Japan out Front in Car-To
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THE HANSEN REPORT ON AUTOMOTIVE ELECTRONICS. A Business and Technology Newsletter VOL. 20, NO. 2◆◆ PORTSMOUTH, NH USA MARCH 2007 Japan Out Front in Car-to- GM’s Global E/E Boss Weighs In Infrastructure Communications Nissan Safety Field Trial proven, field tests must be run, and Already Underway carmakers must convince themselves that consumers will pay a fair price for what- Frischkorn on Global Product Devel- “I strongly believe—and Daimler- ever new onboard equipment is needed. opment, Software and Suppliers Chrysler strongly believes—that commu- While there has been some research nications is the next logical step in and a lot of talk in Europe and the United We had an interesting conversation vehicle safety,” declared Weiland States about car-to-x communications, no recently with Hans-Georg Frischkorn, Holfelder, vice president and chief tech- significant field operational tests are who transferred from BMW in April 2006 nology officer of DaimlerChrysler re- scheduled for the near term. One of the to become GM’s executive director of glo- search, engineering and design North earliest we are aware of isn’t directly fo- bal electrical systems, controls and soft- America. “We have ABS, electronic sta- cused on intersection crash avoidance, but ware. He is responsible for the design, bility control and adaptive cruise control. on floating car traffic-data collection. A engineering and release of all electrical What is missing is that vehicles cannot €30 million German initiative called and electronics parts and software, includ- talk to each other, and they cannot talk to SIM-TD (Safe Intelligent Mobility and ing architectures for electrical functional- the infrastructure. ... It is enabling tech- Test Region/Field Deutschland), this field ity, serial data and diagnostics, but not nology that will open up so many addi- operational test (FOT) involving 500 to including powertrain controls or research. tional things ... like the Internet. It’s 2,000 vehicles will evaluate automotive Since he has been on the job for al- going to happen.” communications platforms. The testing most a year we thought it high time to ask While we agree with Dr. Holfelder could get underway in the next couple of him how electrical engineering is chang- about the ultimate promise of car-to-infra- years, but results wouldn’t be ready until ing at GM under his guidance and what structure and car-to-car communications, Turn to Communications, page 8 suppliers can do to help. the problem for those who might invest in One of the things that attracted Mr. the technology in Europe or the United E-Subscriptions Frischkorn to GM was the carmaker’s States is that real payback won’t happen newly established global engineering orga- for many years. In Japan, however, plans Now Available nization. “That is one of the major are well underway to implement a ve- In response to your requests, we are changes that GM has undertaken in prod- hicle-infrastructure safety communica- pleased to announce our completely rede- uct development. We are very focused on tions system by 2010. signed Web site and an all-new option for developing electrical and electronics sub- One of the most promising communi- subscribing to The Hansen Report. We call it systems that will be used throughout the cations applications in terms of its life- the E-Subscription. world—in North America, South saving potential is intersection collision Why an E-Subscription? America, Europe, Asia Pacific and Aus- avoidance, where cars would receive ◆ Read the current issue online, any time, tralia.” warnings that a red traffic light or a stop from any computer—no more waiting for the Mr. Frischkorn pointed out that the sign is ahead, or that another vehicle is print version to be printed and delivered. emphasis on global engineering at GM rapidly approaching the intersection ◆ Share The Hansen Report with your comes from the very top. GM chairman crossing. A serious commitment from team members or colleagues around the and CEO, Rick Wagoner, in a speech at both the public and private sectors is re- globe. Convergence 2006 highlighted a new pro- quired before intersection collision avoid- ◆ Consolidate your company’s subscrip- gram he believes exemplifies GM’s com- ance programs can begin to have an tions—lower per-reader costs. mitment to “operating our business as a impact on safety. Most importantly, gov- ◆ Search for any article or back issue truly integrated global company.” ernments have to come up with billions of published in the last ten years and print or dollars in funding to instrument thou- download for free. Global A Electronics Modules sands of intersections, and carmakers will We invite you to visit the new site at An extremely important outcome of have to install communications and driver www.hansenreport.com and click the Sub- this global orientation that will affect warning devices in each new vehicle. Be- scribe tab to learn more about E-Subscrip- Turn to Frischkorn, page 3 fore that happens, the technology must be tions. 2006 Roundup: Siemens VDO, TRW, Valeo, Visteon Siemens VDO Automotive The company attributes 2006 sales 2007 Sales Outlook: Visteon estimates Fiscal year ending September 30, 2006 growth in part to its 2005 acquisition of net loss between $267 million and $367 2006 Sales: €10,017 million ($13,213 the steering wheel and airbag maker million on sales of $11.1 billion million) Dalphimetal, which serves European Visteon considers interiors, climate Change from 2005: up 4.2% carmakers including Peugeot, Renault, controls and electronics, including light- 2006 Profit: €669 million ($870 million) Volkswagen and Volvo. ing, its core product areas where it will or 6.7% of sales, roughly the same margin TRW’s largest business segment, Chas- focus investment. In 2006 segment sales as in 2005 sis Systems, accounted for 54% of 2006 broke down as follows: Climate, $3 bil- In late January 2007, Siemens AG an- sales; Occupant Safety Systems, 33%; lion; Electronics, $3 billion; Interiors, nounced that it was preparing to spin off Automotive Components, 13%. More $2.8 billion. Sales in Electronics and In- a minority stake in Siemens VDO Auto- than half, 57%, of TRW’s sales are in Eu- teriors declined nearly 6% compared with motive through an IPO. Some analysts rope; North America accounted for 33% the prior year. expect the offering to take place in the of sales. Ford remains Visteon’s largest cus- second half of this year. TRW’s number one OEM customer in tomer, accounting for 45% of product Siemens VDO reorganized its business 2006 was Volkswagen Group, which ac- sales in 2006, down significantly from divisions in October 2006 into these four: counted for 15.5% of sales. Sales to Ford 62% in 2005. Powertrain, Interior Electronics and Motor Co., the largest customer in 2005, Visteon reduced its R&D expenditure Infotainment, Safety and Chassis, and contributed 14.6% of total TRW sales. from $804 million, or 4.7% of sales, in Commercial Vehicles. In fiscal 2006, 2005 to $594 million, or 5.2% of sales, in Siemens VDO’s ten largest customers ac- Valeo 2006. As part of the company’s ongoing counted for 80% of sales. Nearly two- 2006 Net Sales: €9,970 million ($13,151 restructuring, eleven plants were fixed, thirds of sales were from Europe, with million) closed or sold in 2006; seven more are one-third in Germany alone. The remain- Change from 2005: up 2.2% scheduled for sale or closure in 2007. ing third of sales was primarily generated 2006 Net Profit: €161 million or 1.6% of Visteon eliminated 800 salaried positions in the United States. sales, compared with net profit of €142 in the fourth quarter. According to the Siemens VDO is marketing a family of million or 1.5% of sales in 2005 company, 80% of its $1 billion of new active safety products—LIDAR-based Valeo’s largest product lines, climate business wins will be manufactured in low adaptive cruise control, night vision, control and engine cooling, together ac- labor cost countries. Pardus Capital Man- blind spot detection and lane departure counted for 31% of sales. agement, which owns 10.2% of Valeo, re- warning—under the name pro.pilot. In In December 2006 Valeo sold its Elec- cently increased its stake in Visteon to September 2006 the company introduced tric Motors and Actuators business to 17.4%. ◆ a drowsy driver monitoring system that Nidec, a Japanese motor manufacturer, uses an infrared camera to monitor the for €142 million. Valeo increased its in- THE HANSEN REPORT ON driver’s face, which in the future could be vestment in the Japanese lighting sup- AUTOMOTIVE ELECTRONICS integrated with other pro.pilot features. plier Ichikoh to 29.4%, and increased its The company announced in December investment in blind-spot-detection maker © 2007 Paul Hansen Associates, 150 Pine- 2006 that it is acquiring Ballard Power Valeo Raytheon Systems to 77.2%. hurst Rd., Portsmouth, NH 03801, USA. Tele- phone: 603-431-5859. Fax: 603-431-5791. Systems’ electric drive business for Subject to reaching agreement with Email: [email protected]. All rights re- $4 million. the United Auto Workers, Valeo will ac- served. Materials may not be reproduced in quire Ford’s Thermal Systems plant in any form without written permission. The TRW Automotive Plymouth, Michigan. With 2006 sales of Hansen Report on Automotive Electronics is € 2006 Sales: $13,144 million approximately 350 million ($462 mil- published 10 times a year, monthly; July/Au- Change from 2005: up 4% lion), the facility employs 1,250 people. gust and December/January are combined 2006 Net Profit: $176 million, or 1.3% At the end of 2006, Valeo had 129 issues.