Vol. 28, No. 3 u hansenreport.com u April 2015 JLR Committing to ’s Patrick Brady on Fast, Open-Source Android Auto Innovation “I would love it if every single car is able “We are an incredibly ambitious com- to run Android in some way,” said Patrick pany,” said Mr. Brady. “Some people are threatened by that and assume all sorts of JLR Opts for Tizen, Not Android Auto Brady, engineering director for Android Auto at Google. Directed at consumers, things about our motivations, things that is implementing a Google uses the Android Auto brand to are not true. Our goal with Android Auto multipronged strategy to vigorously speed define both types of automotive extensions is to make it easier and safer for consumers up innovation of its infotainment system of Android: the projection solution, where to get connected services in the car, and for offerings. It has fully embraced Automotive applications running on an Android smart- developers to be able to build connected Grade Linux and an HTML5-based applica- phone are projected on the vehicle display, services for cars. Google has a lot of experi- tion environment. Future infotainment and the embedded solution, where the ence with this. We have worked with systems will be connected and capable of Android Auto platform is Tesla; we’ve worked with and numer- receiving frequent software updates. Next resident on the vehicle’s head unit. ous other partners [since 2005] to integrate month it will open its doors wide to the I sat down with Mr. Brady during a visit Google services into the car.” apps development community with an to the Google campus last month to try By making Android Auto open, free innovation incubator project at its new, and learn more about Google’s plans for and ubiquitous, Google hopes to repeat $3 million, 15,000-square-foot technology Android Auto. Google is usually reluctant the success Android has found in the research center in Portland, Oregon. to talk with the business-to-business press, mobile industry and avoid the experience “We considered Silicon Valley but but Mr. Brady admits that the company’s it had when it first brought mobile apps to picked Portland because of the availability opacity with the press can lead to conjec- the market. “The more we got of people and space,” said Matt Jones, head ture and misinformation about what involved in building apps and services for of future infotainment for Jaguar Land Google is up to. Turn to Android, page 3 Rover. “In Portland there is less traffic so it is much easier to get around and do road testing. We still have a couple of people Updatable Hardware in Cars situated in Silicon Valley who report to Consumers pay thousands of dollars for Nakul Duggal, vice president of business me,” he said. infotainment systems that in many respects development for Qualcomm, sees all the Opened in December 2014, and now are inferior to . They rightly major auto industry players moving toward staffed with 30 infotainment specialists, expect that the of the future updatable connectivity hardware as well as JLR will soon hire 50 additional engineers ought to be able to do everything their smart- software, but there are challenges that need to support the incubator project. The car- phone can do, and more. “It will be unaccept- to be addressed before the infotainment sys- maker is presently recruiting Linux soft- able if many of the apps that can run on a tem can be decoupled from the conventional smartphone can’t run on the car because the automotive lifecycle. “I think the day is not far ware architects, ++, Java Script and car’s processor is too old,” warned Google’s off when you will have upgradable hardware,” HTML5 developers and graphics user-expe- Patrick Brady. “We have to figure out how to Mr. Duggal said. “The question really comes rience developers to work at the facility. bridge the gap between what consumer elec- down to the economics. Once your customer “We don’t want automotive people tronics can provide and what the auto indus- buys a $3,000 option, is he going to want an working there,” said Mr. Jones, who pre- try can provide. We need to figure out upgrade every year? What are the business sented last month to developers at the modular hardware. You have to be able to models around that?” He believes the indus- GPU Technology Conference in upgrade the infotainment system after the try needs to jointly figure out how to keep Silicon Valley. Mr. Jones heads the Port- fact. To do that, the CPU or GPU, the RAM, infotainment systems compatible with current land facility and has roughly 40 software the flash, the cellular modem and the technology. “What you are essentially doing people reporting to him in the U.K. He is antenna, all the things that age pretty quickly is future-proofing the hardware design for looking for an entirely fresh approach to need to be easily upgradable.” things that are yet to come. You are design- infotainment development, one that will It will be possible to update the electronics ing for how the fast-moving infotainment dramatically shorten the development hardware in Audi’s next-generation, Android domain interacts with the slower moving cycle. Today it typically takes 39 months to Auto-based head unit to keep the infotain- automotive domain. The software piece of it bring a new infotainment system from con- ment system current with new technology. becomes simpler if you are able to upgrade Turn to JLR, page 2 Whether dealers or consumers will make the the hardware on a regular basis.” updates has not been determined.

The Hansen Report on Automotive Electronics, www.hansenreport.com Page 1, April 2015 JLR… Continued from page 1

cept to deployment. Mr. Jones wants to cut elsewhere, even beyond consumer electron- ly interface with CAN. In the future it will that time by more than half, perhaps to 15 ics. So you get more engineers focusing on be able to run a cluster or head-up display. months. it who can cross-pollinate. It makes no And if needed, Tizen will be an easy port JLR is keen to work with start-ups who sense for automotive to create a Bluetooth for Android apps,” Mr. Jones explained. will want a quicker return on their invest- or Wi-Fi stack. Every connected device JLR is not a member of the Google Open ment. Over the course of the next ten years needs that.” has been the primary Automotive Alliance. the incubator project plans to select about driver of Automotive Grade Linux, though 120 U.S. technology start-ups to work with according to an industry source, Toyota has Software Updates the carmaker. With their help and with not yet decided whether it will use Tizen or Future JLR vehicles will receive frequent JLR’s community of developers, Mr. Jones a pure Genivi platform. software updates, most of which will be would like to add functionalities such as While both platforms are based on Li- transparent to the customer. “We are part- fingerprint, voiceprint and face recogni- nux, the Android developer community is nering with Here for navigation services. If tion, camera integration and near field orders of magnitude larger than the Tizen you have a car with a control communications to JLR infotainment sys- community and yet JLR chose Tizen to run unit with access to the Internet you will be tems. natively on the head unit, not Android getting live data updates all the time,” said Auto. “Android Auto gives us problems,” Mr. Jones. “We will also do updates, for Tizen said Mr. Jones. “One, I can’t see the legal example, to modify a Bluetooth stack or to JLR is committed to an open-source agreements, and two, it is not open source add a whole new feature when the car is six software platform in order to maximize its in quite the same way [as Tizen]. Google months old.” involvement with a large community of places requirements on Android handset JLR doesn’t plan to make updates to developers whose applications based on manufacturers that wouldn’t work for us.” infotainment hardware. Instead, the car- that platform will require minimal engi- JLR is not opposed to using Android Auto maker will deploy an Intel multicore pro- neering to adapt them to automotive uses. to project smartphone applications onto cessor with sufficient headroom to JLR’s platform for the future is Tizen IVI the vehicle’s display. “Android Auto is go- accommodate any envisioned software up- 3.0. Tizen IVI has been officially adopted ing to do a fantastic job for our customers dates. “Rather than commit to putting as the reference implementation for the who want to use their Android apps in the hardware updates in, which is something Automotive Grade Linux project. “Tizen is vehicle. But it won’t do the future ad- the customer shouldn’t have to be worried effectively Genivi compliant but it goes be- vanced driver assistance functions. [In con- about, we are focused on getting the right yond automotive,” said Mr. Jones. “It is trast] we’ve designed the Tizen platform so amount of processing power into the car also used in Samsung mobile phones and that it is automotive compliant. It will safe- from the start,” Mr. Jones said. u 2014 Roundup: Continental Continental Automotive Group today to €1.5 billion in 2018. EBIT margin 2014 Sales: €20.9 billion for Chassis and Safety was 9.1%, up nearly © 2015 Paul Hansen Associates, 150 Change from 2013: up 4.5% a percent from the prior year. Pinehurst Road, Portsmouth, NH 03801 EBIT Margin: 5.7%, nearly the same as The Powertrain division’s sales were up USA. Telephone: 603-431-5859; fax: 603- 2013 3.7% in 2014, reaching €6.5 billion. EBIT 431-5791; email: [email protected]. Outlook for 2015: Continental anticipates margin was minus 1.5%. The loss was part- All rights reserved. more than 5% growth for the Automotive ly due to Continental’s buyout of GKN’s Materials may not be reproduced in any form without written permission. Group, with sales reaching €22 billion. An share in Emitec, a 50-50 joint venture that The Hansen Report on Automotive 8.5% adjusted EBIT margin is expected, supplies exhaust after-treatment systems. A Electronics is published ten times a year at compared with an adjusted EBIT margin of loss following the folding of a battery joint www.hansenreport.com. July/August and 8.1% in 2014. venture in Singapore with SK Innovation December/January are combined issues. The Automotive Group accounted for was also a contributor. According to the Back issues are available for $50 each. Sin- nearly 61% of Continental’s total sales. company, future growth in Powertrain sales gle and multi-user electronic subscription Three divisions comprise the Automotive will be driven by global legislation to re- information and a searchable index are Group: Chassis and Safety, Powertrain and duce fuel consumption and CO2 emissions available at www.hansenreport.com. Paul Interior. Sales in Chassis and Safety grew and greater market penetration in China. Hansen Associates is a strategy and market 3.4% in 2014, to €7.5 billion, with the In 2014, Asia accounted for 25% of Power- research firm consulting to the electronics help of increased volumes in electronic train division sales. industry. brake systems, passive safety and sensors, Sales in the Interiors division, which Publisher/Editor Paul Hansen and ADAS. ADAS sales grew by more than includes HMI, infotainment and connectiv- Managing Editor Brianne Wolfe 40%. According to Continental, ADAS ity, intelligent transportation systems, body Director of Marketing Michelle Long ISSN 1046-1105 sales will grow from roughly €500 million Turn to Conti, page 8 Page 2, April 2015 The Hansen Report on Automotive Electronics, www.hansenreport.com Android… Continued from page 1 cars, the more it reminded us of doing that lecting user data and selling advertising onds, which isn’t acceptable in the car. for phones before the advent of modern based on that data. If Google were to There are cars running Android today that mobile platforms like Android and iOS,” develop a more efficient, non-distracting boot up in two seconds but even faster boot Mr. Brady explained. “Back then there way to do voice searches, people may do ups would be preferable. An HVAC stack is were hundreds of different phone plat- more of them while driving. Carmakers also needed. forms. was the second most who adopt Android Auto, of course, have Founded by Google, the Open Automo- popular mobile application, but we had to the option of excluding Google services. tive Alliance (OAA) is a global alliance of create a different version of it for each of “We are going to give you an open source technology and auto industry companies those platforms. We found it painfully slow platform. If you don’t want to ship Google committed to bringing the Android plat- to innovate. We were hampered by under- services with your car, don’t,” suggested form to cars. Thus far, 28 car brands are powered hardware, software that wasn’t Mr. Brady. represented, with the noteworthy excep- sufficiently open and didn’t give us enough tions of BMW, Toyota, JLR and Daimler. access to do the things we wanted to do. Android Auto: First the Smartphone, In addition there are 16 technology part- We didn’t even have access to GPS on the Later the Head Unit ners. phone. Everyone had it for 911 but GPS Android Auto has two paths into the Thus far only Audi has gone on record wasn’t available to app developers.” car. In projection mode, the platform and to say they will run Android Auto natively Google is a software services company. applications reside in the smartphone and on the head unit. It was successful on the Web because the are projected onto the vehicle’s display One of the things working against An- Web is a ubiquitous, open platform. Like- while making use of driver interfaces. droid Auto is the license agreement, partic- wise, Google found success with smart- Android Auto will also be embedded in the ularly around data sharing and ownership phones because Android is a ubiquitous vehicle’s head unit. of data. A few carmakers favor the Tizen or open platform, resident on 80% of the Google focused its attention first on Genivi operating system for this reason. world’s smartphones shipped in 2015. projection. “Almost every car that comes Glenn Perry, Mentor Graphics’ Embed- “We looked at cars and found that even out in the next couple of years is going to ded System Division general manager, Genivi and QNX aren’t necessarily ship with support for Android Auto and observed: “We deal with just about every designed to provide a consistent applica- for [Apple’s] CarPlay,” said Mr. Brady. “It OEM and tier one and the general overrid- tions platform. If cars are becoming con- was much easier for us to get to market ing theme we hear about relying on nected, it is not happening in a way that is quickly using a projected solution.” Smart- Android Auto as a bare metal operating conducive to a Google or a Facebook or a phones are more capable and the networks system is concern about Google’s inten- Yelp being able to build connected services they are connected to are more up-to-date tions. Carmakers want to retain control of into them,” said Mr. Brady. “The Google compared with what is embedded in the their software and the data that could be Earth integration we did with Audi [for the vehicle. Many people who drive carry collected from it, and they are unsure 2011 A8] is great, but it took us years to smartphones, but most vehicles are not yet about Google’s roadmap for the operating develop. If we wanted to do that with connected. Audi will introduce a vehicle system.” another carmaker, it would also take us this year that will run Android Auto in pro- In March, Pioneer, an OAA technology years. We need to find a cohesive, ubiqui- jection mode, as well as CarPlay. partner, began selling three in-dash, An- tous, open platform that would allow every- Still, several carmakers are interested in droid-Auto-ready, multimedia receivers that one to innovate and lower the cost for running Android Auto natively on the are able to project applications running on developers to innovate, and enable con- head unit for multiple reasons. “It is free; it Android smartphones. sumers to have the choice of whatever ser- is customizable and there is a large ecosys- “One of the things we are asking OAA vices they want to plug in. That is what the tem of developers and silicon vendors members, as we partner together on Android Auto effort is about.” whose products work with Android,” said Android Auto, is let’s not fragment it,” cau- Google does not sell Android Auto. It is Mr. Brady. Harman won a $900 million tioned Mr. Brady. “The last thing we want free, open-source software. Google’s contract with General Motors to supply is for iHeart Radio or or Pandora to Android Auto team does not charge for its infotainment systems based on both have to build a different integration for services. Mr. Brady clearly stated that build- Android and QNX operating systems. In every carmaker, or worse for every different ing a ubiquitous open platform is his only the coming years, Audi’s next generation head unit, model or trim level. We tell motivation and that he is “unencumbered infotainment system will include Android developers that with Android Auto you can by a P&L” and not at all focused on adver- Auto running on the head unit. write your app once and deploy it to all tising as a way to monetize Google’s invest- To bring down the cost of embedding these different cars.” Android is already ment in Android Auto. I believe him. Android Auto into the vehicle, a number shipping in some cars today, but there are Still, some years from now if Android of software modules need to be developed different versions and they are not all auto- Auto does find wide acceptance, I expect and contributed to the open source com- motive qualified. “That fragmentation is Google will find more advertising revenue munity. A Bluetooth stack for phones is something we need to work with the Open as a result. Google makes money from available but not a reciprocal stack for the Automotive Alliance to correct,” suggested Android and its apps and services by col- car. Android phones boot up in 30 sec- Mr. Brady. u

The Hansen Report on Automotive Electronics, www.hansenreport.com Page 3, April 2015 The Company Profile… Leoni Group

Thumbnail Sketch Leoni Sales and EBIT Margins Leoni Sales by Division 2014 Sales: €4,103 million 2010 – 2014 CAGR of Sales: 8.5% 2014 Total Sales: €4,103 million Net Margin: 2.8% Wire & Cable EBIT Margin: 4.4% Solutions: R&D: 2.7% of sales €1,704 million Finance Costs: 0.8% in € millions Capital Expenditure: €215.8 million Cash Provided by Operations: 2,956 3,701 3,809 3,918 4,103 4,300 5,000 €180.9 million Wiring System Working Capital: €405.9 million* Division: Long-term Debt: €448.4 million* 2010 2011 2012 2013 2014 2015 2016 €2,399 million Total Equity: €917.8 million* (Est.) (Est.) Market Capitalization: €1.91 billion as of April 6, 2015 EBIT Margins Leoni Sales by Region Major Automotive Products: Wire 2010 4.4% 2014 Total Sales: €4,103 million harnesses and cables 2011 6.4% Employees and Contract Workers: 2012 6.2% Asia/Pacific, 18.9% 74,354* 2013 4.2% Rest of Sales per Employee and Contract 2014 4.4% Americas, EMEA, Worker: €55,182 2015 (Est.) 4.7% 15.1% 38.9% 2014 Automotive Sales: approximately 2016 (Est.) 7.0% €3 billion *as of December 31, 2014 Germany, 27.0% Background and junction boxes to individual wiring While Leoni traces its history back to harnesses and electromechanical compo- th nents. the 16 century when its forebears pro- Leoni Automotive Sales duced fine threads from silver and gold, its Leoni serves a global automotive wiring connection to the automotive industry harness market totaling nearly €27 billion, 2007 to 2014 CAGR: 11.5% including light vehicle and commercial began to develop in the 1930s as Leoni €3 billion started manufacturing rubber-sheathed vehicle harnesses. Three-quarters of Leoni’s cables. PVC insulated cables followed in revenue comes from automotive and com- €1.4 billion the next decade, and in the1950s the com- mercial vehicle customers, for whom it sup- pany started to manufacture cable assem- plies full vehicle wiring systems and cable blies. Global expansion took off in the harnesses. By 2025 the company expects 1970s starting with a wiring harness plant automotive to account for 80% of total rev- 2007 2014 in Tunisia and several acquisitions. enue. Leoni has significant wiring harness Figures are approximate and include commercial Since 2002 Leoni has acquired several business with most of the major carmakers vehicles sales. companies including Lucas Rists in 2002, worldwide with the exception of most of which had about €100 million in sales; the Japanese OEMs. The - motor and transmission harness and also Kerpen in 2006 with €116 million in sales; alliance is a Leoni customer. The Japanese begins shipping next year. Studer Draht-und Kabelwerk AG, with €84 carmakers are served by Yazaki, Sumitomo, Leoni makes some but not nearly all of million in sales; and Daekyeung in 2013 Furukawa and Fujikura, in that order. the connectors it requires. “We produce with €87 million in sales. Leoni’s 2008 Leoni recently won orders from two new high voltage connectors and a special kind acquisition of Valeo Wiring Systems, with Asian customers, Hyundai and Geely. The of ABS/EBS connector. We also make €574 million in sales, made Leoni the Hyundai contract involves manufacturing a some connectors for high temperature number one supplier of automotive wiring front body cable harness for a mid-sized applications, but we are not in four-way or in Europe and number four worldwide. Hyundai model built in the Czech Repub- two-way standard connectors,” said Martin Today the company operates 82 produc- lic for the European market, where Hyun- Gloesslein, CEO of Leoni Wiring Systems tion facilities in 31 countries including 22 dai is focused on increasing its market Inc. Mr. Gloesslein has global responsibil- plants in Germany. Leoni offers a full share. The agreement covers six years of ity for the U.S. customer business group range of wiring system products from fully production and Leoni will begin shipments and for Leoni’s commercial vehicle optimized electrical distribution systems in 2016. The order from Geely is for a business.

Page 4, April 2015 The Hansen Report on Automotive Electronics, www.hansenreport.com Leoni Group

Wiring System Division Sales Wire & Cable Solutions Sales Leoni Employees and Contract Workers at Year End 2010 to 2014 CAGR: 9.9% 2010 to 2014 CAGR: 6.6% 1,850 2010 to 2014 CAGR: 6.0% 2,321 2,399 2,450 1,678 1,603 1,597 1,704 74,354 2,024 2,206 1,322 64,683 63,984 67,256 1,634 58,822

in € millions in € millions

2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 (Est.) (Est.) 2010 2011 2012 2013 2014 EBIT Margin EBIT Margin 2010 4.5% 2010 4.3% 2011 7.2% 2011 5.4% Wiring System Suppliers’ 2012 6.2% 2012 6.3% Market Positions 2013 5.0% 2013 2.9% 2014 4.4% 2014 4.6% Leoni is the world’s number four automo- 2015 (Est.) 4.7% 2015 (Est.) 4.6% tive wiring system supplier with 9% of the market. 2014 Sales by Customer Group #1 Yazaki Wiring Harness Facts #2 Sumitomo 2014 Sales Total: €2,399 million Up to 3,000 meters in length #3 Delphi Suppliers, 6.2% Components, 2.4% Up to 1,500 cut leads (average is 1,000 to #4 Leoni 1,200) #5 Lear Commercial Up to 3,000 contacts Leoni is Europe’s number-one automotive Vehicles, 60 kg in weight (average for midsize car is wiring system supplier with 22% of the 14.9% 30 kg) market. Passenger #1 Leoni Cars, 76.5% #2 Delphi weight of the wiring harness is significant— #3 Yazaki 30 kg (66 pounds) on average and up to 60 #4 Sumitomo Because not all components and cables kg (132 pounds) in a luxury vehicle—and are made in house, Leoni commonly buys rising. The number of cut leads in a typical from and sells to many of its major compet- automotive wiring harness, 1,000 to 1,200 first 3D models and drawings, into the pro- itors. “It’s an open market,” Mr. Gloesslein on average, is also increasing but not as duction and design of the form boards noted. “We sell cables to the auto industry. quickly as harness weight. where we make the harness, we try to auto- Any of our competitors can buy our cables, Wireless signal distribution or sending mate as much of the process as we can.” and we have some competitors who pro- signals over power lines would reduce the Despite advances in automated produc- duce connectors, so we buy from them.” number of wires, but neither solution is tion processes, wiring harness manufacture mainstream. remains a labor intensive business. To Leoni on Wiring Harness Trends Wire harness suppliers are additionally make use of automated production the har- Electric and electronic features and challenged by the sheer number of differ- ness must be specifically designed for the functions, once only available in luxury ent harnesses they are required to produce, process, which could mean changing the vehicles, are quickly finding their way to even for different versions of the same vehi- architecture of the vehicle. The order must midsize and compact car models. Electric cle, for instance, gas, diesel or hybrid, man- be of sufficient volume to make the invest- motors are increasingly replacing mechani- ual or automatic transmission, coupe, ment in automation worthwhile, and dif- cal functions, electric steering for example, sedan or hatchback. Optimizing the har- ferent change management processes must and all these functions need power brought ness design for weight and cost is crucial. be in place. According to Leoni, only about to them over wires. To meet mandated “We look to standardization and automa- 30% of the wiring harness manufacturing emissions and fuel economy standards, car- tion,” said Mr. Gloesslein. “Not only auto- process can potentially be automated, and makers must be vigilant about keeping mation of wire harness production, but far less than that is actually being done excess weight out of their vehicles. The also from the first sketch, generating the today.

The Hansen Report on Automotive Electronics, www.hansenreport.com Page 5, April 2015 Leoni Group

Leoni’s Customers called Toodedis, to optimize cross sections. Intedis, its joint venture with Hella, Leoni Smaller cross sections for low current and is a member of the OPEN (One Pair Ether- Leoni’s top five automotive OEM customers signal wires can be achieved using alterna- net) Alliance special interest group support- generated 37% of total sales in 2014. tive insulating materials and/or copper ing Broadcom’s BroadR-Reach Ethernet All segments are listed alphabetically. alloys such as copper-tin, coppermagnes- physical layer. Top Five ium and copper-silver to strengthen down- An average car today has approximately BMW General Motors sized wires. A 0.5 mm2 or 0.35 mm2 copper 50 to 60 ECUs; full featured luxury vehi- cles can have as many as 200. Mr. Gloess- Mercedes-Benz wire can be replaced with a 0.13 mm2 cop- PSA per alloy wire. Leoni believes it is the mar- lein noted that the average number of Renault Nissan ket leader in copper-tin and copper-silver ECUs will decrease in the future, for exam- Other Carmakers offerings. ple when carmakers move to domain archi- Lancia Leoni’s FLUY (a German acronym for tectures and Ethernet backbones. Aston Martin Mini ultrathin insulation) automotive cables, Audi Porsche with ultrathin-wall PVC insulation, in cross New Products/Applications Rolls Royce High-Voltage Wiring sections from 0.35 mm2 to 2.5 mm2, are 7% Dacia SAIC Leoni’s Electromobility business unit lighter and 11% smaller in diameter than SEAT generated just €12.6 million in sales in Geely Ssang Yong comparable cables with FLRY, a thicker 2014, but based on scheduled production Hyundai Smart insulation. Overall total vehicle weight sav- start-ups in Europe, Electromobility sales Jaguar Land Rover Tata ings from using ultrathin insulation can be are expected to exceed €40 million in Lada up to 1.5 kg, according to Leoni. 2017. Leoni makes high-voltage cable and Lightweight aluminum battery cables are connectors, power distributors and fuse now the state of the art, said Mr. Gloess- boxes as well as charging cables for electric Commercial Vehicle and Engine lein, partly as a result of high copper prices vehicles and plug-in hybrids. Makers over the years. “We started more than ten The company’s Hivocar branded cable is AGCO Kamaz years ago to bring the first aluminum bat- rated for 600 volts and can be customized Caterpillar Mack tery harness into production. The more Claas MAN for 1,000 volts. It is available shielded or expensive copper is the more pressure there unshielded, copper or aluminum, and has CNH Paccar is to go with aluminum,” he said. Some Cummins Perkins a temperature rating of 105 degrees C with development work is underway to use alu- PVC insulation or up to 200 degrees C DAF Peterbilt minum in mid-range and even smaller Daimler Trucks with silicon. Leoni can also supply high- Polaris wires, but aluminum connectors are still Doosan Scania voltage battery internal cabling systems, bus problematic and more expensive to manu- Fendt SFH facture. “Some Japanese carmakers are in JCP Volvo production with aluminum alloys for mid- Leoni’s Competitive Strengths Suppliers sized wires but this is only for weight sav- u To minimize the size and weight of the Arvin Meritor Koito ings, there is no cost advantage,” Mr. harness, Leoni can offer alternatives to Autoliv Lear Gloesslein noted. copper cables, all of which are pro- Automotive Lighting MD Elektronik According to Leoni, the auto industry is duced in-house. It also has a wire-size Bosch Plastic Omnium within two years of wide scale deployment optimization tool that is unique. Continental Siemens of Ethernet, but the company is not seeing u Very focused, Leoni makes only wiring Denso TRW much movement in the demand for harnesses and many of the compo- Faurecia WABCO MOST. “The next generation architectures nents from which they are made. Hella Yazaki are coming closer and closer to production, u Because it produces both wiring Johnson Controls and I would say in another two years we harnesses and the cables, the will have significant volumes of Ethernet company has lower costs than some Leoni is a long-time user of Mentor cable in production. Ethernet will start at of its competitors. u Graphics’ wiring harness design tools. “We the high end of the market and, like all Good service and quality at a good price. have a close, cooperative relationship with new technologies, will cascade down to Leoni cites the many quality awards it mass market vehicles.” A likely driver for receives from its customers. Mentor Graphics,” Mr. Gloesslein said. u “We sometimes use Mentor Graphics mod- wider use of Ethernet will initially be sur- With 82 production facilities in 31 coun- ules which are not even on the market yet.” round-view camera applications. tries and well-honed logistics expertise, Leoni can serve global OEMs manu- In addition to its design and production Leoni is currently developing a gigabit facturing in Europe, Asia, the Americas automation tool chains, Leoni employs a Ethernet cable specifically for highly-auto- and North Africa. dimensioning tool it developed in house, mated driving applications. Along with

Page 6, April 2015 The Hansen Report on Automotive Electronics, www.hansenreport.com Leoni Group bars, battery-cell connectors and low-voltage of Leoni’s corporate communications. A Products for Automotive cable harnesses for battery management. potential acquisition wouldn’t necessarily Leoni offers a solution to the risk of have to be a wire harness and cable sup- Wiring Systems electrical arcs in 48V systems. It uses the plier. “There are types of components that Cable harnesses principle of a simple Wheatstone bridge would be interesting for Leoni. It could be Complete wiring systems that detects the potential for electric arcs for a market where we cannot produce a Components and, in combination with an electronic wiring harness component that we need or Fuse and relay boxes power distributor, protects the 48V wires a company is unable to meet our require- Distribution boxes against overcurrent, short circuits and elec- ments on its own,” he said. Special connectors tric arcs. The current path can be switched Leoni would also consider companies Cable conduits off without causing electric arcs, for exam- that extend its value chain in automotive. Electromechanical assemblies ple in the event of a fault or failure. Mr. Gloesslein gave the example of how High-voltage harnesses and high-voltage Mr. Gloesslein expressed frustration the company extended its value chain in components for hybrids and EVs with the slow pace of the market for electri- the industrial robotics market: “We started fied vehicles but suggested, “Electrified producing flexible wires for robots, then we Wire and Cable Solutions Automotive Standard Cables* vehicles will come, for sure. It is only a assembled harnesses for them, then we Single-core cables, shielded and question of time. I see a huge opportunity started doing the maintenance on them. unshielded for these kinds of cars, especially in China Now we also do the software programming (Aluminum) battery cables because of the terrible smog in cities like for our customers and we train their Automotive Special Cables** Beijing or Shanghai.” employees at our site.” Multi-core automotive cables High-voltage cables for hybrid, electric Connectors Intedis and fuel cell vehicles Leoni has been producing vehicle charg- Intedis, Leoni’s 50-50 joint venture with Data transmission cables ing inlets for hybrids and EVs since 2014. Hella, was founded to provide assistance to Coaxial cables It also began shipping a variety of splice the partner companies in optimizing new Extruded flat cables connectors since last year. In the near products and integrating electronics. Inte- Ribbon cables future it will launch production of specific dis specializes in developing electronic Innovative Materials connectors to use with fuse boxes. architectures including functional architec- Aluminum, copper clad steel, copper sil- tures, ergonomics, functional safety, energy ver, copper magnesium, copper tin, Acquisitions simulation, mechatronics, high-voltage elec- compacted strands and conductors, Leoni’s long-term outlook calls for tronics and high-speed communications. brass organic growth of at least 6% per year According to the company, it has designed In-house developed insulation materials de- along with selective acquisitions. The com- architectures for more than 20 vehicles, signed for automotive pany would consider smaller and midsized from entry level to high end. Intedis’ archi- Wires acquisitions, primarily in Asia and the tecture expertise was instrumental in Leoni Strands Americas. “Whenever you acquire the tar- winning new business with Hyundai Fiber optic cables get must fit your current portfolio in terms recently. Based in Würzburg, Germany, u of a region or a niche market or a product Intedis has roughly 100 employees. *Standard Cable Applications that it offers,” said Bernd Buhmann, head Internal vehicle wiring Battery Leoni’s Wire & Cable Solutions Value Chain Engine compartment Exhaust systems Development Temperature sensors Logistics Engineering Raw Material Cable Assembly Service Cables for selective catalytic reduction Design Production

Development, Wire/Fiber Drawing Cable Production Assembly Logistics Service **Special Cable Applications Engineering Optical fiber and Extrusion of plastics Assembly of optical EDI Comfort, control, power safety, truck and Design copper wire drawing and silicone using and copper fibers, sensor applications Materials and tech- semi-compression hybrid and miniature JIT/JIS nology development Compounding pipe and drive cables with a large Connection between inverter and electric methods variety of connection Kanban motor CAD-supported Application-specific possibilities HV battery connections product develop- development and Taping, twisting, Electron-beam Internal wiring of HV components ment production of insula- braiding Assembly of pre- cross-linking tion materials assembled compo- Antenna and various transmission Design to build Irradiation: physical, nents to cable standards chemical systems Source: Leoni

The Hansen Report on Automotive Electronics, www.hansenreport.com Page 7, April 2015 Nissan Leads with Driver Assistance Usually it’s the luxury carmakers that wheel’s position. If there is a loss of power While Renault-Nissan is looking to sup- can be counted on to be first in the world or if an ECU malfunctions, a clutch will pliers for help with sensors, integration of with cutting-edge technology. Many of the engage so the steering can be operated those sensors in service of autonomous people willing to pay high prices for luxury manually. According to Nissan, this clutch driving is the responsibility of the OEM. u are also willing to pay high prices for inno- mechanism was a significant breakthrough vative new features. The vast majority of in developing the system. Nissan uses a pro- Driver Assist Systems World’s Firsts Nissan vehicles fall into non-luxury seg- prietary safety-critical communications net- from Nissan: ments, yet over the years Nissan has intro- work, not FlexRay. 2001 Lane-keeping support system duced numerous world’s firsts: a lane “Our steer-by-wire system reduces the 2004 Lane departure warning keeping support system in 2001 and lane vibrations coming from the road and moni- 2007 Distance control assist departure warning system in 2004 are just tors steering torque. It watches the road to 2007 Around-view monitor two examples. While Nissan may debut the keep the vehicle centered in the lane to 2007 Lane departure prevention features at the top of its luxury line, Infin- minimize the amount of correction needed 2010 Blind-spot intervention iti, they migrate quickly down to main- from the driver,” explained Mr. Doi. “That 2011 Moving object detection stream models. will be especially helpful on long trips. 2012 Back-up collision intervention Autonomous emergency braking is an- Drivers who don’t have the system are un- 2013 Predictive forward collision other good example of Nissan’s ability to aware of how often they must correct the warning put important, yet affordable, new safety steering even on straight roads, which 2013 Active lane control features in the hands of many people. As of makes long trips tiring.” In Japan the op- 2013 Steer-by-wire January 2015, Nissan had sold nearly tion price for steer-by-wire on the Skyline is 200,000 vehicles equipped with AEB. The ¥320,000 ($2,662). safety system is available on four models Mentor Graphics’ 2015 IESF and is soon coming to four more, all in the Better Sensors Needed for the Detroit: May 19, 2015 Japanese market. Autonomous Car Technical fellow and director of Ford’s The Nissan AEB system detects vehicles “With autonomous braking providing Electrical and Electronics Research and and pedestrians and can operate from 10 headway detection and with steer-by-wire Innovation, Jim Buczkowski, will be the to 80 kilometers per hour. “Nissan is very providing lane centering, we are close to keynote speaker at Mentor Graphics’ 15th proud of our emergency braking system,” realizing the autonomous vehicle func- Integrated Electrical Solutions Forum next said Takeshi Mitamura, head of mobility tion,” asserted Mr. Doi. “In 2016 we will month. The conference covers all aspects and connected vehicle research at Nissan. introduce single-lane piloted driving in traf- of E/E and embedded design engineering “It has good performance and a very clever fic jams. Next we will expand that feature for automotive, commercial and off-highway cost structure so we can provide that safety for high speeds and multiple lanes, fol- vehicles. feature to almost every one of our custom- lowed in 2020 by autonomous city driving, Also presenting are Paul Hansen, Roger ers, not just the premium brands.” Nissan a goal set by [Renault-Nissan Alliance Lanctot, director of Strategy Analytics’ will be installing the feature even in its kei CEO] Carlos Ghosn.” Global Automotive Practice, and many oth- car (minicar) segment. To reach that ambitious goal, Nissan is ers. For a full schedule of events, and to Another standout driver assistance fea- especially looking for help from sensor de- register for the free event, visit ture from Nissan, and a world’s first, is velopers. The carmaker anticipates using a www.mentor.com/iesf. steer-by-wire, which operates the steering variety of inexpensive sensor types to without mechanical linkages. It was intro- achieve high-resolution views to the front, duced in August 2013 on the Q50 rear and sides of the autonomous vehicle, Conti… in the United States and in February 2014 sensors that are tolerant of bad weather Continued from page 2 on the Skyline Hybrid in Japan. “We start- conditions. A particularly confounding ed the development ten years ago. None of problem is the right turn at a red traffic and security, as well as commercial vehicles the other carmakers have yet released simi- light, permissible in the U.S. when there and aftermarket, increased by 6%, to €7 lar technology,” noted Kazuhiro Doi, head are no vehicles coming from the left. “In billion. EBIT margin increased to 8.7% of of research for the Renault-Nissan Alliance. that case the sensors have to be able to see sales, from 5.8% in 2013. Nissan’s steer-by-wire system employs a vehicle coming, especially at high speeds, Interiors is focusing on the following three ECUs for redundancy, a forward which means you need to see more than areas to fuel future growth: connecting ve- looking camera with processing module, 100 meters to the side,” said Mr. Doi. “To- hicles to the outside world and each other two motors mounted on the steering rack day’s cameras are not accurate enough and via the cloud and integrating smartphones (because two smaller motors are less expen- a single camera doesn’t measure long dis- into the vehicle architecture; flexible HMI sive than one large one), a steering angle tances. And where would you install the solutions for different markets; “bi-direc- actuator and a steering force actuator that side-looking camera? There are still a lot of tional HMI,” which includes an interior measures the steering wheel angle and im- things to be evolved in car sensor devices.” camera to monitor the driver’s actions; u parts force necessary to adjust the steering eCall and ITS.

Page 8, April 2015 The Hansen Report on Automotive Electronics, www.hansenreport.com