Galen Reeder, Delphi Corporation

iNEMI Automotive Electronics WorkshopGrenoble, France

9 September 2013

Innovation for the Real World

The Evolution of Delphi

1930s: Crosley Radio and other small component suppliers purchased by General Motors

1988: Worldwide Automotive Components Group (ACG) created within General Motors

1999: Delphi Initial Public Offering: “DPH” on NYSE

1999: Delphi became an independent automotive supplier

2004: Delphi files for Chapter 11 protection

2009: Emergence from Chapter 11 reorganization

2011: Public Offering: “DLPH” on NYSE

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Heritage of Innovation

� Since 1930s, a history of firsts has marked the Delphi tradition

� Matured from a supplier of steering wheels, ignition systems, fuel systems and audio products to a diverse supplier with hundreds of products serving global customers

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Diverse Customer Base

No single customer accounts for more than 19% of global sales

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Global Innovation-In Close Collaboration with Our Customers

Bascharage, Lux.

Juarez, Mexico Shanghai, China

Auburn Hills, MI

Key Global Technical Centers

São Paulo, Brazil

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Krakow, Poland

Bangalore, India

Over 110000 employees� 32 Countries � 19,000 Scientists & Engineers$1 billion annual investment in engineering and development

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Core Innovations = Future Possibilities

Core Automotive Markets Adjacent Markets

Military/Aerospace

Residential/Commercial Heating and Cooling

Electrical/ElectronicArchitecture

Electronics & Safety

Powertrain Systems

Thermal Systems

Commercial Vehicles

Aftermarket

over 5000 patents

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Automotive Electroncis

Navigation

Climate control

Emissions control

Rear Seat Entertainment

Braking control

Stability control

Driver information displays

Air bag deployment/suppression

Parking Aid

Blind Spot detection

Adaptive braking/collision avoidance

Phone integration

“The best seat in the house, isn’t in the house anymore.”

� Modern cars have more than 50 computers

� On-board computers make 25,000

decisions, when a car is started

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Global Automotive Electronics

MEGATRENDSMEGATRENDS

� People Megatrends– Natural Growth

– People Live Longer

– Generations X & Y

– Increased Concern about Safety, Security and Privacy

– Health Care

� World Megatrends– World Turmoil

– Globalization

– Higher Cost of Natural Resources

– Increasing Environmental Awareness/ Regulations

� Technological Megatrends– Information Explosion

– Wireless World

– Smartphone market growth

» 38% in 2012

» 22% in 2013

� Safe – Traffic congestion in major

metro areas around the world becomes worse; more accidents; longer commute; higher stress level

� Green– Fast growing economies: more

fuel for mobile platforms

– Demand for electrical energy and related conventional resources far exceeds current capabilities

� Connected– Global demand for

broadband access will continue to grow

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Portfolio of Enhanced Safety Solutions

� Active Safety Systems– Front, Rear and Side Detection

– Radar and Vision Sensing

– Sensor Fusion

� Driver State Alerts– Fatigue/Drowsiness

– Distraction—Connectivity versus Safety

� Safety Electronics– Airbag Control Units

– Pressure, Acceleration, Combination, Rollover, and Pedestrian Sensors

� Occupant Classification Systems

– Full and Infant-only Suppression

– Seat Belt Reminder

� Battery Disconnects

� Battery Monitoring Device

� HMI (Human Machine Interface)

– Diagnostics

– Control Modules and Units

– Haptic Devices

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Portfolio of Green Solutions

� Fuel Economy and Performance Technologies

– Cylinder Deactivation System

– Two-step Valve Train with Dual Independent Cam Phasers

– Brushless Fuel Pump Modules

� Recycle/remanufacture ECM/PCM

� Universal Reflash Tool

� Alternative Fuel Systems/Components

– Fuel System for Dimethyl Ether

� Evaporative Emissions Canisters

� Diesel Fuel Injection Systems and After-treatment

� Gasoline Direct Injection

� Next Generation Energy Efficient A/C

� HVAC Compressors

� HVAC Systems for Alternative Refrigerants

� Diagnostic Systems

� Electric HVAC Systems

� Hybrid and Electric Vehicle Technologies

� Power Conversion Products

� High Voltage Battery Pack System

� Ammonia, Planar Oxygen & Battery IVT Sensors

� Electronics Packaging

� Halogen-free Cable

� Aluminum Cable

� Miniaturization

� Navigation

� Ultra Light Radio

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Portfolio of Connectivity Solutions

� Connected Vehicle

– In-vehicle Communications and Entertainment

– 3G/WiMax, WiFi, DSRC

� Vehicle Infrastructure Interface (VII) and Vehicle-to-Vehicle Interface

� Satellite Audio, Video and Data Systems

� Digital Receivers

� Advanced Reception Systems

� Navigation Systems

� Portable Device Interfaces

� Wireless Connectivity

� Security Systems

� Aftermarket Telematics

� Data Connectivity - USB Consumer Port

� HMI (Human Machine Interface)

– Diagnostics

– Control Modules and Units

– Haptic Devices

– Displays

� High-density, High-speed Interconnects

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Challenges of Automotive Electronics

� Reduced Size/Reduced Weight– Smaller, better, less expensive

� Longer Warranty periods/Higher Reliability– 5 year full maintenance warranties

– 5 year/100k mile drive-train protection expanding to 10 year/100k mile coverage

� Higher Temperature extremes– Increasing density of vehicle packaging reduces air flow

– Increasing electronics content results in more heat generation

– Previous application temperatures of -40C to +85C expanding to -55C to +150C

– Electrification introducing opportunities with 300V to 600V systems

� Fast Changing Product requirements– Safe

» Promoting occupant safety through systems development� Establishing market acceptance of safe/connected

» Addressing government regulations and mandates at car buyer pricing

– Green

» Providing the latest technology across all levels of electrification

» Reducing mass with innovative green design while increasing content

» Addressing emissions and legislative requirements

– Connected

» Offering products that provide information, convenience and protection

» Addressing global and regional connectivity trends on an increasing rate of change

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Automotive Electronics Manufacturing

� Shift from High Volume/Low Mix to Medium Volume/High Mix– Localization to take advantage of tax incentives reduces global economies of scale

– Product diversification increasing to allow for end model differentiation

– Capital must be more flexible over numerous product families to achieve RONA expectations

� Shorter Product Development Cycles– Three to five year life cycles in past being replaced by annual refresh

– Connectivity products moving closer to consumer market

– Smart phone integration requires intensive engineering effort to validate without industry communication standards

– After market poses severe challenge with end of life components, rapid design cycles

� Product Software—most significant “component”– Rapid rate of change during final development stages and through series production

– Programming and verification of >20 GB adds complexity to traditional single piece manufacturing flows

– Corporate IT infrastructure must accommodate rapid data transfer

» Airplanes are faster than network for massive electronic transfers

� Component Counts– Products contain >3000 individual hardware elements

– Increasing component counts, but market demanding annual price reductions

– Process quality and test containment must improve to continue to maintain single digit ppm customer complaints

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Automotive Electronics ManufacturingProcess Challenges

� Higher expectations for “Touch and Feel” products– Integration of cloth, leather, wood grain, piano black

– Achieving capability of machined components with plastic molding processes

– Customer specified force/distance feel for each button to achieve differentiation

» <25 um tolerancing of plastic parts as molded

» Addition of grease and other materials to finely adjust feel

– Optical quality components for lenses and other transparent parts

– High gloss painting presents quality challenges

– Gesture recognition will require new level of production test definitions

� Electrification adds new dimension to electronics– Increasing density of vehicle packaging reduces air flow

– Previous application temperatures of -40C to +85C expanding to -55C to +150C

– Electrification introducing opportunities with 300V-600V systems

– Product handling made complex with size (0.6m x 0.3m x 0.2m)and weight (>16 kg)

– Energy dissipation requires water cooling integrated with electronic package

– DC/DC converter can contain more than 6 PCB assemblies

» Board to board and board to lead frame interconnects pose significant mechanical packaging challenges

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Automotive Electronics ManufacturingProcess Challenges

� 76 GHz Radar testing – Testing and calibration must occur in anechoic chamber with targets over range of sweep

» Up to 150 m

» Numerous targets of various profiles

» Very long cycle times

– Capital is highly specialized and high cost

– Product test requirements prevent cost effectivesingle piece manufacturing flow

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Automotive Electronics ManufacturingComponent Needs

� Low-cost, high temperature, high density, high voltage and high frequency circuit board materials

– 8 layers are becoming norm

– High voltage challenging traditional material dielectric strengths

– 3000 cycles, -40-150C, requires lower and stable CTE values

– 76 Ghz PCB materials today demand a price premium, will soon be main-stream

� High voltage capacitors (400V)

� Low-cost, thermally conductive materials– Avoid secondary machining of die cast housings

� Effective electrically conductive adhesives– Could be viable replacement for component attachment to improve life over solder attach

� Reliable room temperature curing adhesives for metal/metal and metal/plastic sealing

– Current material sets require dwell times at +100C

– Complex assemblies must be subjected to 2 or 3 curing cycles

– Existing material sets have short pot life and working times, not production friendly

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Summary

� Automotive Electronics is convergence of

– Military complexity

– Aerospace reliability

– Consumer functionality

– Regulated by government timing

� Product areas overlapping

– Connectivity/www being used to improve real time safety and emissions

� Real need for next generation of components and material sets

� Exciting area for future

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Questions