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

VOL. 19, NO. 1◆◆ PORTSMOUTH, NH USA FEBRUARY 2006 Electronics at Ford Automotive HDDs: Not So Hot North America: Hard disk drive makers Toshiba and ally use all of those bits,” said Mr. Signs of Life Seagate have been promoting the notion Barnetson. Today a 20 GB Flash drive is that the market for automotive hard disk quite expensive but with prices declining drives is very hot and about to break out at 40% per year, in five years the price will Not all is doom and gloom for suppliers well beyond the shores of , where it be $50; the same as a hard drive today. For intent on playing a role in Ford North got its start as a nonvolatile storage media 40 gigabytes of Flash, cost parity would America’s electrical and electronics parts for navigation data and more recently for take 6.5 years. supply chain, although as the carmaker digital music files. According to automo- Mr. Barnetson also pointed out that loses share in North America it is becom- tive hard disk drive pioneer Toshiba, cit- Flash performance is much faster than ing a significantly smaller customer. Just ing market data from IDC, 2.4 million HDDs, and Flash has a history of proven how much Ford has lost already was ob- automotive HDDs were sold in 2005 and reliability in the automotive environ- jectified by its decision announced on by 2009 sales will climb to 8.5 million ment, having been used in engine control January 23 to reduce its North American units. units for the past ten years. vehicle making capacity from 4.55 million But that forecast might be overly opti- For some carmakers a 40 GB drive is units to about 3.35 million by 2008. mistic. For one thing, it doesn’t account overkill. For many applications, less Ford said it would cut 10% of its white for Flash drives, which will take a big bite memory will suffice. “Today you can buy collar workers, but after the smoke cleared out of the market for automotive HDDs. and 4 GB SD (Secure Digital) card, which on “Black Monday” when people were let “Flash drives are a serious contender to is enough for about 1,000 songs,” noted go or forced to retire early, the impact on hard drives,” said K. Venkatesh Prasad, Mr. Barnetson. Personal navigation device Ford’s North American Electrical and who is responsible for infotronics at Ford’s maker TomTom sells a unit in the after- Electronics Systems Engineering (EESE) Research and Advanced Engineering market with a 1 GB SD card sufficient to group was substantially less than on other Group. “If you look at the cost benefits of navigate throughout the United States. organizations. “We hired heavily during something mechanical that’s moving, sub- However, some carmakers definitely the past year, and we were able to retain ject to degradation vs. something that’s will want the large storage capacity that those new critical skills,” explained static; I would place my bets on things HDDs provide. “If you want a music col- Graydon Reitz, who runs EESE. Roughly that don’t move.” A Flash drive typically lection and high quality 3D navigation 700 electrical engineers work for Mr. consists of one to eight NAND memory with 10 million points of interest ... if you Reitz, according to our own estimate. components plus a small controller chip. want to have games for the kids, a couple Research and Advanced Engineering’s Don Barnetson, associate director of of audio books and a collection of videos, electronics group also survived relatively Flash marketing for Samsung Semicon- you can get past 40 gigabytes in about two unscathed: only two or three out of ap- ductor, which has been promoting the use seconds,” asserted Amy Dalphy, manager proximately a dozen engineers were cut or of Flash drives to carmakers, makes a case of hard disk drives for Toshiba. Other ap- transferred out to other activities. Safety for Flash: “Flash costs $35 per gigabyte plications for HDDs or Flash memory in- systems product development and re- today compared to less than a dollar per clude recording digital radio programs for search lost about eight out of approxi- gigabyte for a hard disk drive. However, playback later, and some years from now, mately 70 engineers. over the last 10 years, Flash pricing has diagnostic data storage. The number of engineers doing elec- fallen about 40% per year. The basic price Toshiba recently said it can now tronics research at Ford North America of the HDD doesn’t fall but you get more sample to automotive customers 2.5-inch, has been dwindling for years. In 1999 un- bits for the same price. If that HDD cost 40 GB HDDs which are capable of operat- der Ford Research head Bill Powers, there $50 last year, it still costs $50 this year but ing over temperatures ranging from -30 to were two activities with a total of roughly you might get 50% more bits. +85 degrees C. Toshiba, which claims to 70 engineers doing electronics related re- “If I’m designing a head unit today, it have an 85% share of the market, pio- search at Ford, one working on won’t launch until 2009, and it must ship neered automotive HDDs in Japan, where and the other working on systems. Today until 2014. Even though by 2014 the hard the vast majority of them are sold. In Ja- Ford Research and Advanced Engineering drive will have maybe 10-times or 20- pan HDDs were first sold in aftermarket is focused on powertrain development, times more bits [of storage capacity], the applications; factory installation by especially on hybrids and diesel engines. application doesn’t change, so I can’t re- carmakers started in 2005. Turn to Ford, page 2 Turn to HDDs, page 2 HDDs Continued from page 1 Along with the Flash alternative, digi- need to be able to prove that he is not effort but, unfortunately, Toshiba has not. tal rights issues will slow the rate of HDD providing a vehicle for copyright infringe- Other different standards from Apple, adoption. Carmakers and infotainment ment. ... They don’t want to be sued,” said from Microsoft and from others are also suppliers don’t want to develop products Mr. Anderson. “One threat is the unscru- in play, which will make it difficult to that make it easy to produce illegal copies. pulous dealer who could order a settle on one. Seagate, the world’s number-one hard disk loaded with entertainment and navigation Coming up with a solution to the digi- drive manufacturer with 30% share of the content, pull the drive out, copy it to a tal rights management issues is particu- overall market, doesn’t yet produce HDDs PC and then copy the contents to a larly difficult for automakers. “In the for automotive applications but very bunch of drives for other .” automobile you’ll have to handle music much wants to. Dave Anderson, director Seagate has been developing security from many different sources, videos from of strategic planning for security products functions that could be installed on an different studios, navigation content and at Seagate, has been looking into automo- HDD and working with groups within the diagnostics data,” said Mr. Anderson. tive requirements. “The content that International Standards Organization to “Each of these requires different security could be put on a hard drive has to be pro- make the security features standard. HDD methods.” A solution that protects all par- tected in the sense that the system manu- makers Hitachi, Fujitsu and Samsung ties will take years to develop. ◆ facturer or automotive manufacturer will have joined Seagate’s standards-making

Ford... Continued from page 1 Good news for electronics suppliers tive cruise control integrated with a vi- development system. He reports to Anne looking for new projects: Ford’s “Back to sion-based system, and an intersection Stevens, Ford executive vice president Basics” mantra is being replaced by a more crash mitigation system. and chief operating officer, the Americas. aggressive stance with new products. “We A hopeful development well-received Electronics engineering managers at Ford will see substantially more technology and by Ford electrical engineers is the eleva- can now be confident that top manage- innovation in a quicker time frame than tion this fall of Derrick Kuzak to vice ment at Ford will understand what they what we had before in North America,” president of product development, the are talking about. declared Mr. Reitz. Americas. Ten years ago, when he ran For example, Ford is working on new Ford’s Electrical and Electronics Systems Supplier Relations safety features (ironic given the loss of Engineering group, Mr. Kuzak talked Recently we asked some suppliers what some safety engineers in research) as well about the importance of implementing it’s like doing business with Ford. Accord- as a connectivity module that will make it electronics the same way throughout continued on page 8 easier for customers to bring portable elec- Ford’s global operations as a way to save tronic devices into the vehicle. Engineers millions of dollars worth of redundant en- THE HANSEN REPORT ON are developing a module consisting of a gineering effort. “That is one of the key AUTOMOTIVE ELECTRONICS USB connector, a wireless Bluetooth con- things Derrick is [now] bringing to the © 2006 Paul Hansen Associates, 150 nector and an iPod connector for intro- organization,” noted current EESE man- Pinehurst Rd., Portsmouth, NH 03801 USA. duction in a 2008 model year vehicle, or ager, Graydon Reitz. “We are going to a Telephone: 603-431-5859. Fax: 603-431- possibly sooner. The project will rely global electrical architecture that will al- 5791. Email: [email protected]. All heavily on Microsoft and will use the low seamless transition of features from rights reserved. Materials may not be repro- Windows Mobile operating system. Europe to North America.” duced in any form without written permis- The connectivity module hardware Still, electronics engineering is heavily sion. The Hansen Report on Automotive will likely be supplied by experienced compartmentalized, with separate organi- Electronics is published 10 times a year, telematics suppliers Nokia and/or zations at each of Ford’s car divisions: monthly; July/August and December/Janu- Motorola. Nokia currently supplies Volvo, Jaguar, , Mazda and ary are combined issues. The annual sub- Bluetooth connectivity to Ford of Europe. Ford North America. Travel budgets had scription rate is $717 (North America), $747 In the near term, Ford North America been curtailed in the previous round of (elsewhere). Back issues are available for will make a concerted effort to quickly cost cutting, which made cooperative, $50 each; see our online index at transfer some electronics features devel- collaborative relationships among engi- www.hansenreport.com. Paul Hansen Asso- oped by Volvo and by Jaguar to North neers difficult to maintain. Recently, how- ciates is a strategy and market research American vehicles. Active safety features ever, a team of Ford North America EESE firm consulting to the electronics industry. are visible and easily understood by cus- engineers spent a week with their coun- Publisher/Editor Paul Hansen tomers and would help to differentiate terparts at Volvo in . Managing Editor/ Brianne Wolfe Ford vehicles. Some of the active safety Mr. Kuzak, an electrical engineer with Circulation Manager products most likely to be transferred in- a doctorate in systems engineering, is re- ISSN 1040-1105 clude a lane-keeping system, radar adap- sponsible for all aspects of the product Page 2, February 2006 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com 2005 Roundup of North American Automotive Suppliers

For a year often euphemistically de- one percent less than in 2004. Gentex Sales in the Power Solutions division, scribed by auto industry executives as estimates its worldwide mirror shipments which includes OEM and aftermarket “challenging,” General Motors’ sobering will increase by 10% in 2006. lead-acid batteries and hybrid vehicle bat- announcement in January that it lost $8.6 While Gentex serves most major teries, grew 27%, with strong increases in billion in 2005 left little doubt about the carmakers, it depends on General Motors both North America and Europe. In July severity of the troubles facing North for a considerable chunk of its mirror busi- 2005, JCI acquired Delphi’s global battery American carmakers and the suppliers ness. The company extended its sourcing business, which is expected to increase who serve them. GM’s North American agreement with GM, under which Gentex battery sales by 15% in 2006. automotive operations alone lost $5.6 bil- will supply all but two of GM’s interior Based on a forecast of 40% growth lion for the year. Ford’s North American auto-dimming mirror programs worldwide (3.4% annually) in the market for interior automotive operations reported a pre-tax through August 2009. Gentex will also electronics over the next decade, JCI’s loss of $1.6 billion, although profits in supply all Mercedes and Chrysler interior strategy includes a focus on new technolo- other regions reduced worldwide automo- and exterior auto-dimming mirrors gies for driver information systems, multi- tive losses to about $1 billion. Ford’s full- through December 2009. media and center stack interfaces. In year net income for 2005 was $2 billion. January 2006, JCI signed an agreement GM set aside $3.6 billion, included as a Johnson Controls Interior Experience with VoiceBox Technologies to use non-cash charge in the fourth quarter, to (Fiscal year ending September 30, 2005) VoiceBox’s conversational speech engine cover benefit obligations for Delphi work- FY 2005 Consolidated Net Sales: in JCI Bluetooth and telematics products. ers, as a result of Delphi’s bankruptcy fil- $18,833.2 million ing. Ford recorded $468 million in 2005 Change from FY 2004: up 10.7% Lear Corp. for Visteon related charges. Ford agreed to FY 2005 Operating Income: $632.3 2005 Net Sales: $17,095 million take back 17 plants, six offices and some million (excluding restructuring costs) or Change from 2005: up slightly, 0.8% research facilities in North America along 3.4% of Interior Experience sales, a 2005 Net Loss: $1,376 million, com- with 18,000 UAW workers and 5,000 sala- decline of 3.4% from the prior year due pared with $422.2 million net profit in ried employees from Visteon, which is primarily to higher raw material costs 2004 struggling to stop continued losses. In North America, JCI’s interiors sales With General Motors and Ford as its Both Ford and GM announced plans to grew 3% in 2005 to $8.5 billion despite a two largest customers, accounting for close several North American plants and slight decrease in North American ve- roughly 40% of sales, Lear had some for- eliminate some 30,000 jobs each—GM’s hicle production. JCI attributes the gain midable challenges to deal with in 2005. by 2010, Ford’s by 2012. In addition to to new business awards, including Sales to the traditional Big Three exclud- extensive cost-cutting, both carmakers launches with Nissan, Mercedes and ing Mercedes, Volvo, LandRover, Jaguar concede they need to focus on strengthen- Honda, and a favorable platform mix. and Saab business, contributed 56% of ing their brands and developing innova- Interiors sales in Europe reached $8.9 Lear’s total sales in 2005. tive vehicles that can compete with Asian billion, up 11% over the prior year, ex- The company’s strategy has been to try and European products. According to Au- cluding currency effects, aided by a com- and grow sales in Europe and Asia, but tomotive News, GM’s light vehicle sales in bination of increased electronics revenue since 2003, sales outside North America the U.S. fell 4.5% in 2005; Ford’s U.S. and new programs on the Mercedes B and have not increased very much. Fifty-four light vehicle sales dropped 5.3%. Chrysler CLS Class, Renault Modus, Land Rover percent of 2005 sales were in North Group’s unit sales in the U.S. grew 4.5%. Discovery 3 and Nissan Xterra. America, compared with 59% two years Roundup will continue next month JCI’s Asian Interiors sales showed the ago. Lear’s plan for the Seating and Elec- with coverage of Autoliv, TRW Automo- greatest improvement, increasing 28% trical/Electronics business is to bring the tive, Delphi and some European suppliers. over 2004 sales, excluding currency ef- geographic mix to 45% North America, fects, to $1.4 billion. JCI picked up busi- 55% elsewhere by the 2008 – 2010 Gentex Corp. ness on two Nissan vehicles in Japan and timeframe. Business with Asian OEMs is 2005 Net Sales: $536.5 million with Hyundai/Kia in Korea. With 33 fa- forecast to reach about 15% of company Change from 2004: Up 6.1% cilities in eight Asian countries, including sales by the end of the decade. 2005 Net Income: $109.5 million or 12 facilities in , JCI believes it is Lear’s North American content per 20.4% of sales, compared with 22.3% well-positioned to serve the thriving vehicle was $586 in 2005; European con- net margin in 2004 Asian markets. tent per vehicle was $347. Lear’s Electri- Gentex’s automotive revenues in- JCI’s largest customers are General Mo- cal/Electronics business, primarily wiring creased 6% for the year, due largely to tors, which accounted for 14% of 2005 harnesses, accounted for 17% of sales or 8% improvement in unit shipments of sales, Ford and DaimlerChrysler, which $2.9 billion, in 2005 compared with 14% auto-dimming mirrors, from which the each accounted for 11% of 2005 sales. of sales in 2004. company derives 95% of its revenue. Approximately 42% of sales to these top The combination of customer pressure North American customers accounted three customers were in North America, to reduce prices and higher raw materials for 48% of mirror shipments in 2005, 45% in Europe and 13% in other markets. Turn to Roundup, page 8 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com February 2006, Page 3 The Company Profile... The MathWorks

Thumbnail Sketch The MathWorks Sales by Year Employees by Year Headquarters: 3 Apple Hill Drive, Natick, in $ millions 2000 to 2005 annual growth rate Massachusetts 01760-2098 USA; tele- of employees: 12% phone: 508-647-7000; fax: 508-647-7001; www.mathworks.com 2005 Sales: approximately $350 million 2005 Automotive Sales: about $90 million 200 250 250 300 350 750+ 1,000+ 1,000+ 1,000+ 1,000+ 1,300+ Products: Technical computing and model- based design for development 2001 2002 2003 2004 2005 Customers: All of the world’s major 2000 2001 2002 2003 2004 2005 carmakers use MathWorks products 2001 to 2005 CAGR: 15% Employees: 1,300+, 40% of whom are in product engineering The MathWorks Sales by Region Employees by Region of Responsibility Ownership: Privately held by founders 2005 Sales: $350 million Jack Little, Cleve Moler and Steve Bangert Total: 1,300+ as of January 2006 Asia, 30% North Other, 1% Background America, Europe, 19% North The MathWorks was founded in 1984 40% by Jack Little and Cleve Moler who still America, own the company. Professor Moler serves 80% as chairman and chief scientist; Jack Little Europe, 30% is president and CEO. The MathWorks’ success as an enterprise is based on its two every year since its founding. where he was product marketing manager core software products for technical com- The MathWorks counts more than one for engineering products and a project puting and model-based design, MATLAB million users of its products worldwide. that later became Lotus Notes. and Simulink. The original Fortran ver- Half of all MathWorks sales come from MathWorks software can be purchased sion of MATLAB was authored by Prof. customers outside of North America. In on CDs or downloaded from the com- Moler, a mathematician and computer addition to its headquarters in Natick, pany’s Web site. Customers typically pay scientist who holds a Ph.D. from Stanford Massachusetts, The MathWorks main- anywhere from $2,000 to $35,000 per en- University. In the 1980s, working as an tains offices in , Germany, , gineering seat depending on the set of engineer in controls and signal processing, Spain, Sweden, , Switzerland, products. The software can run on per- Jack Little recognized the opportunities The Netherlands and the United King- sonal computers using Windows, Linux or presented by making MATLAB available dom. Macintosh operating systems or on Unix to the growing market of PC users. He The MathWorks has no plans to go workstations. formed The MathWorks with Prof. Moler public or merge with another company. to translate MATLAB into C language “The company has grown organically by MATLAB and market the product commercially. Mr. plowing our profits back into the Twenty years after its first release, Little is a graduate of MIT and Stanford company’s operations, by investing deeply. MATLAB, according to the company, is University. We’ve never had outside help from ven- today the language of technical comput- With more than 85 different products ture capitalists or outside investors. By ing, the de facto industry standard high- based on MATLAB and Simulink in its remaining private we can focus on the level programming language for algorithm portfolio today, The MathWorks serves long term and make decisions that benefit development. MATLAB is also an inter- not only automotive but also aerospace, ourselves and our customers,” explained active software development environment biotechnology, communications, defense, Jim Tung, MathWorks Fellow and chief that lets engineers perform computation- education, finance and semiconductors strategist. Mr. Tung focuses on accounts ally intensive tasks faster than traditional among its core markets. Because it doesn’t and key industries, including the automo- programming languages such as C, C++ rely on any single market sector, The tive industry. At The MathWorks a “fel- and Fortran. The MATLAB product fam- MathWorks has weathered economic low” is a senior manager who doesn’t have ily accounts for 60% of the company’s rev- downturns well. Sales have increased ev- a lot of direct reports. Mr. Tung joined enues. ery year—by 15% annually since 2001— MathWorks in 1988. Prior to that, he was MATLAB tools have a wide variety of and the company has been profitable employed by Lotus Development Corp., uses. For example, they can be used to

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uct add-ons, executable C code can then Distinctions Claimed by The MathWorks Key Features of Simulink be automatically generated. ◆ MATLAB is the de facto standard for ◆ A selection of predefined design technical computing. components (blocks) Stateflow ◆ MATLAB is the language of technical ◆ Interactive graphical editor for assem- Stateflow is an interactive design and computing. bling and managing intuitive block simulation tool for event-driven systems. ◆ Every major carmaker and tier-one diagrams Used to describe complex logic in a natu- supplier worldwide uses MathWorks ◆ Model Explorer to create, navigate, ral and readable form, it is tightly inte- products. configure and search all signals, grated with Simulink and MATLAB. An ◆ MathWorks products are used by more parameters and properties of the model add-on product, Stateflow Coder gener- than one million people in 175 countries. ◆ Provides capabilities for defining inputs ates C code from Stateflow charts. and viewing outputs to evaluate and test manage code, files and data, to build pro- model behavior Real Time Workshop grams or to solve problems. MATLAB al- ◆ Graphical debugger to examine simula- Real Time Workshop automatically lows engineers to run mathematical tion results and diagnose unexpected generates C code for developing and test- functions such as linear algebra, statistics, behavior in the design ing algorithms modeled in Simulink. The Fourier analysis, optimization or filtering. ◆ Simulink has an open architecture so it resulting code can be used for real-time They can create 2-D and 3-D graphics can integrate models from other tools, and non-real-time applications including with which to visualize data or create interface to other simulators and rapid prototyping, hardware-in-the-loop graphical user interfaces. MATLAB-based incorporate handwritten code, including (HIL) testing and deployment in produc- algorithms can be integrated with other MATLAB algorithms. tion vehicles. applications written in other languages ◆ Applicable to linear, nonlinear, discrete- such as C, C++, Fortran, Java, COM and time, continuous-time, hybrid and multi- The Automotive Market Microsoft Excel. rate systems Automotive, one of The MathWorks “MATLAB is a high-level language core markets, accounts for about $90 mil- that is also a highly interactive language, lation, an analytical method meant to lion in sales, which is 25% of total com- meaning the programmer writes a com- imitate real-life systems. Sixty-five per- pany sales. Sales to automotive customers mand which gets executed right away,” cent of The MathWorks automotive rev- have grown at roughly the same rate as explained Mr. Tung. “MATLAB can be enue comes from the Simulink product total sales, 15% annually, and will likely easily extended with commands using family. continue at that rate for the foreseeable product add-ons we call ‘toolboxes.’ Let’s The Simulink environment can be future, according to the company. say I’m describing an optimization algo- used for fixed-point and event-based mod- The demand for Simulink and rithm. I type in the algorithm in the form eling, control system design and analysis, Stateflow products by automotive custom- of a MATLAB script. Within the script I signal processing and communications ers correlates with demand for model- can call up functions from a signal pro- design and analysis and automatic code based design, an approach that is cessing toolbox, or a neural network generation. Block diagrams can be ex- well-entrenched around the world. Given toolbox, or an image processing toolbox, tended using MathWorks add-on blocks the dynamic complexity of control sys- or even from a colleague doing research in for signal processing, communications or tems, powertrain and chassis engineers that area.” There are thirty-five MATLAB other blocksets, which can be dragged were the first to depend heavily on model- toolboxes available from The MathWorks into the diagram and wired together. ing and simulation tools. Increasingly, and more from third parties. Simulink sits on top of MATLAB, which body electronics engineers are becoming designers can use to customize or calculate heavy users of model-based design because Simulink or to prototype ideas that can then be of the interaction and interlocking nature Not only do simulation tools shorten simulated. The MATLAB programming of body control logic systems. Designing the time between design iterations, but language can be used to launch Monte Bluetooth vehicle nodes that are compat- they also make it easier to explore things Carlo simulations with Simulink auto- ible with a variety of Bluetooth phones is that engineers wouldn’t otherwise try, ei- matically. Monte Carlo simulations gener- one particularly problematic aspect of ther for lack of time or because they don’t ate a range of random values for uncertain body electronics engineering that would want to damage physical models. That variables to fully test all possible system yield to modeling tools. freedom to experiment leads to more cre- behaviors. Demand for MathWorks products is ativity. With Simulink, software engineers can growing fastest among engineers working MATLAB is the foundation for present system requirements not as on active safety, telematics and infotain- Simulink, which was first released in lengthy prose statements but as math- ment systems. MathWorks tools that were 1990. Based on block diagrams, Simulink ematical models, which can be simulated, developed for designers working outside is an environment for modeling and simu- tested and verified. Using Simulink prod- continued on following page The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com February 2006, Page 5 The MathWorks the auto industry, for example aerospace The MathWorks Tools Support the “V” Development Process engineers working with radar or telecom- munications engineers designing signal Technologies used in multiple phases: processing and communications systems, Jim Tung, MathWorks Fellow Modeling and strategist: “Viewed in Simulation are now being applied to automotive ap- Design & Code generation Integration & terms of the “V” diagram, plications. Analysis Integrated test and verification Test The scope of what could be modeled model-based design starts and the demand for models and modeling at the top left of the V with an initial description of tools seems to have no end. An engineer Define Complete requirements and a sanity Requirements Integration & Test modeling a future vehicle system will also check of whether those need models of all the systems, on and off requirements are feasible. System-Level System-Level the vehicle, that will interact with the That leads from a high-level Specification Integration & Test new design. Those systems might be elec- design to a detailed tronic, mechanical, hydraulic, software, subsystem design to Subsystem Subsystem the human behind the wheel or even the implementation and back up Design Integration & Test the right-hand side of the weather conditions. Modeling tools will Rapid V through verification, Subsystem Hardware be uniquely helpful as safety systems are Prototyping validation and calibration.” Implementation in-the-Loop (HIL) designed based on vehicle-to-vehicle communications, where data about what Production Code Generation each vehicle is experiencing is shared. practices to unambiguously specify models ropean onboard diagnostics systems. “The MathWorks Automotive Advisory Board so that a model is clear to both suppliers ease of use and statistical analysis within One sure path to business success is to and OEMs. Mr. Tung recalled, “Our cus- the Model-Based Calibration Toolbox [a get very close to your customers, to deeply tomers were asking us, ‘How do we share MATLAB add-on] give the user opportu- understand their needs and respond to our design requirements and models in a nity to accurately evaluate many model those needs with appealing products. One way that can be understood by all?’” inputs quickly,” noted Nick Wright, engi- way The MathWorks gets close to its au- While the style guide has not become a neer at Ford. tomotive customers is through the rigorously prescribed standard, all of The General Motors: Using MathWorks MathWorks Automotive Advisory Board MathWorks’ customers, according to Mr. tools, GM Powertrain engineers perfected (MAAB) meetings, where a select group Tung, “have looked at it, have extracted the process and tools necessary to auto- of 80 to 100 engineers from the carmakers approaches from it and either use it as is matically generate production code from and major tier-one suppliers meet annu- or tailor their own internal style guides algorithm models. According to GM engi- ally under a non-disclosure agreement to based on it.” neers, automatic code generation is faster, discuss their experiences with MathWorks more accurate and less costly than manual products. The most recent meeting of the Automotive Applications coding and produces code that is slightly group was held in Michigan, in June 2005. Toyota: The appeal of MathWorks more compact. GM has developed inno- The 2006 session is slated for mid-May, in products was enhanced in November vative methods to deploy automatically , Germany. 2005 when Toyota and Denso collabo- generated code in a production electronic At the first MAAB meeting in 1997, rated to use the Real-Time Workshop Em- control unit in upcoming production ve- representatives from Daimler-Benz, bedded Coder, the automatic software hicles. That effort won for GM Toyota, and Ford talked about the need to code generator used in the MATLAB/ Powertrain engineers the “Boss” Kettering meld Simulink’s dynamic models with Simulink environment. That automati- Award, GM’s highest honor for technical models based on events or states, the lat- cally generated code was applied to one of innovation. ter accounting for much of the control the ECUs in the Prius hybrid vehicle, the Nissan: Working in the States, Nissan system code embedded in the vehicle, for car with probably the world’s most sophis- engineers used MATLAB, Simulink and example, in transmissions and body con- ticated powertrain control software. Ac- Stateflow to develop and test models of trols. As a result of those initial discus- cording to Toyota, automatic code their emission control strategy. That led sions, in 1998 The MathWorks created generation minimizes the need for scarce to certification by the California Air Re- Stateflow, a design and simulation tool for software designers and reduces engineer- sources Board of the 2000 Sentra CA as a event-driven systems. ing labor requirements by 20% to 30%. partial zero emissions vehicle, the first Another outcome of MAAB is “Con- Toyota and Denso plan to use the tools in gasoline powered vehicle to make that troller Style Guidelines for Using other engine control applications with grade. By optimizing the control strategy, MATLAB, Simulink and Stateflow,” first expansion to other applications likely. Nissan was also able to reduce the number published in April 2001. An evolving Jaguar: Jaguar engineers used of sensors used in the system. Later, document, “Guidelines” is a set of best MATLAB and Simulink to calibrate Eu- Nissan engineers used Simulink to imple-

Page 6, February 2006 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com The Company Profile Continued

Automotive Customers Competing with Customers Ask Jim Tung which companies The The MathWorks Mission Autoliv Motorola ◆ MathWorks competes with for automotive Technology BorgWarner Navistar International Change the world by accelerating the pace industry business and he’ll say “Business as Cummins Engine Newman Haas Racing of discovery, innovation, development and learn- DaimlerChrysler New Venture Gear usual.” Explaining what he means by that, ing in engineering and science. Provide the ulti- Deere OnStar he told us in a recent interview: “Our mate computing environment for technical Delphi PSA competition is people who think that they computation, visualization, simulation, design Denso Renault need physical prototypes in order to verify and implementation. The company will use this environment to provide innovative solutions in a Detroit Diesel Ricardo a design approach. It’s people who think that the only way to implement embedded wide range of application areas. Federal-Mogul Robert Bosch ◆ Business Eaton Tenneco Automotive systems is to write the code by hand every time. It’s people who think that testing is The MathWorks strives to be the leading EcoStar Sachs Automotive worldwide developer of technical computing something you do only when you have Fiat SAGEM software. MathWorks business activities will be Ford Motor Siemens VDO time and only at the end of the develop- characterized by quality, innovation, and timeli- GKN Automotive Toyota ment process when you have the imple- ness; competitive awareness; ethical business Hitachi TNO mentation.” practices; and outstanding service to our cus- Honda TRW Automotive Assessing whether other products com- tomers. ◆ Human International Valeo pete directly with The MathWorks prod- ucts is complex, since Simulink is a The company will cultivate an enjoyable, and Engine Visteon vibrant, participatory and rational work environ- Johnson Controls platform that supports products from many other tool vendors. Ask Mr. Tung ment that nurtures individual growth, empower- Magneti Marelli ment and responsibility; appreciates diversity; again which companies he competes with encourages initiative and creativity; values team- ment a sliding mode emission control for business in the work; shares success; and rewards excellence. strategy that was applied to the Maxima, and he is reluctant to name any. The ◆ Social Quest, Murano, Z-car and Titan . MathWorks has rather complicated rela- The MathWorks will actively support its com- Eaton: About five years ago, Eaton en- tionships with many of the companies munities and promotes social and environmental gineers used MathWorks products exten- with whom it competes. For example, responsibility. sively to design, test and build a delivery Statemate is an I-Logix product that com- truck equipped with a new hybrid diesel- petes directly against the MathWorks’ the automotive market, also make prod- electric powertrain. According to Eaton, Stateflow product. But Statemate can ucts that run on Simulink. Such relation- MathWorks products were instrumental in connect to Simulink, a MathWorks prod- ships make it difficult for The MathWorks helping them complete a fully operation- uct, and that benefits The MathWorks. to take full advantage of new product op- ally hybrid truck in just one year. The pro- Similarly, ETAS, Vector and dSPACE, portunities through more vertical integra- totype truck met Eaton’s customer’s goals software tool companies that also serve tion of its products. ◆ of a 90% reduction of emissions and a 50% improvement in fuel economy. Other Tool Vendors Active in the Auto Industry

A New Product United States Rapid Automotive Performance Simulator The MathWorks recently released ver- Altia, Colorado Springs, Colorado (RAPTOR) sion one of its newest product called Human machine interface development tools Europe SimEvents. SimEvents extends Simulink I-Logix, Andover, Massachusetts 3Soft, Erlangen, Germany Rhapsody: A seamless engineering environment tresos ECU: an integrated concept for control with tools for modeling and simulating for systems and software development and devices conforming to AUTOSAR discrete-event systems. SimEvents will simulation tresos GUIDE: tool for the development and code help engineers work on systems that are Statemate: Design, graphic modeling, validation, generation of human machine interfaces dependent on communications networks simulation and code generation tool popular in DECOMSYS, Vienna, Austria to see if and where there are bottlenecks. the automotive industry FlexRay network development design tools “While this isn’t the first discrete-event Mentor Graphics, Wilsonville, Oregon dSPACE, Paderborn, Germany system tool on the market, it’s the first Volcano network design and validation tools, Engineering tools for development and testing of one that’s so tightly integrated with cabling and harness design and simulation tools, mechatronic control systems Simulink,” said Mr. Tung. With system modeling tools as well as electronics ETAS, Stuttgart, Germany hardware design automation tools Engineering tools, applications and services for SimEvents engineers can model hybrid National Instruments, Austin, Texas the development of embedded automotive dynamic systems containing continuous- Virtual instrumentation systems time, discrete-time, and discrete-event Southwest Research Institute, San Antonio, Vector Informatik, Stuttgart, Germany components, for example, sensor networks Texas Networking and automotive electronics develop- and distributed control applications. ment tools and software components

The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com February 2006, Page 7 Roundup... Continued from page 3 costs led Lear to a deal with investor Mexico to Ford through a Ford-managed will be reduced to 52%. According to Wilber Ross’s W.L. Ross & Co. through legal entity named Automotive Compo- Visteon, total engineering headcount will which Lear’s struggling Interiors unit will nents Holding (ACH) as part of a bail out rise, but costs will remain flat. Visteon likely be combined with bankrupt Collins agreement reached with its former parent opened a technical center for interiors & Aikman Corp.’s interiors business. The in October 2005. Visteon’s 2005 sales in- and electronics in Shanghai, China in Interiors unit accounted for 18% of Lear clude the operations of those facilities for November 2005. sales in 2005. Lear wrote off $1,095.1 mil- only the first nine months of the year. Visteon needs to continue to reduce its lion in charges related to the disposition Visteon recorded a gain in the fourth reliance on Ford. In 2005, sales to Ford of the Interiors business. Included in the quarter of $1.83 billion on the sale of accounted for 62% of total sales, com- Interiors segment are instrument panels those facilities, which resulted in a net pared with 70% Ford sales in 2004. and cockpit systems, overhead systems, profit of $1.34 billion for the quarter, Visteon expects Ford business to account door panels, flooring and acoustic systems while sales fell 39%. for just 42% of sales in 2006 and 36% in and other products. Lear stock lost over Since its inception in 2000, Visteon 2008 as business with Aisan OEMs in- half its value during 2005. has yet to produce a yearly profit, but the creases. Hyundai/Kia is Visteon’s second company forecasts adjusted earnings largest customer. Halla Climate Control, a Visteon (EBIT-R) in 2006 in the range of $45 mil- major South Korean supplier, is 70% 2005 Net Sales: $16,976 million lion to $75 million. Having handed its owned by Visteon. Change from 2004: down 9.9% highly paid UAW workforce and produc- Excluding the revenue from the busi- 2005 Net Loss: $270 million, compared tion facilities back to Ford, most of nesses returned to Ford ACH, Visteon’s with a loss of $1.5 billion in 2004 Visteon’s manufacturing will now be in Electronics sales in 2005 were roughly 2006 Sales Outlook: $11.2 billion, a low labor-cost countries. Visteon is also $2.6 billion. Included in the segment sales 34% decline from 2005 moving more engineering offshore: in are audio, infotainment, driver informa- Visteon returned 20 plants and facili- 2005, 70% of engineers were in “high tion systems, powertrain controls and ex- ties in the United States and three in cost” countries; by 2008, that percentage terior lighting. ◆

Ford... Continued from page 2 ing to one top executive, it can be a grind. In the near future, tier-one suppliers account for 50% of Ford’s OEM buy. “I know some people are not bothering to interested in winning business with Ford (Please see the list below.) In December go into Ford,” he said, “because it is so will be out of luck unless they enter into 2005, Ford announced that it wanted to challenging. You are competing with over- an Aligned Business Framework agree- name two, three or four suppliers for each seas guys and Ford plays that low-price ment with the carmaker. Thus far, 27 commodity by mid-2006. Later, Ford will card: ‘I can get this from China or some- companies have been named to Ford’s announce an additional 30 to 40 com- where else cheaper.’” family of strategic suppliers for the 20 modities for which more strategic suppli- Despite awful cost pressures, many sup- high-impact commodities that together ers will be named. ◆ pliers are still very keen to do business with Ford. And Mr. Reitz welcomes their Ford’s Family of 27 Strategic Suppliers Twenty High-Impact Commodities help. “We are asking our suppliers, ‘How Autoliv Chassis Systems Axles Plastic bumpers can we drive to lower costs for both you Bosch (Dana/GKN JV) Brake systems Radio and audio [the suppliers] and ourselves, in terms of Delphi Dicastal Wheel Electronic control Restraint systems getting some global synergies?’” Johnson Controls Englehard modules Seats According to Mr. Reitz, Ford’s next- Lear Hankook Exhaust systems Shock absorbers generation navigation system has found Magna Johnson Matthey Exterior lamps Steering gears tremendous interest from suppliers world- Visteon Kiekert Frames and cross- Tires wide. We have learned from other sources Yazaki Pirelli members Transmissions that three Japanese suppliers are still in DuPont Superalloy Instrument panels Trim panels the running to become Ford North Foster Thai Summit Latches Wheels America’s infotainment system supplier: Tokico Paint Wiring Xanavi, Clarion and Pioneer, although Dana TRW Pioneer may have dropped out since low- Getrag Umicore est cost still seems to be the number-one Brose ZF criteria for Ford. Which one ends up with the business will be decided in March. Correction—December 2005/January 2006 Founded as a joint venture between Page 5: The graph showing Harman’s automotive sales and operating margin should note that the figures Hitachi and Nissan, Xanavi is now part of given are in millions of dollars, and that FY 2005 operating margin was 16.4%, not 6.4%. Hitachi Automotive. Page 8, February 2006 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com