Vol. 28, No. 9 u hansenreport.com u November 2015

Conversation with Genivi Unclean Diesels, Where to from Cybersecurity Thought Here? Leader, Bill Weinberg Since the story broke in September, “A very cozy equilibrium had grown up most Hansen Report readers will have seen in Europe between manufacturers, test plenty of news about the Volkswagen diesel houses and governments. The arrangement Bill Weinberg is senior director of open emissions cheating scandal. Software was producing very good sounding num- source strategy for Black Duck Software, aboard Volkswagen Group diesel vehicles bers. CO2 was falling, fuel economy was which helps companies secure and manage enables them to emit much, much lower going up. NOx was coming down. The sys- open source software. Black Duck is a levels of nitrogen oxides (NOx) during tem with its unrepresentative test was pro- member of Genivi, and Mr. Weinberg has emission tests than they actually spew on ducing test numbers that were making been working closely with the alliance to the road. Installed on more than 11 mil- everyone happy, but did little to improve highlight the importance of cybersecurity lion vehicles globally, the defeat devices air quality or reduce CO2. (See the graphic to members and the surrounding ecosys- have allowed Volkswagen vehicles to emit on page 2.) tem. With Genivi, he has produced Webi- up to 40 times the U.S. legal limit of NOx. According to Emissions Analytics’ tests, nars, moderated panel sessions and A component of smog and acid rain, high at 300mg per kilometer the average real- presented at Genivi events, all “aimed at NOx levels in the air we breathe has been world driving emissions of NOx in Europe getting the word out on automotive cyber- linked with respiratory and cardiovascular are nearly four times higher than the maxi- security, getting users and developers think- illness, as well as premature death. mum of 80mg/km permitted by Euro 6 ing about the subject, moving beyond The diesel emissions story broke in the regulations. The equivalent U.S. regula- panic,” said Mr. Weinberg. “The primary United States where NOx emissions regula- tion is 31mg/km. “Mercedes and BMW problem with cybersecurity is the lack of tions are strict, but the problem of diesel diesels meet the U.S. requirement. It can information.” emissions is a greater problem in Europe, be done. It is an issue of regulation in Eu- With 30 years of embedded systems where 53% of new vehicles are diesel pow- rope, an issue of not forcing carmakers to experience, including work in the automo- ered. The issue of disparities between clean up diesels,” said Mr. Molden. tive market with MontaVista, Wind River emission test results and real world perfor- and Mentor Graphics, Mr. Weinberg offers mance in Europe is not at all new. European Emissions Standards and Con- a unique perspective on secure systems, Emissions Analytics helps automotive formity Tightening, Somewhat open source hygiene and the Internet of businesses increase fuel efficiency and re- NOx emissions from diesels have made Things. duce emissions through tailpipe testing and the air in a number of European cities un- analysis. Using portable measurement healthy. Recognizing that laboratory tests No Cybersecurity through Obscurity equipment, Emissions Analytics has tested severely understate the amount of air pollu- Carmakers tend to be secretive about more than 1,000 vehicles, 700 in Europe tion emitted during real driving condi- their vulnerabilities and about what they and 300 in the United States. “We got into tions, the European Commission’s are doing to defend against cyberattacks. this four years ago because we believed Technical Committee voted last month to Despite Genivi’s efforts, it’s been nearly there was a big gap between official labora- tighten the difference between laboratory impossible to get carmakers to speak pub- tory tests and what is happening in the real and real driving emissions (RDE). The cars licly, to appear on panels, or even talk can- world,” said Emissions Analytics CEO, will be driven outside, on real roads, where didly with experts about their cybersecurity Nick Molden. “We have been telling gov- NOx pollutants (and at a later stage partic- challenges. An automotive ISAC (Informa- ernments and regulators about this for ulates) will be measured by portable equip- tion Sharing and Analysis Center) has been years. People weren’t denying there were ment. set up in the United States, where auto- problems, but no one was acting very Currently Euro 6 diesel cars exceed the makers can share information about cyber- speedily to do anything about it.” NOx limit by 4 to 5 times. In a first step, threats and vulnerabilities—but real sharing New regulations in Europe were being by September 2017, carmakers will have to and openness among carmakers is not discussed very slowly, and the automotive bring this discrepancy to a conformity fac- expected. industry was trying to water them down. tor of no more than 2.1 times the legal lim- “Carmakers haven’t benefited from “As soon as the Volkswagen scandal be- it for new models. In a second step, by openness nearly as much as other indus- came news, the political momentum January 2020 the conformity factor will be tries,” said Mr. Weinberg. “Automakers changed completely, and people have final- further reduced to 1.5 times the limit. need to take a page from the playbooks of ly changed their positions,” Mr. Molden networking equipment manufacturers and observed. Continued on page 2 Turn to Cybersecurity, page 8 The Hansen Report on Automotive Electronics, www.hansenreport.com Page 1, November 2015 Diesels… Continued from page 1 For 18 years Margo Oge was the direc- BMW and Mercedes vehicles, which late number, requiring a sensor that tor of the Office of Transportation and Air conform to U.S. standards, employ SCR doesn’t exist yet.” Quality for the U.S. Environmental Protec- technology. VW took a different approach. Cylinder pressure sensors, which have tion Agency. Ms. Oge helped to finalize a “VW had access to the SCR technology. It been talked about for a long time but have program in 2000 that required commercial is now on the Passat and on an increasing not yet found wide adoption, will not be diesel manufacturers to reduce nitrogen number of vehicles,” said Mr. Molden. used in the short or medium term, accord- oxides and particulate emissions by 95%. “But they wanted the lean NOx trap (LNT) ing to Mr. Macaudière. It is Ms. Oge’s opinion that the Europe- system to work because it was cheaper and ans need to change their whole compliance easier for the consumer.” (Urea tanks have Diesels a Bridge to Zero Emissions system. “Their system relies on third par- to be frequently refilled.) According to Mr. The diesel engine has received a big ties hired by the carmakers to make sure Molden, an LNT system costs in the range black eye from the VW emissions scandal. the carmakers are doing the right thing. It of a few hundred dollars compared with But, according to the experts, it’s too soon is not an efficient system. Compliance the high-hundreds of dollars for an SCR to expect the demise of diesel light vehi- oversight should come from the govern- system. cles. They do pollute and are largely re- ment,” she said. sponsible for the dirty air in many Diesel Sensors Needed European cities. But in their favor, Europe- Selective Catalytic Reduction PSA Peugeot Citroën decided to stan- ans like the way they drive, and they pro- The go-to technology for cleaning diesel dardize on SCR for all its Euro 6 engines, duce 15% less CO2 than gasoline engines. engine exhausts today is selective catalytic beginning in 2008. “We are convinced that “There are still opportunities to contin- reduction (SCR), described here from the SCR is the only technology that can signifi- ue to improve the carbon footprint of die- Volkswagen website. cantly reduce NOx to a level that will con- sel while further limiting nitrogen oxides The SCR catalytic converter (Selective Catalytic form to the RDE conformity factors, even and particulate matter pollution,” said Ms. Reduction) converts the exhaust constituent nitro- for small vehicles,” wrote Pierre Oge. “You have to look at diesel along with gen oxide (NOx) into nitrogen and water without Macaudière, emission control systems ex- more efficient gasoline engines as a bridge producing undesirable by-products. This conversion pert at PSA Peugeot Citroën, in an email to a future where you are not going to be takes place using a synthetically produced aqueous to the Hansen Report. burning fossil fuels for personal transporta- urea solution, which is carried in an auxiliary tank. The substance, containing 32.5 percent Clean diesel technology still has some tion.” urea, is added continuously to the exhaust tract upside as new or improved sensors are de- Margo Oge’s book, Driving the Future: upstream of the SCR catalytic converter. It is me- veloped. Mr. Macaudière expects that more Combating Climate Change with Cleaner, tered according to the mass flow rate of the ex- accurate NOx sensors and even ammonia Smarter Cars, was published in April 2015. haust gas and is precisely regulated by the engine sensors will be required to more precisely u management system, which receives information control the urea dosing and to fulfill on- from the NOx sensor behind the SCR catalytic board diagnostic requirements. “A drastic converter. decrease in sensor costs is expected since According to Allen Shaeffer, executive the current cost level is not acceptable in director at the Diesel Technology Forum © 2015 Paul Hansen Associates, 150 the long term.” in the U.S., “SCR has proven itself to be Pinehurst Road, Portsmouth, NH 03801 Mr. Macaudière is also looking for new robust and able to perform quite well at USA. Telephone: 603-431-5859; fax: 603- and improved particulate sensors. “More reducing NOx emissions and allowing 431-5791; email: [email protected]. accurate and reliable particulate mass sen- manufacturers to really optimize an engine All rights reserved. sors are needed to detect failure [of the die- for a balance between performance and Materials may not be reproduced in sel particulate filter]. In the future we efficiency.” any form without written permission. could also be asked to detect the particu- The Hansen Report on Automotive Electronics is published ten times a year at Discrepancy Between Type-Approval and Real-World CO2 Emissions of New Passenger www.hansenreport.com. July/August and Cars in Europe 50% December/January are combined issues. According to the Berlin, Germany-based Inter- Back issues are available for $65 each. Sin- national Council on Clean Transportation (ICCT), 40% 36% gle and multi-user electronic subscription the efforts made by carmakers in Europe to reduce information and a searchable index are CO2 emissions have not made a significant differ- 40% 28% available at www.hansenreport.com. Paul ence, despite their compliance with certification (or 30% type-approval) testing standards. Real-world fuel 31% Hansen Associates is a strategy and market 19% research firm consulting to the electronics consumption and CO2 emissions of new European 20% 15% 24% passenger cars exceeded official type-approval val- industry. ues by 40% in 2014. The gap between laboratory 17% Publisher/Editor Paul Hansen 10% tests and real-world performance doubled between Managing Editor Brianne Wolfe 2009 (when mandatory CO2 fleet targets were intro- Source: ICCT Director of Marketing Michelle Long 0% duced) and 2014. ISSN 1046-1105 2007 2008 2009 2010 2011 2012 2013 2014

Page 2, November 2015 The Hansen Report on Automotive Electronics, www.hansenreport.com Mini Profile: Macronix

Thumbnail Sketch Macronix Sales by Product Macronix Sales by Product 2014 Total Sales: $730 Million Headquarters: Taiwan Q3 2015 Sales: $132 Million Wireless, 6% 2014 Revenue: $730 million Foundry Busi- Industrial, 8% Computing, 16% Products: Non-volatile memory: ROM, ness Group, Flash, 62% Automotive, NOR Flash and NAND Flash 12% 10% Communica- 2015 Automotive Revenue Estimate: ROM, 26% tions, 23% $50+ million Automotive Products: NOR Flash and Automotive Revenue by Year* Consumer, 37% NAND Flash Competition: Micron, Cypress 2010 to 2014 CAGR: 119.0% Note: Exchange rate, $1 = 30 New Taiwan 50+ able in wafer die or packages small enough 46 dollars to fit on the camera’s printed circuit board 37 and able to withstand temperatures up to Background 125 degrees C. Camera applications are 24 With headquarters in Taiwan, Macronix 19 growing quickly. Available in memory den- has recently expanded its presence in sities from 16 Mb up to 256 Mb, the in $ millions Europe and the United States. It also has 2 devices meet AEC-Q100 Grade 1 (-40 to facilities in China, Korea, Japan and Singa- 125C) qualification standards. Some of pore. Macronix historically served the con- 2010 2011 2012 2013 2014 2015 these devices are already in production. sumer and communications markets. In *Hansen Report estimates 2011, it entered the automotive market u Security Memory Devices and its automotive revenue has been grow- gate technology, is intrinsically the more Macronix offers a wide range of parallel ing at 34% per year since then. Today 10% reliable technology with very fast read capa- and serial NOR and NAND flash devices of sales are to automotive customers, bility for demanding applications. It can that feature security protection, presently mostly in Asia. Japan accounts for roughly also be used in engine control systems. used in non-automotive markets. Macronix half of automotive sales. has been talking to carmakers around the Macronix is currently the global auto- Hottest Automotive Products world about their cybersecurity hardware motive industry’s third-largest supplier of u OctaFlash requirements to see which devices and NOR flash. Macronix expects to achieve Last month, Macronix introduced what which features will be needed so the the number-one position in 2017. Its share it is calling “the industry’s fastest SPI NOR devices can be automotive qualified. of the market for automotive NOR flash flash memory.” With an extended eight devices will reach 20% in 2015, according I/O serial interface, the OctaFlash NOR and NAND Flash: Complementary to the company. MX25UM is especially fast with access fre- Solution Macronix says it is an approved flash quencies up to 200 MHz and transmission Some automotive applications that vendor at several of the major automotive speeds up to 400 MB/s with double trans- don’t require fast booting may benefit from OEMs and has developed partnerships fer rate operation. It uses a serial peripheral NAND flash. NAND devices can be writ- with major tier one automotive electronics interface command set and is backward ten to faster than NOR devices and cost suppliers. The company has automotive compatible to prior SPI implementations; significantly less per memory bit. “Some of chipset partnerships with Freescale, Rene- it can easily be used to upgrade an existing the tier-one customers we are talking to are sas and NXP. Macronix products are quali- application. considering using NAND to complement fied on different platforms for different OctaFlash features help developers NOR and to address the growing density types of applications including camera, tackle transmission path and storage device needs of system applications,” said Jerome cluster, ADAS, infotainment, navigation, challenges and create safety compliant (ISO Lambert, Automotive global marketing and V2X, displays, security and safety. 26262 standards) applications. business development director. Macronix The number of lines of programming OctaFlash is available in memory densi- engineers can help developers with soft- code in vehicles has been growing for years, ties of 256 Mb, 512 Mb and 1 Gb. Sam- ware accommodations to optimize the especially as connected infotainment sys- pling began in September 2015. booting time and boot process reliability tems, ADAS and cluster features are added. Automotive-grade devices will be avail- for the NOR and make NAND flash work u The growth of software is especially evident able for sampling sometime in 2016. reliably in automotive applications. at companies that manufacture NOR flash memory, the preferred technology to store u 1.8V Serial NOR Flash software code that must instantly boot up Macronix’s 1.8V serial NOR flash devices when the car is switched on. A non-volatile are especially appealing to developers of memory type, NOR flash, based on floating embedded cameras, because they are avail-

The Hansen Report on Automotive Electronics, www.hansenreport.com Page 3, November 2015 The Company Profile… TomTom

Thumbnail Sketch TomTom Revenue by Year Automotive Revenue and EBIT

Headquarters: Amsterdam, the Nether- 2010 to 2014 CAGR: (11.1%) 2010 to 2014 CAGR: (11.7%) lands; www..com 1,521 235 2014 Revenue: €950.3 million 1,273 212 R&D Expenses: 18.3% of revenue 1,057 179 EBIT EBIT 963 950 1,000 Margin Margin Net Income Margin: 2.4% (11%) (26%) Cash Flow from Operations: €118.6 mil- lion 111 109 Working Capital: (€9.6 million)* Non-Current Liabilities: €316.5 million* in € millions Stockholders’ Equity: €939.3 million* in € millions Market Capitalization: €2.5 billion 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 Employees: Approximately 4,400* Guidance 2014 Revenue per Employee: €226,262 Note: The reporting structure for the Automotive Ownership: TomTom’s four founders each business unit was reclassified starting in 2013 to own 11.4% of shares TomTom Revenue by Business Unit exclude the hardware component of previously Products: Consumer electronics products developed in-dash infotainment sales to automo- (SatNav devices, sports watches, action 2014 Total: €950 million tive clients. That is now reported in the Consum- cameras), connected navigation systems er business unit. Automotive now includes only Telematics, 11.6% revenue from connected navigation system com- and components, telematics solutions Licensing, ponents and licensing. In 2013, automotive hard- Revenue by Product: 57% hardware; 43% 11.8% ware accounted for €81 million in revenue. Also content and services a small amount of revenue was moved from the 2014 Automotive Revenue: €109.4 million Licensing business unit to Automotive. The seg- Automotive, ment’s profitability suffered in 2014 and 2015, a EBITDA Margin: 18.3% 11.5% result of declining sales as well as capital and EBIT Margin: (26%) research investments to build TomTom’s new Automotive Bookings in 2015: More than Consumer, 65.2% mapping platform. A modest decline in revenue €250 million* is expected for 2015. Automotive Products: Real-time maps, navigation software, traffic and other con- ber two. In 2007 TomTom picked up the recently announced that it will use nected services navigation development business of Sie- TomTom maps and traffic data for more Customers: Renault is the largest mens VDO, an acquisition that helped than 300 cities in its smartphone driver Core Markets: Europe and North America TomTom win business for in-dash naviga- app. TomTom will not be the single source *As of September 30, 2015 tion systems with OEMs in Europe, nota- of maps for Uber. bly Renault. Background The market for PNDs peaked around Automotive Business Segment TomTom was originally a brand owned 2008. Apple released the first iPhone in The TomTom Automotive segment is by Palmtop, a company founded in 1991 to 2007 and Google’s free navigation app on headed by Antoine Saucier, who began his develop apps for the earliest handheld per- Android phones came out in 2009. Accord- assignment in September 2015. A content, sonal computing devices and mobile ing to NavAds, which provides location- software and services business, TomTom phones. When the U.S. government began based marketing, the PND market has been provides maps, traffic services and naviga- to allow civilian access to high quality satel- declining at 15% per year since 2009, tion software to carmakers and tier ones lite signals in 2000, a market for consumer although in some regions and in some either as separate components or pre-inte- navigation devices quickly developed. years the decline has not been so severe. grated in a complete connected navigation Leveraging the brand recognition for Tom- Today TomTom provides navigation system. Tom it had already developed, Palmtop across all relevant end-user platforms: in- There are four product groupings within changed the company name to TomTom dash head-unit systems, mobile devices, TomTom’s Automotive business segment: in 2001 and focused its strategy around Web applications and PNDs. TomTom’s maps (the largest revenue generator), navi- personal navigation devices (PNDs). navigation software and maps are made gation software, traffic and other services, TomTom acquired its map data sup- available to people in and out of their cars and non-recurring engineering. plier, the Dutch company Tele Atlas, in via connected cloud-based services. Tom- European applications are by far Tom- 2008 and became Europe’s number one Tom has supplied maps and related data to Tom’s biggest source of automotive busi- PND supplier and North America’s num- Apple for the Apple Maps app since 2012. ness. Asian customers such as Hyundai/Kia

Page 4, November 2015 The Hansen Report on Automotive Electronics, www.hansenreport.com TomTom

TomTom Revenue by Region TomTom continues to ship the infotain- ment system business it won before its Distinctions Claimed by TomTom 2014 Total: €950 million change of strategy. Hardware revenues asso- u Approximately 800 million people rely on Rest of World, 7.2% ciated with that legacy business now show TomTom technology to get where they up in TomTom’s Consumer segment. In North want to go. 2013 infotainment hardware revenues were u America, The world’s most extensive digital map €81 million. Licensing revenues from auto- 17.2% database, with navigable coverage for motive customers are now reported in the 134 countries including 45.6 million kilo- Automotive business segment. meters of roads Europe, 75.7% No longer in competition with infotain- u TomTom is able to deliver incremental ment suppliers, TomTom collaborates with NDS-based map updates from its trans- almost all of them including Denso, Bosch, actional map-making platform with fast and Toyota purchase traffic services for Continental, Aisin AW and Fujitsu Ten to update cycles Europe. TomTom doesn’t compete in Ja- provide maps, navigation software and traf- u A leading connected traffic services pan or Korea. fic services. supplier with an 80% market share in TomTom had been competing for info- The competitive landscape for maps is Europe tainment business against suppliers such as shifting dramatically. TomTom’s major Harman, Bosch, Panasonic and Continen- competitor is HERE, which claims to con- 2015, the end of the third quarter, order tal and won a fair amount of systems busi- trol 80% of TomTom’s served market in intake for the Automotive segment had ness, including hardware, with Renault, Europe and North America. Announced in exceeded €250 million, up significantly Fiat Chrysler, Toyota and Mazda. In 2012 May 2015, Audi, Daimler and BMW will from €170 million through Q3 2014. the company made the strategic decision to soon complete the purchase of HERE from Those bookings will generate revenues focus on navigation components, its core Nokia for €2.8 billion. All three of the ac- starting in 2016 and onward. competence, and is no longer pursuing in- quirers are currently TomTom customers. TomTom believes that the market for its fotainment system hardware business. Google, Apple and Uber are independently automotive products will grow strongly “Infotainment had moved well beyond developing maps for automated driving. with the integration of maps with ADAS navigation to the point where suppliers and highly automated driving. And it sees were expected to integrate multiple systems Revenue Growth room for further growth in built-in car into one user interface, with many more Attesting to the success of its strategy to navigation systems, which have penetrated functions than just navigation,” explained focus on connected navigation opportuni- roughly 25% of the new vehicle market Frans de Rooij, director of product market- ties to the exclusion of hardware and com- thus far. ing at TomTom Automotive. plete infotainment systems, Automotive bookings are healthy. As of September 30, Connected Navigation TomTom provides complete connected- Announced Automotive Deals navigation systems or components. Easily integrated with any infotainment system, OEM Car Models Region Launch TomTom Products the components are market tested, and Fiat Bravo, Punto, Linea Lat-Am 2015 Maps + Navigation where possible based on open industry Hyundai/Kia Optima, Cee’d, Tucson Europe 2015 Traffic standards. They interact through well- Peugeot/Citroën Europe 2015 Maps + Navigation + Traffic defined application programming inter- SsangYong Tivoli Europe 2015 Maps + Navigation faces. This significantly reduces invest- VW Jetta, Passat, Beetle N-Am 2015 Maps ments in development, testing and valida- Fiat/Jeep 500, Ducato, Renegade Europe 2014 Maps + Navigation + Traffic tion. These components include high- Qoros Sedan, Hatch, Estate, China 2014 Traffic City SUV, Cross Hybrid quality, real-time maps, navigation software Smart Fortwo Europe, 2014 Maps + Navigation + Traffic and traffic services. TomTom provides a N-Am, China cloud-connected navigation experience that Toyota Most car models Europe 2014 Traffic works both inside and outside the car, VW Most car models Europe 2014 Traffic from planning the trip to finding a parking Audi A3 China 2014 Traffic space and walking to the final destination. Mercedes S, E, C, CLS, GLK Europe 2013 Traffic Renault Most car models Europe 2012 Fully integrated system “R-Link” Fiat/Alfa/Abarth Most car models Europe 2010 Semi-integrated “Blue&Me” Real-Time Maps Renault Most car models Europe 2010 Fully integrated “Carminat Live” TomTom provides global map coverage Notes: Not comprehensive; selection of major deals. “Traffic” mostly also includes other with fully navigable maps for 134 coun- connected services. Source: TomTom Continued on following page

The Hansen Report on Automotive Electronics, www.hansenreport.com Page 5, November 2015 TomTom tries. Its maps with voice-guided navigation flect the road network, as quickly as possi- TomTom Automotive Customers are available in 46 languages. TomTom ble,” said Mr. de Rooij. “People expect that maps are developed from 70 professionally from their smartphones. The map in the Abarth Mercedes-Benz operated mapmaking vans, equipped with car needs to match that expectation.” Alfa Romeo Mini laser scanners, which collect data about Having up-to-date maps in the TomTom Audi Qoros road location and attributes in 40 coun- backend is only part of the real-time map BMW Opel tries. That data is combined with data from solution. Getting those updates into vehi- Citroën Peugeot hundreds of millions of users—what Tom- cle navigation systems is another matter. Fiat Renault Tom describes as the world’s biggest com- “We are now using the NDS (Navigation GM Smart munity of connected drivers—who provide Data Standard) map format,” said Mr. de Iveco Ssangyong Motors location traces and map feedback as Rooij. “NDS lets us do incremental up- Jeep Subaru changes in the real world are detected. dates, meaning you don’t have to down- Lancia Toyota load the full map to do an update; you just Lexus Vauxhall u New Mapmaking Platform take the changes from last week, or yester- Mazda Volkswagen Since 2011, TomTom has been working day.” Those updates could be sent over the on the redesign and development of new, air to vehicles with either an embedded transactional mapmaking technology, cellular modem or a tethered smartphone. marking between the lanes, if it’s dashed or which will optimize professional and com- In addition to enabling incremental up- continuous, and the precise position of munity inputs, enabling the collection of dates, NDS also allows for map manage- entrance and exit ramps. TomTom’s 3D vast amounts of data coming back from a ment, for example adding or subtracting Lane Map features sub-meter absolute and growing community of connected devices, the geographical areas covered or adding decimeter-level relative accuracy. The accu- and deliver map changes back to users’ features and functions. racy comes from the location data collected devices in near real time. “Current embedded navigation systems and developed by the TomTom fleet of “We are offering a mapmaking process may just have made the switch from yearly mapping vans, which uses satellite data that is fast, accurate and efficient,” said Mr. to quarterly updates,” said Mr. de Rooij. from the American GPS, Russian GLO- de Rooij. “The new platform lets us more “Except for pioneering by some high-end NASS and European Galileo satellite posi- quickly detect changes and implement carmakers, none of those are done over the tioning systems. those changes in our maps. Our mobile air. The majority of the systems still rely on TomTom has already introduced its mapping vans, which now number 70, scan updates downloaded via a memory card or HAD maps for parts of California, the De- the roads with a high level of accuracy.” USB stick. You need to go to a Web portal troit Metro area and the German Auto- “The new mapping platform is more to get them. bahn. Thus far TomTom’s HAD maps cost effective because it applies a higher “We have invested a lot to make our have been used for pilot projects. Audi level of automation, machine learning and mapmaking platform transaction based, used the map to guide a piloted A7 test statistical analysis,” said TomTom CEO, faster and we can publish them [incremen- vehicle on expressways from Silicon Valley Harold Goddijn, in the Q2 2015 earnings tally] anytime changes are made,” said Mr. to Las Vegas, an event staged for the 2015 call with analysts. de Rooij. “They are available for download. Consumer Electronics Show. In anticipation of the kinds of maps We are keen for carmakers to start retriev- In September 2015, TomTom intro- that will be needed in the future to support ing those updates over the air.” duced an additional layer of data within its advanced driver assistance systems and fully HAD maps, a feature called RoadDNA, automated driving, the platform will be u Maps for Highly Automated Driving which provides precise localization technol- able to provide more road attributes and a (HAD) ogy for automated driving. RoadDNA higher level of accuracy. For years TomTom has been providing locates stationary objects along the side of TomTom plans to complete the transi- ADAS features with its maps, for example the road, things like trees, lamp posts, tion to the new platform for all the coun- data about road curvature and inclination, buildings and signs. By matching data from tries it maps by the end of 2015. The R&D which is used to optimize the powertrain. vehicle sensors with RoadDNA, the auto- investments in the new platform, to further Those were the first steps. Now with its mated vehicle can precisely keep track of its automate it and add features, will continue new mapmaking platform, TomTom is tak- location in the road. Longitudinal accuracy in 2016. TomTom aims to make the best ing its maps to the next level with much of the roadside objects is better than a half maps at the lowest cost possible. higher accuracies and a deeper, wider range meter; lateral accuracy is better than 0.15 of attributes. meters. u Map Updates TomTom’s newest maps not only ac- By converting a 3D point cloud of road- “A big theme for us is minimizing the count for the number of lanes in each road side patterns into a compressed, 2D view, gap between the actual road situation and but they provide the precise position of the RoadDNA delivers a solution that needs our map, getting the map to accurately re- centerline of each lane, the type of road

Page 6, November 2015 The Hansen Report on Automotive Electronics, www.hansenreport.com TomTom little storage space and minimizes process- because of stopped traffic or an accident TomTom Automotive Products ing requirements. ahead, or where there is black ice or fog. As TomTom will gradually introduce HAD much as possible the services will be based Embedded Infotainment Systems (no lon- maps worldwide. “We want to map the on passive input from TomTom’s commu- ger supporting new hardware business) whole world for autonomous driving,” nity of probe vehicles, but like Speed Cam- Connected Navigation Systems asserted Mr. de Rooij. era, active reporting could also be done as Real-time, turn-by-turn navigation maps people spot such things as potholes.” Navigation software Traffic and Other Services TomTom’s biggest map competitor, Connected Services Europe’s leading provider of connected HERE, has proposed the Sensor Ingestion Real-time traffic services traffic services, with an estimated 80% Interface Specification, an open standard Speed cameras share of the market, TomTom provides that would let carmakers share sensor data Places local search traffic services in Europe to most car mod- with the cloud and other vehicles. Tom- Real-time map updates els from Toyota, VW/Audi, Mercedes, Fiat Tom is among those advocating for the da- Online navigation services and Renault. According to the company, ta standard. “We will be helping to shape TomTom Cloud: cloud-based synching TomTom Traffic covers more jams with that protocol,” said Mr. de Rooij. “It will and sharing fewer false alerts than its competitors. The boost the quality of maps and services.” Reference applications: enables a key to the service’s effectiveness is the large seamless navigation experience community of TomTom users whose GPS Navigation Software across different end-use devices probes detect the actual traffic situation on Organizing its product offerings into Third-party services: parking avail- all roads. The community includes PND components is a theme that runs through- ability, fuel stations, EV charging users and users of TomTom products; out the Automotive business unit. Tom- stations, weather those embedded in smartphones and Tom’s core navigation engine is called Professional Services aboard vehicles, as well as the B2B custom- NavKit. Designed to enable rapid integra- Custom engineering ers of TomTom’s Fleet Telematics business. tion, NavKit has programming interfaces TomTom’s real-time traffic information for adding a customized user interface and is available in 48 countries including Chi- integrated navigation services. It was de- zation options are limited, but it offers a na, Hong Kong, and Mexico. TomTom signed initially to run on Android, but it fast time-to-market. says it’s the first company to use real-time can also be adapted to run on iOS, Linux, weather information to calculate accurate and important to the automotive industry, Alliances routes and arrival times. TomTom Traffic QNX. TomTom has partnered with Bosch to warns drivers about upcoming delays The architecture allows customers and integrate TomTom’s navigation technology caused by rain or snow. End users are up- partners to replace components in a modu- and maps into Bosch advanced driver assis- dated with the latest traffic information lar way. Its routing engine achieves faster tance systems. The partnership has helped every two minutes. and more accurate dynamic routing on Bosch develop such applications as intelli- Other services: The TomTom Speed maps that conform to NDS. It provides gent , upcoming curve alerts Camera service delivers real-time positions routes around traffic and fully supports and traffic jam warnings. of mobile and fixed speed cameras, the lo- TomTom Traffic. The TomTom Go smart- In July 2015, Bosch and TomTom cations of which are contributed by the phone app and PND range are also pow- agreed to further their partnership by coop- TomTom community of users. TomTom ered by NavKit. erating in the development of maps for au- Places gives drivers the ability to search for TomTom also offers a user interface, a tomated driving. At that time, the maps possible places to stop during a journey, separate layer that can be customized on were already being used in automated driv- such as restaurants and hotels. In addition, behalf of an OEM. “It can be designed by ing tests on certain roads in Germany and TomTom offers services from third parties an OEM to be fully in line with the rest of the United States. covering parking availability, fuel stations, the infotainment system’s look and feel, Since 2014 TomTom has partnered EV charging stations and live weather and it can be presented on any screen, the with Volkswagen Research to develop re- reports. center screen, in the cluster or the head-up quirements for maps needed for highly au- display. It can include things like audio tomated driving. That partnership led to Services for Automated Driving and HVAC as well,” said Mr. de Rooij. the Audi piloted driving event staged for Taking the traffic service to the next Navigation software customers can also the 2015 Consumer Electronics Show. It is level, TomTom plans to also provide choose TomTom’s NavApp, which in- not clear where the partnership goes from crowd-sourced information to support au- cludes NavKit and TomTom’s own user here following Audi’s acquisition with tomated driving. “We can inform the auto- interface. NavApp’s user interface customi- BMW and Daimler of HERE. u mated car where it needs to slow down

The Hansen Report on Automotive Electronics, www.hansenreport.com Page 7, November 2015 Cybersecurity… Continued from page 1 from the emerging IoT industry and collab- nerabilities in automotive systems, numer- would significantly impact the cost of the orate among themselves and across indus- ous suppliers have come forward with system. The CAN bus itself has neither pro- tries to have a glimmer of hope of securing isolated solutions. vision for encrypted packets nor enough the . “I’m not overly impressed with the field traffic control built in.” “I and my peers firmly do not believe in overall, not just those focusing on automo- The difficulty in making the vehicle security through obscurity. You don’t need tive,” said Mr. Weinberg. “In a recent study secure is that most vehicle systems have source code to crack a device. For years, looking at what is being offered in all mar- some continuity to the previous genera- closed systems have been hacked by all kets I counted more than 200 unique tions. “As you make vehicles smarter, you sorts of people. In a closed system only a cybersecurity solutions. The vendors all take all sorts of shortcuts to attach technol- limited number of people, including the spend a lot of energy touting their own ogy to what was there before, and that people that built it, are given access to the wares, but even if you put four or five of exposes you to all sorts of new threats,” particulars of the security system, on a need them together you would be hard pressed noted Mr. Weinberg. to know basis. Just because they are the to cover all the seams. You can get a lot of “It would be better to start over by only ones who know about it doesn’t mean stuff from many vendors and the result is thinking about your security model and it’s actually secure. That small group may you still have to secure the whole.” deciding what you really care about. That not have had the security credentials usually comes down to two areas: One is needed to do a good job.” New Architecture Is Needed safety. You don’t want somebody taking In an open system there is a wider com- Mr. Weinberg believes drastic measures over the car and running it into a ditch, or munity of people who create code and are in order. “You have to start over. The worse. And you don’t want critical data on therefore a wider community of people whole system needs to be re-architected. the vehicle exfiltrated, especially if you are who can help fix it if it’s hacked. “Most of The current vehicle architectures, and what putting e-commerce data in the vehicle. the Internet’s security is built on open sys- I’ve seen of proposed new architectures, You concentrate on those two areas.” tems. While there have been examples of don’t do enough to assure that safety-criti- hacking in the Internet like Shellshock and cal systems are sufficiently protected. The Cybersecurity Panels at CES 2016 Heartbleed, the open source community components come in from diverse sources, The SAE and Genivi will be presenting can respond,” said Mr. Weinberg “For and nobody is thinking about all the attack two automotive cybersecurity panel sessions example, the Linux Foundation went out surfaces and paths of attack for the whole at the 2016 Consumer Electronics Show in and hired a handful of people to be virtual vehicle.” Las Vegas on January 6. The first session, chief information officers of open source Some suppliers are recommending the Connected Cars: A Landscape Fraught projects to make sure the 500 most impor- addition of encryption chips to protect net- with Peril, will run from 9:00 to 10:00, tant projects have security guidelines so works from attacks. But Mr. Weinberg with Paul Hansen moderating. The second those things don’t happen again.” believes that measures like these, taken session, Automotive Security Solutions, remedially on existing designs, won’t work. from 10:15 to 11:15, will be moderated by Many Suppliers but No One to Put It All “Adding the burden of encryption to 8- or Bill Weinberg. u Together 16-bit microcontrollers on the CAN bus Since 2010, when the first of many will severely degrade the performance of white hat hackers began to expose the vul- those devices. ‘Look-aside’ encryption

Cost a Contributor to Slow Gap Between Current Cost to Consumer and Consumer Willingness to Pay for ADAS Adoption of ADAS Features Features (in USD)

Market penetration of ADAS features is grow- ing at just 2%-5% annually, even though they have the potential to drastically reduce acci- Surround View Systems Cost to consumer dents and crash-related injuries and fatalities. Park Assist Consumer willing- Part of the reason for the slow uptake has ness to pay been consumers’ reluctance to pay a realistic price for safety features, according to Boston Lane Departure Warning Consulting Group. BCG conducted research Blind Spot Detection for the Motor and Equipment Manufacturers Association (MEMA) and found the installation ACC/FCW/FCA rate of surround-view systems, for example, is expected to reach only 3% by 2020, from 1% Source: A Roadmap to Safer Driving through Advanced Driver Assistance Systems, a study today. Consumers indicated they would be will- by the Boston Consulting Group for MEMA, ing to pay $380 for the feature, when the cost September 2015 today is $900. u Page 8, November 2015 The Hansen Report on Automotive Electronics, www.hansenreport.com