The manufacturers need to be radio station with voice reduced the time with anything else in the car. One of the thinking of distracted driving in the con- drivers’ eyes were off the road compared benefits that is hypothesized is that the text of highly automated driving.” with manual tuning. phone is one of the best countermeasures For further information, please visit Dr. Reimer suggests that the benefits to fatigue available.” agelab.mit.edu/ahead or email Dr. u and limitations of driver interfaces need to Reimer at [email protected]. be considered holistically. All types of dis- AHEAD traction need to be considered: visual, The Advanced Human Factors Evalua- manipulative and cognitive. There are costs tion for Automotive Demand (AHEAD) and benefits associated with each driver consortium was founded by Denso, the interface.

The Hansen Report on Automotive Electronics, www.hansenreport.com Page 3, November 2014 The Company Profile… Valeo Group

Thumbnail Sketch Valeo Sales and Operating Margins Valeo Sales by Business Group

Headquarters: Paris, France; telephone 33 2009-2013 CAGR: 12.7% 2013 Total Sales: €12.1 billion 1 40 55 20 20; www.valeo.com 11,759 12,110 2013 Sales: €12,110 million ($15.1 billion) 10,868 Visibility Powertrain R&D: 5.3% 9,632 Systems, Systems, 2013 Operating Margin: 6.6% 7,499 26% 28% EBITDA Margin: 11.2% Comfort Operating Cash Flow: €1,338 million Thermal and Driving Employees: 74,800 as of December 31, Systems, Assistance, 2013; 9,400 work in R&D in € millions 28% 18% Sales per Employee: €161,898 Working Capital: €321 million 2009 2010 2011 2012 2013 for less than three years, accounted for Long-term Debt: €1,524 million as of June 30% of Valeo’s €14.8 billion order intake 30, 2014 Operating Margin in 2013. To support its pipeline for innova- Stockholders’ Equity: €2,413 million as of 2009 1.1% tive products, Valeo hired 1,300 engineers June 30, 2014 2010 6.4% in 2013 and has invested more than 5% of Market Capitalization: €6.5 billion as of 2011 6.5% sales in R&D in each of the last three October 20, 2014 2012 6.2% years. Major Customers: The two largest are Re- 2013 6.6% Regionally, Valeo has been focusing its nault-Nissan and Volkswagen Group, 2014 (Est.) >7.0% investments in Asia, with the number of which together account for 31.9% of sales. plants there increasing from 31 to 48 from Products: Broad range of powertrain, ther- 2009 to 2013. By the end of 2013 Valeo mal, comfort, driving assistance and light- up by the Japanese company Nidec in ing products 2006, and the wiring harness business went operated 26 plants in China with four Sales by Market: OEM, 85%; Aftermarket, to Leoni in 2007. U-Shin acquired Valeo’s more added in 2014. Expansion in Asia 15% access mechanisms product line last year. was responsible for 37% of order intake in Valeo received a BBB corporate credit 2013. Asia (mostly China) will account for Background rating from Standard & Poor’s, an invest- more than half of Valeo’s sales growth Valeo has been serving the automotive ment grade, meaning it has adequate capac- from 2012 to 2015. industry since 1923, when as SAFF (Société ity to meet its financial commitments. Its u anonyme française du Ferodo) it began dis- business risk is seen as satisfactory and its CO2 Reduction tributing and later manufacturing brake financial risk intermediate. According to Valeo, its focus on the re- linings and clutch facings. In the 1960s duction of CO2 emissions will account for and 1970s, the company expanded both Strategy 75% of the company’s sales growth be- into new business sectors—thermal systems, Valeo’s strategy is to focus its four major tween 2012 and 2015. Three product areas lighting, wipers and electrical—and new in- businesses on products related to CO2 re- have been providing the bulk of that ternational markets. The name Valeo was duction and what it calls Intuitive Driving, growth: start-stop systems, starters and dry adopted in 1980. and to grow its business in Asia. Intuitive dual-clutch transmissions. Other products Through multiple acquisitions and joint Driving describes Valeo’s approach to com- linked to CO2 reduction such as super- ventures Valeo continued to acquire new bining automated driving functions, such chargers, water-cooled charge air coolers, technology and expand globally. Today as autonomous parking and vehicle connec- gasoline-cooled EGR and LED lighting are Valeo Group operates 124 plants, 16 re- tivity, with a safe and user friendly HMI. also showing strong sales growth. search centers and 35 development centers Last year Valeo participated in a study in 29 countries and claims to serve all auto- of 16,000 European and 2,000 Chinese Start-Stop Systems makers worldwide. In 2013, just two car- consumers about their expectations for au- The market for cars with the start-stop makers accounted for 31.9% of Valeo tomobile innovation. The study found that feature got started in Europe but is now Group’s sales. consumers want fuel savings and more au- extending to all parts of the world. In the In 2009 the company consolidated its tomated driving, the two product categories U.S., penetration of start stop is presently products into four core businesses: Power- on which Valeo is most focused. just 7%, according to IHS Automotive, but train Systems, Thermal Systems, Comfort Valeo’s annual report noted that auto- is expected to reach nearly 60% by 2020. and Driving Assistance, and Visibility Sys- motive suppliers now carry roughly half the “By 2025 every new car will have start stop, tems. In the process, non-core product R&D costs for new vehicle technologies. except for the very lowest-price vehicles,” lines were sold. For example, the electric Innovative products, which Valeo defines predicted Jean-Francois Tarabbia, group motors and actuators business was picked as products that have been on the market senior vice president of R&D and product Page 4, November 2014 The Hansen Report on Automotive Electronics, www.hansenreport.com Valeo Group

Valeo Employees by Region The belt starter generator family in- OEM Sales by Customer Nationality cludes both a 12-volt product and a 48-volt Total Employees, Year End 2013: 74,800 version. There will be two stages to the im- 2013 Total Sales: €12.1 billion South America, 5% plementation of 48-volt sub-buses on light Africa, 3% vehicles, says Valeo. The first will involve Other, 6% North North America, high-end vehicles as new features bring elec- French, American, 21% 13% Asia, 32% trical consumption beyond the 300 amp 16%* Eastern limit of 12-volt alternators. The second stage will come some years after 2021, Europe, 15% Asian, when emission limits are lowered further, 27% possibly to 75 grams per kilometer from 95 Western Europe, 32% German, 30% grams. “To meet those requirements,” Mr. *Excluding Nissan marketing at Valeo. Mr. Tarabbia is respon- Tarabbia said, “carmakers will need mild sible for analyzing the markets, identifying hybrid technology on their medium-range needs and responding to those needs with cars. An efficient solution is to have some- dozen luminous pixels to form a beam. Us- the development of innovative technology. thing like the belt starter generator booster ing the output of a forward-looking camera Prior to joining Valeo in 2012, he held ex- based on 48 volts.” with image processing software, each pixel ecutive positions at Siemens VDO, Hella can be turned on or off independently as Electronics, and most recently, Segula Dry Dual-Clutch Transmission vehicles are detected so the entire road can Technologies. The dry dual-clutch transmission reduc- be lit except for oncoming vehicles or the Valeo offers two start-stop systems. One es CO2 emissions by 6% to 10% compared vehicle ahead. Matrix-Beam will be avail- is based on its StARS (Starter Alternator with a traditional six-speed automatic trans- able on production vehicles starting in Reversible System) technology. The other is mission, by 4% compared with a wet dual 2016. based on a reinforced starter motor capable clutch, and by 2% compared with a manual of making up to 300,000 starts. Less expen- transmission. Compact, Valeo’s dry dual Electric Superchargers sive than the starter-alternator, the rein- clutch can be fitted to a large number of Valeo, the world’s first supplier to offer forced starter can be installed on small to transmissions. “We were able to apply our a line of electric superchargers, will go into mid-range vehicles. mastery of manual transmissions to dry production with its first application in Jan- Start-stop systems provide fuel savings of dual clutch,” said Mr. Tarabbia. Valeo’s uary 2016, with a German premium car- up to 6% in European standard mixed first production dry dual-clutch transmis- maker who will use the supercharger in a cycle use, and up to 15% in congested city sion will launch in late 2014 in North performance application. The electric su- driving. Over 50 vehicle models will be fit- America and Asia and later in Europe. percharger is capable of improving in-gear ted with a Valeo start-stop system by 2015. acceleration by 27% without increasing Much of Valeo’s sales associated with LED Lighting fuel consumption. CO2 reduction comes from its family of Another Valeo growth engine is its line Valeo expects that most future orders electric starters, which cover a range of re- of LED headlamps and rear and interior for electric superchargers will be for appli- quirements from pure starters, to start-stop lighting. In addition to their long life, small cations that lower CO2 emissions rather functionality, braking regeneration and size and design flexibility, LED headlamps than boost performance. According to acceleration boost. In start-stop applica- consume one-fifth as much power as their Valeo, in 12-volt systems an electric super- tions not only must the starters be more halogen equivalents. charger can reduce fuel consumption by robust, they must also be designed to start Valeo’s BeamAtic PremiumLED high- 8% to 10% compared with unboosted silently with little vibration. Valeo also sup- beam control system is based on its Matrix- engines. plies a belt-driven starter generator. Beam technology, which combines several Valeo’s electric supercharger is powered by a switched reluctance electric motor. Valeo’s Four Business Groups Eliminating the lag between depressing the accelerator pedal and acceleration, which Sales Development Research Employees Plants characterizes turbochargers, the electric su- (€ billion) Centers Centers percharger enables an almost instantaneous Powertrain 3.4 18,769 32 16 5 response: 350 milliseconds when powered by a 12-volt bus; 250 milliseconds for a 48- Thermal Systems 3.4 18,128 45 7 2 volt bus. The switched reluctance motor Comfort and Driving 2.2 13,431 23 9 7 comes up to speed three- to five-times faster Assistance than a conventional electric motor. Visibility Systems 3.1 23,012 33 13 4

The Hansen Report on Automotive Electronics, www.hansenreport.com Page 5, November 2014 Valeo Group

In high volume, Valeo’s electric super- and then park themselves. Drivers remotely Major Customers chargers are expected to be comparable to activate the system from their the cost of turbochargers. and instruct the vehicle to pick them up at #1 Renault-Nissan the parking lot’s exit. #2 Volkswagen Group u Intuitive Driving Others, Listed Alphabetically Valeo’s Intuitive Driving strategy focuses Sensors: Ultrasonic, Radar, Laser, Camera BMW General Motors the company’s product planning and devel- Valeo is especially strong in ultrasonic BYD Auto Great Wall opment efforts on three developing trends: sensors, having produced 400 million of Chery Honda automated driving, connected cars and the them since the introduction in 1991 of its DAF Hyundai/Kia need for vastly improved driver interfaces Ultrasonic Park Assist system. Sixty-five Daimler JAC resulting from those two trends. million ultrasonic sensors were shipped in FAW Mazda 2013. Valeo’s next generation ultrasonic Fiat/Chrysler Mitsubishi Automated Driving sensors will provide more range, making Ford PSA Peugeot Citroën Geely/Volvo Cars SAIC Valeo’s forward-looking product strate- ultrasonic sensors useful for applications gy, which anticipates the transition over the beyond parking assist, such as blind spot next ten years to more and more automat- detection. ing when a pedestrian is crossing the street ed driving features, takes advantage of the Valeo currently uses radar for blind spot we need to be absolutely certain we are ini- company’s history as a driving assistance detection and in its Cross Traffic Alert sys- tiating braking for a good reason. For now, system innovator. In 2006, Valeo pio- tem, introduced in 2009, which warns of we need to combine at least two of these neered automated parking with its line of vehicles approaching from the side as the technologies.” Park4U semiautomatic parking systems. vehicle backs out of a parking space. In Valeo designs and manufactures front, The driver controls the speed and braking 2013, Valeo delivered 1.2 million radar top, rear, side and 360-degree view cameras and Park4U does the steering. It requires sensors, supplied mostly by Valeo Radar and associated ECUs for several OEMs in- just 40 cm to the front and rear of the car Systems, formerly a Valeo Raytheon joint cluding BMW, Jaguar Land Rover, Volvo, to park successfully. venture, now a Valeo subsidiary. Ford, Nissan and Volkswagen Group. Park4U Remote is a fully automatic In December 2010, Valeo and Ibeo parking system that guides the vehicle into GmbH agreed to jointly develop laser scan- Connected Car a parking space without driver input. ners for the automotive market. Valeo, Thus far, Valeo has had little presence Park4U Remote can be initiated from in- which has exclusive rights to manufacture in the connected car segment. Its first con- side the vehicle or the driver can exit the the Ibeo laser scanners for the auto market, nected car product is a smartphone-com- vehicle and initiate the parking with a will begin producing them in 2016 for an patible smart key app called InBlue. Ready smartphone app. Valeo has received an or- ADAS application. It received its first order in time for a production launch in 2016, der from a European carmaker for Park4U in the third quarter of 2014. The Ibeo InBlue will allow the driver to lock, unlock Remote. miniLUX laser scanner provides 3D infor- and start his vehicle with a smartphone. Taking automated parking to the next mation from a 145-degree horizontal field InBlue will be used for car sharing, remote level, Valeo has also demonstrated its Con- of view and can see pedestrians up to 15 parking and access to such vehicle data as nected Valet Park4U concept, which can meters away. tire pressure, fuel level, distance to the next communicate directly with a parking garage But for safety applications as critical and service station and the location of where to first reserve a spot and on arrival, drive complex as pedestrian detection, Mr. the vehicle is parked. InBlue is compatible the vehicle to the spot without the driver. Tarabbia believes it is imperative not to rely with Remote Park4U and Valet Park4U. Valeo uses a laser scanner plus 12 ultrason- on just one sensor technology. “Radar, Short range communications between the ic sensors and four cameras in Connected cameras, and laser are all improving and smartphone and the vehicle is enabled by Valet Park4U. Vehicles with the system can our detection systems get better and better. Bluetooth Smart technology, the intelli- be left at the entrance to a parking facility But if we are going to have emergency brak- gent, power-friendly ver- Valeo’s Competitive Market Position by Product sion of Bluetooth wireless technology. Supplier Driving Interior Transmission Electrical Thermal Lighting Wiper In the future Valeo will Rank Assistance Controls Systems Systems Systems Systems Systems extend its technology base #1 Valeo Valeo Luk Valeo Denso Koito Valeo to support long-range #2 Bosch Kostal Valeo Denso Valeo Valeo Bosch communications from the Halla Magneti #3 Continental Tokai Rika ZF Sachs Bosch Denso car to the world outside. (Visteon) Marelli “We consider that part of Market our business,” said Mr. Share >60% >25% 45% 70% 50% >50% 75% Tarabbia. “We want to of Top 3 provide the communica-

Page 6, November 2014 The Hansen Report on Automotive Electronics, www.hansenreport.com Valeo Group

Major Products POWERTRAIN SYSTEMS Park4U semiautomatic parking systems Transmission Systems THERMAL SYSTEMS Rain/light/humidity detection systems Dual dry clutches Climate Control ParkVue rearview visibility systems Dual wet clutches* Air-conditioning systems and modules Blind spot and reversing detection systems Clutches with or without self-adjusting technology Evaporators 360Vue multi-camera systems Clutch discs Heater cores LaneGuide lane departure systems Clutch facings Multi-zone HVAC units Ultrasonic sensors Release bearings Battery thermal management Radar sensors Hydraulic clutch actuators Rear air conditioning Camera sensors Flexible flywheels Electric radiators for instant cabin heating LIDAR sensors* Dual mass flywheels Air-conditioning systems with storage evaporators for LED sensors Pendulum dampers* stop-start vehicles* Laser scanner* Torque converters Electric air-conditioning for hybrid vehicles* Interior Controls and Electronics Electrical Systems and Hybrid and Electric Vehicle Air quality products Top column body control modules Systems Particle, gas and odor filters Body control modules Stop-start machines Fragrance diffusers and ionizers Battery management modules Belt-driven starter alternators Powertrain Thermal Systems Switching and driver interface panels for HVAC and multi- Reinforced starters Heating and cooling products media control Electric drivetrains including: Radiators Control panel displays Power electronics (inverters, chargers, DC/DC Condensers Steering angle sensors converters*) for hybrids and EVs Oil coolers Angle Electric motor drives Fan/motor systems Torque Range extender generators Cooling modules VISIBILITY SYSTEMS 48V machines* Air intake cooling modules Lighting Systems Engine Management Systems and Air Charge air coolers (air and water) Main headlamps with LED, xenon or halogen technology Management Systems THEMIS smart temperature controls Camera assisted adaptive headlamps Engine control systems for gas and vehicle EGR coolers Daytime running lights, LED or incandescent natural gas (VNG) engines Low-energy heating systems for electric vehicles* Rear and high-mounted stop lamps, LED or incandescent Engine control units for direct and indirect Air-Conditioning Compressors LED-based interior lighting systems* injection Rotary vane Fog and auxiliary lights Engine control units for VNG and flex fuel alternative Fixed cylinder Lighting and signaling controllers fuels Variable cylinder Cigar lighters Engine components Electric compressors Multifunction sockets Ignition coils Front-End Modules USB ports Injectors Wiper Systems Sensors COMFORT AND DRIVING ASSISTANCE Arm and flat/traditional blade sets, including Aquablade® Canister valves SYSTEMS Wiping systems with mechanisms or electronics EGR and air intake modules Driving Assistance Windshield de-icing and washing systems Electric superchargers* Complete range including Safe4U active pedestrian Rear wiping systems protection systems Wiper motors *Not yet in high volume production tions so drivers can access maps, get assis- Valeo already provides some driver in- multifunction touch-screen display. Future tance in an emergency, and reserve parking terface components, including switches and product development plans include aug- spaces. While we have no plans to be an driver interface control panels for HVAC mented reality, head-up displays, gesture u infotainment system provider, we will be a and multimedia. Last year it won an award recognition systems and driver monitors. communications systems integrator and a from a European carmaker to produce a telematics control unit provider.” Some Recent Valeo Acquisitions, Alliances and Divestments 2014 pedestrians using radar sensor from Fujitsu Ten Safe and Intuitive HMI u Autonomous driving will require major Signed a licensing agreement with Leddar- and cameras from Valeo. Fujitsu Ten is a Japa- Tech for infrared LED technology. Valeo will nese supplier partially owned by Toyota. advances in the driver interface. “Commu- develop an IR sensor for obstacle detection and u Acquired the Powertrain System Group from nications between the car and driver will be tracking. Eltek Electric Vehicles, a Norwegian company. extremely important and will surely 2013 The group produces highly efficient onboard change,” said Mr. Tarabbia. “When I am u Sold its Access Mechanisms Product Group chargers. in a traffic jam, I will want the car to take (excluding its Indian business) in May 2013 to u Bought out Osram’s 50% position in Valeo over so I can read a book. The instructions U-Shin, a Japanese company. Sylvania, a U.S. automotive lighting joint venture. to the car must be simple, and the car must u Signed a research partnership with the 2011 u give me feedback that it will do what I ex- French aerospace, defense and security com- Acquired switch maker Niles from RHJ Inter- pany, Safran, to create innovative driver assis- national and Nissan. pect it to do. When the traffic speeds up u and the car wants me to take over, it tance and autonomous vehicle features. Acquired Controlled Power Technologies u Established a technology partnership with should be done in a very easy way that (CPT), a developer of electrically powered super- Fujitsu Ten to develop active safety to detect chargers. The business was renamed Valeo Air doesn’t alarm or surprise me.” road obstacles such as other vehicles and Management UK.

The Hansen Report on Automotive Electronics, www.hansenreport.com Page 7, November 2014 Making Convergence and Detroit Matter

The biggest topic of conversation at gence conference from an association of someone recently retired from the Detroit SAE Convergence 2014, which ran for two committed industry volunteers in 2009, Three or a major supplier, to assist the days last month, was the question, “What hasn’t promoted it as aggressively or distin- program chair and to recruit participation has happened to Convergence?” According guished it from its many other conferences. by more of the industry’s leading lights. to the SAE (Society of Automotive Engi- Convergence 2014 received scant attention u The technical sessions should be neers), 2,067 people were registered to at- from the press. richly informative and meaty, of interest to tend, but many of them didn’t show or Despite the obstacles, Convergence supplier executives who are keen to learn were swallowed up by Cobo Hall. The vast, needs to be brought back to life. Why? Be- how to position their organizations to downtown Detroit convention center was cause to prosper competitively, General profitably serve the industry. mostly empty. Motors, Ford and Chrysler need a vibrant They should rigorously address the Seventy exhibitors set up shop, but traf- and energized community of suppliers and hottest topics of the day, for example elec- fic through the exhibits was light. Delphi researchers that is local. They need a com- tronics reliability, driver distraction, multi- was the only tier-one supplier present. munity of world-class Detroit suppliers who modal HMI, ADAS, big data, connectivity, Convergence is in decline, a stark con- are more dedicated to them than to car- cybersecurity, remote software updates, trast from Convergence 2000, which makers in Germany, Japan, Korea or which standards to support, CO2 reduc- buzzed with more than 300 exhibitors and China. tion, electrification, V2V, EE architecture nearly 10,000 attendees. If you were an au- A convergence of industries is still need- and vehicle networks. tomotive electronics player you absolutely ed, but now the convergence must go be- u Convergence needs to be supported had to be there. yond electronics to include software, by an aggressive marketing campaign. There are plenty of explanations for wireless communications and information u For now, Convergence needs to what has happened to Convergence. One is technology. A reinvigorated Convergence move to a smaller venue, one that’s more that the convergence of the electronics in- conference can be instrumental to enliven- appropriate to the number of attendees. dustry with the automotive industry, the ing Detroit’s high-tech sector. How? The SAE confirms it is considering such a original focus of the conference, is now u The top electrical, electronics and move. complete. software engineers at the Detroit Three, The next Convergence will take place Another likely contributor is the compe- not so much the commercial sponsors who in the fall of 2016, with executive leader- tition from other conferences. ITS World pay to have their messages heard, need to ship provided by Ford. Ken Washington, Congress, this year held in Detroit in Sep- become actively involved in developing the Ford’s vice president of research and ad- tember, attracted many of the same people program and making the presentations. vanced engineering, will serve as chair- who might have come to Convergence. In Their active participation and attendance man, and Jim Buczkowski, Henry Ford addition, with cars becoming increasingly will be a magnet for the rest of the indus- Technical Fellow and director of electrical electronic in nature, carmakers and suppli- try: suppliers, research organizations, the and electronics systems research and ad- ers worldwide now see the Consumer Elec- investment community, analysts and the vanced engineering, will be vice-chair. tronics Show, held each year in early press. Tony Cooprider, senior technical leader January, as the place to see and be seen. u Convergence should pay a senior au- for global E/E systems engineering, will u The SAE, which purchased the Conver- tomotive electronics executive, perhaps serve as program chair.

Consolidation in Auto Top-Ten Automotive Semiconductor Suppliers Semiconductor Market Global Ranking by IHS According to IHS, ON Semiconductor’s Sum of 2013 sales in $ millions acquisition of Aptina moved ON from Renesas 2,916.0 ninth to eighth place in the top ten ranking Infineon with IR 2,628.0 of automotive semiconductor suppliers. With Infineon’s pending purchase of Inter- STMicroelectronics 1,976.0 national Rectifier, it moves closer to chal- Freescale 1,846.1 lenging Renesas for the number one NXP 1,603.0 position. Based on 2013 revenue, Infineon 1,547.0 would trail Renesas by only $288 million. Robert Bosch The IR acquisition, valued at approxi- 1,394.9 mately $3 billion, is expected to be finalized ON Semiconductor with Aptina 939.0 at the end of this year or early 2015. Infine- on benefits with economies of scale, and a Toshiba 853.0 complementary portfolio of power devices ROHM Semiconductor 680.0 and modules. u Data: IHS, October 2014

Page 8, November 2014 The Hansen Report on Automotive Electronics, www.hansenreport.com