Voice recognition systems for automobiles have

been around for a while but only recently has the

technology begun to be truly useful In the past

many people became frustrated with inaccuracies

and functional errors in voice-based systems and in

many cases chose not to use the feature at all Re-

cent product offerings have improved significantly

thanks to new technologies from companies like

Nuance and IBM When done correctly voice con-

trol helps to minimize the distraction of looking for

the right knob or button As the number of fea-

tures that make use of voice control continues to

grow cognitive load may also become an issue (Continued on page 2)

What to expect at 2010 Consumer Electronics Show

I N S I D E T H I S

I S S U E

Voice

Recognition -

Critical Feature

1

2010 Consumer

Electronics Show

- What to Expect

1

OEM Platform

Integration is

Key

2

Michigan mdash

Where to

Come

2

The Future of

Telematics is

Safety

3

Windows

Penetrates

Auto Market

5

AutoTechInsider 5

A U T O T E C H I N S I D E R

L L C

AutoTechInsider Newsletter for client use

O C O T B E R 2 0 0 9 V O L U M E 1 I S S U E 1

Will the OEMs continue to open the carrsquos interior to the plethora of consumer devices Will Ford again domi-

nate the device connectivity scene with new upgrades to Ford SYNC Alan Mulally will again give a keynote

and announce the expansion of the Service Delivery Network and new partnerships Many who follow CES

to be held January 7-10th 2010 in Las Vegas (wwwcesweborg) are thinking that there will be no new con-

sumer electronics breakthroughs this year But Steve Ballmer in a recent CNET interview pointed to energy and health care as areas to look for innovation ―People like to talk about productivity improvements and in-

novation that we need to see in the health industry that we need to see in the energy industry

We agree with Steve The new areas to watch at CES are energy

and health related This is an exciting time for automotive elec-

tronics much opportunity for ―convergence as most CE devices

are now connected devices affordable and importantly more robust

(ie easier to use and reliable) We should again see innovation in

the user interface (eg HMI) as well as new automotive energy

and health related software applications

AutoTechInsider LLC is always delighted by what we learn by attending CES As a service to our customers we are making the

following offermdash our CES 2010 report to our existing clients for

the discounted price of $349 available until December 15 2009

For this affordable price we will include our 2009 Specialty Equipment Manufacturers Association (SEMA)

report The SEMA show (wwwsemaorg) will be held November 3rd in Las Vegas and will reveal new eco-

friendly products as well as new business models for accessorizing vehicles We will again issue an extensive

report - a full narrative photos and analysis based on a walk through the show - on both SEMA and CES

I think you will agree this is a value We hope you will take advantage of this limited time offer These are

difficult times and AutoTechInsider LLC (see wwwautotechinsidercom) is fortunate to be able to provide

this value to our clients

Voice Recognition - Critical feature

V11

P A G E 2

OEM Platform Integration is Key Recently quite a few authors have published articles projecting the future of

automotive Telematics Some think the key is in the development of the right

Telematics ECU and faster 4G networks Others believe regulations that

mandate features like E-Call will pave the way to pervasive automotive con-nectivity The argument that makes the most sense is based on automotive

OEMs choosing to significantly increase the level of integration of Telematics

platforms in automotive electrical architectures Without this level of integra-

tion the breadth of Telematics features will be very limited

Telematics platforms can offer many benefits for the OEM including serving

as wireless communication servers integration points for new quick cycle features center stack

HMI controllers and gateways for configuring or testing other vehicle modules Also the cost

these platforms is fairly expensive for merely enabling hands-free phone and MP3 player func-

tionality Increasing the breadth of their function within the vehicle can help amortize the cost

of implementation and will provide the level of interaction with other vehicle systems that will

also enable a broader set of Telematics-based features

A U T O T E C H I N S I D E R

N E W S L E T T E R F O R C L I E N T U S E O N L Y

Blue amp Me Center Stack

Ford Focus with SYNC

Real driving events must take precedence over using the features that tend to be voice controlled Therefore drivers can lose track of

where they are in the process of selecting a song or finding a contact when a driving event that requires 100 of their attention inter-

rupts them Complicated menu systems and features that require many steps can contribute to this problem Effectively using visual

and haptic feedback with voice control can minimize cognitive load by helping the driver return to what they were doing without hav-

ing to remember where they were in the process On Wednesday September 30th Transportation Secretary Ray LaHood called dis-tracted driving a serious epidemic and stated that more than 5800 motorists are killed each year because of accidents attributed to a

distracted driver In recent weeks a number of other leaders and reporters have commented on the seriousness of distracted driving and

have specifically identified ―texting while driving as one of the biggest problems

While a number of automotive OEMS have recently introduced voice controlled solutions Ford has had significant success in their

voice based control of features in SYNC and has specifically noted that SYNCrsquos hands-free text to speech solution for texting allevi-

ates the distraction problem While there are a few complaints about SYNC for the most part people seem quite happy with the func-

tionality and are impressed with the systemrsquos ability to recognize the names of people in their contact list and songs in their iPod Peo-

ple with navigation systems or central information displays also like the fact that the visual feedback they receive correlates with the

voice system

In the end consumers will choose who the best system based not only on who offers the most useful and desirable features but also on who delivers the best experience through effective correlation of voice visual and haptic HMI solutions

Voice Technologymdashcontinued from page 1

httptechyahoocomnewsnm20090930tc_nmus_autos_distracted_5

httpwwwcnbccomid33090526site14081545__source=yahoo|headline|quote|text|amppar=yahoo

Michigan ndash Where you come to Prove-Out New Technology

ldquordquoWithout this

level of

integration the

breadth of

Telematics

features will be

very limitedrdquo

As a former product design engineer Dave McNamara always wanted to ―characterize a new technology and ―test drive the

product under real life conditions Customer satisfaction is a result of a robust design that accounts for the stringent operating con-

ditions of automotive applications ndash environmental electromagnetic power modes etc Automotive applications are demanding a

mutual excusive combination of high performance high reliability small size and affordability It takes a significant market time

experience to produce a product that meets ALL of these requirements

As well stated in the recent September Paul Hansen report OEMs because of the significant cut backs are relying on suppliers to

―do the engineering work Ideally according to Paul Hansen these suppliers must have local expertise and test resources readily

available to their OEM customers Fortunately suppliers and OEMS now have local resources for testing of complex active safety

and cooperative driving systems Please see the article ―The Future of Telematics is Safety in this newsletter

P A G E 2

OEM Platform Integration is Key Recently quite a few authors have published articles projecting the future of

automotive Telematics Some think the key is in the development of the right

Telematics ECU and faster 4G networks Others believe regulations that

mandate features like E-Call will pave the way to pervasive automotive con-nectivity The argument that makes the most sense is based on automotive

OEMs choosing to significantly increase the level of integration of Telematics

platforms in automotive electrical architectures Without this level of integra-

tion the breadth of Telematics features will be very limited

Telematics platforms can offer many benefits for the OEM including serving

as wireless communication servers integration points for new quick cycle features center stack

HMI controllers and gateways for configuring or testing other vehicle modules Also the cost

these platforms is fairly expensive for merely enabling hands-free phone and MP3 player func-

tionality Increasing the breadth of their function within the vehicle can help amortize the cost

of implementation and will provide the level of interaction with other vehicle systems that will

also enable a broader set of Telematics-based features

A U T O T E C H I N S I D E R

N E W S L E T T E R F O R C L I E N T U S E O N L Y

Blue amp Me Center Stack

Ford Focus with SYNC

Real driving events must take precedence over using the features that tend to be voice controlled Therefore drivers can lose track of

where they are in the process of selecting a song or finding a contact when a driving event that requires 100 of their attention inter-

rupts them Complicated menu systems and features that require many steps can contribute to this problem Effectively using visual

and haptic feedback with voice control can minimize cognitive load by helping the driver return to what they were doing without hav-

ing to remember where they were in the process On Wednesday September 30th Transportation Secretary Ray LaHood called dis-tracted driving a serious epidemic and stated that more than 5800 motorists are killed each year because of accidents attributed to a

distracted driver In recent weeks a number of other leaders and reporters have commented on the seriousness of distracted driving and

have specifically identified ―texting while driving as one of the biggest problems

While a number of automotive OEMS have recently introduced voice controlled solutions Ford has had significant success in their

voice based control of features in SYNC and has specifically noted that SYNCrsquos hands-free text to speech solution for texting allevi-

ates the distraction problem While there are a few complaints about SYNC for the most part people seem quite happy with the func-

tionality and are impressed with the systemrsquos ability to recognize the names of people in their contact list and songs in their iPod Peo-

ple with navigation systems or central information displays also like the fact that the visual feedback they receive correlates with the

voice system

In the end consumers will choose who the best system based not only on who offers the most useful and desirable features but also on who delivers the best experience through effective correlation of voice visual and haptic HMI solutions

Voice Technologymdashcontinued from page 1

httptechyahoocomnewsnm20090930tc_nmus_autos_distracted_5

httpwwwcnbccomid33090526site14081545__source=yahoo|headline|quote|text|amppar=yahoo

Michigan ndash Where you come to Prove-Out New Technology

ldquordquoWithout this

level of

integration the

breadth of

Telematics

features will be

very limitedrdquo

As a former product design engineer Dave McNamara always wanted to ―characterize a new technology and ―test drive the

product under real life conditions Customer satisfaction is a result of a robust design that accounts for the stringent operating con-

ditions of automotive applications ndash environmental electromagnetic power modes etc Automotive applications are demanding a

mutual excusive combination of high performance high reliability small size and affordability It takes a significant market time

experience to produce a product that meets ALL of these requirements

As well stated in the recent September Paul Hansen report OEMs because of the significant cut backs are relying on suppliers to

―do the engineering work Ideally according to Paul Hansen these suppliers must have local expertise and test resources readily

available to their OEM customers Fortunately suppliers and OEMS now have local resources for testing of complex active safety

and cooperative driving systems Please see the article ―The Future of Telematics is Safety in this newsletter

A few years ago Dave McNamara wrote about the resurgence of Telematics In that May 2007 article he made the case for a re-

newed interest in connectivity with affordable solutions available on all vehicles This is what Ford now calls ―democratization of

feature content In the early days the business model was as a ―value added service as a revenue source Today we recognize the

importance of Telematics and vehicle connectivity as important Customer Relationship Management (CRM) tools for improved customer satisfaction As the success of Ford SYNC has taught us ndash connectivity sells cars

Ford SYNC is the example of the correct business model - a focus on vehicle sales Also expensive ―luxury car features should

be made available and affordable on mid-range vehicles The Ford announcement of a lower cost $1196 Adaptive Cruise Control

is a more recent example that affordable electronic technology has become a reality As further evidence of this trend recent JD

Powers market research indicates a wide range of vehicle technologies are now in the affordability range of $300-500 or 2-4 per-

cent of the vehicle list price

The Future of Telematics is Safety

The various test resources available in Michigan are

Connected Vehicle Proving Center now part of the University Of Michigan Dearborn

Michigan International Speedway

Michigan Test bed in the Novi area an extensive area of over 75 highway and arterial center lane-miles of road-

way equipped with 52 Dedicated Short Range Communications (DSRC) roadside equipment (RSE) units

The Michigan Test Bed (MTB) is of special interest This test bed is available today to automotive suppliers and third party

developers of IntelliDriveSM applications As described by the US Department of Transportation website

―Intellidrive is a suite of technologies and applications that use wireless communications to provide connectivity that can de-

liver transformational safety mobility and environmental improvements in surface transportation Intellidrive applications provide connectivity

with and among vehicles

between vehicles and the roadway infrastructure

among vehicles infrastructure and wireless devices (consumer electronics such as cell phones and PDAs) that are carried by drivers pedestrians and bicyclists

The MTB was recently used to conduct a wide range of proof-of-concept testing sponsored by the USDOT ndash V2I applications

such as in-vehicle signage probe data collection dynamic navigation ePayment and key V2V safety enablers (eg heart beat)

This test bed has been made available to all developers (automotive pubic transportation government agencies etc) to provide

a robust and secure test environment to conduct their own research and development More information on how to access the

MTB can be obtained through the USDOT website On this site you can find the documentation associated with scheduling

and using the MTB Also please contact the author Dave McNamara dmcnamaraautotechinsidercom for more information

He is very familiar with the test bed and its capabilities as the former Applications Project Manager under contract to the US-

DOT through the Vehicle Information Initiative Consortium (VIIC) Note VII is now called Intellidrive The VIIC is the Auto-

motive OEM industry-led consortium Dave is

interested in determining the needs of the auto-motive community and plans to share my find-

ings as appropriate with the USDOT

The MTB is a great resource since developers

can bring their own vehicles with DSRC on-

board equipment into the test bed to try with

established roadside equipment and network

services Developers are able to subscribe to

existing network services to test their systems

andor applications with the infrastructure (RSEs

and network services) Dave would like to hear

from you as to your plans for testing when you

might test any needed enhancements and any

ideas on how you might use the MTB Once

again Michigan is the place to come to test and

is providing the needed development environ-

ment with established infrastructure

wwwhansenreportcom wwwcvpcorg

wwwitsmichiganorg wwwintellidriveusaorg

P A G E 3

The features that have gained our interest in the last several years ie emerged to be of value are

- Active cornering headlamps - $300 - Portable Navigation - $400

- Blind spot detection - $500 - Wireless Connectivity - $250 Note Ford SYNC is $395

- Lane Departure - $500 - Rear View Camera - $450 - Back-up Assist - $300 - Premium Sound - $500

Thanks to Ford SYNC and the integration of Assist 911 emergency messaging is available to all of us through our cell phones The

market will soon decide which is a better solution a built-in cellular transceiver albeit more powerful and robust or the ―brought-in

cell phone your data plan and therefore affordable Telematics in its ―resurgence has become affordable and having a focus on

features (eg connectivity) that sell cars

We can broadly define Telematics or Information and Communications Technology (ICT) as ―two-way communications between

the vehicle and infrastructure Broadcast communications such as SatelliteHD radio and Mobile TV protocols (ASTC) will bring

our entertainment to our vehicles Internet or Web 20 based applications such as ―internet radio are to be seen in the future because

of the need for a ―robust or reliable connection Automotive applications are demanding a mutual excusive combination of high

performance high reliability small size and affordability It takes a significant market timeexperience to produce a product that

meets ALL of these requirements For example high-cost high-bandwidth Internet (eg $50-60month data plans) as well as per-formance issues (eg high latencies) will require OEMssuppliers to validate a strong pull from consumers

Consumers will need to experience these applications on ―smart phones before OEMs commit to building the internet into the car

ie ―democratization or high volume For example Ford SYNC has it right bring the Internet to the car ―plug-in your ―smart

phone

The new opportunity for Telematics or ICT ldquotwo-way communicationsrdquo built into the car is safety Robust and secure wireless

protocols such as Dedicated Short Range Communications (DSRC) or IEEE 80211p will usher in new vehicle-to-vehicle (V2V)

safety features (ie that are time sensitive or require low latency) to include

Electronic Brake Lamp as collision warning to eliminate rear-end collisions

Okay to pass to avoid head-on collisions

Intersection safety ndash left turn advisory

Emergency vehicle approaching

These applications require robust and secure ―radio technology Cellular is not well suited for these demanding applications Once

again Europe is leading the way as they did with Adaptive Cruise Control (ACC) with a focus on ―cooperative systems In Europe

ACC has not only become a collision warningmitigation system but a means to ―cooperative driving or platooning Volvo City

Driving is an example of this kind of system In the future on-board sensors such as radar cameras and accelerometers as needed for stability systems are integrated with V2V for cooperative driving Cooperative driving is faster and safer driving ―city driving

at higher speeds than current congested speeds use of limited-access (gated) high-occupancy lanes and ultimately high speed lanes

between city centers High occupancy and complex-dangerous intersections will be deployed first as the public safety priority This

is not quite autonomous driving a term the military will adopt for their various missions

P A G E 4

A U T O T E C H I N S I D E R

N E W S L E T T E R F O R C L I E N T U S E O N L Y

Consumers desire full control of their vehicles because driving should be fun As we know a mega trend is the growth of cities as

populations shift which increases congestion and pollution A 20 mph increase in mobility produces a 40 reduction in pollution

Will the US Government follow Europersquos lead and make these cooperative systems mandatorymdasha strategy to increase mobility as

well as improve safety For example will NHTSA make V2V applications part of the New Car Assessment Program (NCAP) to encourage OEMs to build safer vehicles and consumers to buy them

These cooperative systems for improved safety and mobility will require significant system engineering and affordable sensor tech-

nology Todayrsquos radar-based systems are not affordable and ACC penetration is not expected to achieve more than a 10-15 pene-

tration into 2014MY even though we will see stop-and-go ACC on many luxury models There is an opportunity in the 2014-

2016MY timeframe for an affordable V2V solution because of the low cost of radios and high accuracy GPS (augmented) Today

GPS is embedded in many products because of $10-20 chip sets In a similar manner V2V radios based on RF CMOS technology

(now on cell phones) will eventually have costs in the $150-200 range Can radar sensor technology compete with a low cost wire-

less sensor integrated with GPS Can wirelessGPS make accurate time-to-collision measurements as can radar

In conclusion Telematics as defined as ldquotwo-way communicationsrdquo built into the car provides compelling safety as well as mobility

features But safety is the priority Several issues as previously discussed remain before ―democratization or wide spread adop-tion is realized

1 The business model for wide spread adoption ―democratization is needed

2 The role of government in facilitating deployment new cooperative driving or active safety systems Will the US Gov-

ernment actively facilitate deployment

3 Affordability of autonomous sensors (eg radar based) Will Telematics based safety systems (eg V2V) have a role in

making these systems affordable as well as more capable How will V2V be integrated with existing autonomous

systems wwwautoelectronicscomtelematicsnavigation_systemstelematics_resurgence wwwgearlogcom200905fords_democratization_of_technphp

blogscarscomkickingtires200801fords-sync-sellhtml wwwwiredcomcarscoolwheelsmagazine17-08pl_motor

wwwjdpowercomcorporatenewsreleasespressreleaseaspxID=2009098 enwikipediaorgwikiTelematics

wwwintellidriveusaorgaboutoverviewphp wwwosgiorgwikiuploadsVehiclevioverviewpdf

wwwcvisprojectorg

wwwengadgetcom20061208volvos-city-safety-detects-collisions-can-steer-out-of-the-w

enwikipediaorgwikiNational_Highway_Traffic_Safety_Administration

Dave McNamara

Phone_ 734-645-1598

Emaildmcnamaraautotechinsidercom

Craig Simonds

Phone 313-408-0640

E-mail csimondsautotechinsidercom

The automobile industry is profoundly affected by adjacent industries that produce

the technologies that are involved directly or indirectly in the production of a

vehicle Since the percentage of a given vehicles cost related to

electronics software networking solutions and related services continues to grow

we are most interested in these technology areas Based own our extensive ex-

perience in the automotive industry we cover major events and produce insightful

reports on the technologies the companies and the trends that we believe will

have a significant impact in the near future

DisclaimersmdashAll information gathering was done in compliance with the ethical standards of the Society of

Competitive Intelligence Professionals and within the provisions of the US Economic Espionage Act of 1996

AutoTechInsider LLC

Insights For The Automotive Industry

Wersquore on the Web

wwwautotechinsidercom

Windows Penetrates the Automotive Market In our June 2009 Telematics Update report we exam-

ined the possibilities of what a Fiat owned Chrysler

might do in the area of infotainmentTelematics The

main question was about whether or not they will aban-don one of their systems and if so which one hellip Blue

amp Me (based on Windows for Automotive) or uconnect

(recently based on a Hughes Telematics solution)

The recent parting of ways between Chrysler and

Hughes Telematics may be one indication of the deci-

sion However since Chrysler has been offering rear

seat entertainment and internet connectivity and

Fiat doesnrsquot they will either have to abandon the

features for Chrysler products or develop them

on the Blue amp Me platform If Chrysler products begin to offer a

solution based on Fiatrsquos Blue amp

Me then Ford Chrysler Fiat

Hyundai and Kia will all be offer-

ing infotainmentTelematics plat-

forms based on Microsoftrsquos Win-

dows for Automotive

P A G E 5

Consumers desire full control of their vehicles because driving should be fun As we know a mega trend is the growth of cities as

populations shift which increases congestion and pollution A 20 mph increase in mobility produces a 40 reduction in pollution

Will the US Government follow Europersquos lead and make these cooperative systems mandatorymdasha strategy to increase mobility as

well as improve safety For example will NHTSA make V2V applications part of the New Car Assessment Program (NCAP) to encourage OEMs to build safer vehicles and consumers to buy them

These cooperative systems for improved safety and mobility will require significant system engineering and affordable sensor tech-

nology Todayrsquos radar-based systems are not affordable and ACC penetration is not expected to achieve more than a 10-15 pene-

tration into 2014MY even though we will see stop-and-go ACC on many luxury models There is an opportunity in the 2014-

2016MY timeframe for an affordable V2V solution because of the low cost of radios and high accuracy GPS (augmented) Today

GPS is embedded in many products because of $10-20 chip sets In a similar manner V2V radios based on RF CMOS technology

(now on cell phones) will eventually have costs in the $150-200 range Can radar sensor technology compete with a low cost wire-

less sensor integrated with GPS Can wirelessGPS make accurate time-to-collision measurements as can radar

In conclusion Telematics as defined as ldquotwo-way communicationsrdquo built into the car provides compelling safety as well as mobility

features But safety is the priority Several issues as previously discussed remain before ―democratization or wide spread adop-tion is realized

1 The business model for wide spread adoption ―democratization is needed

2 The role of government in facilitating deployment new cooperative driving or active safety systems Will the US Gov-

ernment actively facilitate deployment

3 Affordability of autonomous sensors (eg radar based) Will Telematics based safety systems (eg V2V) have a role in

making these systems affordable as well as more capable How will V2V be integrated with existing autonomous

systems wwwautoelectronicscomtelematicsnavigation_systemstelematics_resurgence wwwgearlogcom200905fords_democratization_of_technphp

blogscarscomkickingtires200801fords-sync-sellhtml wwwwiredcomcarscoolwheelsmagazine17-08pl_motor

wwwjdpowercomcorporatenewsreleasespressreleaseaspxID=2009098 enwikipediaorgwikiTelematics

wwwintellidriveusaorgaboutoverviewphp wwwosgiorgwikiuploadsVehiclevioverviewpdf

wwwcvisprojectorg

wwwengadgetcom20061208volvos-city-safety-detects-collisions-can-steer-out-of-the-w

enwikipediaorgwikiNational_Highway_Traffic_Safety_Administration

Dave McNamara

Phone_ 734-645-1598

Emaildmcnamaraautotechinsidercom

Craig Simonds

Phone 313-408-0640

E-mail csimondsautotechinsidercom

The automobile industry is profoundly affected by adjacent industries that produce

the technologies that are involved directly or indirectly in the production of a

vehicle Since the percentage of a given vehicles cost related to

electronics software networking solutions and related services continues to grow

we are most interested in these technology areas Based own our extensive ex-

perience in the automotive industry we cover major events and produce insightful

reports on the technologies the companies and the trends that we believe will

have a significant impact in the near future

DisclaimersmdashAll information gathering was done in compliance with the ethical standards of the Society of

Competitive Intelligence Professionals and within the provisions of the US Economic Espionage Act of 1996

AutoTechInsider LLC

Insights For The Automotive Industry

Wersquore on the Web

wwwautotechinsidercom

Windows Penetrates the Automotive Market In our June 2009 Telematics Update report we exam-

ined the possibilities of what a Fiat owned Chrysler

might do in the area of infotainmentTelematics The

main question was about whether or not they will aban-don one of their systems and if so which one hellip Blue

amp Me (based on Windows for Automotive) or uconnect

(recently based on a Hughes Telematics solution)

The recent parting of ways between Chrysler and

Hughes Telematics may be one indication of the deci-

sion However since Chrysler has been offering rear

seat entertainment and internet connectivity and

Fiat doesnrsquot they will either have to abandon the

features for Chrysler products or develop them

on the Blue amp Me platform If Chrysler products begin to offer a

solution based on Fiatrsquos Blue amp

Me then Ford Chrysler Fiat

Hyundai and Kia will all be offer-

ing infotainmentTelematics plat-

forms based on Microsoftrsquos Win-

dows for Automotive

P A G E 5