Vol. 20, No. 4◆◆ www.hansenreport.com May 2007 Combustion Siemens VDO Electronic Wedge Pressure Sensors Brake—Industry Is Skeptical Find Production Compelling Reasons Needed to of a concept that has been around for a long time. EWB is an electromechanical The idea to use in-cylinder pressure Switch from Hydraulic brake that can be operated at 14 volts, sensors as part of a feedback control loop Ford and are seriously because it relies in part on the mechanical to manage the combustion event has been considering Siemens VDO’s Electronic advantage of the wedge. To actuate brak- talked about for decades. Now it appears Wedge Brake (EWB). General Motors has ing, an electric motor moves a wedge con- that they will finally be put into produc- a particular program in mind, a 2011 or nected to a brake pad located between the tion applications starting with 2012 fuel-cell hybrid. And Ford—once brake caliper and the brake disc. The rota- / and General Motors Siemens can demonstrate production-in- tion of the wheel and the resulting fric- V6 diesel engines. Both new engines will tent actuator prototypes—will probably tion automatically reinforce the wedge go into production by the end of 2007. give Siemens a development contract, “so effect. Siemens began its efforts to indus- The end of 2007 is also when Beru we can do some rough testing and see trialize the wedge brake when it purchased (Ludwigsburg, Germany) will begin ship- what fails,” said Pim van der Jagt, Ford Bernd Gombert’s firm, eStop, in early ping its intelligent glow plugs with inte- manager of global vehicle dynamics. Dr. 2005. In late 2006 Siemens wrote in a grated strain gauge pressure sensors to GM van der Jagt would first consider the EWB press release, “The EWB is set for inclu- Europe and another European customer. for a low-volume hybrid vehicle, in order sion in every vehicle class, from economy According to Automotive Engineering Inter- to get field experience with it. “EWB is up to large trucks, in the medium term.” , GM’s 2.9-liter engine “will debut interesting enough to put resources and Currently, 98 Siemens engineers are work- in the 2009 Cadillac CTS in Europe, and money toward developing it, but we’re not ing on the Electronic Wedge Brake. will also power , Saab and Vauxhall 100% convinced it will work,” he noted. However, even high-tech pioneer models.” While the wedge brake is a well-publi- BMW isn’t jumping at the chance to In 2008 Volkswagen will begin ship- cized German invention, we could find no adopt the EWB. “We investigated electro- ping the new Touareg with its clean diesel German carmakers willing to champion mechanical brakes in the early . We engine, the BlueTDI, which meets even the technology as an alternative to hy- looked thoroughly at the pros and cons the most challenging U.S. exhaust emis- draulic brakes in conventional vehicles. and came to the conclusion that there is sion standards, the so-called Tier 2 Bin 5 That was somewhat surprising given the really no hard argument you can use to limits adopted by California, Massachu- propensity of the German auto industry to justify the electromechanical brake,” setts, New York, Vermont and Maine. The pioneer new technology. noted Heinz Leffler, in charge of brake engine will use an in-cylinder pressure Stephan Wolfsried is head of electrical/ and chassis development at BMW. “My sensor to optimize injection and combus- electronics and chassis development for personal view is, if I do not have a driver tion. the Mercedes car group. “The guy who that really requires power brakes it will be Stricter emission limits on nitrogen invented it [Bernd Gombert] came to Turn to Braking, page 3 oxides (NOx) and particulate matter Conti Teves, came to Bosch, to all the big (PM) in Europe have forced some diesel brake suppliers. All of them are very suspi- Convert Your Print Subscription engine-makers to consider using pressure cious about whether the wedge is a work- to an E-Subscription— sensors in anticipation of Euro 5 limits, ing principle. I have my doubts about which are scheduled to go into effect in whether Siemens will be successful, be- And enjoy the benefits of earlier deliv- 2009. Euro 6, which as proposed would cause after discussing it a couple of times ery of every issue of The Hansen Report. take effect in 2014, will place even stricter in this µ-Club, the community of all the E-subscribers have already read the May limitations on NOx and PM. By then brake guys in Europe, we don’t see a real issue of The Hansen Report online. pressure sensors will be used more widely. benefit in cost, weight or functionality. So You don’t need to wait until your current What’s special about the Beru imple- why would we bring an actuator into a print subscription expires to upgrade to mentation is the way the pressure sensor rough environment, with vibration, shock electronic delivery. We’ll credit the remain- and signal-conditioning circuitry is inte- and temperature?” der of your print subscription term toward grated into the glow plug, which at its tip Electronic Wedge Brake is the Siemens the cost of a new E-subscription. Visit Turn to Sensors, page 2 VDO brand name for an implementation www.hansenreport.com for details. Sensors... Continued from page 1 reaches 1,000 degrees Celsius. “The first Beru Pressure Sensor Glow Plug challenge was how to integrate a pressure sensor with a diameter of 20 mm into a plug glow plug with a diameter of 10 mm,” said Technical features of the PSG: ◆ Sensor principle: piezoresistive Ron de Groot, global powertrain strategy high current connection ◆ Flexible heating rod for pressure manager for Sensata, whose micro-fused transmission printed circuit board with electronics silicon strain gauge (MSG) pressure sen- ◆ Robust sealing element between body sor is built into the Beru glow plug. and heating rod “Normally, the glow plug has a heat ◆ Miniaturized electronics integrated in the seal rod, or pin, that’s press fit into the body,” upper part of the glow plug measuring diaphragm ◆ explained Hans Houben, vice president in Calibrated and customer-specific glow plug body charge of engineering at Beru. “To trans- programmed ◆ Integrated concentric automotive plug mit the pressure from the plug’s tip to the glow plug heating rod pressure sensor at the other end we made the pin moveable by means of a metal bel- lows, similar to the part used in piezoelec- has developed a prototype of a either one sensor per engine for cetane tric fuel injectors. “We chose Sensata’s super-clean diesel engine slated for intro- detection, or one sensor per cylinder for pressure sensor because it is proven tech- duction in the U.S. market in 2008. The combustion control, as in premixed nology already used by the millions,” said prototype includes a cylinder pressure sen- charge compression ignition (PCCI) en- Mr. Houben. Sensata’s MSG sensor de- sor to detect the cetane number, a mea- gines. Cetane level detection may be - rives from the piezoresistive effect of sili- sure of diesel fuel’s ability to quickly essary in the United States, where the con, which changes in resistance as a ignite. However, Honda hasn’t yet de- quality of diesel fuel varies more than it function of mechanical stress. It is widely cided, or isn’t saying, if the production does in Europe. ◆ used to measure brake and fuel pressure. version will also include pressure sensing,

Ludwigsburg Automotive Electronics Conference Worth the Trip

As automotive electronics conferences The conference and exhibition is inti- go, this one, programmed by VIPs of the mate and very friendly with ample oppor- German car industry, is among the best. tunities to network and learn about what’s The Eleventh International Congress on next in automotive electronics. About Advances in Automotive Electronics, to 400 management-level attendees are ex- be held July 17 and 18, 2007, in pected, almost all of whom are multi- © 2007 Paul Hansen Associates, 150 Ludwigsburg, Germany, features two days lingual Germans. Pinehurst Rd., Portsmouth, NH 03801, of presentations by some of the leading Exhibit space for about 35 suppliers is USA. Telephone: 603-431-5859. Fax: 603- lights of the German auto electronics in- sold out. While few papers from the con- 431-5791. Email: [email protected]. dustry. ference are in English, every paper will All rights reserved. Materials may not be Among the ten presenters at this year’s have an English abstract. reproduced in any form without written per- conference, all from top management, are The conference is programmed by mission. The Hansen Report on Automotive Wolfgang Ziebart, president and CEO of Peter Thoma, supervisory board member Electronics is published 10 times a year, Infineon Technologies; Will Specks, of ELMOS Semiconductor and formerly monthly; July/August and December/Janu- manager, research electronics, BMW’s top electrical engineer, and by ary are combined issues. The annual print Volkswagen; Willibert Schleuter, chief Heinz Leiber, former director of overall subscription rate is $747 (North America), executive engineer, electrical/electronics, electrical/electronics development, $787 (elsewhere). Back issues are available Audi; Uwe Michael, director electrical/ Mercedes-Benz. for $50 each. Index and multi-user electronic electronics systems, ; and Walter It is produced by the German publica- subscription information is available at Kuffner, director electronics driving tion Automobil Elektronik and the Manage- www.hansenreport.com. Paul Hansen Asso- dynamics, BMW. ment Information Center. The conference ciates is a strategy and market research Each presentation is followed by a manager, Marcus Dworak, can be reached firm consulting to the electronics industry. lively and illuminating question and an- at [email protected]. Publisher/Editor Paul Hansen swer session. Simultaneous English trans- For more information, please visit Managing Editor/ Brianne Wolfe lation is available. www.elektronik-tagung.de. Circulation Manager

ISSN 1040-1105

Page 2, May 2007 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com Braking... Continued from page 1 difficult to introduce such systems on a forcement of the Wedge Brake you can pavement, ice and snow,” he declared. broad basis in the passenger car market.” apply exactly the force you need.” This is Some other well-informed people have Despite Dr. Leffler’s disinclination toward because the EWB can cycle on and off at found Siemens’ earlier assertions about EM braking, after a test drive this winter about 30 hertz, compared with 5 to 15 stopping distances hard to swallow. One he had a positive reaction to Siemens’ hertz for hydraulic brakes. such person is Heinz Leiber. Though he is EWB. “The guys at Siemens did a nice “And, with the Wedge Brake you have now retired from Mercedes, Mr. Leiber is job. It brakes perfectly and the pedal feel much improved dynamics in getting the still active in the automotive electronics is okay.” first braking force on the calipers and community in Germany. “It is possible We asked Heinz Leiber, formerly onto the road,” explained Mr. Neunzig. with conventional systems to improve the Mercedes’ top electrical engineer, if any EWB initiates braking in just 80 millisec- stopping distance by using the full braking German carmakers are seriously consider- onds compared with 200 to 400 ms for effort. But braking is a compromise be- ing EWB. “In Germany, I don’t know one premium hydraulic brake systems. “To be tween optimal braking force and optimal carmaker. They all had initial interest and fair, the fastest hydraulic systems, those lateral force for steering.” considered it, but at the moment there is that pre-load the brakes, are about 250 Even Bosch, who purchased a license no serious interest.” As a consultant Mr. ms., but that is under normal weather to develop the wedge brake and is pres- Leiber has analyzed the Wedge Brake’s conditions. In the winter it takes longer, ently researching its feasibility, is con- potential on behalf of some of his clients. because the braking fluid gets like honey.” founded by Siemens’ assertions about its In recently concluded winter tests at EWB. “We have found no physical reason Siemens VDO Claims Significantly Arjeplog in northern Sweden, an EWB- why such an electrical system should do Shorter Stopping Distances equipped BMW 530i achieved a braking any better than a hydraulic one,” sug- Without compelling reasons, carmakers distance “almost 15% shorter compared gested Günther Plapp, executive vice are not inclined to switch from hydraulic with the average of the [four] comparison president, development for the chassis to electromechanical brakes; too many vehicles tested ... on low coefficient of systems, brake division of Bosch. assets are in place, and there is the risk friction and split-µ surfaces,” according to He further explained: “We exploit 97% that complex new technology will be un- a written report dated April 16, 2007 from of the possible friction that can be trans- reliable. As Conti Teves vice president of Dekra Automobile GmbH, an indepen- ferred from the road. That [the percentage control systems software, Helmut Fennel, dent automobile test center. During those isn’t higher] isn’t because of a slow actua- pointed out, hydraulic brakes have served tests, the air temperature was roughly 5 tor. It is simply that you need a little bit of the industry well for more than 80 years. degrees Celsius. All of the vehicles tested time to measure the speed and decide if “I have been working in the brake busi- had automatic locking prevention (ABS), the wheel is locked or running, and then ness for thirty years and I do not foresee traction control and electronic stability you can act on the system. The electri- any advantage of the wedge brake com- control. cally operated wedge also has to reverse if pared to today’s hydraulic brakes, in terms According to Mr. Neunzig, the EWB- you want to lock or unlock the wheel. of function, for the cars we are driving equipped vehicle was even more advanta- And since the wedge has a fairly large today,” he said. geous when the temperature was at minus mass that must be accelerated and re- But Siemens has been asserting for 5 degrees Celsius. “At that temperature versed you can easily imagine that just some time that there is a compelling rea- we were 20% better in stopping distance increasing and releasing the pressure on a son to switch and that reason is shorter from 80 kilometers per hour to zero on small electrical valve with the hydraulic stopping distances with the Electronic what we call scraped ice.” fluid is at least as fast as or faster than the Wedge Brake. Shorter stopping distances At warmer temperatures EWB-equip- electrical system.” would save thousands of lives every year. ped vehicles still stop in shorter distances, Bosch will study the wedge brake’s fea- According to Siemens, EWB’s advantage according to Mr. Neunzig. “In normal sibility until the end of 2008, after which is that it responds more quickly and there- temperatures where an average car has it will make a decision on whether or not fore starts braking sooner; and once it be- about 38 meters stopping distance from to put a wedge brake into series produc- gins to brake, it more accurately controls 100 km/h to zero, we are something like tion. The only electromechanical brake slip, because it can cycle on and off faster two and a half meters less.” That’s a 6.6% Bosch is considering is the wedge brake. than hydraulic brakes. improvement, though Mr. Neunzig ex- “If we go into serial production it will “We can control the ABS braking pects to better that in upcoming tests this most likely be a wedge type,” said forces very accurately to minimize slip,” summer. Günther Plapp. noted Dirk Neunzig, in charge of Siemens’ Tom Zebehazy, senior manager, ad- EWB technical development. “There are vanced technology development for Gen- Concerns about Durability Are the two reasons for that. First we measure the eral Motors, which is considering the Greatest Obstacle braking force directly, which is much Siemens EWB for a 2011 or 2012 hybrid In some respects Siemens’ decision to more accurate [than measuring hydraulic fuel-cell vehicle, is a believer. “I’ve expe- enter the electromechanical brake busi- fluid pressure]. Second, with the high- rienced the improved stopping distance ness at the end of 2005 couldn’t have performance electric motors and self-rein- compared to the conventional car on dry continued on page 8 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com May 2007, Page 3 The Company Profile... Pioneer Corp.

Thumbnail Sketch Pioneer FY 2007 Sales by Business Pioneer Sales and Net Margin Headquarters: 4-1, Meguro 1-chome, FY 2007 Sales ¥797 billion 2002 to 2007 CAGR: 5.0% Meguro-ku, 153-8654, ; Patents, 1% Sales in ¥ billions Phone: 81-3-3494-1111; Fax: 81-3-3495- Car Electronics, Others, 8% 4428 45% Products: Car electronics and home Aftermarket, entertainment electronics, including plasma 29% displays 625 665 685 711 755 797 FY 2007 Sales: ¥797.1 billion ($6.7 billion) OEM, 16% FY 2007 Net Loss: ¥6.8 billion ($56.9 million) R&D: 7.4% of sales Home Electronics, 46% 2002 2003 2004 2005 2006 2007 Employees: 37,622 as of March 2007 Net Margin (Loss) FY 2007 Sales per Employee: ¥21.2 million Pioneer Car Electronics Sales and FY 2002 1.3% ($178,400) Operating Margin FY 2007 Net Cash from Operations: FY 2003 2.5% ¥16,752 million ($141.1 million) 2002 to 2007 CAGR of Sales: 6.8% FY 2004 3.6% FY 2007 Working Capital: ¥151.4 billion Sales in ¥ billions FY 2005 (1.2%) ($1.3 billion), as of March 31, 2007 FY 2006 (11.3%) Stockholders’ Equity as of March 31, FY 2007 (0.8%) 2007: ¥268.1 billion ($2.3 billion), a decline of 1.9% from the prior year sales growth came primarily from Japan; 258 281 292 303 331 358 Market Capitalization as of May 8, 2007: most of the OEM navigation sales growth ¥270.1 billion ($2.3 billion) was in North America. OEM car audio 2002 2003 2004 2005 2006 2007 sales in North America declined. OEM Car Electronics Operating Margin sales in the Car Electronics segment ac- FY 2007 Sales: ¥358 billion ($3 billion) FY 2002 6.2% counted for 36% of the total segment FY 2007 Sales by Region: Japan, 35%; FY 2003 9.3% sales. ROW, 65% FY 2004 10.3% Products: Navigation and car audio systems FY 2005 6.1% Brand Emphasis and components FY 2006 5.3% Pioneer launched a concerted effort to Largest Tier-One OEM Customers FY 2007 6.2% raise its brand image in 2001, when the (alphabetically): Ford, GM, Honda, company increased its advertising spend- home and automobile. Worldwide the ing to $120 million, nearly 50% more Note: Fiscal year 2007 ended March 31, 2007. company operates 32 manufacturing sites, than the prior year. According to a press Background and the Pioneer Group comprises 127 sub- release, in 2001 Pioneer created its slogan The roots of Pioneer go back to 1937, sidiaries The main home-entertainment “sound.vision.soul” to capture its philoso- when founder Nozomu Matsumoto devel- products include plasma displays, DVD phy that “sound and vision can move the oped the A-8 dynamic speaker. A year products and audio systems. heart and touch the soul.” “Sound” relates later he established the business Fukuin Pioneer, who says it maintains a stable to Pioneer’s origins in the audio field; “vi- Shokai Denki Seisakusho in Tokyo. In dividend policy, paid a ¥10 per share divi- sion” refers to the company’s commitment 1961 the company changed its name to dend for FY 2007, the same as it paid in to the video business; and “soul” empha- Pioneer, and its shares were listed on the FY 2006. sizes Pioneer’s determination to elevate . The following Among Pioneer’s biggest-selling prod- entertainment to the level of pure emo- year Pioneer introduced the world’s first ucts in FY 2007 were plasma displays, tion. component stereo system, and five years 640,000 units shipped; DVD recorders for In 2006 Pioneer reiterated its intention later set up operations in Europe and the the home, 620,000 units shipped; and re- to invest in its audio brands in response to United States. In 1975 Pioneer introduced cordable DVD drives, 12 million units the entry of low-priced Korean and Chi- the world’s first component car stereo sys- shipped. nese competitors. Pioneer’s brands include tem, followed by the first car CD player, in Car Electronics sales, which represent Pioneer premium sound systems for both 1984, and the first CD-player-based car nearly half of Pioneer’s total sales, in- global OEM customers and the North navigation system, in 1990. creased 8.3% in FY 2007. Thirty-five per- American and European aftermarkets, Today Pioneer manufactures a full cent of Car Electronics sales were in including big box retailers. The Premier range of audio visual products for the Japan. Pioneer’s aftermarket navigation brand is offered to custom car audio in-

Page 4, May 2007 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com The Company Profile Continued

World’s Firsts, According to Pioneer Pioneer Aftermarket Pioneer Aftermarket ◆ Component car stereo, in 1975 Car Navigation System Shipments Car CD Player Shipments ◆ Single CD player for the car, in 1984 2004 to 2007 CAGR of Total: 16.6% 2003 to 2007 CAGR of Total: 13.6% ◆ GPS navigation system, in 1990 ◆ DVD-ROM navigation system, in 1997 ◆ XGA , in 1997 ◆ DVD recorder, in 1999 ◆ Off-board navigation system, in 2002 ◆ 50-inch 1080 pixel plasma display, in 2006 FY 2003 2004 2005 2006 2007 FY 2003 2004 2005 2006 2007 Other Distinctions, According to Pioneer Japan Overseas Japan, N.A., Europe Russia & Elsewhere ◆ Single CD unit sales: #1 U.S. market Japan, N.A., Russia & Total share and #2 Japanese share thousands of units Japan Overseas Total millions of units Europe Elsewhere ◆ Speaker unit sales: #1 in U.S. and Japan FY 2003 330 0 330 FY 2003 3.8 1.3 5.1 ◆ In-dash navigation unit sales: #1 in U.S. FY 2004 340 50 390 FY 2004 4.4 1.7 6.1 and Japan FY 2005 330 100 430 FY 2005 4.8 2.5 7.3 ◆ World’s #1 supplier of aftermarket FY 2006 380 130 510 FY 2006 5.3 3.0 8.3 speakers FY 2007 400 210 610 FY 2007 4.3 4.2 8.5 ◆ World’s #1 supplier of aftermarket in-dash Pioneer’s approach remains to develop sign has matured, sometimes stand-alone navigation systems and deliver optimum sound performance 8-, 10-, or 12-inch subwoofers aren’t re- through a total system design strategy.” quired if instead you can incorporate the stallers in North America but is not sold Pioneer’s ability to attract customers is subwoofer functionality into smaller in major retail outlets. Pioneer’s exclusive more than a matter of brand promotion. speakers such as a 6- by 9-inch speaker aftermarket brand in Japan is Carrozzeria. “We are able to match the consumers’ de- package. Likewise, you may be able to live “In the Japanese aftermarket there is a sires for premium audio with our ability to without an external amp if that function- very strong dealer-option supply channel, develop high-end, high-performing pre- ality can be integrated into the head where vehicles come from the factory mium sound,” said Mr. Moerner. “In the unit.” without a radio,” said Steven Moerner, last several years our OEM business has Among all of the world’s car brands, president and chief operating officer, gone from very limited sales of Pioneer there are few more illustrious than Lexus, Pioneer Automotive Technologies. Pio- branded audio systems to the point where for which Pioneer is a major supplier of neer and Carrozzeria products are sold now all Scion vehicles have Pioneer head units, speakers, amplifiers, and sound through those dealer channels. branded audio systems, as do a number of tuning. Even in other branded audio sys- Mr. Moerner is responsible for Chevy and vehicles.” Pioneer tems sold by Lexus, for example the Mark Pioneer’s OEM business in North branded audio is also offered on the Ford Levinson line, Pioneer is sometimes the America, including sales, engineering and Ranger. head-unit supplier. The Mark Levinson manufacturing. Three hundred and forty In 2002 Pioneer and Toyota an- brand is owned by Harman International, full-time employees and, depending on nounced their partnership to develop one of Pioneer’s competitors. production schedules, anywhere from 100 branded car audio systems designed for Pioneer also supplies audio compo- to 200 contract workers in manufacturing Toyota’s new line of Scion vehicles. At nents used in the Lincoln THX premium are part of Mr. Moerner’s organization. the time Scion’s national manager, Brian audio system. In some models that in- The number of carmakers offering Bolain, said, “We believe that Pioneer is a cludes the head unit and/or amplifier. branded audio products is increasing, ac- respected brand whose name resonates cording to Mr. Moerner. “OEs recognize well with Scion’s target buyer.” Pioneer Navigation at Ford that offering branded products is an op- While not branded in Ford vehicles, portunity to bring in more revenue, while Premium Unbranded Audio Systems for Pioneer navigation products are presently at the same time delivering superior audio Lexus, Lincoln, Ford, GM, Honda in use on 23 different Ford, Lincoln and systems to their customers.” Carmakers’ Pioneer also serves the market for pre- Mercury models. views vary on which elements of the au- mium, unbranded OEM systems, where no After a long qualification process, in dio system are most crucial to establishing brand name besides the carmaker’s is at- 2006 Ford North America selected Pio- a premium brand, besides advertising and tached to the audio system. “What has neer as its only navigation system supplier. promotion. “There are different strate- traditionally defined premium audio sys- “We introduced an all-new [Pioneer] gies,” notes Mr. Moerner. “Some focus on tems is the existence of a dedicated navigation system in the 2006 model year, amplification, others focus on the signal subwoofer and external amplifier,” ex- and within about 18 months we rolled it processing, others focus on the speakers. plained Mr. Moerner. “But as system de- continued on following page The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com May 2007, Page 5 Pioneer Corp.

J.D. Power and Associates’ 2006 Unit Market Share of Navigation and creasing both in volume and strategic im- Navigation Usage Satisfaction Study Audio Equipment* by Supplier portance to Pioneer, on the OEM side as well as in the aftermarket. Four Pioneer navigation system applications Others, 17% Pioneer, 24% The aftermarket, especially in Japan, is make the top-12 in customer satisfaction. seeing increasing integration of naviga- Blaupunkt, 6% tion and audio, often in hard disk-based Navigation System Index—Top Models Alpine, 7% Kenwood, 14% systems. Makers of these integrated sys- Supplier Model tems might allocate half of a 20-gigabyte Pioneer Lincoln Zephyr 844 , 9% , 12% hard drive to music and half to navigation Alpine Acura TSX 838 , map data storage. “Demand for HDD- Alpine Acura RL 825 11% equipped audio/navigation systems is be- Lincoln Town Car 821 *Includes amplifiers, head units, changers, ginning to expand substantially, even Denso Lexus IS 821 speakers and media playback mechanisms beyond Japan,” Mr. Moerner said. “The Delphi Hummer H3 816 Data: Intellect and Pioneer reason is that not only has the cost come Pioneer Ford Freestyle 815 down, but the value to the consumer has Alpine Honda Ridgeline 813 Beyond brand recognition, why do OE gone up—in terms of music storage capa- Alpine Honda Civic 812 customers buy from Pioneer rather than bility, faster access to navigation data and Pioneer Ford Explorer 812 from its competitors? Steve Moerner an- larger points-of-interest libraries.” Map Alpine Honda Accord 810 swered the question this way: “It’s our data updates are made to Pioneer’s HDD Pioneer Ford Five Hundred 807 unique position of being a major player in navigation systems by means of an update Study Average 767 both the aftermarket and the OE market. disc, which is read by the DVD player em- Our aftermarket experience gives us in- bedded in the head unit. out across our entire product lineup,” said sights to the consumer that are very help- Pioneer has high expectations for a Gary Jablonski, manager of infotainment ful to the OEs. And it’s also our ability to new DVD-based audio/video navigation systems at Ford. “We benchmarked navi- execute according to what is expected in system introduced to the U.S. aftermarket gation systems around the globe from a terms of quality and development. We are in March 2007, with a suggested retail usability and functionality perspective and one of the few major aftermarket con- price of just $1,000. The AVIC-D3 is a actually designed the HMI for the naviga- sumer electronics companies that still 2-DIN unit with a 6.1-inch customizable tion ourselves. Pioneer delivered it,” de- does almost all of our own manufacturing. touch screen color display. It handles au- clared Mr. Jablonski. We develop the core technology in house, dio discs in multiple formats including “Last year the Lincoln Zephyr’s naviga- whether it’s the navigation engine, soft- MP3, WMA and AAC music files, as well tion unit was rated highest in customer ware, transport mechanisms, acoustics or as DivX video format on DVD and DVD- satisfaction by J.D. Power and Associates. speakers. video. Navigation and multimedia func- So our affordable vehicles have more sat- tions can be enjoyed simultaneously, isfying navigation systems than those in Aftermarket Car Electronics thanks to the memory navigation feature, Mercedes, Lexus or Infiniti vehicles,” Mr. Products Mature which allows you to eject the navigation Jablonski noted. In J.D. Power’s Navigation Nearly two-thirds of Pioneer’s car elec- disc once you load your current route into Usage Satisfaction Study, three other Ford tronics products are sold in the aftermar- memory, and pop in a CD or DVD. The implementations of Pioneer navigation ket. With a 24% share of the worldwide system includes an AM/FM tuner, it is systems—in the Freestyle, Explorer and market, according to the company, Pio- iPod ready, steering remote control ready, Five Hundred—were among the top 12 in neer is the number-one supplier of after- Bluetooth ready and XM and Sirius satel- customer satisfaction. market mobile electronics including lite radio ready. AVIC-D3 comes with two audio/video entertainment and navigation that hold a TeleAtlas map database Why Pioneer products. for the United States, which also includes Pioneer’s largest OEM customers, not Pioneer’s biggest product category by 12 million points of interest. ranked by sales, are Ford, GM, Honda and unit volume is single-CD car —the Pioneer has not yet made a decision to Toyota, all tier-one customers. Tier-one company produces about 10 million units come out with HD Radio capable head customers account for about 85% of each year. That business is growing most units. “While I am usually a strong propo- Pioneer’s OE Car Electronics business. significantly in Brazil, Russia, India and nent of integrating new features into our Pioneer also has a significant tier-two China. In contrast, in the developed na- car electronics, we are still waiting and business. For example, the company sells tions of Europe, in Japan and in the watching the digital AM/FM radio mar- media playback mechanisms to Delphi United States, the market for integrated ket,” said Mr. Moerner. “We will support and Visteon, their largest mechanism cus- audio/navigation products is beginning to the market as soon as we see that the con- tomers. Tier-two parts customers account grow. According to Steve Moerner, inte- sumer demand is real.” for about 15% of OE Car Electronics sales. grated audio/navigation products are in-

Page 6, May 2007 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com The Company Profile Continued

Customers (OLED) display, made in house by Car Electronics Products Tohoku . “It will be Top OEM customers (alphabetically) the first OEM radio with a full-color Navigation systems Audio systems OLED display that is customer program- DVD-based Ford Off-board mable,” he said. Customers can download GM (Buick, Chevrolet, Pontiac, Saab) Portable Honda images or four-second video clips from Turn-by-turn Toyota (Scion, Lexus) Pioneer’s Web site or burn their own im- ages and movies onto a CD and upload Audio-visual systems Audio systems OEM customers for any of the following: them to the head unit. They can also Speakers radios, navigation, integrated nav/radios, transfer images via a Bluetooth phone or Head units stand-alone CD changers, SDAR tuners iPod. Already in use in an aftermarket Hard disk drives Acura product, the three-inch rectangular dis- Organic LEDs Receivers play has 256 x 64 dot resolution. The GM (Chevrolet, Pontiac, Saab) DAB (digital audio broadcast) Scion head unit fits in a slightly larger SDAR (satellite digital audio radio) Ford (Lincoln, Mercury) Tuners Honda opening than 1 DIN. Pioneer has been working on the prac- GPS receivers Hyundai Amplifiers tical use of organic electroluminescence CD and MD single and multi-disc players since 1987 and succeeded in manufactur- Cassette players ing OLED displays for the first time in Rear seat video Toyota 1997, a world’s first. Thin and lightweight Navigation maps Traffic data with low power consumption; OLED dis- Customers who purchase speakers or plays provide wide viewing angles and Research device modules (playback mechanisms or high contrast images. Pioneer’s research activities related to key radio components) Biggest tier-two accounts (alphabetically) Pioneer’s vertical integration strategy the auto industry go well beyond audio Delphi also comprehends navigation software. and navigation, the two product catego- Visteon Founded in 1994, Increment P Corp. ries that account for almost all car elec- Others (IPC), a subsidiary of Pioneer, has gar- tronics sales. For example, the company Bosch nered a 50% share of the Japanese map- has been working on field emitter array Motorola data market. In addition to Pioneer, IPC’s image sensor technology that’s capable of Honda list of customers includes Mitsubishi Elec- producing high-quality images in poor Hyundai Saab tric, Clarion and Sony. IPC is the devel- light conditions. Among the applications Isuzu Siemens oper of MapCube, which provides for such a device would be night-vision Kenwood Toyota remarkably realistic 3D maps of 12 cities cameras for automobiles. Vertically Integrated in Japan. IPC employed 380 people as of Pioneer has also been working on pre- Pioneer produces most of the compo- April 2006. IPC’s maps, driving direc- dicting drowsiness by measuring changes nents from which its car electronics prod- tions, traffic information and weather in the heart rate using electrodes attached ucts are made. For example, it makes its forecasts are available via PCs or mobile to the steering wheel. According to Pio- own media drives (playback mechanisms) phones. According to IPC, its iMapFan neer, heart rate is affected by the ambient and modules, whether single or multiple service is the most frequently used loca- temperature, the posture of the driver and DVD, MD or CD, even the laser optical tion-based solutions Web site in Japan. the driver’s mental state. ◆ pickup that is elemental to all its CD and Restructuring DVD drives. Pioneer still makes cassette In December 2005, following a loss of ¥8.8 Pioneer also made a number of decisions (tape) players as well. billion in fiscal 2005 and further losses in FY 2006 affecting its Car Electronics business strategy: It also designs many of its own ASICs in its Home Electronics business, Pioneer an- ◆ Shore up its aftermarket car audio business, (application specific integrated circuits), nounced plans for major restructuring: from which the bulk of company profits are including those for its FM/AM unit, a ◆ Consolidate worldwide manufacturing, bringing derived. power amp, CD LSI, and a DSP. Pioneer the number of production sites down from 40 to ◆ Aggressively expand aftermarket sales in manufactures all the parts that comprise 30, thereby reducing employment by 2,000. Brazil, Russia, India and China, whose its speakers including pole piece, dia- ◆ Reduce R&D from 8.5% of sales in FY 2006 to economies are growing faster than those of Japan, the United States and Europe. phragm, cone and voice coil. below 7%. ◆ Offer early retirement for 777 employees. ◆ Aggressively develop aftermarket navigation According to Steve Moerner, one of ◆ De-list from the New York, Amsterdam and sales in overseas markets; adapt technology the most distinguishing features of the Osaka stock exchanges to save costs and applied to the Japanese market. new Pioneer head unit that will be in- clerical burdens. ◆ Expand the OEM business. stalled in the 2008 Scion is the full-color, ◆ Cancel plans to mass produce active-matrix ◆ Expand into telematics and ITS. Consider passive, organic light-emitting diode OLED display panels. collaborations and alliances to support this.

The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com May 2007, Page 7 Braking... Continued from page 3 come at a worse time. That was the year Possible Drivers of Electromechanical level is far more complex. That’s where when Mercedes issued a global recall of all Brake Implementation we’re spending a lot of resources, in going 1.3 million cars equipped with the Bosch- Despite the obstacles, Dr. van der Jagt from centralized to local control at the built electrohydraulic (Sensotronic) brake believes Siemens’ EWB represents the wheels. That allows us much finer and control system, a brake-by-wire applica- future. “We see it in the long term. If it faster control of this very powerful actua- tion. According to the NHTSA recall really evolves, and they get the price tor for the right level of comfort and per- summary, that system may prematurely right, it could end up in high-volume ve- formance.” shift to hydraulic backup mode due to de- hicles. Of course if we now start thinking Delphi’s brake and chassis business has terioration of the wiring harness connec- about a possible implementation route, we been deemed non-core by the company tion or due to premature failure of the think about hybrids first—we already lose and is available for sale. Mr. Jones, who is hydraulic pump. a lot of money on them. With things that working with customers on several devel- In hydraulic backup mode, the driver have so much impact, you prefer to roll opment contracts, expects to have the has braking power sufficient to stop, but them out on a low-volume vehicle. You Electric Max Torque Brake ready for pro- stopping requires more pedal pressure and thoroughly test them, get field data and duction by 2012. Not long after that, he longer pedal travel. Mercedes has since then roll them out to higher volume.” believes, the market for electromechani- stopped using the system in the E-Class GM’s Tom Zebehazy also thinks elec- cal brakes will take off. and will also stop using it on the SL and tromechanical brakes are well-suited to “You’re courageous to introduce a new the when those vehicles are re- hybrid vehicles. “If you add up what it technology these days, especially one as designed. costs for the base [hydraulic] brake system fundamental as a braking system. But “Those kinds of field problems that with stability control and you add on there is a lot of built-up pressure toward Mercedes had with the electrohydraulic brake regeneration capability, you are electromechanical braking. Once the first brake system are not something I want to talking about a very expensive brake sys- carmaker is courageous enough to put this happen with a brake system from BMW,” tem. We feel electromechanical brakes into production, the floodgates will open.” declared Heinz Leffler. “The [durability] of not only get rid of a lot of hardware, they ◆ any new electromechanical brake system also have the potential to be very cost must be at least the same as with today’s competitive.” GM is also considering conventional systems.” With electro- Delphi’s dual-disc electromechanical Aisin Seiki FY 2007 hydraulic brakes there is no mechanical brakes, which like the EWB, are forceful connection to the brakes. Instead, as the enough operate at 14 volts. Financial Results driver depresses the brake pedal, he acti- The industry’s interest in applying elec- Fiscal year April 1, 2006 through March 31, 2007 vates a feel simulator and a pedal-position tromechanical brakes to conventional ve- Aisin Group sensor. The sensor sends a signal to a com- hicles could be spurred on by demand for FY 2007 Consolidated Net Sales: puter that controls a hydraulic valve, autonomous full braking, according to ¥2,378.6 billion ($19.8 billion) which then delivers optimal pressure to BMW’s Dr. Leffler. “In five or ten years, Change from FY 2006: up 12.2% the brake calipers. when we have a system that precisely de- FY 2007 Consolidated Net Income: “Durability is our main worry with the tects [obstacles], or if we have car-to-car ¥66.9 billion ($557 million) or 2.8% of Wedge Brakes,” noted Ford’s Dr. van der communications, or a change from the net sales, the same margin as the prior Jagt, who could develop the new brake for foot actuated brake pedal to some other year. a future, unnamed hybrid program. “They means of operating the brakes, that could Outlook for FY 2008: ¥2,500 billion need to survive in a very harsh environ- stimulate the introduction of such power ($20.8 billion) in net sales, a 5.1% ment with dirt, water and temperature brakes.” increase over FY 2007; net margin is shocks. Even with conventional brakes, forecast at 2.7% our warranty costs and issues with vibra- Delphi’s 14-Volt Dual-Disc Brake Toyota accounted for 66% of Aisin tions are relatively high.” By coupling the dual-disc brake tech- Group’s automotive sales in FY 2007; GM, Cost, of course, is also a major concern. nology it acquired from Federal Mogul in the distant second-largest customer, ac- Ford has already done extensive analysis 2004 with its own electric caliper, Delphi counted for just 3%. Regionally, Japan of the cost of implementing the Wedge has created a 14-volt electromechanical accounted for 70% of Aisin Group sales. Brake on a production vehicle. After a brake that is powerful enough to stop a In spite of declining vehicle sales in Ja- three-day workshop with Siemens VDO, vehicle the size of a Range Rover. Cur- pan, Aisin grew domestic sales 10% over largely devoted to studying the cost issue, rently 50 engineers are working on the the prior year, buoyed by increasing ex- Dr. van der Jagt’s team concluded that Delphi Electric Max Torque Brake. They ports. Aisin’s sales also increased in North implementing the Wedge Brake on a report to Nick Jones, manager of ad- America and Europe, but its rest of Mondeo-type vehicle would cost between vanced development, who is in charge of market segment showed the most growth, $100 and $150 more than conventional the program. “Our actuator is in its fourth 43%. brakes. generation, but in many ways the system Transmission related products ac- counted for 42.6% of Aisin sales. ◆

Page 8, May 2007 The Hansen Report on Automotive Electronics, Portsmouth, NH USA www.hansenreport.com