Vol. 28, No. 8 u hansenreport.com u October 2015 Interview Emergency Braking Sensor Market with Ford’s Heats Up Jim Buczkowski Mobileye’s Competitors Offer Alternatives increase from approximately 5% in 2015 To get the coveted five-star Euro NCAP to approximately 18% by 2020, according rating on their new vehicles, carmakers to market researchers at IHS. The 2020 I spoke this month with Jim Bucz- have been installing automatic emergency installation rate projection could climb kowski, director of electrical and electron- braking (AEB) features since 2014. To get a once IHS completes its analysis of the Sep- ics systems research and advanced 5-star rating in 2016, cars will also have to tember announcement. AEB systems will engineering at Ford, about automotive elec- brake automatically for pedestrians. That be largely based on forward-looking camera tronics trends, standards, and Ford’s needs new requirement further invigorated the and radar sensors. and challenges. A Henry Ford Technical market for forward-looking camera sensors, In any conversation about AEB sensors, Fellow with 35 years of service to Ford, Mr. which are used widely to identify and track the subject inevitably turns to Mobileye, Buczkowski has led or participated in pedestrians who may be in harm’s way and which has a near monopoly in the market numerous automotive electronics innova- signal when braking is required. The mar- for image processing software and the tions at Ford, including Ford’s Common ket for AEB sensors received yet another chips that process the software. Years Global Electrical Architecture and, early in boost from a decision made by ten carmak- ahead of every competitor, Mobileye tech- his career, Ford’s first 16- and 32-bit power- ers operating in the U.S. who agreed this nology first found application in produc- train controller designs. He has long been past September to voluntarily make AEB tion vehicles in 2007, on four Volvo and still is the face of electronics at Ford. technology standard on all their new vehi- models. Working with Delphi as the inte- In consideration of his long history at cles, although when each carmaker will grator of Mobileye’s EyeQ image processor, Ford, I asked Mr. Buczkowski which new make that happen wasn’t made clear. In Volvo introduced Collision Warning with electronics features at Ford make him most January 2015, NHTSA announced its pro- Auto Brake, using radar and camera proud. The first generation of Sync was his posal to add AEB to the list of recom- fusion. Mobileye claims it has won 80% of immediate answer. Released to the market mended advanced safety features included the RFQs it has responded to over a six- in 2007, the Sync communications and in the U.S. NCAP program. year period prior to its IPO in 2014 and entertainment system let drivers make The worldwide installation rate for auto- 100% since the IPO. hands-free phone calls and control music matic emergency braking systems will Turn to AEB Competition, page 3 and other functions by voice. Rather than relying on an embedded modem, Sync makes use of the driver’s brought-in device. Autosar’s Next Generation: “Sync is significant because it made telem- atics affordable, what we refer to as the democratization of technology,” said Mr. The Adaptive Platform Buczkowski. “We did this with other fea- As the industry answers the many chal- single platform that is suitable for every- tures as well, for example, forward collision lenges of automated driving and vehicle thing from 16-bit controllers up to high- warning and blind-spot detection.” connectivity, software complexity will only performance multicore 32-bit controllers.” increase. Rather than adding another ver- The existing platform will be referred to Challenges sion to the existing Autosar software stan- as Classic Autosar. Compared with the u Open Source Software dard, the Autosar partnership has decided Adaptive Platform, Classic Autosar is static, The consumer electronics industry often to create a brand new standard, which it a monolithic software block. The Adaptive leverages open source software as a way to calls the Adaptive Platform. Platform is dynamic, meaning you can load speed new products to market. Mr. Bucz- Simon Fürst, Autosar spokesperson and and unload software during runtime. kowski sees open source software as a huge general manager for software development “This is the fundamental difference,” opportunity for carmakers to build on what and software infrastructure at BMW, ex- said Mr. Fürst. “Similar to Android or iOS others have already developed to make soft- plained the thinking behind the new Au- in the smartphone, this dynamic behavior ware that is as close to defect-free as possi- tosar product: “Autosar is already quite requires some additional resources. It was ble. “I am very positive about open source complex with many configuration options not possible to make this a feature within but our challenge is how to use it effectively and potential use cases. If we tried to sup- our existing release 4.x technology. In the and answer the many legal questions that port the next big step in functionality with future, carmakers will be using high-end come with it. We will figure it out.” the existing platform it would get even multicore microcontrollers even supporting Turn to Buczkowski, page 8 more complex. It is not possible to have a Turn to Autosar Adaptive Platform, page 2 The Hansen Report on Automotive Electronics, www.hansenreport.com Page 1, October 2015 Autosar Adaptive Platform… Continued from page 1

The Autosar Adaptive Platform Autosar was developed, which was to focus on the specifications and then wait for soft- ware implementations from suppliers. “This validation implementation of the Adaptive Platform is what we want to li- cense to the Autosar partners,” said Mr. Fürst. “We expect this shortened feedback loop to speed up the whole process of mak- ing the software system mature. It is similar to the approach taken by Genivi.” The plat- form’s development will be an open source project (open to Autosar members) to which Autosar members will be asked to contribute. Note: SW-C: software components; SOME/IP: scalable, service-oriented middleware over Internet Protocol Another significant change from Classic memory management units similar to what 2015, the Autosar Executive Board will Autosar is that the newly designed architec- we see in smartphones today. They will meet at Daimler headquarters in Stuttgart. ture will not be an automotive-only solu- consume and process data streams with There it will make a final decision about tion. The partnership intends to apply much higher data rates than you have to- the Adaptive Platform’s capabilities and appropriate solutions from other domains. day in cars.” what the work schedule will look like over Autosar intends to make POSIX (portable The first release of Adaptive Platform the coming months. Executive Board mem- operating system interface) part of the plat- software is set for the first or second quar- bers are BMW, Bosch, Continental, form. “This [standard] will ensure that an ter of 2017. An Autosar study group was Daimler, Ford, GM, PSA Peugeot Cit- appropriate Linux or some other commer- formed in 2013 to identify future platform roën, Toyota and Volkswagen. cial operating system can be used. The key demands and begin collecting the initial A reference implementation of the message is that Autosar will not specify the use cases. The Autosar partnership made Adaptive Platform will be created within operating system,” Mr. Fürst noted. the decision to develop the Adaptive Plat- the Autosar partnership. This approach Ethernet will be the platform’s number- form earlier this year. On December 9, differs fundamentally from the way Classic one bus system. POSIX operating systems provide support for Ethernet. Backward compatibility to CAN, FlexRay and LIN Penetration of Classic Autosar Not Nearly Complete will also be part of the platform. u

Next month will mark 12 years since the Enthusiasm for Autosar varies from car- founding of the Autosar partnership, which cre- maker to carmaker. The Europeans, with the ated a standard platform so software solutions exception of Fiat and PSA, are making © 2015 Paul Hansen Associates, 150 could be reused and shared among carmak- Autosar a requirement. BMW and Volvo have Pinehurst Road, Portsmouth, NH 03801 ers, vehicle platforms and supplier solutions, been the most aggressive. In the States, while USA. Telephone: 603-431-5859; fax: 603- providing the industry with the potential for tre- GM has made more positive moves than 431-5791; email: [email protected]. mendous cost savings. The partnership’s 211 Chrysler or Ford, it doesn’t appear that GM All rights reserved. members include all the world’s major carmak- will make a rapid transition to Autosar. Among Materials may not be reproduced in ers and tier-ones, and almost every automotive the Japanese carmakers, Nissan seems more any form without written permission. semiconductor supplier. ambitious about the standard, given its links to The Hansen Report on Automotive After speaking with top executives from four Renault, than does Toyota or Honda. How- Electronics is published ten times a year at of the world’s major suppliers of Autosar tools ever, Hyundai does appear to be on a path www.hansenreport.com. July/August and and software, Vector, KPIT, ArcCore, and toward making Autosar a requirement. December/January are combined issues. Mentor Graphics, we have the strong impres- Ford’s advanced E/E director, Jim Bucz- Back issues are available for $65 each. sion that Autosar penetration around the world kowski, agrees with the goals and vision of the Single- and multi-user electronic subscription still has a long way to go. The good news is Autosar partnership, but while some Autosar information and a searchable index are the market for Autosar tools, software and network or other components are aboard some available at www.hansenreport.com. Paul engineering services is growing at a double- Ford vehicles, the carmaker hasn’t come to the Hansen Associates is a strategy and market digit rate. “We see approximately one major conclusion that it will require a complete research firm consulting to the electronics carmaker each year makes the jump into a Autosar stack. “If Autosar is really creating effi- industry. systems engineering approach to Autosar, and ciencies we ought to be able to see that Publisher/Editor Paul Hansen that brings along their supplier base,” said reflected in the quotes we get from suppliers,” u Managing Editor Brianne Wolfe Henrik Olsen, marketing manager for in-vehicle he said. That hasn’t been the case thus far. Director of Marketing Michelle Long networking products at Mentor Graphics. ISSN 1046-1105

Page 2, October 2015 The Hansen Report on Automotive Electronics, www.hansenreport.com AEB Competition… Continued from page 1

Competition Is Looming own stereo camera and/or radar solutions. There is no question that today Mobil- Indeed, when it comes to automatic emer- Mobileye Overvalued eye is the dominant supplier of forward- gency braking, all three suppliers strongly To investors and analysts hyping looking image processing software and sili- favor radar as the most robust solution. Mobileye stock, autonomous driving is con. As of 2016, Mobileye EyeQ chips will Unlike cameras, radar “sees” at night and the future, and Mobileye with its domi- be installed aboard 247 models by 22 car- in bad weather. nant position in the image processing makers, says the company. Given its head Today’s radar is much improved. Radar market must hold the keys to that start, that dominance could last for is capable now of identifying and tracking future. In early October 2015, Mobil- another few years. But know this: the com- pedestrians and accurately measuring the eye’s market capitalization stood at petition has been gearing up. distance from the vehicle to the pedestrian $10.35 billion, an astronomical 49 One of Mobileye’s biggest vulnerabili- (or other obstacle) and the vehicle’s closing times sales. Its price to earnings ratio ties is that it is a tier-two supplier, entirely velocity to determine if it is a critical event. was 714, compared with the NYSE reliant on tier-one customers to make its Radar has gotten so good that a number of Composite Index average P/E of 20.5. technology part of an ADAS system offer- carmakers are installing AEB systems that According to the crowd-sourced ing. It is so protective of its image process- rely on radar alone. Continental has won financial content service, Seeking ing IP that it refuses to work with several contracts for radar-only solutions, Alpha, Andrew Left’s Citron Research customers that are developing their own with production starting in 2016. seeks to expose companies whose man- image processing technology. Remarkably, Bosch will also go into production with agement is in some way misleading Mobileye doesn’t work with Continental, radar-only AEB starting in 2016. “If you investors. When discovering such situa- Bosch or Denso on new business. Those would like to make automatic braking sys- tions, he usually shorts the stocks he three tier ones, who will eventually control tems with only one sensor, radar is that writes about. Here from a September the vast majority of ADAS business, are all one sensor,” said Bosch’s Pascal Kocher, 24, 2015, report are some of Citron developing their own image processing director of technical product management Research’s conclusions about Mobileye: software, as are Autoliv and Gentex. for driver assistance systems. “It is abso- No semiconductor company in history Mobileye still sells chips to Gentex and lutely our current favorite solution.” has ever maintained margins and market Autoliv, but isn’t working with them on Continental also favors radar for its share that the analysts have conferred on new RFQs. Mobileye continues to supply robustness. “We strongly believe in radar, Mobileye. ... You have to buy the notion Delphi, TRW, Magna, Valeo, Hyundai especially when we are looking at the Euro that they can maintain this powerful con- Mobis and others. (See the list on page 8.) NCAP ratings,” said Christian Schu- trol of their market niche not just for years, but for decades, as a supplier to one Camera image processing technology is macher, global head of ADAS customer of the most cost-sensitive and price-cut- not exclusive to Mobileye. For years Toy- programs at Continental. “Radar should throat businesses in the world: the auto- ota has featured automatic emergency be the base of these kinds of real-life cases.” motive business. braking systems supplied by Denso in its Far better are systems that rely on a vehicles that are equipped with cameras. combination of sensors. “The game will To make it crazier, you must go to sleep Toyota’s Safety Sense P system, offered on change as we move to dual sensors to sup- knowing that Mobileye is going to be able midsize and larger models, uses a single port automated driving,” asserted Doug to maintain this advantage while spend- camera and radar to provide lane depar- Patton, executive vice president of engi- ing a drastically lower percentage of their ture alert, automatic high beam control neering and chief technical officer for revenue on research and development than Microsoft, Apple, Google, Facebook, and automatic emergency braking with Denso International America, and senior Qualcomm or Intel. pedestrian detection. The system, made by director of Denso. “Cameras can work Denso, will also be offered on the MY under some conditions; radar or lidar can All while knowing that insiders have been 2016 Toyota Prius. work in others.” selling their stock at an unprecedented Daimler is another carmaker that pro- Not only do multiple sensor types pro- pace—85% of the $1.8 billion raised from vides automatic emergency braking fea- vide redundancy, they also provide better its two stock sales have been to enrich tures without Mobileye technology. resolution than a single senor can provide. insiders, not to build company coffers for Continental has supplied both monocular Denso is developing its own proprietary the battles ahead. and stereo camera technology to Daimler. software, both the control and sensor fusion related to cameras and radar/lidar. equation right now is their database. Our Radar Possibly a Game Changer One thing that sets Mobileye apart is its objective is to be able to interpret the data Bosch, Denso and Continental, like very large validation database, used to train as data without comparing it against some Mobileye, can supply monocular cameras and optimize its camera image processing database. I think we will give them a run using in-house software. Bosch has been in algorithms. However, when you bring in for their money.” production for several years with a monoc- another sensor type, that database becomes Though, according to email correspon- ular solution. But unlike Mobileye, all less significant, according to Mr. Patton. dence with Mobileye spokesperson Yonah three of these companies also offer their “The real value Mobileye brings to the Lloyd, “[Mobileye has] more than 20 mil- Continued on page 8 The Hansen Report on Automotive Electronics, www.hansenreport.com Page 3, October 2015 The Company Profile… Panasonic

Thumbnail Sketch Panasonic Corp. Sales by Fiscal Year Panasonic Corp. Sales by Segment*

Headquarters: Osaka, Japan FY 2012 to FY 2015 CAGR: -0.6% Total FY 2015 Sales: ¥7,715.0 billion FY 2015 Sales: ¥7,715.0 billion ($64.2 bil- 7,846.2 7,736.5 7,715.0 7,750* Other, 9.4% Appliances, 21.7% lion) 7,303.0 R&D Expenditures: 5.9% of sales Interest Expense: 0.2% of sales Other AIS, Capital Investment: 2.9% of sales 18.6% Eco Net Margin: 2.5% Solutions, Operating Margin: 5.0% In ¥ billions 20.5% Automotive, Employees: 245,084 as of March 31, 2015 15.6% Sales per Employee: ¥31,479 million AVC Networks, 12.4% 2012 2013 2014 2015 2016 ($262,107) *estimated Working Capital: ¥728 billion* ($6.1 billion) Automotive & Industrial Systems, 34.2% Long-Term Debt: ¥711 billion* ($5.9 billion) Operating Margin by Fiscal Year *Excluding eliminations and adjustments Total Equity: ¥2,107 billion* ($17.5 billion) 2012 0.6% Market Capitalization: ¥3,254 billion 2013 2.2% ($27.1 billion) 2014 3.9% Automotive Industrial Systems Sales 2015 5.0% and Operating Margins FY 2015 Automotive Sales: ¥1,204 billion 2016 (est.) 5.5% ($10.0 billion) 2013 to 2016 CAGR: 4.0% Capital Investment: 5.2% 2,835 Main Automotive Products: Infotainment record loss of ¥772 billion (-9.8% net mar- 2,782.5 systems and batteries gin) and initiated a major restructuring. In 2,721.8 *As of June 31, 2015 the process it exited non-profitable busi- nesses in consumer markets, reduced its 2,518.0 FY 2015 ended on March 31, 2015. headcount, closed some facilities and paid down debt. In February 2015, Moody’s In ¥ billions Background raised Panasonic’s debt rating to Baa1, The company was founded by Konosuke (medium grade, moderate credit risk) recog- Matsushita in 1918 and was incorporated 2013 2014 2015 2016 nizing its steady and improving profitabil- Target as Matsushita Electric Industrial Co. in ity. 1935, in Osaka. The business expanded The Automotive and Industrial Systems Operating Margin into multiple global markets including Company (AIS) was established in 2013, 2013 1.2% communications, electronics, appliances, one of Panasonic’s five business segments. 2014 2.5% avionics, consumer electronics, batteries, “[Automotive] is the growth driver of AIS 2015 3.8% automotive navigation and entertainment Company growth through FY 2019,” 2016 target 5.0% systems and more. Adopting the name of according to Yoshio Ito, AIS president. its widely known brand, the company offi- Panasonic has been investing aggressively cially became Panasonic Corporation in in its automotive business, some ¥60 bil- celona, Spain. In 2013, Ficosa produced 2008. lion ($500 million) in FY 2015. The com- €925 million ($1.1 billion) in sales with In 2009, Panasonic acquired a 50.2% pany will make ¥100 billion in capital 8,661 employees at year end. While some stake in Sanyo, for ¥400 billion, making investments in FY 2016 on behalf of its of Ficosa’s products (door and seat systems, Sanyo a subsidiary of Panasonic. In July automotive business. Most of those funds underhood fluid and vent systems, shifters 2010, Panasonic announced that it would will be used to construct the lithium ion and parking brakes) have little electronics acquire the remaining shares of Sanyo and battery Gigafactory in partnership with content, Panasonic was drawn to Ficosa’s did so by the end of 2010, significantly Tesla. rear- and side-view mirror business as well improving its position in the automotive as its antenna and communications (eCall) battery market. Acquired 49% of Ficosa module businesses. Together the partners After the global economic downturn in In September 2014, Panasonic directed will develop electronic mirrors, which 2008, the tragic Japan earthquake and tsu- part of its automotive investment toward a replace or complement mirrors with a cam- nami in 2011, and facing increasing com- capital and business alliance with Ficosa era and monitor, and vehicle connectivity petition in televisions and other consumer International, a broad-line, tier-one auto- solutions. goods, Panasonic in FY 2012 posted a motive parts supplier headquartered in Bar-

Page 4, October 2015 The Hansen Report on Automotive Electronics, www.hansenreport.com Panasonic

Panasonic Automotive Sales and Automotive Distinctions Seven Largest Automotive Targets by Fiscal Year Claimed by Panasonic OEM Customers u World’s number-one camera supplier Listed alphabetically: 2013 to 2016 CAGR: 8.8% 2.50 (based largely on its rear-view camera Fiat Chrysler 2016 to 2019 CAGR: 17.3% 2.10 sales) Ford u World’s number-one supplier of infotain- General Motors ment systems Honda 1.30 u World’s number-one supplier of batteries Nissan 1.18 1.21 1.0 for plug-in vehicles Toyota u AUPEO! is the only in-app interface Volkswagen .612 .653 available on consumer phones that is In ¥ trillions endorsed by Connected Car Consortium ket for ¥60,000. The dash-mounted unit 2011 2012 2013 2014 2015 2016 2019 2021 and power-supply systems,” asserted Allen (projector and combiner) was also mar- Kudla, senior vice president of Panasonic keted to OEMs. At the 2014 North Ameri- The jump in automotive sales from fiscal 2012 to Automotive Systems Company. “The can Auto Show, Panasonic showcased a 2013 was due to big increases in three product lines: navigation, displays and cameras, according to Pa- world’s major carmakers trust us to deliver head-up display that could be built into the nasonic. innovations on time and with quality. We instrument panel and project onto the are particularly good at software and hard- windshield. Panasonic’s windshield HUD, Roughly 10% of the 2019 sales target is expected to targeted for model year 2016 vehicles, fea- come from collaborations, mergers and acquisitions. ware integration.” Panasonic’s automotive products are tures proprietary circuit board packaging The 2021 target is a personal goal of Yoshio Ito, Au- grouped into three business divisions: Info- that significantly shrinks the size of the tomotive & Industrial Systems Company president. tainment, Electronics and Batteries. heat sink, which allows a 40% reduction in size compared with competitive products. Panasonic is exploring other partner- Automotive Sales Set to Accelerate “Another key is our free-flow mirror ships or acquisitions, especially in the area From FY 2013 to FY 2015, Panasonic’s technology where we are able to form a of safety and advanced driver assistance automotive business grew at 9.4% per year, very specialized mirror under very tight tol- systems. which is somewhat faster than the market. erances,” said Scott Kirchner, executive Even from that healthy pace the plan calls vice president and chief technical officer Automotive Business for automotive sales to further accelerate. for PASA. “That allows us to project a large Regionally, Panasonic’s automotive busi- From FY 2016 to FY 2019, the plan calls display onto the windshield from a closer ness is focused on Japan, Europe, the for a 17.3% annual growth rate. Impres- range. As a result our HUD can be more United States and China. In 2014, AIS sively, as of May 2015, Panasonic had easily integrated into the instrument opened an office in China to drive and already booked 70% of its ¥2,100 billion panel.” expand local business. Panasonic Automo- sales target for FY 2019. Panasonic has won some HUD busi- tive Systems Company of America (PASA) The components of that plan are ness, and the HUD market is growing. By acts as the North American operating com- detailed below for each of Panasonic’s 2020, 7% of new vehicles will have HUDs pany of AIS. PASA is headquartered in major product segments: Comfort (includ- compared with about 2.5% penetration in Peachtree City, Georgia, with sales, market- ing infotainment), Safety (including ADAS) 2015, according to Strategy Analytics. ing and engineering operations in Farming- and Environment (including lithium ion ton Hills, Michigan. batteries). eCockpit Among its strengths with automotive With the advent of powerful multicore customers, Panasonic points to its ability to u Comfort Systems processors and affordable, reconfigurable leverage decades of experience in consumer The plan calls for 15.7% annual growth displays, infotainment suppliers and cluster electronics including wireless communica- from FY 2016 through FY 2019 in the suppliers see opportunities to supply all the tions and audio-visual technology. Pana- comfort systems segment, with FY 2019 driver interface electronics: infotainment, sonic is a major supplier of mobile phones, sales reaching ¥930 billion. Well over half clusters and head-up displays. Already the TVs, batteries and digital cameras. of the segment sales will come from new world’s number-one infotainment system “We have a tremendous amount of products, according to the company. supplier, Panasonic intends to also be the development resources and a wide selec- world’s number-one integrated cockpit elec- tion of technologies that can be applied to Head-Up Displays tronics supplier, by FY 2019. the many automotive challenges, from the Panasonic is relatively new to head-up “With eCockpit we want to create an human-machine interface, to driver assis- displays. In 2013, it introduced a head-up integrated user experience, one that is safe tance systems, to infotainment, and battery display that sold in the Japanese aftermar- Continued on page 6

The Hansen Report on Automotive Electronics, www.hansenreport.com Page 5, October 2015 Panasonic and intuitive,” said Mr. Kirchner. “We Europe, East Europe, the U.S. and Can- Panasonic Automotive Sales Targets want to create a similar look and feel no ada. We have Panasonic Automotive India, by Product Group, by Year matter which screen the driver is looking but we can also utilize the traditional off- at.” The challenge is to make systems that shore development companies like Wipro, 2016 to 2019 CAGR: 17.3% don’t distract and are cognitively unde- Tata Elxsi, iGate or Jasmine, a company ¥2.1 trillion manding. Panasonic plans to make moni- that specializes in tuner work. We tend to toring the driver for drowsiness, head go where we can find the best experience 33.3% position and gaze all part of its future inte- and track record.” ¥1.3 trillion grated eCockpits. 31.6% 22.4% This fall, Panasonic began mass produc- Ford Sync 3 23.3% ing flexible touch panels for carmakers at a Ford developed Sync 1 and Sync 2 with- factory in China’s Shandong Province. out a traditional tier-one infotainment sup- 45.1% 44.3% Panasonic aims to double sales of automo- plier but decided to work with Panasonic tive touch panels from fiscal 2014 levels to for Sync 3. Panasonic was already a sup- FY 2016 FY 2019 more than ¥20 billion in fiscal 2019. plier well known to Ford for its audio prod- ucts. Sanyo, acquired by Panasonic, had Comfort Safety Environment Infotainment also been a long-time Ford partner. 2016 to 2019 CAGR The world’s number-one supplier of According to Jim Buczkowski, director Comfort Systems 15.7% infotainment systems, Panasonic claims to of electrical and electronics research and Safety Systems 14.9% have the largest customer base of any info- advanced engineering at Ford, Panasonic’s Environment 18.6% tainment supplier. Customers include experience as the developer of Chrysler’s FCA, Ford, GM, Honda, Mazda, Nissan, UConnect infotainment system suggested Notes: Subaru, Tesla, Toyota and VW. it could handle Sync 3. “And in the process 1. The comfort segment includes infotainment, safety “As a result we have a huge advantage of of technical review as well as commercial includes ADAS, and environment includes batteries and power electronics. being able to work with all the main soft- review, Panasonic won the business,” he 2. As of May 2015 Panasonic had already booked 70% ware platforms—QNX, Android or Linux— said. of targeted sales for FY 2019. and with microcontroller chip sets from According to Mr. Kirchner, “Panasonic Nvidia, Intel, Qualcomm and Texsas is the design-responsible engineering house devices. At the time it was acquired, Aupeo Instruments,” said Mr. Kirchner. “We draw for Sync 3, meaning the hardware design, had partnerships with Mercedes, BMW, from Panasonic’s consumer electronics the software design and the electronics. Mini and Pioneer for its AUPEO! stream- businesses. Panasonic uses Android in its Architecturally Sync 3 is similar to Sync 2, ing service, launched in 2008. At the 2015 phones. Our TVs and BluRay players use but there is a lot more [computing] power, Consumer Electronics Show, Aupeo Linux, and we already have quite a lot of a lot more memory, more speed and launched its Personal Radio by AUPEO! automotive experience with QNX. … Our responsiveness, not only because of the platform, which can learn user preferences ability to tailor a solution from software electronics but because of the efficiency of and recommend content from different pieces we already have on the shelf is one our software platform. Of course, QNX is a sources. Aupeo is a subsidiary of Panasonic of our strengths.” key partner.” Automotive Systems Company of America. Panasonic produces the Chevy MyLink, Panasonic supplies the Sync 3 silver box; u Buick Intellilink and Chrysler Uconnect. the contract manufacturer Flextronics is Safety Systems Currently Panasonic and Ford are launch- Ford’s second source. Ford has multiple Panasonic’s plans call for sales of Safety ing Ford’s Sync 3 infotainment systems, all suppliers for the audio system that is paired products to grow from ¥280 billion in FY of which are based on the QNX Car soft- with Sync 3: Panasonic supplies THX for 2015 to ¥470 billion in FY 2019, a 14.9% ware platform. Lincoln, as well as Shaker Pro for Mustang. annual growth rate. Panasonic intends to While some infotainment suppliers Visteon is the amp supplier for base audio, strengthen its base of sensing technologies, have been reluctant to take on high-end and Harman supplies the Revel audio sys- starting with cameras. The company is espe- infotainment system development because tem for Lincoln. cially keen to supply advanced driver assis- the massive amount of nonrecurring engi- Shipments of Sync 3 for Ford’s North tance components to tier-one suppliers in neering required can be difficult to budget, American launch began this summer. the U.S. and Europe. It expects its ADAS Panasonic has no such reluctance. “As a sales to accelerate after FY 2021. company with a strong global footprint, we AUPEO! Audio Service usually strategize a way to get it done,” said In 2013, Panasonic acquired Berlin, Cameras Mr. Kirchner. Germany-based Aupeo, which provides a Starting from its position as the world’s “Panasonic can leverage a large and delivery platform for personalized audio number-one supplier of backup camera diverse global development footprint. We content such as music, traffic updates and modules, Panasonic looks to expand its have resources in India, China, West weather reports for Internet-connected side-view and surround-view camera

Page 6, October 2015 The Hansen Report on Automotive Electronics, www.hansenreport.com Panasonic business and eventually move into the Panasonic Automotive Systems Company of America Select Product List forward-looking camera market. Forward- looking camera applications are especially Infotainment Branded audio (ELS, Apple CarPlay hot now as carmakers around the world Audio with display Fender, Abbey Road, Blue AUPEO! streaming radio Car audio Note) CloudCar apps and services implement autonomous emergency braking Car speakers Speakers integration systems for pedestrians, which rely mainly Navigation systems ADAS Cloud Services on cameras. Panasonic is developing stereo Rear-seat entertainment 79 GHz radar MirrorLink camera systems and plans to strengthen its systems 5.8 GHz DSRC V2X module UConnect Pedestrian alert sound apparatus Angular rate sensors My Link/Intellilink image processing and lens technologies for Active noise control systems Cameras Sync 3 ADAS applications. Transparent touch panels Camera ECUs Toyota Entune “The foundation for our 360-degree- Head up displays* DSRC/ETC onboard units Environment view images and our ability to remove Comfort and Security Engine controls Automotive Batteries noise, even weather noise from rain and Fan motors Weight sensors Lead-acid Massage seats Long-range sonar Nickel-metal hydride snow, comes from our consumer electron- Door handle sensor module Surround-view cameras Lithium ion ics heritage with television as well as from Nano-e (air purification) Cockpit Cells our professional video camera business,” Seat heaters Cluster with smart display Prismatic batteries noted Mr. Kirchner. Smart keyless entry Cockpit systems Cylindrical batteries Car switches Driver status monitor Chargers HVAC panel switches cameras Power devices Radar Steering wheel switches Hands-free microphones Inverter control MCUs Not only is Panasonic exploring mon- Premium Audio (array type) Intelligent power devices ocular and stereo camera solutions, it is Amplifiers Rotary control tablet Battery Management Systems also exploring how best to integrate those *Not yet in volume production Connectivity sensors with radar and lidar. Panasonic produces 79 GHz radar sensors and ultra- Batteries Tesla will use the Panasonic cells to assem- sonic sensors. When it comes to automotive batteries, ble battery modules and packs. Panasonic In February 2015, Panasonic and part- Panasonic is “going on the offensive to will occupy approximately half of the ner Imec demonstrated a 28nm CMOS meet huge demand with competitive auto- planned manufacturing space; Tesla’s mod- millimeter wave radar chip, a potentially motive batteries.” That is a direct quote ule and pack assembly operation, along lower cost alternative for ADAS applica- from AIS company president, Yoshio Ito, with other component suppliers, will tions. in a presentation made last May. occupy the other half of this large, inte- At that time, Panasonic lithium-ion or grated industrial complex. Deep Learning nickel metal hydride batteries were The factory will produce cells, modules A significant share of the FY 2019 sales installed in 40 different car models. and packs for Tesla’s electric vehicles and target, roughly 10% of the total, will come According to Mr. Ito, the company was for the stationary storage market, beginning from Panasonic’s collaborations with part- working on deals involving 23 additional in 2016. The factory plans to produce 35 ners and from acquisitions. One such col- car models and had already received orders GWh (gigawatt-hours) of cells and 50 GWh u laboration is with Preferred Networks Inc. involving nine car models. As of March of packs per year by 2020. to apply deep learning to advanced driving 2015, Panasonic’s batteries were installed assistance systems. According to the Wall in 20% of vehicles produced globally with Projected 2020 Electric Vehicle Battery Market by Supplier Share Street Journal, “Preferred Networks would lithium ion batteries. By FY 2019, Pana- provide software to beef up Panasonic’s sonic expects its share of Li-Ion battery Total Market in 2020: $30 billion offerings in advanced driver assistance sys- installations will have grown to 34% of Other suppliers, 9% tems.” Established in March 2014, Pre- new vehicles. Renault Nissan, 12%** ferred Networks has offices in Tokyo and San Mateo, California. Tesla Gigafactory Samsung In July 2014, Panasonic and Tesla SGI, 4% u Environment Motors signed an agreement to cooperate Panasonic, The Environment segment of Panason- in the construction of a large-scale battery LG Chem, 24% 51%* ic’s automotive business has set a sales goal manufacturing plant, known as the Giga- *Separately from Lux Research, Panasonic has fore- of ¥700 billion for FY 2019, an 18.6% factory. Tesla will prepare and manage the casted that by FY 2019, its lithium-ion batteries will be annual growth rate from FY 2015’s ¥380 land, building and utilities currently under installed in 34% of the electric and hybrid vehicles that construction in Nevada. Panasonic will require them, up from 20% of vehicles in FY 2015. billion total. Its two main product lines are **Contract not yet assigned. Nissan gets most of its bat- power supply systems and chargers, and manufacture and supply cylindrical lithi- teries from AESC, its joint venture with NEC. LG Chem batteries. Automotive batteries will account um-ion cells and will invest in the associ- supplies Renault. for a majority of sales. ated equipment and manufacturing tools. Source: Lux Research

The Hansen Report on Automotive Electronics, www.hansenreport.com Page 7, October 2015 Buczkowski… Continued from page 1

Mr. Buczkowski is open to what is going manual controls. SmartDeviceLink (SDL) seconds. Tesla owners will have to pay on with the Genivi and Automotive Grade is the open source version of AppLink, a $2,500 to activate the feature. Linux open source projects, but Ford standard that Ford would like other car- I asked Mr. Buczkowski what Ford has hasn’t yet made any commitments. “We are makers to adopt. With more carmakers learned from Tesla. “Tesla came at the vehi- still in the evaluation stage,” he said. Sync using SDL, the ecosystem of app developers cle from a software point of view. They 3 is based on QNX Car. will grow, providing an alternative to Apple looked at the vehicle—at least we think they u Cybersecurity and Privacy CarPlay and Google’s Android Auto. This did—as a software platform. That adds “As vehicles get connected to the exter- past June, Toyota announced it would energy behind our efforts to recognize and nal environment we open up attack sur- explore collaborating with Ford subsidiary change our organization over time to be faces. We have to use whatever technology Livio for an implementation of SDL. more of a software-driven organization.” we can find or invent to protect against “We have more than 60 applications hackers, who will get smarter as we get around the world that work with Flatter Supply Chain smarter. Cybersecurity is an important area AppLink,” said Mr. Buczkowski. “We In the past, Ford’s chain of suppliers we are putting a lot of effort into, and we’ll intend to grow that.” was more hierarchical—a tier-one supplier continue to work together with the SAE, u Autosar would go find all the technology it needed with NHTSA and others to address this While Ford is not opposed to using for a system and build that system for Ford. challenge.” ECUs that have Autosar software in them, That is changing. Now Ford is looking for Autosar is not a requirement. Ford won’t new technology not only from the tier ones Standards promote or require Autosar until actual but also from the next tier of suppliers. Mr. u Ethernet quotes from suppliers prove that products Buczkowski cited HERE on maps and Tele- Looking for low cost and high perfor- based on the standard will save Ford nav on navigation as examples of this mance, Ford is researching two-wire, auto- money. approach. Ford is forming relationships motive-grade Ethernet as an answer to the not only with established suppliers but also anticipated growth in data traffic. “Ether- Software with startups and businesses outside the net is very important to us,” he said. Ford In mid-October Tesla began distributing normal automotive supply chain. is also working with CAN-FD. an advanced set of autonomous driving “Today we are opening it up to almost u SmartDeviceLink features to 50,000 newer Model S car own- anybody who feels they have something Available on Ford vehicles, Sync ers worldwide via an over-the-air software new or innovative that will have high value AppLink is software from Ford that lets download. The feature will enable hands- to consumers,” said Mr. Buczkowski. “We drivers interact with their smartphone apps and feet-free driving as long as the driver invite potential partners to come talk to us using the vehicle’s display and voice or touches the steering wheel at least every 10 and show us what they have to offer.” u

AEB Competition… Continued from page 3 lion miles of validation data, roughly 70% 26262] ASIL B compliant by construction; streets before early 2018,” said Niko Böker, of it is with radar data. … Radar/camera it can be ASIL C with software,” noted marketing director at Neusoft Automotive. fusion is done on the EyeQ.” The EyeQ Davide Santo, global ADAS microcon- According to Mr. Santo, “The market is chip isn’t processing raw radar data; that is troller product line manager at Freescale. very hungry for alternatives to Mobileye.” u done separately. Rather, EyeQ takes targets In September, Freescale completed the pur- and candidate targets from the radar sen- chase of CogniVue. Freescale is being sor, and fuses those with what the camera acquired by NXP. Mobileye’s Tier-One Partners image processor has discerned. Neusoft, the largest IT solutions and services provider in China, with more than Autoliv* Mando Freescale, CogniVue, Neusoft 20,000 employees, has a non-exclusive part- Bendix Mobis In March 2015, Freescale began publi- nership with Freescale. At Freescale’s Tech- Delphi Nidec Elesys cizing its new vision microcontroller, the nology Forum last June, Neusoft Gentex* Sony S32V234K, which takes aim at the same demonstrated its pedestrian detection, traf- Hi Rain Taiwan Calsonic front-facing camera processing applications fic sign recognition and lane departure Kostal TRW now served by Mobileye’s EyeQ chips. The warning applications, all running on the KSS Valeo device comes with image cognition IP from S32V. As a result of its cooperation with Magna CogniVue. Image cognition processors are Freescale, Neusoft signed its first deal with programmable engines used to implement an American tier one. “This first product *Mobileye still sells chips to Gentex and typical machine vision algorithms. “This is based on the Freescale platform is still in Autoliv, but isn’t working with them on new a low PPM device designed to be [ISO the R&D phase; it won’t make it to the RFQs.

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