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

VOL. 14, NO. 10 ◆◆RYE, NH USA DECEMBER 2001/JANUARY 2002

Huntsville WAP for Telematics— Electronics on the Unlikely Block In 1997, when WAP founders began ture of its Mobile MultiMedia platform at promoting the Wireless Application Pro- the 2000 Consumer Electronics Show. Since the spring of 2001, Daimler- tocol as a means of providing Internet ac- Now, after five years, the automotive in- Chrysler has been trying to sell Chrysler cess to mobile phones, telematics dustry is no longer as optimistic about Group’s in-house electronics manufactur- developers began to believe that WAP WAP’s promise, as telematics developers ing operation, Huntsville Electronics. The standards could also help them bring the look for faster, easier-to-use, wireless sale of Huntsville will mark the end of Internet to people in their . Mannes- Internet technology. vertical integration of automotive elec- mann VDO (now Siemens VDO) and The rollout of WAP-enabled mobile tronics at the Big Three. Delphi Automo- Ericsson formed a strategic alliance in phones in Europe has not come at all tive was spun off from GM in 1999, 1999 to develop WAP Internet access for close to expectations. Customers find Visteon from Ford in 2000. vehicles. The WAP Forum, a global indus- WAP phones very frustrating to use. At Located in Huntsville, Alabama, try association that develops and pro- 9.6 kilobits per second, large data down- U.S.A., Chrysler’s in-house electronics motes the standard, chartered a loads over existing circuit-connected parts operation makes electronic boxes Telematics Expert Group in 2000, and GSM links take too much air time, mak- and electronic control units, especially Delphi Automotive Systems touted the ing WAP applications expensive. It is powertrain controllers, radios and instru- WAP-based mobile Internet browsing fea- Turn to WAP Telematics, page 2 ment clusters. At the end of 2000, Hunts- ville employed 2,929 people and for the What Is WAP– year 2000, shipped $995 million worth WAP: Wireless Application Protocol is an Short Life: As more computing capability is of product, measured at standard cost. open standard enabling mobile added to vehicles and advanced wireless Goldman Sachs is helping Chrysler find a phones, despite their limitations, to browse communications technologies bring wire- buyer for Huntsville. the Internet. Compared with PCs, mobile less data links closer to the performance of Selling Huntsville is probably a good Internet phones have lower power, a fixed-line communications, WAP’s value to move for DaimlerChrysler, because it smaller computer, less memory, a smaller telematics could slip away—in seven years eventually will free Chrysler to purchase display and tiny, hard-to-use keypads. Wire- or less. from a group of open market competitors. less connections are slower than fixed net- WAP Forum: The WAP Forum, responsible Today Huntsville gets special treatment works. WAP software is required to enable for developing and promoting the WAP from Chrysler, which goes out of its way both the mobile device and the server. standard, was founded in 1997 by Ericsson, to keep Huntsville busy with orders, even Motorola, Nokia and Phone.com (formerly when it could buy electronics cheaper Main Elements of WAP Specification Unwired Planet). In December 2001 there from other sources. Since it hasn’t been 1. WAP programming model were 332 members, representing 99% of forced to compete on a level playing field 2. Markup language based on existing the handsets sold worldwide. with the world’s best automotive electron- Internet technologies, such as IP (Internet ics makers, many of Huntsville’s products Protocol), HTTP (Hypertext Transfer Proto- While WAP is similar to the application pro- do not provide world-class value. “Unless col), and XML (Extensible Markup Lan- tocol used by i-mode mobile phones to access the market is open, you don’t get the guage); WAP 2.0 supports XHTML. the Internet in , WAP has not been even world’s best parts,” explained Heinz-Georg 3. Micro-browser specification suitable to a remotely as successful as i-mode, which had Burghoff, a top electrical engineer at wireless terminal 28.5 million subscribers as of October 2001. DaimlerChrysler in . The sale of 4. Lightweight protocol stack to minimize More than an Internet application protocol, Huntsville will free up investment capital, bandwidth requirements i-mode is a proprietary, closed system and which DaimlerChrysler would like to use 5. Access to telephony functionality such as business division of NTT DoCoMo. i-mode to support its core automotive sector, not call control, phone book and messaging phones can access thousands of i-mode-en- in electronics. using WML (Wireless Markup Language) abled web sites. (For more on i-mode, please script applets. see The Hansen Report, November 2001.) Turn to Huntsville, page 3 WAP Telematics... Continued from page 1 difficult to input data on a phone’s small found at AMI-C, the Auto- Internet Evolution: Bandwidth keypad and difficult to read text on its motive Multimedia Inter- small display. Not only are WAP sites dif- face Collaboration, which is ficult to access, but, more importantly, only considering WAP as a there are still few attractive WAP services possible project for AMI-C’s available. third release, due in three Europeans are purchasing more and years, or so. According to more WAP-enabled phones because they AMI-C program manager are inexpensive and have somewhat larger Pom Mohotra, WAP will screens than standard cell phones, but not be among the specifica- only a small percentage of the people who tions slated for AMI-C’s purchase WAP phones use them to con- second release, due by year- Source: Qualcomm Inc., San Diego, CA nect to the Internet. Vodafone (U.K.), end 2002. WAP is only one one of the world’s largest mobile phone project among many that AMI-C’s strate- vices Par Mattisson. “After five years I network operators, said WAP services ac- gic planning committee is considering for trust WAP will be phased out. After that, counted for just 0.5% of its September a future release. Representing all the WAP will still be in use, but not in new 2001 revenues. According to the Yankee world’s major carmakers, with the excep- products.” Group (Boston, MA) Wireless Mobile tion of VW, BMW and DaimlerChrysler, Sponsored by ERTICO (European Europe division, T-Mobile (Deutsche AMI-C intends to come up with standard Road Transport Telematics Implementa- Telekom’s mobile telecommunications telematics specifications that carmakers tion Coordination Organization), an in- division) claims just 6.8% of its subscrib- the world over can use. dustry/government partnership set up by ers are WAP users. The Yankee Group’s the European Commission, four carmakers Farid Yunus pointed out that at the end of Second Chance for WAP? in Europe—BMW, Fiat, Renault and 2000, even though 5% to 11% of all While Europe’s first go at WAP- Volvo—have spent the last two years handsets in Western Europe were WAP enabled mobile phones was not successful, working on the ITSWAP project to test enabled, the number of WAP users in WAP promoters have another chance to the applicability of WAP in telematics. Western Europe was less than 2% of the demonstrate the value of WAP, assuming The group, which also includes a number total installed base. That means fewer the latest specification, WAP 2.0, released of suppliers and wireless network opera- than half the people who had WAP in August 2001, fixes many of the prob- tors, was to conclude its work at the end phones at that time used WAP features. lems early WAP users experienced. Ac- of 2001 and issue a report of its findings. cording to the WAP Forum, 2.0 was No report was available at press time. ◆ WAP Telematics—Little Interest designed to take advantage of higher So far, only a few WAP-enabled bandwidths, faster data speeds, greater telematics platforms have been added to processing power and varied screen sizes. THE HANSEN REPORT ON new production vehicles. The BMW 7 Multimedia messaging, faster downloads, AUTOMOTIVE ELECTRONICS Series uses a WAP browser for its Internet improved navigational functions and user- © 2002 Paul Hansen Associates, 11 Went- gateway, a feature of the navigation sys- friendly menus are some of the promised worth Road, Rye, NH 03870, USA; Tele- tem. Users can, for example, check the benefits. While drivers and passengers phone: 603-431-5859. Fax: 603-431-5791. weather at their destination or download may one day be able to dock their WAP E-mail: [email protected]. All rights to the navigation system addresses for res- 2.0-enabled mobile phones and PDAs in a reserved. Materials may not be reproduced taurants or hotels in their destination city. vehicle’s telematics system, the window of in any form without written permission. The Fiat has added WAP capability to its opportunity to apply WAP technology Hansen Report on Automotive Electronics is Connect telematics platform, available on directly to embedded telematics platforms published 10 times a year, monthly; July/ the Alpha Romeo 147, the Fiat Stilo and could quickly close as 2.5 and 3G (third- August and December/January are com- the Lancia Thesis, but despite these generation) wireless phone systems bined issues. The annual subscription rate is WAP-enabled platforms, Fiat is unlikely emerge, offering wider bandwidth and al- $677 (North America), $717 (elsewhere). to use WAP in future Fiat models, said ways-on connections. Embedded Back issues are available for $45 each; see Edoardo Colletti, in charge of the telematics platforms will get bigger dis- our online index at www.hansenreport.com. Infomobility division of Targasys, Fiat’s plays, hotter computers and larger memo- Paul Hansen Associates is a strategy and telematics service provider. “WAP is not ries. By the time 3G is available, cars will market research firm consulting to the elec- in our future plans. ... We are focusing on already have enough computing capability tronics industry. voice-based service, which is less danger- to obsolete the need for WAP; telematics Publisher/Editor Paul Hansen ous and intrusive. For drivers using em- developers will be able to use standard Senior Editor Heather Parker bedded telematics platforms, WAP is Internet protocols instead of WAP. Managing Editor/ Brianne Wolfe mainly a browser.” How long will the window be open? Circulation Manager Another indication of the auto “At least three to five years, says Ericsson’s ISSN 1040-1105 industry’s limited interest in WAP can be acting general manager for Venture e-Ser- Page 2, December 2001/January 2002 The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com J.D. Power and Associates 2001 Audio Quality Report J.D. Power and Associates’ 2001 Audio systems, the 2001 Audio Quality Report At or below industry average, in alpha- Quality Report indicates that demand for found that of 13 possible sound-system betical order, were Clarion, Delphi Delco audio systems that include a CD problems, the most frequently reported Electronics, Hyundai Electronics, player continues to rise. The configura- were poor radio reception and sound sys- Mitsubishi Electric (ranked first in 1999 tion most in demand in 2001 was the tem control problems. Among the other and 2000) and Panasonic. AM/FM/cassette/single CD player, ac- problems reported were CD changers not For AM/FM/single CD player configu- counting for 35% of the total market. working reliably and CDs skipping during rations, Visteon had the highest quality That was followed by AM/FM/single CD play, not loading or not ejecting. rating, with 3.5 problems per 100 ve- player, with no cassette, at 25% of the Based on a scoring system of problems hicles, compared with the industry aver- market. Market demand is growing for car per 100 vehicles, Alpine Electronics age of 5.4 problems. Alpine Electronics audio systems with multi-CD changers. ranked number-one in quality for AM/ ranked second, with 4.6 problems and Market penetration of AM/FM/cassette- FM/cassette/single CD player systems. Al- Mitsubishi Electric was third with 4.9. only systems dropped from 20% in 2000 pine, with 2.8 problems per 100 vehicles, At or below industry average in this to 13% in 2001. followed by Fujitsu Ten and Visteon, category, listed alphabetically, were Based on the responses of 82,000 new both at 3.9 problems per 100 vehicles, , Clarion, Delphi Delco, FMS vehicle owners who purchased cars or beat the industry average of 4.8 problems. Audio (a Sanyo and Mazda joint ven- light with factory-installed audio ture), Hyundai Electronics and Panasonic. Market Penetration by Receiver/Playback Type J.D. Power and Associates found grow- ing interest among consumers in new au- dio technologies. Eighteen percent of the 1998 1999 2000 2001 survey respondents said they “definitely or AM/FM/Cassette/Single CD Player 28% 33% 37% 35% probably” want satellite radio in their AM/FM/Single CD Player 15% 19% 24% 25% next vehicle; 19% definitely or probably AM/FM/Cassette/Multi-CD Changer 9% 10% 12% 16% want MP3 playback capability. AM/FM/Cassette 39% 30% 20% 13% For further infomation or to purchase AM/FM/Multi-CD Changer 1% 1% 1% 5% the complete report, contact J.D. Power and Associates in Agoura Hills, Califor- Source: J.D. Power and Associates nia: telephone 818-889-6330; fax 818- 889-3719; www.jdpa.com. ◆

Huntsville... Continued from page 1 The Huntsville dealing is part of the longer be involved in purchasing elec- For instance, in December 2001, Valeo industry globalization and consolidation tronics components, including ICs. That was forced to put its U.S. operation, Valeo that began in the 1980s as Japanese will make Chrysler engineers less knowl- Electrical Systems Inc. (VESI), into bank- carmakers moved beyond Japan to the edgeable and less informed as they source ruptcy proceedings. VESI, which has been United States and Europe, to manufacture the electronics they need. “With Hunts- hurt by the recent economic climate, says anywhere they could sell a large number ville we knew the cost of every compo- that it has also had problems trying to get of vehicles. Eventually, most of the world’s nent that went into their electronics its operation into the black. After re- major carmakers set up manufacturing boxes,” said Bob George, an electronics peated tries, Valeo has been unable to win facilities beyond their home region. director at Chrysler. “That gave us defi- cost concessions from its local labor DaimlerChrysler will have a difficult nite advantages, but you have to weigh union. Valeo purchased its VESI opera- time selling Huntsville, which employs that against what we’ll have once Hunts- tion from ITT in 1998. VESI makes auto- UAW workers who make from $50,000 to ville is sold: Huntsville will be a more motive wiper and airflow systems and $100,000 per year, high by global stan- competitive supplier.” motors. dards. Unless a new agreement is signed, The sale of Huntsville is likely to take This past summer, Johnson Controls the latest UAW-Chrysler contract, signed a while—currently there are more sellers purchased Sagem SA’s automotive elec- in 1999 to last four years, protects the jobs than buyers of automotive electronics tronics business, which makes engine con- of Huntsville workers and makes it nearly companies. Some potential buyers are trollers, instrument clusters and telematics impossible to sell Huntsville to another struggling to maintain positive cash flows products for its two main customers, company, unless the UAW is guaranteed because of slowdowns in automotive pro- Renault and PSA. the same benefits and the same number of duction. Other suppliers are struggling to Magneti Marelli, Fiat’s automotive UAW workers it presently employs. digest recent auto electronics or auto elec- parts unit, has been on the block for some By selling Huntsville, Chrysler will no trical acquisitions of their own. time. ◆

The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com December 2001/January 2002, Page 3 The Company Profile... ZF Friedrichshafen

Thumbnail Sketch Consolidated ZF Group Sales ZF Group Sales in 2000 by Region e e Headquarters: 88038 Friedrichshafen, in Millions ($ Millions) 6.5 Billion ($5.9 Billion) Germany; telephone 49 (75 41) 77 0; fax 1996 to 2000 Annual Growth: 12.1% 3% 49 (75 41) 77 90 80 00; www.zf.com 65% 26% 4% 2000 Consolidated ZF Group Sales: 6,113 5,052 5,172 ª6.1 billion ($5.5 billion), an 18% increase 4,474 (5,507) (4,551) (4,660) 2% over sales in 1999. 3,874 (4,031) (3,490) Sales in e billions Growth 2001 Consolidated ZF Group Sales ($ billions) from (est.): e9.1 billion, which includes sales 1999 from ZF Sachs, which was acquired mid- W Western Europe 4.2 (3.78) 12% November 2001. NAFTA 1.7 (1.53) 47% 2000 Net Income: 2.9% of sales, com- pared to 7.3% in 1999 1996 1997 1998 1999 2000 A Asia .3 (.27) 51% Products: Automotive transmissions, axle Note: In 2001, the company expected sales to MERCOSUR .2 (.18) 44% increase by 7%; from January through August and components and systems, Other Countries .2 (.18) 55% components and systems account 2001, sales increased by 13%, compared with for 80% of total sales. the same period in 2000. In the Commercial Vehicle/Special Transmissions division, sales Capabilities: Software is developed and ZF Employees by Region were flat in the period, despite a 7% increase at manufactured in-house; electronics the Friedrichshafen plant, which produces the Total: 34,100 as of June 2000 hardware is made by outside companies. newly introduced ZF-AS Tronic, an automated Top Automotive Customers (not ranked): manual transmission for heavy trucks and . Asia, 800 Other Countries, 900 BMW, DaimlerChrysler, Fiat Group, Ford Sales increased by 33% for the period in the Car North Group and VW Group Transmissions division. Sales rose 14% for the America, Western R&D: 4.5% period in the Chassis Technology Division. The 4,100 Steering Systems Division, now ZF Lenksysteme Europe, Ownership: 100% Zeppelin Foundation 28,300 Friedrichshafen, which mainly benefits the (the 50-50 JV of ZF and Bosch) grew 5% for the period. city of Friedrichshafen Employees (year-end 2001): 56,750; 4,606 worked at Lenksysteme, the 50-50 Vice-president corporate research and Acquisition of Mannesmann Sachs steering system JV with Bosch) development, Peter Köpf, declared in ZF’s On November 19, 2001, the European 2000 annual report, “The main benefit we Commission authorized the acquisition of offer our customers will be ZF’s contribu- Mannesmann Sachs by ZF Friedrich- Background tion toward further reductions in fuel con- shafen, making ZF the third-largest auto- According to ZF Friedrichshafen, sumption.” motive supplier in Germany and the 15th which considers technology innovations Under the ZF Chassis division, the largest worldwide, based on annual sales essential to a strong market position, ZF is company produces chassis components to automakers. With the acquisition, the the world’s largest independent specialist and systems ranging from control arms biggest in ZF history, the ZF Group ex- for transmissions and chassis technology. and tie rods to complete front- and rear- panded its workforce from 36,400 to As early as 1921, the company produced a axle systems. Steering systems—mechani- 56,750 employees; facilities increased four-speed pre-selection gear change sys- cal, hydraulic and electrohydraulic—are from 60 locations in 16 countries to 117 tem without a gear-shift lever, and it did developed and produced at ZF Lenksys- in 22 countries. In 2001, combined rev- so for 75 small car manufacturers. Today, teme GmbH, a joint venture with Robert enues of both companies totaled e9.1 bil- ZF sees its system solutions for automotive Bosch. lion ($8.1 billion). The acquisition, customers as a crucial area of growth, and In ZF’s core market of Western Europe, particularly Sachs vehicle chassis compo- electronics and software development as sales in 2000 benefited from increased nents, suspension modules and complete the keys to success in integrated systems. production of commercial vehicles and axle systems, allows ZF to expand its sys- ZF customers include all major interna- from increased sales of automatic trans- tems business, as well as add more value to tional vehicle manufacturers of cars, missions for upscale vehicles. ZF’s sales existing products and systems. trucks, buses and agricultural/construction increased by 12% over the prior year in Since 1987, the Mannesmann Group machinery. Transmissions account for Western Europe, the region expected to controlled the majority of Fichtel & Sachs about half of sales and include manual, yield the largest percentage of sales into shares; the merger of the automated manual, automatic and con- the future. North America will remain the production activities of Boge AG took tinuously variable transmissions (CVT). second largest region for sales. place in 1992. Fichtel & Sachs and Boge

Page 4, December 2001/January 2002 The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com The Company Profile Continued

Electronics development began back in ZF Group Sales in 2000 by Division 1955 with the two-speed transmission; e 6.5 Billion ($5.9 Billion) ZF’s first microcontroller for transmission Percent of Change from was developed in 1980. Electronic control Total Sales 1999 units, currently in all automatic transmis- e Special and Commercial Transmissions, 1.6 billion ($1.44 billion) 22% 27% sions for passenger cars, are also in some e Car Transmissions, 1.6 billion ($1.44 billion) 22% 16% automated manual transmissions for e Chassis Technology, 1.6 billion ($1.44 billion) 22% 30% trucks. Although Corporate R&D just e Off-Road Driveline Technology & Axle Systems, 1.1 bil. ($.99 billion) 14% 28% developed a control loop for electric steer- e Steering Systems (Lenksysteme JV), 0.7 billion ($.63 billion) 10% 12% ing, the remainder of development for e Sales and Service, 0.4 billion ($.36 billion) 6% 52% steering systems is handled by the ZF- e Marine, 0.2 billion ($.18 billion) 3% 26% Bosch joint venture ZF Lenksysteme. e Aircraft, 0.1 billion ($.09 billion) 1% 12% ZF employs about 120 people at its Note: Numbers sum to 7.3 billion euros due to some double counting. newly-built $16 million technical center activities became Mannesmann Sachs in ZF divisions, which have their own outside Detroit, Michigan. The company 1996. In the first half of 2000, Mannes- budgets, are not required to use the ser- expects to expand further into North mann’s five automotive subsidiaries were vices provided by corporate R&D, which America in the coming year. Asia is an- renamed Atecs Mannesmann and put up is in direct competition with other exter- other area targeted for expansion. To for sale; auto cockpit-maker VDO was one nal service providers. strengthen its global network, ZF stan- of the five subsidiaries. While initially However, 80% of corporate R&D ac- dardized its Product Data Management Siemens AG announced it would set up a tivities still involve direct work as a sub- software in 2000, using CADIM. joint venture, to be called Atecs Siemens contractor for ZF divisions. The other Automotive AG, Siemens AG later pro- 20% includes predevelopment and funda- Software Development posed acquiring 50% plus two shares of mental research in: alternative starting Software development receives high Atecs Mannesmann in a consortium components, such as the wet starting support at ZF. The company owns the in- agreement with Robert Bosch GmbH. clutch that may reduce fuel consumption tellectual property for the software it de- From that deal, approved in August 2000 in vehicles with automatic transmissions; velops. Control algorithms are developed by the EU Commission, VDO and active chassis systems for future passenger with ZF partners. The company develops Siemens Automotive Systems Group cars and light commercial vehicles; opti- software applications using 60% to 70% became Siemens VDO Automotive. mization of automated manual transmis- existing standard software blocks, a high Mannesmann Sachs will now be sions with regard to shifting comfort. reuse proportion. Configuration manage- known as ZF Sachs AG; it will continue ment tools, which help designers reprocess to serve its own customers as a separate R&D software, are now in place for all projects operating company. In transmission tech- The company as a whole spends 4.5% and saved about 20% in software develop- nologies, Sachs has a full range of of sales on R&D and considers itself ment time in 2000. Automatic code gen- clutches, torque converters and automatic among the top R&D spenders in the in- eration for prototype processes allows components for manual transmissions. Its dustry. In 2001, 330 new R&D employees functions to be tested in the vehicle at an product line also includes fan clutches, were hired, which brought the total to earlier stage than before. More software chains, chain tensioners, shock absorbers/ 2,990; about 600 were engineers. Another configuration management tools would be struts for rail vehicles, and electric drive 200 employees are expected to be hired in welcomed, and there is a pressing need for systems, along with a crankshaft starter/ 2002. software engineers and closed-loop con- generator assembly that should find 42- On the electronic side, 200 people trol engineers, revealed Dr. Runge. volt and hybrid vehicle applications. work in corporate R&D under Dr. Fifteen years ago, ZF began developing Wolfgang Runge, senior manager for elec- a complete test chain for the transmission, Decentralization tronics. Twenty of those 200 work in elec- and the company now has test vectors for In an effort to gain more market and tronic predevelopment, mostly software both the model and the software code de- customer proximity, ZF reorganized the engineering. Corporate R&D develops rived from the model. The test chain al- company into divisions and decentralized ZF’s software, which is produced in-house. lows integration of the actual electronics R&D activities by division in early 2000. The company does not develop or manu- control unit. ZF used tools for the first Corporate R&D at Friedrichshafen still facture the electronic components like time to create the model, algorithm and plays a supervisory function, but its role is sensors and actuators that are integrated automatic software code generation for a now more that of fundamental researcher in or shipped with ZF products; electron- module within the new BMW 7 Series as well as provider of testing and measur- ics hardware and components are pro- six-speed automatic transmission. When ing, activities too expensive to duplicate duced by companies like Bosch, Siemens asked about companies in the world with at the division level. VDO, Wabco, Motorola and Kostal. continued on following page

The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com December 2001/January 2002, Page 5 ZF Friedrichshafen a completely integrated tool chain, Dr. Six-Speed Automatic Transmission ZF’s Major Customers Runge responded: “We are one of the first ZF points to the development of the companies to cover the total V diagram.” Top Five (not ranked) world’s-first six-speed automatic transmis- The company will use this same inte- BMW sion as an example of ZF’s commitment to DaimlerChrysler grated tool chain for a second customer. be a technology leader. At the end of Fiat Group The tool chain was developed with the Ford Group 1997, engineers in the ZF Car Transmis- help of ETAS GmbH (, Ger- VW Group sion division came up with the concept, many), dSPACE (Paderborn, Germany) and corporate approval came early in and The MathWorks (Natick, Massachu- Others (not ranked) 1998. By mid-2001, just three-and-a-half setts), the developer of MATLAB and Daewoo Paccar years later, the six-speed transmission was General Motors Simulink, and ClearCase from Rational ready for production; the worldwide Hino Proton Software (Cupertino, California). Devel- launch was on the MY 2002 BMW 7 Se- Honda PSA opment of software and control algo- Hyundai Renault ries. More new transmission business is rithms for transmissions is shared with Isuzu Rover expected from BMW as the carmaker has partners; for instance, predevelopment MAN Scania announced it will launch 20 new models began with BMW ten years ago. Mazda Subaru and three new engine ranges over the Low-level application software, OS Mitsubishi Toyota next six years. software and I-O functionality comes from VanHool ZF has a North American customer long-time suppliers/partners Siemens and Nissan Volvo that will use six-speed automatics on sev- Bosch. Partitioning is handled with all New Transmission Technology eral vehicle lines by MY 2004. In Europe, application functionality in software, ex- With increased commitments around ZF automatic six-speed transmissions will cept some I-O functionality by Bosch in the world to reduce fuel consumption and next appear on the Jaguar S-Type, and hardware. In the future, some low-level emissions, and with demands for better A8 in mid-2002, and are expected software will be replaced with ASICs. vehicle performance and passenger com- in a number of European models soon. fort, more types of transmissions are be- Six-speed transmissions provide both Motorola’s PowerPC coming available worldwide. New rapid acceleration and fuel efficiency. For ten years Dr. Runge has watched fuel-saving types will come faster in Eu- Shifting is done with minimum interrup- the theoretical discussion about whether rope and Japan, where fuel prices are tions to traction, and shift points are set to integrate the engine controller with the higher than in North America. Most ZF to maximize fuel-efficiency. ZF claims its transmission controller or keep each con- production today is in five- and six-speed version, compared with an automatic five- troller separate. Today he sees no real is- manual transmissions, four-speed auto- speed transmission, is 13% lighter, has sue since ZF’s current transmissions matic transmissions and five-speed auto- 30% fewer components, gets 5% better already demand the most powerful con- matic transmissions. acceleration and uses up to 7% less fuel. trollers available. The transmission con- ZF’s focus in car transmission technol- When the vehicle is stationary, even troller uses most of the memory available ogy is the six-speed automatic transmis- when in gear, the electronic Stand-by- on the chip: There is none left for the en- sion and the CVT (continuously variable Control (SBC) system allows the input gine controller. transmission). Until recently, CVTs were clutch to disconnect the engine from the Although Bosch is one of the biggest used mostly in Japanese vehicles, many of driveline so the engine consumes less fuel. suppliers of transmission ECUs worldwide, which have engines with low to moderate A combination of hydraulics and elec- and while older controllers used Siemens torque output. However, CVTs are ex- tronics in the ZF mechatronic module re- microprocessors, ZF will use the Motorola pected to move into mid-range vehicles duces the number of cable and plug PowerPC for all new transmission con- worldwide in the next few years as the connections, and enhances shift quality, trols. The company has chosen the technology evolves. Ford is expected to by receiving information from the vehicle Motorola controller not necessarily be- introduce ZF CVTs in several models in about current driving conditions and ini- cause it is a 32-bit device, but because it is North America after 2003. tiating optimal shift timing to cope with capable of high-speed computation. Automatic transmissions with five such conditions as drag resistance (weight “There is no second source, nobody has a speeds, a product first launched by ZF in and slope) as well as driver behavior. The microprocessor for cars like Motorola,” 1990, are now common in Europe and mechatronic module allows the transmis- noted Dr. Runge. Japan, mainly in upscale vehicles. In sion to range from sporty to economical. The PowerPC is used as a bare chip 2000, the 5-speed automatic business re- ZF’s six-speed 6 HP 32 transmission without its component housing. It is pack- ceived a boost from the North American can handle up to 750 Nm of input torque. aged with other electrical and mechanical market, where four-speed automatic That will make it a good fit with larger components in a mechatronic package. units—standard equipment since the diesel engines. Diesels are favored in Eu- 1970s—are increasingly being replaced by rope for their fuel economy. ZF’s six-speed five-speed units. transmission was originally designed for

Page 6, December 2001/January 2002 The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com The Company Profile Continued upscale vehicles with eight to twelve cyl- missions, which amounted to sales of e401 wheel control/location and wheel suspen- inders. A complete line of six-speed auto- million ($361 million) with 1,277 em- sion modules, transverse links/control matic transmissions is planned under the ployees. Batavia was expected to start pro- arms, suspension joints, tie rods, stabilizer name myTronic6. duction of the CVT product CFT 23 for links, gearshift systems (automatic and Ford vehicles at the end of 2001, with manual), shift-by-wire and the patented Continuous Variable Transmission CVT production ramping up to one mil- Lemförder-Shifttronicâ gearshifts. CVTs provide faster acceleration with lion units by 2005, but production for considerably lower fuel consumption and Ford is not expected until 2003. ZF Lenksysteme fewer harmful emissions, compared with ZF first introduced an electronically four-speed automatic transmissions like Automated Manual Transmissions controlled power steering system, the those found in small and mid-sized en- While the fastest-growing types of pas- Servolectric, in 1997, but because ZF was gines. Plus, the engine operates more con- senger-car transmissions are the six-speed neither the first- or second-ranked sup- sistently in its optimal speed range than it and CVTs, automated manual transmis- plier of power steering products, the com- can with a multi-ratio transmission. sions are a fast-growing segment in com- pany felt it needed a partner and joined “CVTs are the ideal solution … for small mercial trucks and buses in Europe. with Bosch to set up the joint venture in and mid-sized engines up to 2.5 liters, in- Manual transmissions with five speeds for 1999, called ZF Lenksysteme. Key prod- cluding diesel engines,” suggested Dr. passenger vehicles and light trucks are ucts include electrohydraulic steering col- Gerhard Wagner, ZF group vice president, also popular. In 2002, the company plans umns, steering systems and servo units, as in ZF’s 2000 annual report. the production launch of a new six-speed well as electronic controls for electric The ZF-Ecotronic CVT product line manual transmission, which is expected to steering systems. ZF Lenksysteme operates has no gears but an infinite number of ra- yield a 10% increase in sales revenue. 13 plants worldwide, including one in tios, unlike a conventional automatic, Oakwood, Georgia, USA and one in which changes gears based on predeter- Shift-by-Wire Hebron, Kentucky, USA. mined gear ratios. Power in the CVT ZF’s shift-by-wire automation in clutch ZF Lenksysteme considers electric-hy- moves between two adjustable discs via a and gearshift actuation has been in Euro- draulic power steering (EHPS) a fast- steel link belt able to withstand high lev- pean buses and trucks for about 20 years, growing market in Europe, where fuel els of load. The axial distances of the disc and now comes with full or partial auto- costs are high. The ZF Servolectric line of pairs can vary, so the engine speed ratio, mation, initiated by the driver with a floor EHPS uses power for steering only when which is transferred by the link belt, lever or button on the steering wheel. ZF needed, unlike hydraulic steering, which changes in a continuously variable man- makes shift-by-wire transmissions using a draws power even when driving in a ner. The ZF-Ecotronic line has three special electrohydraulic control unit, and straight line. products: Input torque is 165 Nm for the other suppliers will follow ZF’s lead, the EPS (electric power steering), which VT1, 250 Nm for the CFT 23 and 350 company predicts. A nice design feature is will totally eliminate pump, hoses and Nm for the CFT 35. that the gear selector lever can go any- fluid, will come out after EHPS and will The ZF-Ecotronic control unit takes where the driver can reach. In cars, shift- offer a number of additional benefits. In into account not only vehicle and engine by-wire is a problem since in the park EPS systems, the absence of a steering col- data, but also variable data like the position, there is a mechanical brake, umn allows designers a broader scope of present speed, accelerator position and noted Dr. Runge, adding that in the new freedom; engine compartment construc- acceleration. The ZF-Ecotronic uses this BMW 7 series, there is an electrohydrau- tion is simplified for left- and right- data to determine the optimal control lic parking brake, which uses CAN. The handed driving; there are potential commands for the engine and transmis- company has two signed shift-by-wire de- improvements in crash designs; potholes sion. The ZF-Ecotronic control unit is velopment contracts, one for a German or unbalanced tires do not transmit prob- able to learn and adapts its shift manage- company and one for an American com- lems up to the steering wheel. ment to the driver’s driving style. The pany. ZF has already made prototype driver can change between automatic, transmissions for those customers. How Suppliers Might Help continuously variable drive mode and a The company is looking for suppliers of hand-shift mode with virtual six-speed Chassis Division pressure control rotors, solenoid pressure behavior. The number of virtual gears is In the Chassis division, sales of front control valves, proportional control sole- determined by software and can be and rear complete axles for Daimler- noids: Accuracy and low cost are crucial. changed to ZF’s customers’ specifications. Chrysler vehicles and for the X5 BMW ZF would like to find speed sensors based ZF Batavia LLC (Batavia, Ohio, USA) are growing fastest. Other customers are on Hall or some other technology that is a joint venture that was set up by Ford carmakers in Europe as well as in North can operate at very low velocities. The (49%) and ZF (51%) in 1999 to develop and Central America, Africa and ; company would also welcome rapid CVT technology. In 2000, the JV pro- the company also has licensees in Asia prototyping tools and software configura- duced 262,800 four-speed automatic trans- and Africa. Products include axle systems, tion management tools. ◆

The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com December 2001/January 2002, Page 7 Dura Pushing Shift-by-Wire Almost all light vehicles today use ◆ With shift-by-wire, outputs can be main cable-controlled for now. U.S. Fed- cables to communicate the driver’s inten- fed to the vehicle’s CAN network for de- eral Motor Vehicle Safety Standard 114 tions to the transmission. The next stage livery to the PRNDL (park, reverse, neu- states that the park position must keep of development underway at a number of tral, drive, low) indicator. the car from rolling no more than 150 mm carmakers focuses on so-called hybrid sys- ◆ Shift points can be more easily ad- on a 10% grade. A fully-electric system tems, which are part electric and part justed for best fuel economy and/or perfor- may require a back-up mechanical device cable. Fully-electric shift-by-wire systems, mance. for park in case the battery system fails. which use no cables, will need many more ◆ Without cables, shift-by-wire is A special challenge for electric shifting years to develop, as suppliers research de- more compact, giving designers freedom is getting the transmission in and out of signs that comply with U.S. safety stan- to place the shifter closer to the driver, park, which requires fairly strong force, es- dards. which leaves more space for other fea- pecially when the car is on a hill. A me- Hybrid systems could reach substantial tures, for example, another driver-oper- chanical component, the park pawl, volumes after 2005, according to engi- ated switch or a cup holder. actually locks the vehicle in place. A fully neers at Dura Automotive Systems, ◆ Shift-by-wire systems take less time electric system requires a large motor ca- Rochester Hills, Michigan. Dura, North to install compared with cables. Cables pable of disengaging the pawl under se- America’s number-one supplier of shifter must be carefully routed to minimize vere loads. “The real trick is making a systems, is already delivering production noise and to avoid contact with the ex- system that can pull the vehicle out of hybrid shift-by-wire components, which haust system. park under all conditions,” explained Bill Chrysler uses in its AutoStick shifter. ◆ Shift-by-wire uses switches, either McDonald a Dura Automotive engineer- AutoStick, available on Chrysler’s Dodge noncontact electronic types like those ing manager. Intrepid, Chrysler 300M and Prowler using Hall-effect semiconductors, or Dura has already received requests from models, functions as either an automatic mechanical types, for example micro- two OEMs to develop shift-by-wire levers transmission or an electronic-manual switches, which communicate with that can output to a CAN . Dura an- transmission. actuators, either electrohydraulic or ticipates inquiries from other OEMs, inte- Today’s hybrid shift-by-wire replaces electromotor, to shift the transmission rior system suppliers and transmission some of the manual, cable-operated driver gears. suppliers. For more information, call Dura controls, and while it makes the transmis- For now, the only positions that could at 240-299-7613. Other Dura products in- sion $40 to $50 more expensive, shift-by- feasibly be electric are shift positions one, clude electronic throttle controls, electric wire provides several advantages over two and three, according to Dura engi- parking brake systems, power seating and cables: neers. Reverse, park, and neutral will re- adjustable pedal-control systems. ◆ After 2001 Advertising Slide, 2002 Uncertain Those on the advertising side of the ics industry marketing spending was down coming. Paul Klapproth, communications automotive electronics business share a during 2000. In the closely-watched elec- director at Siemens VDO Automotive, common send-off for 2001. “Good rid- tronics and manufacturing segment, over- observed, “Some people may be cutting dance.” Most agree that advertising fell by all page counts dropped by 19%, with back their ads until they see an upturn. about 20% last year, a particularly rough many leading publications sliding by 25% There are all kinds of strategies.” drop after a banner year in 2000. Looking to 30%, according to market watcher Those strategies are sometimes depen- forward, there’s little optimism that adver- CMR, a Taylor Nelson Sofres company in dent on special situations. Siemens tising will pick up before the second or New York City. Automotive is currently establishing rec- third quarter of 2002. With the consensus that automotive ognition for its name change—to Siemens The sharp decline in advertising for electronics advertising expenditures VDO Automotive—so it is one of the few auto electronic components comes in dropped by 20% to 25% last year, the big that has not trimmed back its ad place- sharp contrast to last year when, driven by question now is when might things start ments. “Our expenditures are fairly flat. high demand for electronic features and a to pick up. As in the overall economy, We’ve tried to protect advertising as much hot electronics market, the makers of there are signs that point in both direc- as possible,” Mr. Klapproth said. electronic components and modules were tions. Even those seeing signs of an upturn For those advertisers who have cut beefing up their marketing efforts. “In in the short term say that a clear picture back, increasing ad spending may be 2000, for the first time in many years, won’t be seen until much later in 2002. difficult. Even before the downturn, technology was our number-one category,” “Right now, January is a little better than many component and module suppliers said Larry Schlagheck, advertising direc- last January,” said Dyanna Lathrop, sales were seeing their margins shrink. Mr. tor for Automotive News. “This year, it’s manager for Wards Automotive. “A sign Schlagheck noted, “Even when times down to number four. Component suppli- will be how things go at the Convergence were good, they were still getting beat up ers are way down.” show in October.” with low pricing. Electronic components It wasn’t just in automotive electronics Other observers agree that a sustained is a terrible side of the business. I don’t see that the advertising segment of electron- increase in advertising will be some time that coming back strongly next year.” ◆ Page 8, December 2001/January 2002 The Hansen Report on Automotive Electronics, Rye NH USA www.hansenreport.com