Vol. 27, No. 1 u hansenreport.com u February 2014 Microsoft Windows Android before iOS in the Car As technology giants Google and Apple baked” and Apple’s approach to the indus- Not Part of Sync 3 focus on extending their reach into the car, try as arrogant. In contrast Google is said Google has made far more progress than its to be more accommodating, indicating it is rival. Both companies have efforts under- willing to adapt Android to make it more Ford Goes with Panasonic and QNX way to make devices based on their respec- useful to carmakers. The software devel- Sync 3, Ford’s third-generation Sync tive operating systems more compatible oped by the OAA is expected to debut in a infotainment system, will be based on with vehicle head units. Google has gone a production vehicle as early as the end of QNX from Blackberry, not Windows Em- step further by showing a willingness to 2014. Nobody is saying if and when iOS in bedded Automotive from Microsoft as adapt its Android operating system to run the Car will find production. with Sync 1 and Sync 2. According to Ford, the vehicle’s head unit, potentially replac- the QNX operating system makes more ing QNX, Linux or Windows. Open Automotive Alliance efficient use of memory and computing At the January 2014 Consumer Elec- Drivers would love to be able to safely power. When an infotainment design goes tronics Show, Google, along with Audi, and easily use smartphones in their cars, to production, carmakers like to have no GM, Honda, Hyundai and Nvidia, and carmakers are keen to offer cars that more than 60% utilization of microproces- announced the founding of the Open let them do that. Eighty percent of smart- sor power and memory. But with Sync 2, Automotive Alliance (OAA) aimed at mak- phones now run some version of Android, hardware utilization was north of 80%, ing Android devices compatible with head so carmakers are open to working with leaving little room for product extensions. units. Apple introduced iOS in the Car at Google to integrate an Android platform QNX is seen by Ford as a versatile, efficient its Worldwide Developers Conference in in their infotainment systems. About a year and extensible platform backed by an orga- June 2013, and announced that Honda, ago Google suggested that rather than cus- nization where there is dedicated support. Mercedes, Nissan, Chevrolet, Kia, Hyun- tomizing Android for each OEM, an alli- Ford and Microsoft broke a lot of new dai, Volvo, Jaguar and other OEMs would ance of carmakers working together could ground with their first Sync platform, be integrating some of its features. share the development work and the result- which in 2007 pioneered device connectivi- While Apple’s and Google’s objectives ing specification and software code. Thus ty and the speech user interface. Ford are similar, the impression each company is the Open Automotive Alliance was born, broke more ground in 2010 with its Sync 2 making on the auto electronics community modeled after Google’s successful Open (MyFord Touch and MyLincoln Touch) is very different. People who have seen iOS Handset Alliance that developed open development by bringing system integra- in the Car describe the software as “half- standards for mobile devices. tion in house. But Sync 2 has been much Initially the OAA will create extensions criticized for being glitch prone and diffi- to the Android platform so Android cult to operate, so Ford’s decision to bring Why Make Android the Head Unit mobile devices can run car-specific apps. in a tier-one supplier, Panasonic, seems Operating System? The car apps will be modified and simpli- warranted. Harman was also in the run- Carmakers want to offer connected vehicles fied to avoid driver distraction. The com- ning for Sync 3. with a broad choice of apps that are safe munity of Android app developers is huge, Ford is not at all done with Microsoft, and easy to use. If the apps are run on the and carmakers would love to get them but wants to work with the company differ- head unit, carmakers will be in control. Car- innovating on their behalf. As part of this ently going forward. Ford has been trying makers have less control over apps run on initial step, the alliance will develop a soft- for many months to find a company to take mobile devices. ware client for the head unit so apps run- over maintenance of the Sync 2 software. ning on mobile devices can make use of u That work is still being done by Microsoft, Android is the world’s most popular mobile the vehicle’s display and be controlled but Ford would rather have Microsoft’s platform. from the vehicle’s touchscreen and knobs. u It’s a platform that is well known to thou- help with innovation and the support of The OAA’s next task will be to extend sands of experienced developers. Microsoft’s rich portfolio of technology, for the Android platform so it can run on the u By accessing a large community of devel- example its cloud expertise. head unit, along with the existing operat- opers who can write applications for their Microsoft’s engagement with the auto vehicles, carmakers hope to spur innovation ing system if that suits the OEM. That will industry has been uneven over the years. that brings customers to them. be Audi’s approach, according to Mathias Given the recent organizational changes, u Popular apps based on Android could Halliger, chief architect for infotainment both at the top and in the auto group, a more easily be adapted for automotive use. systems at Audi, a key member of the re-evaluation of its automotive commit- Turn to Android, page 3 ment is likely underway. u The Hansen Report on Automotive Electronics, www.hansenreport.com Page 1, February 2014 Roundup 2013: Autoliv, Bosch, Delphi, Lear Autoliv Among Bosch’s new product launches Lear Corp. 2013 Sales: $8,803 million in 2013 is smartphone integration software 2013 Sales: $16,234 million Change from 2012: up 6.5% called mySPIN. Developed by Bosch Soft- Change from 2012: up 11.4% 2013 Operating Margin: 8.6%, nearly the Tec, mySPIN creates and links an automo- 2013 Operating Margin: 5.2%, unchanged same as 2012 tive version of the smartphone apps to the from the prior year Outlook for 2014: Autoliv expects organic vehicle display where they can be used by Outlook for 2014: Lear expects sales in the sales growth of approximately 5% and a the driver. range of $16.9 billion to $17.4 billion with modest increase in operating margin. Since 2011, Bosch has been very public- operating margins up modestly to approxi- Sixty-five percent of sales were airbag ly promoting its strategy to become a key mately 5.4%. Lear’s forecast is based on products; seatbelts accounted for 32%. player in the emerging Internet of Things North American light vehicle production Growth was especially strong in sales of connected devices and services market. A reaching 16.8 million units in 2014. active seat belts and knee airbags. Active new Bosch company, Bosch Connected Lear’s Seating segment generates nearly safety, especially radar-based products, was Devices and Solutions GmbH, was created three-fourths of Lear’s revenue. As the sec- the fastest-growing product line but ac- in December 2013, with headquarters in ond largest independent seating supplier counted for just 4% of total sales in 2013. Reutlingen, Germany, and offices in India globally, Lear’s only major competitor is The company expects to grow active safety and China. Bosch will initially target smart Johnson Controls. sales by 20% per year over the next two homes and naturally, appliances, and Sales in the Electrical segment grew by years to reach $500 million in 2015. hopes to later expand into connected vehi- 19% in 2014, reaching $4.2 billion or 26% While sales were well balanced region- cles, transportation, industrial and the en- of total sales. Lear manufactures electrical ally, Asia, primarily China, became Auto- ergy and building technology sectors. distribution systems and components for liv’s largest sales region for the first time, conventional, hybrid and electric vehicles. accounting for 34% of total sales. Sales in Delphi Automotive Lear attributes the strong growth to new China increased by 25% year over year and 2013 Sales: $16,463 million business and higher unit production on accounted for 16% of Autoliv’s total sales Change from 2012: up 6.1% some key platforms. The new business in 2013. According to Autoliv, the average 2013 Adjusted Operating Margin: 10.2% comes from roughly ten geographically di- safety content per vehicle in China was ap- Outlook for 2014: Delphi expects revenue versified customers and covers some twenty proaching $220 in 2013, compared with growth in the range of 6%, to at least programs including wiring terminals and the global average of $300 per vehicle. $17,200 million assuming global vehicle connectors, junction boxes and electronic In the coming year Autoliv plans to in- production increases by approximately 3%. modules. Lear’s two largest customers, GM vest in expanding production in growth Operating margin is forecast in the range and Ford, each accounted for 22% of markets like China and in becoming more of 11.3% to 11.6%. Lear’s sales in 2013. u vertically integrated. Segment Results Bosch Automotive Technology E/E Architecture Preliminary figures—final results will be released 2013 Net Sales: $7,972 million, up 17% © 2014 Paul Hansen Associates, 150 at the end of April.