Q3 2013 pdf

ai-online.com • autoindustry.us • peaceVol. 192 • Issue 3

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The auto industry is paying attention. Since January 2010, approximately 225 auto manufacturers and suppliers have announced $3.6 billion in planned capital investment and more than 15,000 new jobs in Kentucky. - Kentucky Governor Steve Beshear. Page 72“

Automotive Goes All-In on LTE

Emissions vssafety conundrum

Creating a dynamicHMI for Next-Gen

device integration

Taking the weightout of robots

Adding strength and durability to polymers

Kentucky smooths the way for auto investors

2 to read full version of AI stories go to www.ai-online.com

contents

contentsAutomotive Industries is published by:Automotive Industries Ltd.Publisher: John [email protected] • +1 313 262 5702 (IP 5101888888) Editor: Ed [email protected] • +27 (0) 41 582 3750 Editing: Christena [email protected] • +27 (0) 41 582 3750 Circulation Management: Dave [email protected]+1 630 204 2552 Finance: Ben Adler [email protected] • +44 (0) 20 8458 7130 Press Releases and Advertising Enquiries: Enquiries should be sent to the AI Team via the contact details below CLAUDIO FRANCISCOMotorsports, Race Track Technology & Consultancy- PressReleases and AdvertisingEnquiries: [email protected] +44 7901 598728 NICK PALMENEngineering & Design Press Releases and AdvertisingEnquiries: [email protected] +44 (0) 20 8764 9696 (IP 5101401836) JAMES HILTONShows Press Releases and Advertising Enquiries: [email protected] +44 (0) 1142 811 014 CLINTON WRIGHTEnvironmental Technologies Press Releases and AdvertisingEnquiries: [email protected] +44 (0) 7852 722 602 JON KNOXFuels & Future Fuels Press Releases and AdvertisingEnquiries: [email protected] +34 (0) 690 276 463 ALAN TRAN Vehicle Systems - Interior Press Releases and AdvertisingEnquiries: [email protected]+ 44 20 3129 8361 (IP 5101401831) ROB WHITEVehicle Systems - Exterior Press Releases and AdvertisingEnquiries [email protected]+44 (0) 20 8202 3770 (IP 5101401833) MALCOLM BABBIN3D printers, Hybrids, Autonomy, Sensors Trade Show PressReleases and AdvertisingEnquiries: [email protected] +1 313 262 5702TONY TICKNER-DAVISONEngineering & Design Press Releases and AdvertisingEnquiries [email protected] + 44 7970 899 943 MICHAEL STEWARTVehicle Systems - Electrical/Electronic Press Releases and Advertising Enquiries: [email protected] +44 (0) 7853 499 350 JOHN DIXONEngineering & Design Press Releases and AdvertisingEnquiries [email protected] +44 20 7617 7293 PAUL COOKEEmerging Markets Press Releases and Advertising [email protected] +44 1733 761 063 ELVIS PAYNEHead of Sports [email protected] + 44 7824 975 718 WILSON LEEGreater China, Hong Kong & [email protected] +886-2-26560101 Layout: GIA: [email protected]: [email protected] Subscriptions from“SUBSCRIBE/RENEW” link atwww.autoindustry.us • www.ai-online.comPRINTED IN THE USA

Volume 192 Number 3. October 2013Published Quarterly by Automotive Industries Ltd . Issue date: Q3 20133859 Shannon Run, Versailles, KY 40383.Subscription rates are $330 North America, Rest of the World (Airmail)Periodical postage paid at: Versailles, KY 40383 and at additional mailing officesCopyright AUTOMOTIVE INDUSTRIES LTDCanadian Publication Mail Agreement # 41301520.Return Undeliverable Canadian Addresses to:P.O. Box 122, Niagara Falls, ON, L2E 6S8, CanadaPOSTMASTER: send address changes to Automotive IndustriesPO Box 1510, Versailles, KY 40383, USA

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1. Publication Title: Automotive Industries, 2. Publication number: 1099-4130, 3. Filing Date: 09-29-2013, 4. Issue Frequency: Quarterly, 5. Number of issues published annually: 4, 6. Annual Subscription Price: $88.00, 7. Address: 3859 Shannon Run, Versailles, KY 40383,8. Headquaters address: Automotive Industries Ltd, ground floor ste 4C Unity House, 9. 3-5 Accommodation Rd London, England, NW118ED, United Kingdom,10. Publisher: John Larkin, Automotive Industries Ltd, ground floor ste 4C Unity House, 11. 3-5 Accommodation Rd London, England, NW118ED, United Kingdom,12. Editor: Ed Richardson, Automotive Industries Ltd, ground floor ste 4C Unity House, 13. 3-5 Accommodation Rd London, England, NW118ED, United Kingdom,14. Mgr Editor: John Larkin, Automotive Industries Ltd, ground floor ste 4C Unity House, 15. 3-5 Accommodation Rd London, England, NW118ED, United Kingdom,16. Owner: John Larkin, Automotive Industries Ltd, ground floor ste 4C Unity House, 17. 3-5 Accommodation Rd London, England, NW118ED, United Kingdom,18. Known Bondholders: None, 19. Blank, 20. Publication: Automotive Industries, 21. Issue Date for data: 2nd Qtr 2013 , 22. Extent and Nature of Circulation Ave copies each issue No. copies Issue Published During preceeding 12 months nearest to filing Datea. Total Number of copies 12309 14457b. Legimate paid and/or requested (By mail and outside mail)b1. Individual paid/requested mail Subs as Stated on PS Form 3541 6205 6296b2. Copies requested by Employers for Distribution To Employees Name/Position sataed on PS3541b3. Sales through Delers/Carriers Outside USPS 966 1557 b4. Requested copies other USPS mail classes c. TOTAL PAID/REQUESTED Circulation 7171 7853 d. Nonrequested Distributiond1. Nonrequested copies stated on PS3541 1758 2641d2. Sales through Delers/Carriers Outside USPS 898 1604d3. Non-requested copies other USPS mail classes e. TOTAL NONREQUESTED DISTRIBUTION 2655 4245f. TOTAL DISTRIBUTION 9826 12098g. Copies not Distributed 2484 2359h. TOTAL 12309 14457i. Percent Paid or Requested circulation 72.9 % 64.93%I certify that all the information furnished on this form is true and complete. AUTOMOTIVE INDUSTRIES • John Larkin, Publisher

INTRO: Reindustrialisation of the traditional manufacturing hubs ............................................................... 4AI INSIDER: Unique new bio feedstock for aircraft fuel proposed .............................................................. 6MARKET TRENDS: What lies ahead for the emissions vs safety conundrum? .......................................... 8Ai M2M: The connected car: who pays and how? .................................................................................. 10M2M: The age of Smart Cars.................................................................................................................. 12DAIMLER on fuel cells and e-vehicles ..................................................................................................... 14TOMTOM: Navigation goes mainstream in car design ............................................................................. 18SONGWON: Adding strength and durability to polymers ........................................................................ 22CELANESE: New generation POMs helping to reshape auto manufacturing and design ......................... 24BOREALIS: Focus on Driving Tomorrow ................................................................................................. 26VICTREX PEEK: Polymers outperforming metals in demanding applications ........................................... 30TELIT: Connecting the three pillars of M2M technology ........................................................................... 32FUJITSU TEN: eCall test bed created in Japan ....................................................................................... 34LUXOFT: Creating a dynamic HMI for Next-Gen device integration ......................................................... 36TECHNOMAR: Crafting a business model for EV charging solutions ....................................................... 38mAUTOMOTIVE CCF: Steering connected car services into the fast lane. .............................................. 40CLARION: Putting Google search and speech power into the vehicle ..................................................... 42WIRELESSCAR: Connecting cars in developing markets ........................................................................ 44J.D. POWER on J.D. Power ................................................................................................................... 46FORMULA E will add spark to the EV revolution. .................................................................................... 48HELLA: Higher voltage to optimize start-stop savings ............................................................................. 50QUALCOMM: Wireless electric vehicle charging will set EVs free ............................................................ 52SCHAEFFLER: “Smaller is better” when it comes to electric motors ....................................................... 54DAIKIN: Fluorochemistries to unlock lithium-ion battery potential ............................................................ 56SEKURIT: Lightweight windshields going mainstream ............................................................................. 58AMS: Balancing battery cells for safety and longevity .............................................................................. 60SIERRA: Automotive goes all-in on LTE .................................................................................................. 62NVIDIA: Using visual computing power to meet rising customer expectations. ........................................ 64MELEXIS: Light adds personal touch to automotive interiors. ................................................................. 66VEGA: Innovation behind transporting the transporters ........................................................................... 68MISSOURI: Rebuilding the Missouri auto industry ................................................................................... 70UNIVERSAL ROBOTS: Lightweight robots can work alongside people ................................................... 72KIMBERLY-CLARK: Cutting VOC emissions: Shop-floor offers new ways to drive Lean Manufacturing ...........74KENTUCKY smooths the way for auto investors ..................................................................................... 76CHARLESTON: Revving up the South Carolina auto industry. ................................................................. 78MACEDONIA establishing itself as manufacturing hub ............................................................................ 80CBI: Helping suppliers from emerging countries to support European manufacturers ............................. 82SAUDI ARABIA opens doors to auto companies .................................................................................... 84SAAW: South Africa positioned as gateway to African market................................................................. 86


Reindustrialisation creates many opportunities – and threats – for the whole automotive value chain, including component manufacturers and logistics companies. Companies which have switched their focus and energies to India (where vehicle sales have fallen for the second year in a row) and China (where domestic demand remains strong but exports are dipping) may lose out on growth in their traditional home markets.

We report on South Carolina, which has made a U-turn away from total closure of the industry to attracting over US$5 billion in capital investment from the world’s leading OEMs and Tier 1 suppliers. And Missouri, which is powering ahead thanks to a partnership between the state, labor and industry leaders.

Across the Atlantic, the British auto industry is revving up. Speaking in April 2013 at the 2013 Society of Automotive Engineers’ World Congress in Detroit, UK Minister of State for Business and Energy Michael Fallon said “automotive in Britain is now a success story. We’re exporting more by value than we’re importing for the first time in 30 years.” The UK is also building more cars – in assembly plants which, incidentally, are all foreign-owned – than

Reindustrialisation of the traditional manufacturing hubs

intro

Editor, Ed Richardson

province. Currently, over 35% of the new vehicle’s cost is sourced domestically and Mobius Motors is looking to grow local content beyond 40%. Another win for the Kenyan auto industry is that Toyota has opened a US$4.9 million truck and bus assembly plant and showroom in Kenya. Chinese assemblers are also showing interest in Kenya. Chery Automobile and Beiqi Foton Motors are both reported to planning assembly plants. Kenya, Zambia and Zimbabwe are among the African states which saw massive disinvestment following nationalisation. Assemblers are dusting off their old facilities as South Africa, currently the hub of motor assembly in Africa, is facing a crisis of confidence following protracted strikes and uncertainty over government policy.

To the east, the Australian government has realised the contribution made by the auto industry. The Australian, Victorian and South Australian governments’ Automotive New

Markets Programme (ANMP), currently in its second round, is designed to help companies capture new business

opportunities in domestic and overseas markets, according to the government.

A common theme when one looks at the auto industry is government intervention – for good or bad. Support through incentives, tariff protection or other means (whether they adhere to the letter and the spirit of the World Trade Organisation agreements or not) drives the success of the auto industry in the real world where

the playing fields are not equal. There are compelling reasons for government support –

not the least being job creation. Even in Europe, where the industry is seen as “mature,” the auto

industry created the most jobs through foreign direct investment in 2012, according to the Ernst & Young 2013 European Attractiveness Survey.

If managed correctly, the auto industry also serves as a pool of manufacturing excellence and technical innovation. It can be argued that countries in the European Union together with the US are world leaders in accelerometer technology because of R&D by the automotive sector. There are many other examples.

In a global auto industry where it is often more cost-effective to import than assemble locally, government and labor hold the key to success.

it did in British Leyland’s heyday 30 years ago. On the Continent we have emerging auto hubs in the likes of Poland, Hungary, Macedonia, Serbia, Turkey, the Czech Republic, and Slovakia. Russia’s auto industry is on track to pass Germany’s production by 2020, according to the Boston Consulting Group.

Motor manufacturers are also returning to Africa. Recently, Nissan and West African conglomerate the Stallion Group announced plans to increase vehicle assembly in Nigeria. Stallion currently produces commercial vehicles in Nigeria, and capacity will be increased to 45,000 cars, light duty trucks, pickups and vans a year. Renault may also make use of the facility.

In Kenya, a start-up auto firm that is offering US$6,000 cars designed for African roads has started assembling at the Kenya Vehicle Manufacturers (KVM) based in the central Thika

AUTOMOTIVE INDUSTRIES and Rutgers, the State University of New Jersey, have put together a digital library of back issues of AI from the early 1900’s (high res and low res) of approximately 230,000 images of the print publication. This archive, which documents the birth of the auto industry to the present, is available to AI subscribers. Go to AI’s homepage www.ai.com and click on the “AI Library” link or visit www.ai-online.com/100YearLibrary

In this issue of Automotive Industries we look at two instances where American states have steered their automotive industries back onto the road to growth and job creation.

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Ai insider

Unique new bio feedstock for aircraft fuel proposed By: Bob Brooks

Ai Insider Bob Brooks is a member of the Society of Automotive Engineers, and long-time automotive technology journalist specializing in powertrains and fuels.

Whether because of world airline need for new sources of JetA fuel due to cost and availability, or because of greenhouse gas emissions restrictions at flight origins and destinations, new feed stocks for aircraft fuel have become the object of major commercial development efforts.

One of the interesting potentials, discussed in “The National” (publication) is a planned project by the Masdar Institute of Technology (affiliated with MIT) to combine aquaculture with the growing of biofuel producing plants on marginal land. It is funded by Etihad Airways, Boeing, Honywell, Safran and the Abu Dhabi Government. The project director, Dr. Jonathan Jed Brown, is head of the integrated seawater energy and agriculture system project at Masdar.

Masdar, is a recently formed large R&D facility in the UAE. It counts as its overall prime objective for its oil-producing clients as the development of new oil to replace long-term dwindling reserves of petroleum. Reducing greenhouse gas emissions from aircraft using the new fuel is equally important.

Dr. Brown explains that a 500 acre pond system will be built in an arid coastal area. The plan is for fish or shrimp to be grown in ponds using seawater pumped from the Arabian Gulf. The wastewater from these ponds will be used to irrigate fields of salt-tolerant oil bearing plants such as salicornia and halophytes. The halophytes will produce a useful product, such as oilseed, to be turned into biofuel, as well as a woody biomass that can be further processed into fuel or other products, and fodder.

Additional waste water will then be drained into mangroves. The resulting oil seeds and cellulosic materials together will be harvested for their sources of biofuel feed stocks.

The Abu Dhabi Urban Council and Western Region Municipality are selecting locations for the pond system and expect a decision by year end. Needless to say, Arabia and North Africa have huge coastal areas with access to salt water, for cultivation of salt tolerant plants and sea food.

Dr Brown reports that actual consumption of fresh water is small, as it will rely on seawater, and without degrading arable land that could be used to grow conventional crops. The salty land it will use would not support conventional crops – so the project will in effect turn previously commercially useless land into a useful, biologically active area. And it should all be sustainable in its energy use, greenhouse gas emissions and environmental impact.

Aquaculture, which already accounts for almost half the world’s fish consumption, is the fastest-growing food producing sector. While this “blue revolution” has the potential to limit the pressure on stocks of wild fish and provide protein for the growing population, aquaculture still poses environmental challenges. Many aquaculture operations discharge wastewater containing fish wastes and uneaten fish feed. High in nutrients, this wastewater can cause a rapid growth in the population of algae, some of which is toxic. When the algae die their decomposition uses substantial amounts of the oxygen in the water, which in turn kills many other organisms.

Adding dimension to the project is the license granted by Honeywell UOP to Masdar for its RTP and EcoFining technology which broadens the properties of different feed stocks that may be converted to high specification JetA. (diesel fuel will come from other UOP licensees). UOP’s stated position that fuel derived by its system will be cost competitive against petroleum is another cornerstone of the program.

At issue, therefore, is the question of the economics of joint sea food farming and production of new fuel raw material; and best related areas of the world for such operations. AI

Luxoft Ad Oct 13.pdf 1 06/10/2013 14:52


market trends

What liesahead for the emissionsvs safety conundrum By: Andrew Jackson

More about Andrew Jackson: He is Head of Analytics at Glass’s - the leading provider of

data and intelligence to the automotive industry. His knowledge and understanding of the

automotive sector encompasses business, engineering and consumer perspectives.

He holds a master’s degree in chemistry and a doctorate in materials chemistry.

The challenge of reducing mass in automotive design is not new - the increasing demands of CAFE and EURO compli-ancy targets have pressured manufacturers to save weight and increase vehicle efficiency. On its own this would not pose too great an issue. However, the uneasy bedfellow in this situation is that of safety.

An inescapable fact is that with the addition of each occupant and pedestrian safety system comes a weight penalty. But, with emissions targets in the European Union reaching a critical waypoint in 2015, the pressure is on manufacturers to improve the average CO2 emissions of their fleet. The question is: how can the combined target of lower emissions and improved safety be achieved?

Take the Mark7 Golf. It is purported to weigh 100 kg less than its predecessor. But, this still places the car at approximately 1,260 kg which is very nearly half a ton heavier than the original Mk1. The integration of safety systems carries a large responsibility for this additional mass. One way to make appreciable weight savings is to use compounded graphite iron (CGI) in cylinder blocks. It outperforms aluminum, which struggles with a low modulus of rigidity when compared to cast iron, which for gasoline engines is not too great a problem as typical compression ratios orbit 10:1. However, when considering diesel engines which operate at compression ratios of 17:1 and above, it becomes quickly apparent that in its current permutations, aluminum is not a suitable material for the >50% of European motorists who purchase diesel-powered vehicles. CGI possesses much greater modulus rigidity than aluminum and grey iron, and offers a significant 30% weight saving. The introduction of the third-generation EA888 engine block from Volkswagen (which is a CGI block) will undoubtedly be the starting gun that the likes of Ford, GM, Daimler and others - which still have ground to cover before 2020 - will start following suit.

This is not the whole story. Whilst engineering breakthroughs such as CGI can save mass, the issue of safety systems will continue to add the kilos back on. Mass reduction is a finite

science, especially when considering that many advanced lightweight materials are either prohibitively expensive or currently not suited to mass production. A key to this situation may lie in the approach to safety systems and the application of proactive rather than reactive technologies. Virtually all safety systems at present are reactive, responding to an incident.

A logical step would be to avoid the problem by providing information proactively to the driver, enabling situational judgment to occur before events turn critical – in much the same way as advanced drivers can anticipate situations and avoid them before they develop.

In a world of connected vehicles, the possibility of vehicles being able to utilize data networks to identify hazards and highlight them to the driver (such as oncoming vehicles when assessing overtaking opportunities, the proximity of local accident black spots or blind junctions etc) would give them the information they need to avoid the problem rather than to react when faced with the danger.

Obviously the integration of such systems would require a multi-layer approach to counteract the lack of connectivity in older vehicles, and there would have to be a level of acquiescence from the driver to accept recommendations of any such system. However, such safety systems would largely amount to onboard software which logically makes the return on (mass) investment a very attractive prospect. It would leave designers with the breathing space to lose the required mass and improve energy efficiency to meet emission targets.

Whilst any such systems are undoubtedly a long way off, detractors should consider the man/machine relationships in the aerospace industry as an example of such interfaces working successfully. Furthermore, with Google’s pending purchase of Smartphone navigation company “‘Waze” which uses location and trajectory data to advise of traffic patterns plus suggest alternative route based on other users experiences, it could be said that such systems are already in the market. AI


For aftermarket devices such as connected navigation devices there is a simple set of models for payment based around up-front costs and monthly subscriptions. However, for applications and services that use the built-in vehicle platforms, such as GM’s OnStar or BMW’s ConnectedDrive, the dynamics are not so clear. The tried-and-tested model for payment for cars is as a one-off payment. However, this will not really fly for ongoing connectivity.

There are a range of different options:• Up-front – The cost of the connected service is bundled in with

the purchase price of the vehicle. This happens in many cases, although typically only for a limited introductory period of one to three years.

• Subscription with the auto OEM – The user pays the automotive OEM for the services and the OEM contracts with the mobile operator for the connectivity, or a wider range of services as is the case with Sprint’s Velocity solution.

• Subscription with the MNO – The user pays the mobile network operator directly for connectivity. This can be achieved through handset tethering, split charging or a separate subscription.

• Per event/application pricing – Users are charged on a per-download basis, e.g. for applications or for using a particular application. Renault, for instance, charges 590 Euro upfront for its R-Link service, and then there are charges for the additional applications, with connectivity pricing built in.

• Advertising-funded (or similar) – New emerging models of pricing may see users paying for per-event services through ad-funding. An example might be a restaurant chain paying for subscribers to locate and navigate to one of its restaurants.The applicability (or otherwise) of these options for paying for

Vehicle Platform-based applications will be determined by the type

of services that are being used. Some, such as remote unlocking, are simple additional features and are likely to be bundled as part of a portfolio of services. Other premium low-bandwidth services such as navigation or stolen vehicle recovery are likely to be charged on a monthly fee basis. However, as applications start consuming more bandwidth the issue of how they are paid for becomes more complex.

The main challenge is associated with the ‘rolling hotspot’ model, as launched by the likes of Audi, whereby the car provides a broadband data connection over which multiple devices (e.g. tablets) connect. The issue here is one of risk. Auto OEMs will be wary of bundling this service for fear of ultra-high usage, which would result in a hefty bill from the mobile network operator, and thus a less profitable customer. However, if OEMs pitch the price too high and there will be less user adoption. The only viable solution is for the driver to pay for what they use in the same manner as they would do for a handset or mobile broadband plan.

With regard to high bandwidth services requiring a separate subscription, there are really three options:• Smartphone tethering, whereby the usage would automatically

go to the driver’s bill• Dedicated car connection, with data usage billed to the user’s

phone bill. GM has set out its plans to allow users more flexibility to do just this.

• Allow users to bring in their own SIM card for the car connectivity, which might be billed separately, or to a phone bill. In Europe both Audi and Volvo permit the user to bring in their own SIM. The main challenge with pricing of these services is that there is

very little experience of selling such services to end users. As such it is not yet clear how, and how much, users are prepared to pay.

Ai M2M

The connected car:who pays and how?By: Matt Hatton – Director, Machina Research

As Machina Research prepares to publish its annual view on the connected car market, it is clear that the issue of who pays for connected car services and how is far from resolved.

Machina Research released its view on the connected car market in its

annual report “M2M Communication in the Automotive Sector” in October

2013. For more details contact [email protected].

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The age of Smart Cars has arrived, in parallel with the age of Smartphones. Services such as Emergency Call, real time traf-fic information and routing, maintenance services, and many other areas of comfort or security, are being built into cars.

However, there are also challenges. Apart from technical challenges, interoperability is a key consideration. Manufactures need to build in flexibility to allow the owner to use their vendor of choice. As the world’s largest machine to machine (M2M) association, the M2M Alliance is working on creating an easier, more flexible environment for the industry. Recently, the 7th edition of the M2M Summit was held at Dusseldorf, Germany. It attracted around 800 visitors and over 50 exhibitors. Keynote speaker Dr Thomas Kiessling of Deutsche Telekom told delegates the market for M2M is predicted to total 190 billion Euro by 2018, with over eight billion connected M2M devices.

him by using the services he already uses at home or within his business environment. From a security point of view, it is fundamental to build secure services to prevent any fraudulent use of cars.

AI then asked Jürgen Hase, Vice President M2M Competence Center, Deutsche Telekom and and second Chairman of the M2M Alliance, what are some of the ways telecom companies have helped automotive manufacturers deliver M2M solutions.

Hase: Deutsche Telekom for instance developed the connected drive solution together with BMW. This enables drivers to use Internet applications tailored to the car environment, and which offer services like e-mail reception and answering, making hotel

reservations, and finding points of interest on their way. AI: What are some of the technological barriers?

Hase: To have common standards in order to be compatible. In terms of prices that means you are able to produce and sell more products and that will lead to price reduction. One of the best examples I as a telecom expert can talk about is the standard we have in the mobile sector, GSM. Due to that handset producers can sell their products

all around the world because more than 160 countries are using that standard. It’s all about

economies of scale.AI: What will the growth be driven by?

Hase: I see three main growth-drivers: de¬creasing prices of the M2M-modules, increasing number of segment-specific solutions, and global com¬petition. The ongoing

integration of circuits will make technology much smaller. We will have smart sensors available where param¬eters

are measured and transmitted in one unit. We will see a broad spectrum of solutions from tracking,

innovationThe age of Smart Cars By: Claudio Francisco

Automotive Industries (AI) asked Eric Schneider, the first Chairman of the M2M Alliance, how successful the organization had been in standardizing M2M protocols.

Schneider: We represent and support our members in different standardization panels and bodies. We also support development streams and co-operate with other international associations. In addition, we have strong contacts into the regulation bodies like Bundesnetzagentur (German Federal Network Agency).

AI: Give us some examples of successful partnerships that have helped auto firms offer customers effective M2M services.

Schneider: You find strong partnerships between BWW and Vodafone as well as between Mercedes Benz and Deutsche Telekom, for example. Global players need other global players for their international solutions. The network operators on the other hand have partnerships with chipset and device manufactures. A great example for an effective M2M solution for cars and other vehicles is eCall. This M2M-based solution will save hundreds of lives in the EU every year.

AI: What do you see as the biggest challenge to developing/introducing M2M technologies in vehicles?

Schneider: The biggest challenge is to create M2M solutions which bring value added services to the customer without restricting

Eric Schneider, first Chairman of the

M2M Alliance.

Jürgen Hase, second Chairman of the M2M Alliance (closest to camera) making a point during the 2013 M2M Summit.

to vending machines connected to a CRM system to optimize storage of goods and in¬crease

business through the machines. And globalization will have “work-streams”: the one will lead to decreasing costs

of modules while they are marketable worldwide. Globalization is leading to greater competition in every industry sector, increasing the need to differentiate with your products and services in front of the cus¬tomer. M2M can leverage your business here. AI


Daimler’s fleet of electric and hybrid vehicles, coupled with fuel-saving technology, is growing. Models include the E-Class hybrid, for diesel and gasoline engine, the smart electric drive, and the S-Class plug-in hybrid. The company also has a B-Class with a fuel cell technology and B-Class Electric Drive battery vehicle, in addition to a portfolio of start/stop functions and the micro hybrids from smart.

vehicle. I think this is one of the preconditions to be prepared for the market of tomorrow. We predict a very bright future for the fuel cell technology, especially for the United States as a whole and California in particular.

AI: What is your EV strategy?Kohler: Our strategy is multi-layered. On the one hand we

will have more and more plug-in hybrids on the road. Having already selected vehicles for the battery

electric drive we, of course, are starting with the next generation of fuel cell electric vehicles

after the B-Class model, which will be in the market starting 2017.

AI: What is the difference between Daimler EV’s and competitors?

Kohler: There is not that big difference any longer because competitors are more and more following the same track as us, especially with the fuel cell electric vehicle.

They all found out that this is the right technology for the future. The race is getting

closer and closer. AI: What is the biggest problem in creating a

successful infrastructure?Kohler: This is the commitment of the third parties from the

energy supply side. We are not seeing enough momentum from their side, and we are asking for bigger commitment. Having recently agreed on a concrete action plan the partners of the German cross-industry initiative “H2 Mobility” together have already made a major step forward regarding the infrastructure.

innovation

Daimler on fuelcells and e-vehicles By: Nick Palmen

Automotive Industries (AI) asked Prof. Herbert Kohler, Vice President Group Research & Sustainability and Chief Environment officer of Daimler how important battery-electric and fuel-cell electric vehicles are to achieve CO2 reduction targets.

Kohler: Looking down the road to the 95g CO2, it is very interesting to see what will come next after 2020. In terms of zero emission mobility it is very important to be in the market not only with battery electric vehicles, but also with a fuel cell electric

Prof. Herbert Kohler, Vice President Group Research & Sustainability and

Chief Environment officer of Daimler.


But it will still take some time and will need strong engagement before a nationwide network is available.

AI: What is the potential of the current generation of fuel cell vehicles?

Kohler: The potential is having a driving range of 300-400 km, refuelling time of 2-3 minutes, and durability of 200,000 km. The technology will be much more flexible, as the major components will fit into the engine compartment of a conventional vehicle and we could also use them for applications such as in busses very effectively.

AI: How close are you to commercialization of fuel cell technology?

Kohler: Very close. We are preparing the next step of commercialization of the fuel cell starting 2017.

AI: How do you compare the cost between electric and fuel cell technology?

Kohler: From the development point of view maybe it is a little bit more expensive to have the fuel cell, but on the other side the

advantages and the flexibility of the technology are the reasons that we are pushing in that direction. I think this a good investment for the future.

AI: What are the advantages of the B-Class electric vehicle? Kohler: It is an e-application for the inner city of course,

and that makes the use of the technology very attractive. We are preparing that at the moment especially for the US market in California. Volume wise this is a good prospect for us. The European market will follow some months later. We will see how that will work in the future, and what kind of volumes can be achieved with the B-Class.

AI: In terms of electrification what would be next step for Daimler?

Kohler: That will depend on what the market reaction is in total, and how successful which technology will be – this is difficult to predict. We are prepared on several sides with new ideas, but everything will depend on what will happen on the market.

Air Liquide, Daimler, Linde, OMV, Shell and Total – have set up upon a specific action plan for the construction of a nationwide hydrogen refuelling network for fuel cell powered electric vehicles in Germany.

AI

Mercedes-Benz’s Current Electric Fleet - From city car to van: the world’s most versatile electric fleet.

“Having already selected vehicles for the battery electric vehicle we, of course, are starting with the next generation of fuel cell electric vehicle after the B-Class models, which have to be in the market by 2017.”


powerful real-time and historical traffic solutions. The integration enables Esri users to develop more efficient and dependable routing, journey analysis and congestion management tools.

NavKit is at the core of TomTom’s routing navigation technology. “We make our proprietary NavKit routing algorithms applicable to essentially any platform through open and available APIs. This means OEMs can choose our own

streamlined, award-winning user interface to operate the navigation engine, or they can access the engine

directly and incorporate their own or a third party user interface,” explains the company.

Automotive Industries (AI) asked Schäfer what are some of the synergies between TomTom and Sony that helped the latter choose you as a navigation provider.

Schäfer: TomTom and Sony have partnered on navigation devices since 2010, and in 2013 we launched the second generation of products together.

The brands are complementary: Sony is trusted for its audio and multimedia systems.

TomTom is a well-known navigation brand. The alliance is fostering the best of consumer

electronics for a multimedia and navigation.AI: What are some of the innovations TomTom

has introduced through its work with Sony?Schäfer: Just to mention a few:

• IQ routes which provides extensive historical database of “real” travel times calculates the fastest route taking into account the time and day you’re travelling,

• MapShare program, which enable map corrections made by other drivers and shared to the community

• Live services with the TomTom local search, TomTom Traffic, Speedcam warning (subject to market restriction, and some product restrictions).

Navigation systems are now part and parcel of the design of a growing number of new cars. Dashboards are now de-signed around the screen.

One of the leaders in the field is TomTom, which has been working closely with OEMs to popularize what has become an essential source of information in order to navigate increasingly congested city streets.

TomTom Traffic now includes a “Jam Ahead Warning” feature, which pinpoints the precise location of a traffic jam and sends an early-warning alert. “This latest version of TomTom Traffic is now so

innovation

Navigation goesmainstream in car design By: Jon Knox

Ralf-Peter Schäfer, head of TomTom Traffic.

accurate it can pinpoint the precise location of a traffic jam. The new “Jam Ahead Warning” feature shows drivers in advance exactly where a traffic jam is located and crucially alerts them to slow down if they are travelling too fast. By giving drivers advanced knowledge about the road up ahead, we aim to make journeys safer and more predictable,” says Ralf-Peter Schäfer, head of TomTom Traffic.

For the first time, navigation application providers, automotive partners and government departments will be able to predict congestion ahead and forecasts the anticipated speed that will be driven through busy routes. This automatically improves the fastest route calculation and ETA, he says.

In July 20013 TomTom announced a new integration with Esri’s ArcGIS, which provides ArcGIS users with access to TomTom’s

The Nav4 Traffic warning system.

HAROLD GODDIJNCEO TOMTOM

‘When it comes to creating a unique in-vehicle infotainment system, TomTom is the ideal partner for Car Manufacturers and System Vendors. We offer an independent set of open, off-the-shelf and easy-to-integrate, NDS-based Connected Navigation System components.’

TOmTOm AUTOmOTIVEConnected Navigation System

auTOMOTiVE.TOMTOM.COM

STaTE-OF-THE-aRT EaSY TO iNTEGRaTE OFF-THE-SHELF MODuLaR


AI: For the first time TomTom will be providing its navigation app to Ford for its SYNC in-dash multimedia system – what made Ford decide to go with your navigation solution?

Schäfer: The TomTom Brand is well-recognized in Europe for navigation. Because Ford is willing to choose the leading brands in each category of application that they will offer through SYNC, TomTom was a natural choice. The quality of TomTom Traffic was also a compelling argument for choosing TomTom.

AI: How has TomTom’s relationship with companies like Renault evolved over time?

Schäfer: Through our partnership TomTom and Renault have changed the way navigation is perceived. Navigation used to be a luxury feature, but through a well-defined product offering at less than 500 euros, Renault was able in 2008 to change the rule of game and create navigation as a mass market feature using the TomTom Carminat Brand. This revolution is now behind us, and due to the extending complexity of infotainment system, Renault has brought to life a larger ecosystem for its latest navigation/multimedia product, R-link. Indeed, R-link is powered by Orange for the connectivity, Atos for the IT infrastructure enabling app store features, TomTom for the head unit, the navigation, the map and the set of live services (speedcam, weather, traffic, local search). Other companies are supplying complementary services. We are today extremely proud to continue partnership with Renault, and that R-link was awarded the first prize on SBD independent study on seven infotainment systems.

AI: TomTom’s navigation, maps and Traffic solutions have been chosen by Renault for its connected multimedia tablet- R-Link – how did TomTom customize its apps for this?

Schäfer: Actually, the TomTom navigation and user interface has evolved to meet Renault graphic identity. The menu structure has been inherited from the PND model (for instance to set a destination, choose a POI in a list…) , but the look and feel has been designed by Renault, with its own style guide. The traffic and map are actually in line with the PND and the previous generation TomTom Carminat. There was the intention of optimizing the interaction of multiple service providers on a large touch screen in the previous version of TomTom Carminat. The focus was on ease of use and optimized interaction for Touch screen.

AI: Give us some examples of how TomTom has had to customize its traffic and navigation solutions in different regions – what goes into such customization?

Schäfer: Our intention is to ensure that we offer world class traffic and navigation solutions to our customer’s needs. If a market requires a specific customization, we are capable to adapt our solutions to ensure they benefit most out of our content and services. When we look for instance at the way destination inputs are made in England or in China, there are specific behavior that have been integrated to enable post code guidance (England) or PINYIN entry (China). The heavy congestion in the extended urban areas of the major cities of China, for example, would not be considered normal in Western Europe. So you can imagine that congestion thresholds can be changed and different road classes can be treated differently to provide traffic information that suits the local region. There are many other configurable parameters that can be tuned to give the best weighting to the different data sources in the fusion engine (Smartphones/PND/taxi etc) to ensure the best quality information reaches our customers. AI

“Because Ford is willing to

choose the leading brands in

each category of application

that they will offer through

SYNC, TomTom was a

natural choice.”

The different layers of information in the Navkit.

Entertainment on the Move! High-quality in-car-entertainment at high speeds with the Entertainment Hub!

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130247_AZ_Magazin_Automotive_Industries_AK02_RZ.indd 1 19.11.13 16:06


stabilizer and blowing agents, and the absorption of additives by the fillers, which means that the additives are as a result not available in the polymer matrix to protect the polymer.

Our additives also ensure that there is no degradation throughout the life-cycle. Thermoplastic polymers such as PP, TPO, PE, PUR, PVC, and styrenes would not be suitable for automotive applications without stabilizers. Stabilizers allow the OEM to guarantee components under the hood, as well as molded exterior components for the life-time of the vehicle. The durability of plastics can be significantly improved with the right choice of stabilizers. This allows reduction of CO2 emissions and the use of

fossil resources because fewer articles are manufactured. The key point here is that stabilizers allow extension

of life time (durability), reduce the amount of plastic required, and so decrease the emission of CO2

and the consumption of fossil resources. When it comes to recyclability, downcycling

can be delayed or avoided with early top-up stabilization. Typically, stabilizer levels present in the polymer are not sufficient for the recycling process, and “top-up” stabilization is needed.

New standards require new solutions. The industry standards on VOC, FOG and total

carbon emission are changing drastically. State-of-the-art stabilization systems are not able to meet

these new standards. AI: How can you replace engineering polymers with

polypropylene for under the hood applications?Schmutz: Songwon’s Global Application Center development

facility in South Korea is in the process of developing a new stabilization system, which we call “Concept Alpha”. This concept will almost double the lifetime of PP at aging testing temperatures of 150° C. PP is very sensitive to thermo-oxidative degradation. There is severe degradation during melt conversion in the absence of stabilizers. Classical state-of-the art stabilizer systems reach only a certain performance level, because additives exceed solubility level in PP, and a further addition has only a marginal effect on the long-term thermal stability of PP. Our “Concept Alpha” is able to overcome these limitations.

AI: What is the right strategy to reduce volatiles and odor for car interior applications?

Schmutz: Classic stabilization systems typically meet most of the long-term thermal stability criteria of the automotive

One of the leaders in the field of polymer stabilizer developments is Songwon of Korea, while Sabo is a key player from Italy in the area of light stabilizers. Automotive Industries (AI) asked Thomas Schmutz, Director Global Technical Service at Songwon and Arnim Helmboldt, Marketing Director from Sabo what they see as the main trends in the auto industry.

Schmutz: There are a number of convergent trends which have a direct impact on the demand for polymers. The pressure on OEMs to reduce costs is higher than ever after the 2008 financial crisis. Together with being able to meet the demands of mass production comes the need to reduce development time. OEMs want to unify platforms – which allows for the faster development of new cars – while at the same time having maximum flexibility when it comes to design. The purchase of a car remains an emotional experience.

innovation

Adding strengthand durability to polymers By: Nick Palmen

Thomas Schmutz, Director Global Technical Service at Songwon.

Environmental pressures keep OEMs focused on weight savings in order to reduce CO2 emissions, and to increase the use of recycled materials. We see more and more recycled resins being used in vehicle manufacturing. Our challenge is to develop products which leave no deposit on the windshield, do not smell, do not degrade throughout the life cycle, and are more cost-effective.

There is a trend to replace the more expensive polymers such as styrenes or engineering polymers with polypropylene, and to substitute polypropylene with polyethylene because the availability of shale gas is widening the cost gap between these two polymers. There is also a move from the heavier polymers such as PVC or styrenes to lighter weight polymers such as polyolefins.

AI: What are the key trends in the automotive industry where Songwon additives can have an impact?

Schmutz: Weight savings - 100 Kg weight reduction yields up to 10 g/Km reduction of CO2 emissions. We have solutions to help OEMs reduce weight further by making a solid wall thinner. A reduction in thickness decreases intrinsic stability, and this can be counterbalanced by the use of more (or better) stabilizers. Factors that need to be taken into account include reaction between the

By adding more polymers to vehicles in order to save weight and increase the green credentials of their

vehicles OEMs are potentially building in a new set of challenges. Polypropylene-based materials and other

plastics need to be stronger, more environmentally sustainable, lighter and more durable than ever before.

Automotive I n d u s t r i e s 23

industry. However, they have a number of limitations related to extraction resistance, interaction with filler materials, interaction with carbon black, resistance to external chemicals (e.g. chlorine) , compatibility with selected UV additives, and indirect food contact (low SML of DSTDP). Songwon is offering three strategies to overcome the performance limitations of the classic systems. 1. SONGXTEND™ 2121 stabilizer is able to meet the long-term

thermal stability level of classic additive systems, while reducing the sulfur content by 60%.

2. SONGXTEND™ 2122 stabilizer equals the long-term thermal stability level of classic additive systems. The reduction of the sulfur content is 30%, and the system offers better cost performance.

3. SONGXTEND™ 2123 stabilizer is a completely sulfur -free system, which means it is odorless. The system cannot meet the long-term thermal stability performance level of the classic sulfur-based system, but is better than the next-best alternative.AI: How can an additive supplier make a car bumper

formulation – automotive exterior application - more cost efficient?

Helmboldt: Light stabilization formulations for car bumper systems based on TPO were established many years back. However the requirements for increased light stability combined with ancillary properties such as no blooming of the additives and excellent paint adhesion persist. Sabo has grown to become the second biggest supplier of monomeric and polymeric HALS (hindered amine light stabilizers) over the last years. We operate at two fully backward integrated manufacturing sites in Italy. We support our customers through security of supply and economy of scale. Sabo has invested substantially into the form giving abilities in order to provide safe, low dust and free flowing granular materials. SABO®STAB UV 70 and SABO®STAB UV 91 50PP light stabilizers are two of the products largely used in automotive applications.

Sabo entered into a distribution partnership with Songwon for its light stabilizers last year. The product ranges of Sabo and Songwon complement each other to form the second largest supplier of polymer additives. Our partnership extends to joining

resources in research and development. The outcome of the joint development resulted in a new solutions for automotive applications. These products are being promoted to selected customers under the trade names SABO®STAB UV 210 light stabilizer and SABO®STAB UV 228 50PP light stabilizer. They represent synergistic blends with SABO®STAB UV 228 50PP dedicated for interior applications and SABO®STAB UV 210 outperforming standard UV stabilizers in automotive exterior applications like TPO bumpers, when criteria like surface and color protection and gloss are key quality requirements.

AI: What is the right light stabilizer solution for an automotive interior application meeting the more stringent requirements of the automotive industry on VOC / FOG and total carbon emission?

Schmutz: The automotive industry recently changed the requirements of FOG. One of the reasons for this change is that nowadays new cars are stored outdoor for couple of months in case the market slows down and the off-take of the car dealers is reduced. Volatiles coming from additives in the polymer settle as a deposit (FOG) on the interior windscreen. This needs to be removed manually before the car gets sold, which adds to the

costs. The other reason for reducing volatiles in the car interior is the reduction of odor. Again, in most cases

low molecular weight components of the polymer or additives are the major contributors.

Arnim Helmboldt, Marketing Director of Sabo.

Helmboldt: The Songwon / SABO partnership understands the needs of the

automotive industry very well and in addition to SABO®STAB UV 228 50PP light stabilizer further solutions

for interior applications are under development.Our light stabilizers and new solutions offer excellent light

stability for applications such as dashboard, door panels, rear shelf and others. They are also able to meet the new requirements of the automotive industry in terms of low VOG, FOG and total carbon emission.

Songwon’s Maeam plant in South Korea.

Employees at the Songwon Ulsan plant in South Korea.

Working on the Songwon production line.

AI


innovation

Global technology and specialty materials company the Celanese Corporation is celebrating 50 years of its flagship product, the Celcon®/Hostaform® acetal copolymer (POM) product line by introducing a new Hostaform XGC glass re-inforced series for demanding structural applications.

Celanese has also introduced its next-generation GUR® ultra high molecular weight polyethylene (UHMW-PE) - nearly 60 years since the engineered material was first introduced at K 1955. “We believe this new Celanese technology can deliver tremendous value to our customers across a broad range of applications,” says Christopher Davie, Celanese strategy and marketing director - GUR, Industrial, Medical and Composites. “For example, this breakthrough technology can help manufacturers of membranes and separators achieve superior material performance and processing advantages.”

Recently, Celanese underwent a brand restructuring exercise which saw the company simplifying its brand architecture to capture in a single brand the full suite of Celanese technology, resources, products and solutions.

Automotive Industries (AI) asked Mark Rohr, chairman and chief executive officer, Celanese Corporation, what are the reasons behind the Celanese brand restructure.

Rohr: Last year Celanese started on a path to be a first-choice chemistry solution source. We established Global Sales and global Technology & Innovation teams to serve our customers better. Now, we are uniting our businesses under a global brand and identity: Celanese – The chemistry inside innovation. We expect this effort to improve customer understanding of our capabilities and knowledge and, over time, encourage broader discussions on how Celanese can better support them in reaching their goals and aspirations.

AI: What are some of the highlights of the new products/technologies that Celanese is introducing?

Rohr: Celanese engineered materials are designed to help automotive OEMs and Tier suppliers optimize the balance of functionality, performance, aesthetics and cost via parts consolidation, cost reduction, performance, functionality, appearance, durability and recyclability. This year, at K 2013, Celanese introduced six new engineered materials based on proprietary technology that should be of particular interest to the automotive/transportation industry.

AI then asked Phil McDivitt, vice president and general manager of the engineered materials business at Celanese, what are some of the highlights of the company’s new Hostaform XGC glass reinforced series.

McDivitt: Our new Hostaform XGC POM series, which combines improved mechanical properties with a superior anisotropic shrinkage factor vs. other glass fiber reinforced resins, can give customers a competitive edge in innovative structural applications, such as window lift plates, gears and motor housings used in the automotive industry. In addition, Celanese introduced a Hostaform low permeation and toughened POM, Hostaform extreme toughened XT POM, and Fortron ICE (Improved Crystallization Evolution) PPS. Hostaform LPT POM is a cost-competitive alternative material solution that can perform in fuel systems -even those that use “advanced fuels.” And, our Fortron ICE grades provide all the known performance benefits of Fortron PPS plus unmatched processability, which opens up significant and new design spaces in the automotive industry. This next generation Fortron PPS, with improved productivity and properties, can help customers stay competitive by reducing cycle times, scrap rates and overall production costs, as well as improve flatness and enable easier demolding.

AI: What makes the new product so much better than the earlier variants?

McDivitt: The new series provides wider design latitude and offers features that clearly differentiate it from other short-glass fiber POM copolymers and homopolymers. Celanese also designed its Hostaform LPT POM injection molding and blow molding grades to deliver an unprecedented balance of impact and durability performance.

AI: Tell us about the improvements in Celanese’s GUR® ultra high molecular weight polyethylene.

McDivitt: Our next generation GUR UHMW-PE is capable of delivering a step change in both material performance and processing efficiencies. We believe this technology can deliver tremendous value to our customers across a broad range of applications. For example, it can help manufacturers of membranes and separators achieve superior material performance and processing advantages.

New generation POMs helping to reshape auto manufacturing and design By: Esther Francis

Next Generation of Fortron® PPS — Successful field trials and tests demonstrate that new Fortron ICE grades can help customers stay competitive by reducing cycle times, scrap rates and overall production costs, as well as improve flatness and enable easier demolding. AI

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innovation

Austrian-headquartered firm Borealis is on a three-pronged mission – to cut vehicle weight through innovation, to expand global supply capabilities for the automotive industry and to strengthen global on-ground support.

For the first target of making vehicles lighter, Borealis’ auto-motive solutions offer mechanical properties, sound-dampening advantages, weight reduction and higher processing performance so providing global original equipment manufacturers (OEMs) and Tier One suppliers with a viable alternative to traditional higher density engineering plastics.

Within this focus on lightweight innovation, Borealis, together with its joint venture Borouge, is consolidating its existing product brands, such as Xmod™ and Nepol™, and introducing the new Fibremod™ brand as a benchmark for glass-fiber reinforced material. Fibremod GD301FE, for example, has been used in place of denser engineering plastics for the construction of pedal carriers and front-end carriers. This results in up to 15% weight savings and 10% lower system costs compared to a polyamide (PA) solution. The 30% glass fiber reinforced PP offers improved processing, high performance, and high stiffness with no pre-drying step. Earlier in 2013 Borealis and Borouge showcased components and under-the-bonnet applications used by BMW and Fiat / General Motors at the VDI International Conference held in Mannheim, Germany.

Focus on Driving Tomorrow By: James Hilton

In 2012 the two companies introduced a new grade of polypropylene (PP) specified for use in lightweight bumper applications for two new Renault automotive platforms. High flow Borcom™ WH107AE was specified for the recently introduced Dacia Lodgy, a minivan produced at Renault’s plant in Morocco and for the Renault Twizy, Renault’s first electric car produced at its plant in Spain.

Borealis and Borouge inaugurated a new PP compounding plan in Shanghai, China, in April 2010 to support global customers in Asia. The company also has two production sites in Brazil, where Borealis is currently expanding the site in Itatiba. The expansion in Brazil is taking into account a significant market growth in the future, driven by automotive and appliances customers. At the request of OEM partners, Borealis is also expanding its Fibremod production capacity in Europe with the recent inauguration of a new LGF (Long Glass Fiber) production line in Monza, Italy.

Borealis’ efforts to strengthen global on-ground support have led to the formation of dedicated Key Customer teams, providing better supply capability and support to Tier 1 and OEM customers in the automotive industry. The move is part of a consolidation of product brands and a new focus on Driving Tomorrow – which embodies Borealis’ approach of investing in innovation for lightweight solutions to benefit the global automotive industry.

Borealis and Borouge pride themselves on “Driving tomorrow”

through their innovative automotive plastics solutions.

Through their lightweight technologies, Borealis and Borouge are helping reduce vehicle weight and emissions in the global automobile industry.

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SongStab™ Acid Scavengers

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SongCat™ Tin Intermediates

SongCIZEr™ Plasticizers

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Songnox® Basic and Specialty Antioxidants

Songnox® oPS One Pack Systems

Sabo®Stab Hindered Amine Light Stabilizers

SongSorb® UV Light Absorbers

SongStab™ Acid Scavengers

SongStab™ PVC Stabilizers

SongCat™ Tin Intermediates

SongCIZEr™ Plasticizers

www.songwon.com


Automotive Industries (AI) asked Jost Eric Laumeyer, Global Marketing Manager, Borealis Engineering Applications, to expand on the thinking behind the brand revamp.

Laumeyer: Our brands Xmod and Nepol have been very well established in the market over the last decades and are very well known to our customers. Since 2010 we have shifted our strategy towards replacing Engineered Plastics, such as polyamids with our Borealis Engineered PP solutions. Our glass reinforced PP grades are also playing a very important role in that strategy. Bundling material performances, easing product overview and enabling a strong association between a brand name and innovative products led us to the decision to create the new Fibermod brand name.

AI: What are some of the major challenges in your supply/marketing network that have impacted your automotive business? What changes have come out of these challenges?

Laumeyer: It is fantastic to see how Engineered Polypropylenes have developed over the last 30 years in automotive applications, beating other plastic growth curves. The average PP consumption per car is estimated at around 60 kg in Europe, and although PP has always created challenges from the automotive industry in the past, it has resulted in engineered innovations such as bumpers, fenders and door panels. The challenge continues and we will further contribute to solutions, especially when it comes to making cars lighter to improve fuel consumption. Here we have recently commercialized several new programs where the density advantage of Borealis PP led to lighter automotive parts as air intake manifolds, IP carriers and pedal carriers.

AI: What are some of the Borealis’ latest technologies that will help?

Laumeyer: We are focusing on getting into material areas where PP did not play a big role in the past. Therefore we upgraded our glass reinforced PP product portfolio by adding tailor-made LGF (long glass fiber) PP grades from our own in-house source in Monza, Italy. The technology we are now using in Monza is a breakthrough technology, delivering superior mechanical properties which are required in applications such as IP carriers.

AI: How would you describe Borealis’ ability to respond quickly to fast-moving developments in the automotive sector?

Laumeyer: The configuration of the PP LGF production line in Monza is a good example of how we are working within our Borealis organization. It became clear for us that we needed

to develop a new LGF production technology because existing technology and products would not be able to withstand future higher product requirements. Therefore the Borealis Automotive team and our colleagues from R&D developed together a new and robust technology, which our manufacturing team translated into a large-scale production line in Monza. This is a great example of where we reacted fast to customer requirements, connected the right people together and implemented this project in 1.5 years.

AI: How do you see the market for performance polymers growing, especially today when green transport is a critical issue?

Laumeyer: The current mega trends in the automotive world are clearly visible in all of our customer visits. Lightweight materials and sustainability aspects are key deliverables for resin suppliers like Borealis. We clearly believe that our Borealis Engineered PP product offering already provides solutions to those mega trends, but the journey will go further for performance polymers like PP.

AI: How do Borealis and Borouge work together to develop technologies – does the primary responsibility for R&D lie with the parent company?

Laumeyer: We are making those developments where it makes sense. What is important is that the customer stays central in all activities we as Borealis and Borouge are doing. As our customer base is global, we need to make sure that the customer gets what is expected on time and at the required location. This needs to be coordinated between Borealis and Borouge, and should not have any impact on the customer. From both sides we are very well equipped and have the right people on board to develop new technologies and grades for our global customer base.

AI: What are some of the recent developments in plastics that you think will change the way automotive manufacturers use them?

Laumeyer: The Borealis PP offering is more and more in the minds of our customers’ design engineers, as they have the ability to push limits. Let me add a personal note to that. I started in 1995 as a design engineer in another global chemical company. At that time I was working on projects to design air intake manifolds in Polyamid 6.6 for customers. Doing this, I could not have imagined that this application could be done in PP. In 2010, when I joined Borealis, I learned that this can be done as the first air intake manifold in PP was launched by VW, using a glass reinforced PP grade from Borealis. My vision is that PP from Borealis will further support “Driving Tomorrow”! AI

Fiat pedal carrier made from Fibremod™ grade GD301FE, which is a 30% glass fibre reinforced polypropylene compound.

With the reshaping of their automotive business unit, Borealis can serve its customer, OEMs and Tier One suppliers, with more focus and precision, meaning better quality automobiles for the end consumer.

Victrex_AZ_210 x 273_RZ_20.9.13.indd 2 20.09.13 13:30


Reinert: As the world’s leading solution provider of PEEK polymers, we have a really huge portfolio of products. For each individual challenge we partner with customers to choose the right solution from our product range or even develop a modification able to meet current challenges. As you may know, VICTREX® PEEK polymer provides exceptional performance over a wide range of temperature and extreme conditions. It is the material of choice when an end-use application demands a combination of three or more

simultaneous performance properties.AI: What is Victrex’s contribution to the trend of downsizing engines? Can you give

us an example?Reinert: When Melling Engine Parts,

a leading manufacturer of fluid pumps for the worldwide transportation industry headquartered in Jackson/USA, was developing its innovative electric water pump for the automotive industry, it needed a small sliding bushes that would support the pump’s impeller in the highly stressful

environment of today’s engine cooling systems. Melling chose an innovative wear

grade, VICTREX® WG™ polymer, for the bushes because of its ability to withstand the mechanical

stresses of a high-heat environment where metals had previously failed.

VICTREX® WG polymer maintains its properties at high temperatures even after 5,000 hours at 250°C and is – despite the corrosive pump media – able to withstand the mechanical stresses of a high-heat environment for a long period of time. At the same time, the high-tech material contributes to the optimal efficiency of the pump by reducing frictional losses. This results in reduced power consumption, less wear on the pump, and therefore a longer lifetime than metal components – and so meeting the extended warranty targets.

In many cases the solution lies in replacing metal components with plastics. Automotive Industries (AI) asked Jürgen Reinert, Global Automotive Strategy Manager Victrex Polymer Solutions, how polymers can help OEMs meet the challenges posed by the increasing requirements for CO2 reduction.

Reinert: Our 35 years of experience in applying high-performance polymers based on VICTREX® PEEK polymer has resulted in a whole serious of innovative, reliable solutions which have proven that our thermoplastics perform well even in most demanding environments. To gain know-how is important, but it is even more important to genuinely act as a solutions provider by partnering with OEMs and Tier1s next to the enablers, our processors.

innovation

Polymers outperforming metals in demanding applications By: Nick Palmen

Jürgen Reinert, Global Automotive Strategy Manager

Victrex Polymer Solutions.

Let me give you a “simple” example: balance shaft gears when made with VICTREX® PEEK instead of metal saw a 68% reduction in weight. To be quite honest, these gears are really small and do not weigh much, so the saving is not particularly significant. Much more important is the fact that this is accompanied by a 78% reduction in the moment of inertia, which results in a 9% increase in efficiency due to a reduced moving mass and lower frictional losses, not to mention a comfortable “side effect” for drivers: a 3dB reduction of harsh noise and vibration. For the human ear this is equivalent to a 50% reduction in noise level.

AI: How do you help OEMs and suppliers to identify solutions and materials that reduce weight without compromising performance?

In order to meet emission, safety and other environmental standards automotive OEMs and suppliers need to identify solutions and materials that are lightweight, while providing improved performance. Equally importantly, the durability of the components has to support the trend for manufacturers to offer extended vehicle warranties.

VICTREX® PipesTM help Airbus to lift-off more efficiently, because the tubes weight 60%

less than equivalent stainless steel tubing.


couple of months ago. The inclusion of high-modulus fibers (HMF) into high-flow VICTREX® PEEK offers the strength and stiffness that have given engineers the confidence to displace metals. Having the flying examples that Victrex materials are just as capable as the metals they are replacing in aerospace applications means that Victrex is able to transfer that experience, knowledge and data to the automotive industry to support its overall weight saving efforts and targets. Victrex also understands that, as operating environments become more extreme, material integrity will be critical to performance.

AI: How is Victrex positioned globally to meet the demand for metal replacement?

Reinert: Victrex has continuously expanded its product range, applications and production capacity. With a technical center at its headquarters in the UK and technology centers in Shanghai and Tokyo, Victrex provides testing, prototyping and application development for processors and end customers. Through the targeted expansion of global dedicated industry teams, our automotive experts for example cover important markets worldwide – including those in Europe, the USA and Asia. We have a serious understanding of regional as well as global trends. Victrex is also currently investing in additional production capacity, to ensure we can meet the security of supply that customers need. Furthermore, we use our experience with PEEK to advise our customers at every step of the way, to ensure that their needs are met - from conception to mass production – to boost both profitability and the future performance of their products.

AI: What can we expect from Victrex in the future? Reinert: Every industry has its own future requirements. Being

aware of these industry-specific characteristics helps us to meet the challenges of our customers and to translate these challenges into benefits for customers along the entire value chain from various industries. By taking into account changing requirements ahead of time, and by talking and listing to our customers we can contribute the right know how and material solution according to their needs, today and tomorrow. This enables us to support OEMs as well as their suppliers to move ahead of their competition.

AI: What benefits do you offer OEMs in terms of minimizing friction losses, while increasing efficiency and safety?

Reinert: Usually engineers don’t like to see friction losses as they result in heat, abrasion and ultimately a diminished component lifetime. Take thrust elements made from VICTREX® WG101, for example. This grade has excellent frictional properties and is able to withstand extreme conditions up to 20 times longer due to its excellent creep resistance compared to that of other PAEK compounds – even with poor lubrication.

But wear resistance, compressive creep resistance, and low, constant coefficients of friction do not usually suffice. Materials also have to withstand both progressively high temperatures and the increasingly aggressive synthetic lubricants used in gearboxes. In today’s transmission oils, VICTREX® PEEK shows no perceptible change, even if extreme pressure (e.p.) additives are added. The result is higher efficiency and safety due to higher reliability, and a longer lifetime, with fewer repairs needed. Of course, cost-efficient production plays a major role in the automotive industry´s decision making. With VICTREX® PEEK produced in a standard injection molding process, typically there is no need for post processing.

AI: How does your aerospace expertise help with the development process of lightweight automotive solutions?

Reinert: With the aerospace industry focusing on reducing aircraft weight engineers are searching for reliable solutions such as thermoplastic compounds that can perform with at least the same assurance as traditional metals and thermosets. For decades, polymer solutions based on VICTREX® PEEK, including VICTREX® PEEK in unfilled carbon fiber-filled, and glass fiber-filled variants, have proven successful in removing excess weight from the likes of aircraft or industrial equipment. Lightweight tubing made of VICTREX® PEEK weight 60 % less than equivalent stainless steel tubing. These VICTREX® PipesTM are used for the drainage system in the cargo holds of the A350 XWB. And with VICTREX® PEEK HMF polymers weight savings up to 80 % compared to metals are possible. The carbon fiber-filled material offers the highest specific strength currently available in the Victrex product range and was therefore approved by Airbus a AI

LEFT: Gears for a balance shaft made with VICTREX PEEK instead of metal: 78% reduction in the moment of inertia results in a 9% increase in efficiency due to a reduced moving mass and lower frictional losses.

BELOW: VICTREX® PEEK.


not only a major milestone for Telit but also for the M2M module industry which now becomes a full member of the demanding automotive supply chain. This certification dovetails with another very important measure of long-term stability and quality of our products -- the Production Part Approval Process (PPAP). That is a validation test which products have to pass before they can be released for use in the automotive market. The PPAP suite contains a comprehensive set of relevant mechanical and environmental tests specified in ISO 16750 (-1/2/3:2006) and ETSI EN 300 019 (Part 1-1/2/5) designed to guarantee the extremely high quality levels as mandated by the automotive manufacturers. The purpose of this test is to demonstrate the robustness of the product under pre-defined environmental

conditions. It has to be shown that the units survive the test suite without irreversible failure and perform

according to product specifications. The two work together to ensure full traceability and

highest quality in the entire automotive supply chain.

Our non-automotive customers also benefit from these certifications which guarantee that everything we do is subject to the strictest rules of quality and process management, including our mobile network, cloud, and application enablement value-added services from

Telit’s business unit m2mAIR.AI: Tell us a little about your R&D

center in Trieste, Italy – how effective has it been to centralize your research and

development for the global market?Hierl: Our center in Trieste is Telit’s first and still

most densely staffed R&D site. It spearheads most of the research and engineering for our cellular products. It also acts as the coordination hub for the work developed out of our other six R&D facilities in: Cagliari (Italy) - focusing on Short Range Integration between Cellular and GNSS/Short Range; Chicago, Illinois (USA)

Long-range cellular connects devices to each-other and the Internet of Things or IoT. Short-range license free wireless, connecting devices to their peripherals, to each other, and to long-range gateways. And, thirdly, there is position awareness for all connected devices. These are all woven together by services to add the necessary value and functionality to fully connect devices to the systems they integrate.

According to Dominikus Hierl, CMO at Telit, the various automotive market segments collectively represent the largest growth potential for wireless M2M communication in the near future. “About 50 million new cars were sold globally in 2009. Only about 5% were equipped with line-fitted Telematics systems. Juniper Research estimates this number to grow to 90 million connected cars by 2016,” says Hierl.

“As a major player in the global M2M market, Telit is regularly approached by carmakers and Tier-1 automotive system integrators to provide dedicated vertical solutions. In response to

innovation

Connecting the three pillarsof M2M technology By: Claudio Francisco

Dominikus Hierl,CMO of Telit.

this demand, we have developed a premier portfolio of automotive-grade GPRS, HSPA, HSPA+ and LTE modules designed to serve the specific needs of this booming market”

Automotive Industries (AI) asked Hierl how significant the recent award ISO TS 16949 certification to the company’s network across the globe was.

Hierl: Very significant. It is an essential requirement to play in the automotive space. Achieving ISO/TS 16949 certification is

“This completely global distribution of R&D centers is designed to leverage local talent and excellence.”

Three technology pillars, along with their services, need to converge in order to provide seamless machine to machine (M2M) communication, according to Telit Wireless Solutions, a global provider of M2M solutions, products and services.


– North America Mobile Network Services Development; Seoul (Korea) – CDMA, EV-DO, 3G; Tel Aviv (Israel) - 4G, SIM Card-based m2mAIR global module management services; Foothill Ranch, California (USA) – GNSS, Cognitive Positioning; and Boca Raton, Florida (USA) – PaaS, Cloud, Application Enablement Services. This completely global distribution of R&D centers is designed to leverage local talent and excellence. We plan to maintain and build up this global structure responding to opportunities and demand.

AI: What are some of Telit’s products that are found in the automotive market?

Hierl: The GE864-QUAD Automotive V2 is the second generation of this very accomplished automotive module. It is certified to the ISO 16750-1:2003 specification for road vehicles – Environmental conditions and testing for electrical and electronic equipment according to parts [1] ISO 16750-1:2003, Part 1: General; [2] ISO 16750-3:2003, Part 3: Mechanical loads and [3] ISO 16750-4:2003, Part 4: Climatic loads. The new LTE LE920 AUTO and HSPA+ HE920 AUTO modules are packaged in Telit’s new ruggedized 198-pad LGA form factor designed specifically for the automotive industry. This new form factor boasts very high vibration resistance and class-leading heat dissipation which are extremely important for sustained high speed data operation in the hot environments of in-vehicle electronics.

We are also introducing automotive grade members of our flagship module family, the xE910. The UE 910-EU AUTO and GE 910-QUAD AUTO are brand new modules in the xE910 compact 28.2x28.2x2.2mm form factor. All Telit automotive products are tested and fully compliant with VDA 1.6 for car hands-free terminals, a specification developed by VDA, the German car manufacturers association, to ensure that all components used in car phones work in a manner to provide optimal performance in terms of noise reduction and echo cancelation.

AI: What has Telit’s role been in the eCall committee?Hierl: Telit has been part of the eSafety eCall steering

committee since 2005. This committee was the one which drafted a memorandum of understanding for the implementation of interoperable in-vehicle eCall.

AI: Give us an idea of the role your products play in the eCall initiative.

Hierl: All of our automotive grade products are compliant with the In-band Modem specification according to ETSI eCall. What that means to automotive OEMs and integrators is a shortcut to full compliance to eCall with the use of any of our automotive products.

AI: How do you see the M2M technologies growing in the automotive segment?

Hierl: The US remains the leader in non-regulated line-fitted solutions. In mid-2013. GM OnStar was the world’s largest OEM telematics service. It is used by the company in North America and China, and has 6.2 million subscribers. An international assessment of 12 car OEMs on Safety and Security Telematics published in September 2013 by ABI Research placed GM’s OnStar in first place, followed by Ford in second and Toyota in third. European efforts in auto OEM telematics tend to lag because of the multiple languages and fragmented regulatory climate – The ABI assessment echoes this diagnosis. That should disappear with eCall, however.

Upcoming legislation like the eCall mandate in Europe, resolution 245 of the Brazilian government, and local initiatives in emerging markets such as China will add momentum to the potential of these regional markets. We believe that going forward, the majority of new cars will be equipped with some type of wireless connectivity

AI: How does your strategy in the US differ from that in other markets and why?

Hierl: The U.S. is different in a number of ways. It is very large in absolute numbers and penetration. The mobile communications landscape is dominated by four large mobile network operators (MNO) and a single language, which is different from Europe’s highly fragmented MNO market with high regulatory and language differences needing to be addressed. According to ABI, its assessment leaders, GM, Ford, BMW, and Toyota were characterized by high market share and innovative approaches. With two out of the four being US car companies, it is clear the approach in the U.S. has to be different to – but essentially with similar priority – as the approach in Europe and Asia. AI

LEFT: The LE920 is part of Telit’s xE920 form factor family conceived to address stringent requirements in the areas of quality assurance and traceability as well as extended environmental tolerance for OEM automotive and harsh environment application areas.

BELOW: The networked car.


eCall’s first test bed outside of Europe is helping to create the connections needed for the system to be rolled out.

In 2012, FUJITSU TEN, Japan’s leading intelligent transport systems (ITS) company, along with digital security company Gemalto and ERTICO, established Japan’s first experimental eCall emergency system at the Yokosuka Research Park. “We are very much impressed about this first 112 EU eCall test bed outside of Europe,” said Andy Rooke, HeERO Project Manager of ERTICO, ITS Europe. “By working together in a proactive manner, the technical partners in this self-funded project have demonstrated that the Japanese automotive industry and supply chain will be ready to embrace the test and certification needs of Pan European eCall based on 112 by utilizing the GSM outdoor test facility at the Yokosuka Research Park.”

FUJITSU TEN recently became a member of ERTICO, which is the network of Intelligent Transport Systems and Services stakeholders in Europe. “For us it was vital to launch an initiative such as eCall in Europe, where safety is always more central and advanced than the rest of the world. The purpose of launching the platform for experimentation was to become a trusted hub for European initiatives. It aimed to contribute to the fast development of the ‘advanced safety system’ by state-of-the-art technology for ‘lives saved’ and to our saying ‘inochi-nokizuna’,” said Yoshinari Shiraishi, Executive Chief Engineer, FUJITSU TEN in an interview on the ERTICO website.

Automotive Industries (AI) asked Akihiro Fujiwara, Vice President of the Technical Centre Nuremberg, FUJITSU TEN Europe, what the company’s role has been in the HeERO project in Europe.

innovation

eCall test bed created in Japan By: Claudio Francisco

An on-board camera system equipped with Multi Angle Vision™ enables owners to see if anyone is tampering with their vehicle.

Fujiwara: First of all, I would like to thank ERTICO for inviting us the HeERO project. Last year we established a new decade vision (VISION 2022) in which we say our social responsibility is to focus on vehicle safety systems. We will establish an advanced safety system not only using stand-alone sensors and ECUs, but also using networked ICT infrastructure. We believe adapting our system to real network in Europe is a great opportunity to contribute to complete the rescue system in Europe.

AI: How do you hope to replicate this in Japan and other non-European countries?

Fujiwara: First of all we would like to prove our performance and reliability in Europe. The experience of interoperability testing in Europe is always helpful to promote the technology in other countries.

AI: What is the significance of FUJITSU TEN joining ERTICO? Fujiwara: Eco and safety are the most emerging area of

our business field and important from business point of view, of course. I believe our technology could contribute to ERTICO, which is leading the standardization of this field of development, as well as evaluation activities like the HeERO project.

AI: What are some of your company’s latest technological breakthroughs?

Fujiwara: We have resourced in the form of several operating systems such as Android, Linux, Windows, U-Tron and AUTOSAR. Our strength is to be able to adopt any OEM requirement or standards. We are developing advanced HMI focusing on reducing driver distraction mainly for the US market.

AI: Tell us a little about your new product lines including the millimeter wave radar and multi-angled vision.

Fujiwara: We are the one of top radar suppliers in the automotive industry. We line up high-end class products of long range detection and vertical resolution. We introduced our multi angle vision system which can change the view point through a Smartphone.

AI: What are the technologies FUJITSU TEN is working on to make autonomous cars a reality?

Fujiwara: For more precise driving support, synergy of sensor technology and big data analysis is needed. Our advanced DSS concept is being developed for both the IVS and ICT systems. So, we are working on both the vehicle and cloud sides.

AI: What would you say are FUJITSU TEN’s biggest strengths/advantages in terms of ITS solutions?

Fujiwara: FUJITSU TEN is developing most of the IVS parts and systems in the fields of monitoring, sensing, safety and security and infotainment. We can connect this expertise to the ICT system to establish advanced driving support systems with our ICT partner Fujitsu, which is also developing a powerful human-centric system. AI

“KIZUNA”(lives saved) is the guiding principle behindFujitsu Ten’s support for the Pan-European eCall system through

its involvement in the ERTICO partnership.

Düsseldorf OfficeMündelheimer Weg 39, 40472 Düsseldorf, Germany(+49-211-301875-550)

Technical Center Nuernberg Südwestpark 23, 90449 Nürnberg,Germany (+49-911-309-125-0) [email protected]

Brussels Office Leuvensesteenweg 555/B.6,B-1930 Zaventem,Belgium (+32-2-712-8181)

UK OfficeLOE House,159 Broadhurst Gardens,London NW6 3AU,UK (+44-20-7328-4499)[email protected]

Fujitsu Ten (Europe) GmbH

KIZUNA

Visit our websites

www.fujitsu-ten.com

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Fujitsu Advert AI Nov13.indd 1 18/11/2013 20:51

“KIZUNA”(lives saved) is the guiding principle behindFujitsu Ten’s support for the Pan-European eCall system through

its involvement in the ERTICO partnership.

Düsseldorf OfficeMündelheimer Weg 39, 40472 Düsseldorf, Germany(+49-211-301875-550)

Technical Center Nuernberg Südwestpark 23, 90449 Nürnberg,Germany (+49-911-309-125-0) [email protected]

Brussels Office Leuvensesteenweg 555/B.6,B-1930 Zaventem,Belgium (+32-2-712-8181)

UK OfficeLOE House,159 Broadhurst Gardens,London NW6 3AU,UK (+44-20-7328-4499)[email protected]

Fujitsu Ten (Europe) GmbH

KIZUNA

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Fujitsu Advert AI Nov13.indd 1 18/11/2013 20:51


innovation

The days of having several individual devices for communication, entertainment, information and work are quickly disappearing. Forecasts indicate that in the next four years Smartphones will be our principal device. By 2017 it is estimated globally that there will be 100% more purchases of Smartphones than Desktop PCs and three times as many Smartphones as Tablets.

There are, comparatively, only a handful of Smartphone applications designed for use in cars. The 50 or so Apps cover Navigation/Search, Radio/Music/News, Health alerts, Social networking, Leisure planning and OEM Masterservices. The world of car-enabled apps continues to improve in simplicity, distraction minimization, affordability, and includes related human machine interfaces for in cars. In the last 10 years, Luxoft has been one of the few companies specializing in the development and design of human machine interface systems specifically for the automotive market.

Automotive Industries (AI) asked Vasiliy Suvorov, VP Technology Strategy at Luxoft, to share his expertise on where the next generation device integration is headed.

Suvorov: Currently there are three options for connectivity: device hosted, hybrid and in-dash. Each of these three options utilizes various platforms. Usually when connectivity is device hosted it is via MirrorLink, AppLink or Luxoft’s iviLink. When we are speaking of hybrid we are talking about Aha radio, Toyota’s entune, as well as systems from Mercedes and BMW. The example of an in-dash option is Chevrolet’s myLink.

Looking at the penetration of car connectivity in the USA we have found that 28% of people have Bluetooth in their primary car, 21% have listened to online radio in the car, but only 6% actually have built-in IVI in their primary car. What we have learned indicates that in-dash performance is not optimal yet. I think that the hybrid model (with apps which run on both head unit and a mobile device) will win eventually, but enabling apps to run on a mobile device first is easier to accomplish and therefore should be a priority. While OEM branding and control must be there, we also need to work

Creating A Dynamic HMI ForNext-Gen Device Integration By: Alan Tran

on convergence on app connectivity/deployment standards across industry. I’m sure that leveraging open standards will help us actually realize connectivity for mid-tier and entry-level cars.

AI: What are some of the open source standards that are available for in-car connectivity?

Suvorov: In 2012 Luxoft launched its iviLink which allows clients to develop their own products and bring them to market more quickly while reducing costs. iviLink works with iOS, Android, Linux, and QNX. You can read more about iviLink and download SDK at www.iviLink.net. Currently we are merging iviLink with Ford’s SmartDeviceLink, which Ford had contributed to GENIVI Alliance. We are very excited about this opportunity as it helps defragment the market for app developers and converge on a single field-proven technology going forward.

AI: Tell us more about the Genivi Smart Device Connectivity Effort?

Suvorov: There is a CE Connectivity Expert Group that is leading a tremendous effort that should result in market defragmentation by unification of open sourced efforts. The CE Connectivity Group is standardizing specifications for the so-called Smart Device Connectivity Component, a software module enabling head unit connectivity runtime for mobile apps. We are learning from and collaborating with a wide range of technologies including MirrorLink, iviLink, and Livio. These contributions are being made by Luxoft, Jambit, BMW, Livio, and JLR, which all will become part of the Genivi Compliant Statement. As I mentioned before, Ford is contributing the technology behind the SYNC Applink called SmartDeviceLink (SDL). The source code for SDL is being hosted at GENIVI’s git repository and is open to the entire automotive community.

AI: How do you see the “Use Cases” for in-Vehicle Apps?Suvorov: You could say that there are three types of driver

personas; the novice, the pragmatist and the enthusiast. Each of these types require a certain amount of personalization,

Integration is always a challenge in a fragmented world. Synchronization of infotainment, communication and professional networking is, however, no longer a trend but a necessity.


and demand for internet radio, third-party navigation & ADAS, connected services, connected manuals, maintenance & tuning and even resources for health concerns. Passenger Use Cases may include personalization, navigation entry, augmented navigation, Media Playback and RSE. Opportunities for data sharing and in-car collaboration evolve around hospitality and trip planning, social networking, collaborative entertainment, and distraction offload.

AI: What are the concerns over driver distraction?Suvorov: Transportation authorities and vehicle makers are

highly concerned over rising driver distraction because of all the new infotainment features. In addition, roads are becoming more complex, which increases distraction. In Europe there is ESoP recommendations for HMI, in the USA there is NHTSA guidelines and in Japan there is already the JAMA regulation; all of which are trying to mitigate the dangers of driver distractions. This is creating a greater necessity for app integration and HMI to be developed in a way that minimizes risk factors.

AI: How are risks minimized with Driver Workload Management?

Suvorov: The driver’s ability to concentrate on the road can be easily overloaded by various car features and events that compete for his or her attention. It’s important to estimate in real-time how much of the driver’s attention span is available to deal with dynamic information or car features that are non-essential to handling the current road conditions. We can do this by estimating the driver workload through automatically analyzing real-time car sensor data, traffic information and driver behavior. The information is used to adjust the behavior of HMI in such a way as to focus driver’s attention on handling the car. We call this Situational HMI.

AI: Can you give some examples?Suvorov: Let’s imagine that you’re driving with your spouse on

vacation and using a built-in navigation system with Situational HMI technology. Your spouse has a Smartphone with a Situational HMI app that is connected to the car. In case of the “low workload” the

driver would see a detailed navigation screen and the passenger simultaneously sees the detailed POI information as well as other helpful tips, making the drive safe and fun for everyone in the car. As driver workload rises to “medium” level (maybe approaching a complex junction), HMI will automatically simplify the navigation screen for the driver, while adding helpful navigation tips on the passenger’s smartphone. The driver’s attention stays on the road and the passenger is ready to help when required. In case of a “high workload” (bad weather, heavy traffic, etc.), Situational HMI will even further simplify and rearrange the driver’s navigation screen and redirect all distractions such as calls, etc. to the passenger’s smartphone. Hopefully, you can see why we call it a Co-Pilot scenario.

AI: What are the next steps in developing these Apps?Suvorov: In order to bring the technology to market,

especially the entry-level and mid-tier vehicles, we need to focus on standardizing API’s, interfaces and enabling cooperation of all industry players. I am happy that the GENIVI Alliance is forming a special interest group that is focusing on understanding requirements and defining interfaces for bringing driver workload management estimation algorithms into the head unit environment. This has a high significance for us and we are developing a wide range of reference applications for workload management scenarios.

AI: In summary what would say is our greatest call to action in this field?

Suvorov: Integrating workload management is helping to unlock the value of multiple screens and the development of human machine interface systems that will minimize safety concerns. At the same time it’s clear that multiple, incompatible connectivity technologies and closed ecosystems are really counterproductive. The rate of innovation in connected car HMIs and the pace of its market adoption greatly depends on our ability to work together to define common APIs which will help app developers, OEMs and the rest of the ecosystem, and bring more apps and services to cars while making cars more safe. AI

“The rate of innovation in connected car HMIs and the pace of its market adoption greatly depends on our ability to work together to define common APIs which will help app developers, OEMs and the rest of the ecosystem, and bring more apps and services to cars while making cars more safe.”

The system is automatically configured to minimize distraction.

Medium

Workload

High

Workload


in the field of ICT and automotive, as well as national governments such as the German Ministry for Economics and Technology; and associations like VDMA. Technomar has also conducted a number of projects for the European Commission. It was the lead partner for the structural analysis of the European Satellite Navigation System Galileo. On behalf of TÜV SÜD, Technomar conducted a representative survey regarding the future of car distribution in 2011.

The SMARTV2G participated in the 27th edition of the World Symposium and Exhibition (EVS) organized by the World Electric Vehicle Association (WEVA). The event is recognized as the premier event for academic, government and industry professionals involved in electric drive technologies held in Barcelona, Spain, from November 17 to 20.

Automotive Industries (AI) asked Zsolt Krémer, joint Managing Director, Technomar, to explain the “smartness” of the charging station and overall system.

Krémer: Smart system modules work together to provide a full electronic vehicle (FEV) fleet management tool

integrated with the charging station infrastructure and with the smart grid. It is important to

ensure that grid provides information about its charging station positions, its capacity utilization and forecast of energy costs. For these reasons smart modules have been developed in order to interact with the charging station (CS) infrastructure, using self-developed, secure communication flows between the CS infrastructure and

the V2GSI components. In addition, the CS infrastructure supports

the higher ICT levels by providing the information needed for monitoring of operation and provision

of value-added services. The main intelligence of the smart charging infrastructure lies in the higher control level.

It is entity responsible for the intelligently management of the energy demands received from the different CS through the day, along with the reservations made. It also has to communicate with the demand-side operator, to supervise electrical levels and power quality, and maybe with an aggregator to buy the energy needed for charging. In this sense, various features have been developed, such as EV load forecasting, estimation of V2G availability, optimal management of CSs according to demand

Smart electronic grids are needed to support the smart electronic and hybrid vehicles that are making inroads into the market. Smart grids also need smart business plans in order to ensure that they are sustainable.

One of the companies working on the business model is Technomar, which was established in 1978 as a technology oriented market research and business consultancy. Today, the company has a network of associated institutes across the world.

Technomar is part of the FP7 Project Smart Vehicle to Grid Interface SMARTV2G. The main target of the project is the intelligent connection of electric vehicles to the grid and data network. This requires the development of new generation technologies for safe, seamless and user- friendly charging of electric vehicles in urban areas.

The project consortium consists of seven companies from four European countries, which provide familiar know-how from the Electric-Mobility sector. The consortium members are The University of Rome, the Slovenian supplier of software and hardware for smart-grid charging infrastructure for electric vehicles ETREL, the electrical distribution company Elektro

innovation

Crafting a business modelfor EV charging solutions By: Jon Knox

Zsolt Krémer, Managing Director, Technomar.

Ljubljana, the Spanish integrator of ICT solutions CIT, the Spanish Electrical Technology Institute (ITE), the German Fraunhofer Institute for Communication Systems ESK and Technomar.

Technomar’s focus is on supporting industrial goods manufacturing companies including the automotive industry. For automotive companies, Technomar is able to provide expertise in the areas of systems engineering and process technology.

The company’s customers represent all industries along the value chain of electromobility, such as Siemens, Motorola, Kuka, Continental, DENSO, E.ON Ruhrgas, and others who are acting

“The main intelligence of the smart charging infrastructure liesin the higher control level.”


side management and users preference like, for example CS booking, CS finder and route planning

AI: How will the system comply with the applicable standards for the interconnection with the electric power systems?

Krémer: One of the main objectives in the SMARTV2G project is to obtain a fast DC charger with smart and bi-directional capabilities in order to facilitate the interoperability between different protocols in the EU. To achieve this objective, the communication specifications of current CHAdeMO quick charging connection standard have been expanded. The dual power converter topology selected and developed ensures that the bidirectional power flow is feasible.

However, there’s no public IEC standard that covers the bidirectional power flow for DC Chargers (from vehicle to grid). While there is agreement ISO/IEC 15118-1, as of now there has been no implementation of the standard. ISO 15118 specifies the communication between Electric Vehicles (EV) (including battery electric vehicles and plug-in hybrid electric vehicles), and the electric vehicle supply equipment (EVSE).

AI then asked Andreas Varesi, joint Managing Director, Technomar, what benefits provided by communication between an electric vehicle and the smart grid were highlighted at the 27th EVS hosted in Barcelona.

Varesi: This communication simplifies the charging process while saving energy and money. To ensure a timely charging process, the system requires information regarding the available charging stations within the calculated driving range. Determining the optimal charging station requires static information such as location, existing charging options, payment methods or a detailed map showing how to get there.

Highly dynamic information is also relevant for an optimal charging process. This includes the number of available parking spots, current energy prices and a reservation process. Data exchange is also necessary for identifying the user and selecting preset options, as well as for authentication and billing. All these features are developed and will be presented.

A second issue will be the communication between the smart grid and the e-vehicle. Researchers are creating a uniform, manufacture-independent specification for the electric-vehicle-

to-charging station communication through ISO/IEC15118. This standard defines a comprehensive exchange of information that is essential for the “smart” charging process. Communication between the charging station and the smart grid will be based on an enhancement of the IEC 61850 global standard.

Our partner in the consortium, Fraunhofer ESK, is a driving force behind the further development of the IEC61850-90-8 specification, which to date has been available in draft form. By combining the two standards, the charging station is transformed

into a node that integrates the electric vehicle charging process into the smart grid.

Andreas Varesi, Managing Director, Technomar

For wireless communication, one of the technologies under consideration is the new IEEE

802.11p standard, including the ITS-G5 European profile for local communication between vehicles and road side units (RSU) in the communication infrastructure.

Some of these electromobility wireless interface functions are currently being specified by the European Telecommunications Standards Institute (ETSI) in the area of intelligent traffic systems (ITS). Fraunhofer ESK is also examining mobile technologies such as UMTS and LTE in addition to various hybrid approaches as part of the project.

AI: Tell us a little about Technomar’s role in the project.Varesi: Technomar is responsible for dissemination and the

business plan. We are working on business models to bring the findings to market and screening cooperation partners for the global concept, as well as for the single project developments. It is clear that the provision of charging stations alone cannot generate sufficient turnover to finance the necessary investments. So, we have to analyze which business models can be attractive and how the project developments can be used. AI

SMARTV2G is a collaborative project funded by the European Union’s Seventh Framework Programme (FP7).User scenarios on the smart grid.


appropriate mobile network solutions for the regulations, while supporting education on industry compliance and the value-add service opportunities fostered by these regulations. European eCall, ERA GLONASS in Russia and SIMRAV in Brazil are current areas of work.

• In-vehicle connection experience: fostering alignment cross-industry on next generation tethering technologies, such as Wifi Direct and NFC.AI: What are some of the legislative breakthroughs CCF

has facilitated so far?Forestieri: The CCF has focused on a number of policy

issues over the last years, mostly related to mandatory telematics deployment regulations for Europe (eCall), for Russia (emergency call services and value added services: ERA GLONASS) and for Brazil (stolen vehicle location: SIMRAV).

AI: What are the challenges in developing markets: ERA-GLONASS (Russia) and Contran 245 mandate (Brazil)…. Will there be similar mandates for China and India?

Forestieri: We hope that operators, automakers and regulators will jointly define eventual future regulatory mandates, so that we can avoid the mistakes of the past and ensure that these opportunities are maximised (both in increasing safety & security, as well as to support the knock-on effects possible by embedded technologies for value-add services). Our understanding is that future regulatory deployments are being examined in China, Iceland, Israel, New Zealand, and Qatar. We are not yet engaged with these additional geographies.

Barriers are to the deployment of connected cars and ser-vices are being removed through cross-industry action steered by the Connected Car Forum (CCF).

According to the CCF, it is expected that over 50% of global vehicles sold in 2015 will be connected - either by embedded tethered or smart phone integration, and that every new car will be connected in multiple manners by 2025.

Automotive Industries (AI) asked Francesca Forestieri, Director mAutomotive, Connected Living, GSMA, what some of the areas of focus for CCF members will be over the next year.

Forestieri: The Connected Car Forum’s activities focus on areas considered by operators and automakers to be the biggest priorities for enabling increased connected services. This year we are focusing our activities in five areas:• Big Data: Creating a sandbox for big data around the connected

cars and devices, which fosters mash-ups across different actors and sectors, in order to identify new user experiences, improved internal efficiencies and data monetisation.

• Charging and Billing: Enabling differential charging and billing for in-vehicle services using embedded technologies so as to help foster the deployment of innovative business models for these services.

• Remote installation and management of operator profiles within Embedded SIM cards to facilitate simple and scalable connections for connected cars.

• Mandatory regulatory fitment: focusing on promoting

innovation

Steering connected car services into the fast lane By: Claudio Francisco

Make you some money! Car sharing services can help you rent your car out safely when you are not using it. RelayRides service from OnStar

Save you money! Your electric car will charge itself during non-peak hours and in the future you can use your car batteries to power your TV at home during peak hours. Concepts shown by various OEMs

Wake you up in the morning! Your car can predict traffic conditions and will remind you to leave early to make sure you are on time for the meeting that’s on your digital diary.

Google Now already offers some form of pro-active route planning

Play your favourite online music! Internet radio and cloud music streaming to the car. BMW, Ford, Toyota amowg the many already offering internet radio

Keep your friends close! Following a friend by car to that party? Let your car keep an eye of your friend ahead. Location sharing is already being launched (Mercedes-Benz Glympse app)

Maintain itself! No more worries about car servicing. The car will tell you what it needs when it needs and even offer you vouchers from garages. Oh, and it can also fix itself where possible.

Remote diagnostics (BMW) and vehicle health report services (Ford)

Worry about parking! Your car knows where the nearest and cheapest car park is and can even help you book it in advance.

Toyota, BMW parking information (payment not possible at the minute)

Keep you safe! Once in a while everyone needs a helping hand. Your car will call for help, be it breakdown services or ambulance when there’s trouble. All eCall and bCall services

Let your car…AI

Follow ClarionUSA

In-vehicle cloud connectivity is revolutionizing the way we interact with entertainment and information while driving.

Exclusive to Clarion, Smart Access cloud-connectivity platform pairs with smartphones to let dozens of compatible apps come to life, giving users safe and easy access to real-time data such as route analysis and vehicle performance, entertainment customization, easy social media interaction, as well as distraction-free operation of apps while driving.

Today, there’s no other cloud-based system able to provide such a robust mix of real-time services, customization, and security on the road. And, with its adaptable architecture, always-on uninterrupted network, and a steady flow of new compatible apps, Smart Access is designed to adapt, grow and stay future-proof.

Learn more at

www.clarionsmartaccess.com and start your drive connected.

CONNECTED.


innovation

Putting Google search and speech power in the vehicleBy: Jon Knox

Automotive Industries (AI) asked Paul Lachner, president of Clarion Corporation of America, what makes Clarion’s Smart Access connectivity platform so innovative.

Lachner: Smart Access operates as a fully customizable gateway to the cloud content and services. Unlike aggregator type platforms that just contain apps and data in one spot like a folder holding papers, Smart Access actually allows us to regulate activities and flow of content in and out of the vehicle based on several customizable criteria that can be specified

by our OEM partners or recommended by Clarion to our partners. Today, there’s no other cloud-based

system able to provide the security and flexibility of having built-in gateway functionality along

with a robust mix of real-time services, customization, and safety protocols for in-vehicle applications in one package. Smart Access also boasts a flexible, adaptable architecture which relies on an always-on uninterrupted network and already features over a dozen customized

apps. The platform is designed to adapt, grow and stay future-proof.

AI: How has Smart Access helped Clarion maintain its leadership position in

the development and support of connectivity inside vehicles?

Lachner: In simple terms, Smart Access has afforded us a unique position in the in-vehicle connectivity race because of its features and design. Clarion has been working on the Smart Access platform longer than probably any other competitor in the industry. Smart Access is mature, reliable and ready to deploy and provides a robust and tested platform. Because of our OEM heritage, Smart Access is also designed with automotive-grade security in mind, which virtually eliminates the hacking worries many industry experts share when it comes to adding more connectivity inside the car.

Advanced natural speech recognition, as well as search and positioning technologies from Google, are now featured in the next generation of in-vehicle multimedia and navigation systems from the California-based Clarion Corporation of America.

By incorporating Google’s cloud-based Google Places within its Smart Access connectivity platform, Clarion infotainment systems allows users access to the same type and level of location-based search services in their vehicles that they are already accustomed to on their mobile devices. In addition, users will benefit from the comprehensive worldwide coverage and regularly updated content available through Google Places.

innovation

Paul Lachner, president of Clarion

Corporation of America.

Clarion leverages the Google Voice Search technology to bring voice recognition to the vehicle which, coupled with Clarion’s exclusive noise elimination technology, will allow its Smart Access-equipped products to recognize naturally spoken words for operation of the vehicle systems and online content while significantly minimizing driver distraction.

Given the wide availability of Google Places and Google Voice Search worldwide, Smart Access will be able to offer Clarion’s OEM partners one of the most comprehensive cloud-connectivity solutions for in-vehicle use. Automotive-grade safety, dependability, reliability, and customization capabilities of Smart Access will also be enhanced further as Clarion’s global data system accesses information from Google’s continuously updated sources.


AI: How effective has the natural voice recognition feature in your latest in-vehicle systems been?

Lachner: For years our products have had voice recognition capabilities, but our first system featuring natural “Context Aware” voice recognition (CA-VR) started shipping in November 2013 in Japan. Intelligent Voice™ is the marketing designation of our CA-VR system which is built into the product and is powered by Google. Before launching the product, the technology got a significant nod from focus groups and many of our business partners which had a chance to experiment with the product. Hence, I believe the system is going to be a very important part of our future and a giant step in the right direction for Clarion and our industry in general.

AI: What are the challenges for automotive technology developers like Clarion in furthering connected car technologies?

Lachner: The first and most well publicized challenge is to create a means for consumers to interact with their connected devices in a way that minimizes driver distraction. The policy control features enabled by Smart Access are Clarion’s solution to this problem. The second challenge is something I liken to “cat herding” which means getting OEMs, Tier 1 suppliers like Clarion, smartphone service and equipment players and other interested parties all moving in the same direction toward a common, connected car vision that will best serve the end consumer. Clarion offices in key automotive markets along with our recently opened Silicon Valley Research Center are working in a concerted fashion to bring all these players into alignment by building strategic partnerships and participating in standardization efforts. I believe a common vision is possible, but as with any such alignments, there will be winners and losers.

AI: How will 4 and 5 G broadband on wheels, real-time data services and navigation change the way we drive?

Lachner: We think that well integrated in-vehicle systems of the future will take full advantage of higher bandwidth and faster communication protocols to dramatically change the way we drive. We are working on very advanced, fully integrated smart

cockpits that not only constantly monitor and inform the driver about the status of the vehicle, roads, traffic and other specifics, but are ready to take over the maneuvering and management of the vehicle based on the relative cognitive load and with minimum input from the driver. Without a fat bandwidth and proliferation of real time services and support from intelligent and adaptable transportation grids, this effort will remain more of a science fiction exercise rather than a practical engineering triumph.

AI: What are some of the latest breakthroughs in machine to machine and human to machine interfaces?

Lachner: Both fields are advancing at a great pace, and we’ll see serious innovation and out of box thinking in the months and years to come. I am particularly interested in the concept of smart cockpits and the ability to use cameras, radar, lidar and other technologies to feed continuously updated information to all types of onboard sensors and systems in order to assure driver confidence, comfort, convenience and, above all, safety, while driving. Thinking about today’s more basic interfacing capabilities, I would like to see rear-vision cameras in every vehicle as well as Head Up Displays able to show all sorts of relevant data on the windshield without requiring the driver to look at the cluster. Natural voice recognition to communicate with the system conversationally is also a very valuable development which Clarion happens to be championing along with Google.

AI: Tell us about Clarion’s R&D resources.Lachner: Clarion has always been an R&D and engineering

focused organization since its early days dating back to the year we were established in 1940. We have really never veered off course and, year after year, we have been innovating, tweaking, improving and then innovating again. We have a relentless and very talented engineering group in every major technology hotspot and our research capabilities are probably one of the best in the business. Currently, we have fully staffed research facilities in Japan, China, Europe and the US, including our latest advanced technology office in Silicon Valley which was established to take the lead role in researching and developing cloud-based technologies for in-vehicle use. AI


sales on these markets are hot, so even during slowdowns you will see growth far beyond what we are used to in the developed markets.

AI: To what do you attribute your success?Rosell: I joined WirelessCar 2008, nine years after it was

established. Technology-driven trends normally take 10 years from Power Point to reality, so timing was important. But, the most important was the people and attitude of WirelessCar. It is easy to be recognized in my position when you have the world’s best people around you!

AI: Tell us a little about the technologies WirelessCar plans to roll out in the next 12 months.

Rosell: As usual, the services get most attention, but in order to create great customer experiences

we must improve the way we deliver and manage the entire eco-system. Much of the focus is now on subscriber management and service management from when a service is ordered through to fulfillment and payments.

AI: What are the challenges to extending your company’s range of products and services across the globe?

Rosell: Culture, language, time zones and finding the best people! It’s one

thing to be international, but something completely different to be global and that is

built primarily on soft values. If you go to China and try to act as a Swedish or US, company you

will not do much business!AI: How do you see WirelessCar’s influence growing

globally over the next few years?Rosell: We are clearly on the right track and by continuing to

work with a high degree of humbleness there is a good future for us. AI: How effective has your NGTP been in providing a

standardized technical infrastructure to vehicles?Rosell: Extremely! Most of our new clients are actually spelling it

out in the RFQs today. However, it’s not ours, it’s an open sourced based software design pattern, and we do believe in openness to create even bigger demand from the market. This has been proven in the IT industry over and over again.

Introducing connected car services into the developing markets of Brazil, China, India and Russia takes more than ensuring the technical network is in place.

Swedish company WirelessCar is working with, or is ready for launch with more than 10 customers in these four markets. “As the spider in the web, we need to forge partnerships along the entire value chain,” says WirelessCar managing director Martin Rosell. “This starts in the vehicle with hardware suppliers, telematics and/or head units. We must create partnerships with content, service and application providers globally and locally, as well as work with or provide to a whole range of call center providers. To add to this picture, we also see players like finance, insurance, authorities etc. becoming more involved and important in the ecosystem of telematics,” he says.

innovationConnecting carsin developing marketsBy: Claudio Francisco

WirelessCar managing director

Martin Rosell.

Automotive Industries (AI) asked Rosell to what the company attributes WirelessCar’s success in emerging markets.

Rosell: It’s about two things. First, you have to realize that you work in a global industry and proactively build your capability to act on that. Secondly, you need the global customers that are at the forefront and push you. While there is no doubt that the automotive industry is global, it’s interesting to see that of the hundreds of actors in the telematics space less than a handful have any global capabilities.

AI: How has the economic slowdown in China and India impacted your company? If so, how?

Rosell: Not at all. Today less than 4% of the vehicle population is connected, so this space will grow despite any market dip. Auto

WirelessCar won two awards at the Telematics Update Detroit

event held this June. WirelessCar got the Best Telematics

Product or Service Launch in an emerging market (BRICS

Region), while the Telematics Leadership Award went to

Martin Rosell, Managing Director of WirelessCar.

Awards for WirelessCarWirelessCar managing director Martin Rosell with his Telematics Leadership Award from Telematics Update.

AI

AI

Smart Mobility in Smart CityMajor target of this collaboration project is the optimisation of autonomy range and the increase in energy efficiency of electro vehicles by using all relevant data from vehicle, transport and energy infrastructures as well as the surrounding environment.

www.mobincity.eu

Major target of this collaboration project is the charging and connection of electric vehicles to the grid by enabling a controlled flow of energy and power through safe, secure, energy efficient

and convenient transfer for electricity and data.

www.smartv2g.eu

Smart Vehicle to Grid Interface

Leaders in technology oriented market research and business consultancy www.technomar.de

Both projects are funded by the European Commsion under the Seventh

Framework Programme (ICT for fully electric vehicles).

Technomar Advert.indd 1 21/11/2013 08:44


innovation

J.D. Power and Associates is today a global marketing information services company operating in key business sectors across a variety of industries, providing customer satisfaction research, market research, automotive forecasting, social media research, and performance improvement programs.

In his early years, Power was a market researcher for automotive behemoths like General Motors and Ford. According to Wharton’s alumni magazine, Power spotted a flaw in the mid-60’s in the way chainsaw maker McCulloch Motors was predicting sales - “I said, ‘You don’t sell to trees, you sell to people,’” Power told McCullough executives. Power’s research also showed that the saws needed to be smaller, less expensive, and able to tolerate long periods of idleness. McCulloch listened, and sales took off.

AI: For those who have followed the ups and downs of the auto industry, is there be anything new for them in the book?

Power: Well, there is the old saying; those who forget history are condemned to repeat it. Many of the newer generations of automotive people may not know exactly where the industry ran into trouble in the past. I also think people may not really know my story, how J.D. Power and Associates started and how we grew and developed. For the older generations I am sure that there are stories and experiences that they will find familiar and hearing my

take on things may add to their understanding – or at least give us something to debate over a cocktail.

AI: Where is the auto industry heading?Power: The customer is really in the

driver’s seat and this shift has reverberated back through the system: dealers are more focused on the customer; the manufacturers are more focused on the customer; and suppliers are doing what they can to focus more on the customer. I do see product quality improving but shifting more to how well things work. I think that the retail side

of the business is still evolving. Automotive Industries asked Dave

Powers’ son, James David ‘Jamey’ Power IV, and asked to what he attributes

the success of J.D Power – the man and the organization.

Power IV: Focusing an industry (and subsequently many other industries) on the customer and making the customer’s voice a legitimate and real part of business strategies and operations. Whether it is your car, a restaurant experience, your wireless phone provider, or a hotel, customers are asked every day what they think. These businesses are using the information to guide their operations, their products, their management decisions and strategies. Customers appreciate this “right” to rate and comment.

AI: What lessons does the book give about starting and running a business?

Power: Go with your instincts. Adapt and change. Keep a good perspective on things and don’t be fooled by short-term goals. Hire good people, inspire them and let them do great things.

J.D. Poweron J.D. Power By: Esther Francis

Automotive Industries (AI) asked James David ‘Dave’ Power III, founder of J.D. Power and Associates, to what he attributes the success of the company.

Power: When I started JDPA, my background in Detroit helped. I saw opportunities to serve the auto industry in broader ways. Challenges made me adapt, and that led to new opportunities.

AI: Do the lessons laid out in your new book apply beyond the auto industry?

Power: I certainly think so. Listening to the customer’s voice is critical to any business.

It’s unlikely that when a 30-something James David ‘Dave’ Power III founded J.D Power and Associates from his kitchen table in 1968 with the help of his wife Julie.

From LEFT: “Ted” Tezuka, Dave Power, Jamey Power, Bill Blatchley, Julie Power, Barbara Robertson, and Barry

Robertson, at a celebration of the maiden voyage of the Toyota Maru No. 1, in 1968. A few months after launching

his company, Dave Power landed Toyota as a client.

James David ‘Dave’ Power III, founder of J.D. Power

and Associates.

AI

i

WHERE AUTOIS HEADED.

W hen Yanfeng, Bodine Aluminum and Leggett & Platt were considering expansions this year,

they did what most companies would do. They followed the leaders…to Missouri. Missouri had seen massive expansions by Ford and GM in 2011 and again in 2013, paving the way for auto-related businesses to locate close to their customers. But it wasn’t just about proximity – Missouri also beat the “big auto” states in key rankings:

As home to the second largest auto hub in North America

(Kansas City)1, Missouri is bringing real innovation to the industry through partnerships and research. Because you can’t afford to stay in one place when you’re working in auto. You have to be able to see where things are headed.

1The Brookings Institution, 2013

Jay Nixon, Governor | auto.missouripartnership.com

Missouri Alabama Michigan Ohio

H.S. graduation rate 80.7% 69.4% 70.9% 74.1% Education Week, 2013

Avg industrial electric rate 5.85 6.20 7.73 6.21 EIA, 2012 (cents per kilowatt hr)

Transportation/Logistics 5th in U.S. 27th 25th 11th CNBC, 2013

Pro-business ranking 9th in U.S. 13th 39th 20th Pollina Corporate, 2013


innovation

AI: You had said that you hoped the championship race would change the image of EVs – any progress on this front?

Agag: For sure the main aim of Formula E is to improve the image people currently have of electric cars. At the moment people don’t really perceive them as cool or relevant to them but we want to change all that, using motorsport as the platform. As for the progress, I think the proof is already all around us. When we unveiled our new fully-electric car – the Spark-Renault SRT_01E – at the Frankfurt Motor Show, nearly all the manufacturers around us were also revealing their latest electric offerings. BMW, for example, were taking the wraps of their new i3 – surely a signal as to where the industry is heading.

AI: How much of an impact do you see the Spark Renault SRT_01E having?

Agag: We hope our new car has a great impact. As I said before, there is a perception that electric vehicles are not cool but we want to change that and the images of our new race car – which I think look really cool by the way! – will help change that.

AI: What makes the car’s technology so innovative?Agag: I think that’s because Spark Racing Technology, who

have designed and built the car, has used many of the best names in motorsport to help them. Renault, Williams, McLaren, Dallara and Michelin are all leaders in their field and have produced a fantastic car that I know is going to be a great success.

Come September 2014 and the image of electric vehicles as overgrown golf carts will be changed forever.

That is when the FIA Formula E Championship will start rolling to 10 cities across the globe from Thailand to Brazil, Italy to Malaysia. “We want people to believe in electric cars. One of the biggest problems EVs face is image,” says Alejandro Agag, CEO of Formula E Holdings, the organizer of the championship. Many people think electric vehicles won’t work for them or will be too slow. People don’t know the truth and we want to show everyone what electric cars can really do. Motorsport also needs to be much more relevant to the challenges currently facing the car industry. It needs to lead this and to help shape perceptions of what is cool and exciting,” he says.

Automotive Industries (AI) asked Agag what the mood is like in the teams ahead of the start of the FIA Formula E Championships.

Agag: I’d say it’s very good. So far we have announced four of the 10 teams but we have many more signed waiting to be announced which we will do between now and the end of November. The announcement of our provisional calendar has also been well received by the teams and all our partners. Obviously, we still have a lot of work to do before our first race in Beijing, China, on 20th September 2014 but everyone is very excited and looking forward to putting on a great show.

Formula E will add sparkto the EV revolution By: James Hilton

ABOVE: Monaco is one of three new venues added to the provisional 2014-2015 FIA Formula E Championship calendar.RIGHT: Dragon Racing owner Jay Penske (left) and Alejnadro Agag, CEO of Formula E Holdings.

The new car livery for the Dragon Racing Formula E Team.

AI


combustion engine whenever no propulsion is needed can save up to 10% of the fuel consumed by a conventionally powered vehicle, depending on the specific driving cycle. Further potential savings are obtained by optimization of regenerative braking by using a lithium-ion battery. We have tested prototype vehicles in typical driving cycles.

AI: What has changed in the vehicle functionality? Hoff: The start-stop mode is greatly extended, as the engine

switches off as soon as the vehicle slows down when approaching a red light, greatly increasing the length of time that the engine is at rest (see picture 1). The core feature of the next generation of micro hybrids will be the coasting function. As soon as the driver’s foot is taken off the gas pedal the vehicle switches the engine off. Equipment such as steering, air conditioning and lights then have to be supplied with reliable electrical power without running the generator (see picture 2). The second step towards optimized fuel efficiency is regenerative braking, which will offer significantly more savings, because we can now use energy storage equipment with a high charge acceptance, such as lithium-ion batteries and super capacitors (see picture 3).

A third option is the addition of the creeping functionality (see picture 4). In the fully configured next generation micro hybrid, cars start driving electrically supplied from the 48V battery. This technology’s potential CO2 saving is considerable, and integrating it would be significantly cheaper than hybrids and fully electric vehicles.

It is expected that the number of vehicles powered by internal combustion engines will continue to rise worldwide despite the continued electrification of vehicle drives - unless a new totally disruptive technology is introduced.

Full hybrids and all-electric vehicles call for a considerable technical outlay, and for this reason, car manufacturers’ highest priority is fuel economy in conventional vehicles. Automatic start-stop systems can achieve an efficient and cost-effective reduction in fuel consumption using relatively few technical changes, especially in the city.

An engine does not need to be firing when coasting downhill or slowing down. But, at the same time a reliable electrical power supply to the vehicle has to be maintained because modern safety-critical systems such as power steering and ABS are powered electrically. A single conventional 12V lead-acid battery simply cannot manage that. A 48V/12V dual voltage powernet is one solution for the next generation of micro hybrid vehicles with coasting function. HELLA has developed a DC/DC converter for 48V/12V, which ensures this power supply throughout the switch-off periods.

Automotive Industries (AI) asked Dr. Carsten Hoff, head of the product segment Energy Management at HELLA, what savings are offered by the next generation of micro hybrids?

Hoff: If a coasting functionality is also included in the system then we can reach savings of up to 1 litre/100km. Switching off the

innovation

Higher voltage to optimizestart-stop savings By: Nick Palmen

Enhanced start-stop Coasting Recuperation Creeping

By harnessing the power of regenerative energy HELLA is helping OEMs to cut fuel consumption.


5V or 3V, so it doesn’t make sense at all to supply 48V. I would assume that the OEMs will start with a very limited number of devices on the 48V side.

AI: Why is the introduction of 48V so much more successful than 42V was 10 years ago?

Hoff: There are a lot of things that indicate that 48V will be a success. The first is the CO2 targets. Ten years ago everybody was aware that there was going to be fuel efficiency targets, but there were no penalties. Carmakers now need

new features to bring fuel consumption down or face penalties - and 48V is one of these features.

Number two is the storage technology. A 42V system required three lead- acid batteries.

AI: What new components are installed in the vehicle? Hoff: Newly introduced possibilities include an integrated

starter-generator, a 48V lithium-ion storage battery and a bi-directional DC/DC converter with a continuous output of up to 3kW. This means that our converters are scalable for all vehicles in the performance range 1kW to 3kW. This key feature allows for power electronics to be able to convert between 12V and 48V. 48V architecture for example, enables the EPS system to be moved from a 12V to a 48V power system, the functionality will be the same but the efficiency will be improved with high voltage level and this also means less power loss at the alternator.

AI: What are the advantages of the 48V electrical system?

Hoff: Manufacturers can equip their vehicles with new efficiency technologies that offer excellent cost-benefit ratios and go way beyond simple start-stop functions, such as coasting or creeping. Consumers not only achieve fuel economies of up to 15%, but the coming conversion to high-power loads based on 48V also offers entirely new convenience functions. Manufacturers in the premium segment in particular are struggling with new features in the vehicle. The largest alternator you can buy is in the range of 3.0 kW. Using existing technology it is not possible to increase the alternator power to more than 3kW. One of the core problems of the large vehicles is that once you have a nice idea for a new feature you will struggle to power it. By increasing the voltage you can easily achieve four times the energy. When you have four times higher voltage for the same energy then you have four times lower current which means the diameter the wires is reduced and you have less weight on the wiring harness.

AI: Which components are operated at 48V? Hoff: Primarily it is higher-powered equipment that is supplied

with 48V: windshield heating, active suspension systems, and aircon compressors. It doesn’t make sense to supply components with 48V that are using only limited power. A lot of CPUs run on

Dr. Carsten Hoff, head of the product segment Energy Management at HELLA.

Just imagine the size and the weight. Now we have the lithium-ion technology. On the

power electronics side there are a lot of new developments for the semiconductors available.

AI: What is HELLAs contribution to next-generation micro hybrids?

Hoff: Alongside our battery sensors for conventional batteries, energy storage modules and the associated control and power electronics we are focusing on DC/DC convertors to power 12V electrical systems from the 48V network. It is one of the core components. This is a business opportunity for HELLA. I believe that all the companies that are entering the lithium-ion battery world will also supply 48V battery. The efficiency of the DC/DC convertor is really crucial because of the energy loses. To control costs you need scalable solution for all vehicles. We aim to be one of the first suppliers offering high efficiency DC/DC convertors for 48V high power systems.

“By increasingthe voltage you can easily achieve four times the energy.”

The HELLA controller module.

AI


innovation

Wireless technology Qualcomm has developed the Halo™ Wireless Electric Vehicle Charging (WEVC) technology as a way to bring electric vehicles (EV) to the mass market. WEVC removes the need for drivers to plug in to charge so there is no need for charging cables or a charging post.

The company says it believes that trying to change user behavior will always be difficult and leads to slower adoption rates. EV charging must be simple and effortless. Qualcomm Halo WEVC technology allows power transfer across large air gaps. Unlike other inductive charging solutions that may need accurate alignment, drivers need only to park as normal in the parking/charging bay. According to Qualcomm, Halo WEVC power transfer efficiency is comparable to plug in cabled charging systems, even with misalignment of the charging pads.

is designed to be incorporated into the design of any new electric vehicle. One of the first OEMs to recognize our technology was Renault, which has been evaluating our technology and to understand it in the context of their EV programs. Our business model is to license the technology widely into the automotive industry to create mass market demand for wireless EV charging.”

AI: How does Qualcomm hope to overcome the challenges with WEVC such as the complex environment that a publicly deployed WEVC system must operate?

Thomson: Qualcomm has extensive experience in regulatory compliance engineering and over the

past 27 years have successfully brought new technologies to market. As a result the

Qualcomm Halo WEVC technology is a robust system, backed up by a substantial patent portfolio spanning multiple areas of the technology ecosystem.

AI: Similarly, the OEM compliance challenges are huge.

Thomson: Qualcomm Halo WEVC technology is built on a “total system design philosophy” that delivers flexibility

and packaging options that meet the diverse needs of OEMs. Our system

solution approach can potentially meet the packaging requirements – size and weight etc

– for multiple vehicle platforms.AI: What are the benefits of bringing

standardization to the WEVC industry?Thomson: As well as global and regional health and safety

regulations related to wireless charging, we strongly believe that global standardization is needed to secure the long-term commercial viability of WEVC. Meeting standards and instilling best practice at the initial vehicle design phase is essential to providing a wireless charging solution that can be manufactured in mass-market scale economies, to deliver competitively priced WEVC products.

AI: What is the potential for WEVC to drive EVs towards the tipping point of mass adoption?

Thomson: At the core of clean urban mobility is a need to recharge EV batteries simply and conveniently. Simplicity and minimum driver intervention are key features that win out time-and-time again in novel technology adoption and coupled with high power and high energy transfer efficiency, our wireless charging offers an elegant and effortless solution.

Wireless ElectricVehicle Charging willset EVs free By: Esther Francis

Anthony Thomson, VP Business Development & Marketing at

Qualcomm Europe Inc.

Automotive Industries (AI) asked Anthony Thomson, VP Business Development & Marketing at Qualcomm Europe what the advantages of WEVC are over cabled recharging of electric vehicles.

Thomson: There are clear benefits to WEVC: simplicity; minimum driver intervention; low visual impact; ease of deployment in public spaces; and flexibility – all contributing to the differentiation of WEVC vehicles from their cabled counterparts. The key advantage of Qualcomm Halo WEVC technology is its ease of use for customers. Drivers simply park in the charging bay as they do normally and charging can commence. Charging little and often can also remove range anxiety provided it is simple and convenient, in addition its efficiency is comparable to plug-in solutions.

AI: A number of automotive manufacturers are now investing in EV programs and evaluating wireless EV charging – can you tell us about the OEMs you are working with on these programs?

Thomson: Qualcomm Halo WEVC is an OEM proposition, rather than an after-market solution and the on-vehicle pad

A breakthrough which provides cord-free charging technology for electric vehicles may hold the key to faster adoption of the technology.

AI


testing and assessment program being carried out for the Fiesta eWheelDrive – which was constructed in cooperation with Ford Research & Advanced Engineering Europe – includes everything from extensive test drives in the cold climate of Scandinavia to comprehensive driving dynamics tests requiring a lot of space. Ford brings of course a lot of vehicle assessment experience to the party, whereas Schaeffler is developing lots of hub wheel drive competence. Schaeffler’s E-Wheel-Drive wheel hub drive is now also part of a research project that is listed by the German Federal Ministry of Economics and Technology. The electric wheel hub drive has the potential to become one of the drives of tomorrow.

AI: What is Schaeffler’s strategy in the electric vehicle/hybrid vehicle eco-space?

Gutzmer: Legal requirements with regard to lower emissions and fuel consumption are globally increasing all the time. It is clear that drivetrains based on internal combustion engines will continue to play a central role in individual mobility, while solutions such as downsizing and down-speeding lead to new solutions for charging, as well as

to new transmission concepts with multiple gear stages and full variability. At the same time, the electrification

of the drivetrain is making rapid progress: Engine start-stop systems are becoming standard, the

recovery of braking energy is gaining popularity on the roads, and the number of hybrid vehicles – especially plug-in hybrids – is increasing.

Regional characteristics, such as those of megacities in Asia or of the western regions of China that have not yet been fully opened up in terms of their infrastructure

must also be taken into account. A structure for larger volumes of all-electric vehicles

based on new vehicle platforms, e.g. with wheel hub drives like those currently undergoing

preliminary testing in concept vehicles at Schaeffler, may arise here.

Aside from this, all-electric individual transport – with the exception of e-bikes and e-scooters – still requires significant technological advances in terms of battery technology and charging infrastructure. Schaeffler is developing key components and modules like e-axle platforms that can be used for electric on demand all-wheel drive solutions including torque vectoring or very compact hybrid modules installed between combustion

It complements Schaeffler’s portfolio of solutions for high-performance engine start-stop functions, hybrid clutches, hybrid modules, and drive solutions for hybrid vehicles. Schaeffler has been working with Ford engineers on the eWheelDrive development vehicle which is based on a Ford Fiesta, and was unveiled at the 2013 IAA Frankfurt. The compact vehicle uses two Schaeffler E-Wheel Drives installed in the rear wheel arches.

“Excellent driving dynamics are among the main attributes of Ford vehicles, and our expertise and experience in this area has also been used during this project. The test drives have shown clearly that the driving behavior of this test vehicle in terms of comfort and safety has remained at virtually the same level, despite the higher wheel-sprung masses compared to the conventional basic vehicle”, says Roger Graaf, project manager at Ford Research & Advanced Engineering Europe.

Automotive Industries (AI) asked Peter Gutzmer, Chief Technical Officer at Schaeffler, what makes the 48-volt drive module an ideal option for manufacturers looking to electrify their vehicles.

Gutzmer: With the 48-voltdrive module Schaeffler offers an economically attractive, low-cost option that allows CO2 emissions

innovation

“Smaller is better” when it comes to electric motors By: Lenny Case

Prof. Dr-Ing Peter Gutzmer, Chief Technical Officer at Schaeffler.

to be reduced by up to 15%. The low-voltage design of the solution reduces outlay compared to high-voltage solutions with their associated requirements. The use of a 48-volt electric system offers the opportunity for entry-level for hybridization.

AI: What was it like working with Ford on the E-Wheel drive concept car? What are the synergies between the two companies?

Gutzmer: The cooperation between Ford Research & Advanced Engineering Europe and us was extremely successful and immensely stimulating. The joint development, coordination,

A compact 48-Volt electric drive module with integrated clutch and planetary transmission which can be placed on either the front or rear axle paves the way for cost-effective hybridiza-tion and the roll-out of electric vehicles.


engines and transmission. And, of course, innovations for start-stop and a strong focus on low-cost 48V-Hybridization have a strong part in our strategy in this field.

AI: Your company is pinning its strategy as far as engines go to “smaller is better” – why?

Gutzmer: In the past, a high engine capacity alone was used to generate power, whereas today reducing the engine capacity and the number of cylinders provides performance and efficiency – which also benefits the environment. But this doesn’t mean that the drivers of today and tomorrow have to settle for less. On the contrary, the engines of tomorrow are high-performance, turbocharged machines with direct injection and a wide selection of auxiliaries. The minimization of friction and the reduction of resistances in the drivetrain play an important role in this context. This is where optimized components and surface coatings, such as rolling bearing supports for turbochargers and balancer shafts come into play. The variable valvetrain is a further key element for efficient downsizing. These range from switchable valvetrain components and camshaft phasing units through to UniAir, the world’s first fully-variable electric-hydraulic valvetrain system. Because engines with a small number of cylinders don’t run as smoothly as an engine with twelve cylinders, balancer shafts and vibration dampers are used to ensure smooth running in the engine and transmission. All of these elements combine to create compact engines that are economical, provide high-performance, and comfortable all at the same time.

AI: Tell us about your company’s drivetrains based on ICE.Gutzmer: The technologies for drivetrains with internal

combustion engines include electromechanical and electrohydraulic phasing systems for the valvetrain, double clutch systems, electronic clutch management systems, and many others. Schaeffler’s Efficient Future Mobility North America and Efficient Future Mobility India concept vehicles, for example, demonstrate the effective interaction of these technologies and the potential for the optimization of drivetrains with internal combustion engines that is still available. The internal combustion engine is still the dominant power source for the world´s fleet of vehicle and has great potential for efficiency, which can be harnessed using various technologies for downsizing or increasing specific loading.

AI: How has the downsizing of engines strategy gone down with OEMs?

Gutzmer: Downsizing is helping OEMs and suppliers to meet tough emissions and consumption targets. Therefore Tier 1s must

supply answers to questions of friction, NHV and robustness. OEM powertrain strategies will have a big impact on the components and systems that Tier 1s develop. The trends for downsizing and down-speeding are probably the most significant: engines will operate more and more at low-speed, high-load conditions. There´s a big opportunity for the next generation of dual-mass flywheels, downsizing, introducing higher vibration sensitivity and NHV control – both on the clutch side and on the front-end accessory drive. Fewer cylinders mean you have more movement, so there´s opportunities for our vibration damper tension system. At the same time transmission solutions with wider spread range and more gears or even fully variable systems are gaining importance.

AI: What impact has your thermal management module had on cutting CO2 emissions?

Gutzmer: The new thermal management module is another element to reducing fuel consumption and CO2 emissions by up to 4%. The performance of the thermal management module makes this component particularly suitable for use in engines for start-stop operation. The individual components are optimized for friction in accordance with Schaeffler’s requirements in terms of energy efficiency. This means that the thermal management module can be connected directly to the engine control unit without additional power stages thanks to its low power consumption.

AI: What is Schaeffler’s long-term strategy in terms of new technologies?

Gutzmer: Schaeffler is a global supplier of expertise for Efficient Future Mobility. Its’ broad range of products for drivetrain and chassis applications, which is regularly supplemented through the addition of innovative solutions, makes it one of the most important partners for the global automobile industry. The product portfolio and product innovations reflect the company´s diversification strategy in the fields of optimization of drivetrains based on internal combustion engines, electromobility, and hybridization. Meticulously detailed work and new solutions for drivetrains based on internal combustion engines still offer significant potential for reducing fuel consumption and emissions. The increasing electrification of the drivetrain will continue to make an important contribution with regard to the energy efficiency of automobiles with internal combustion engines in the future. This opens the door for us to gain the necessary expertise in the field of electric drives, where long-term predictions for the future are very promising.

The innovative Thermal Management Module from Schaeffler reduces fuel consumption and CO2 emissions by up to 4%.

The trade show exhibit combines a range of ideas from Schaeffler that are suited to hybrid vehicles with high-performance low-voltage power systems.

AI


fluoropolymers, fluoroelastomers, and high performance fluorochemicals for many critical applications including automotive. In August 2012, Daikin opened a new electrolyte manufacturing facility in Decatur, Alabama.

The company has production facilities in all major regions and technical service support systems in the US. Clients include OEMs, Tier 1 and Tier 2 suppliers of components and assemblies in areas such as powertrain sealing. Daikin is expanding its position in the energy storage materials market with the introduction of high-performance fluorinated electrolyte solutions for lithium-ion batteries and for electric double layer capacitors (EDLCs) or ultracapacitors. Daikin has also developed a VDF copolymer which is superior to PVDF when used as a binder resin for lithium-ion battery systems.

Automotive Industries (AI) asked Hendershot what the DoE grant means for Daikin America.

Hendershot: Being recognized by the DoE will help strengthen Daikin’s brand and image. It confirms that Daikin has electrolyte additive technology that can improve the capabilities and performance of lithium-ion batteries. This, in turn, will help open more doors where the industry can take advantage of our technologies and improve lithium-ion battery technology.

AI: What R&D set up does Daikin America have?Hendershot: Daikin America, and its parent company, Daikin

Industries of Osaka, Japan have significant resources dedicated to the development and testing of energy storage materials, which includes lithium-ion battery electrolytes. We have been very successful in attracting world class technical experts to join our

“Daikin has developed unique fluoroadditive and fluoro co-solvent compounds that when added to electrolyte, can increase the performance of next generation lithium-ion batteries. The development of these electrolyte chemistries will be a critical element needed by the industry to achieve the cost and performance targets for lithium-ion batteries set by the DOE and the USABC (United States Advanced Battery Consortium),” says Ron Hendershot, Director of R&D for Daikin America.

With respect to lithium-ion battery safety, a conventional lithium-ion battery contains fuel (electrolyte), an oxidizer (active component) and multiple potential ignition sources. Fires in lithium-ion cells are due to the interaction of the fuel in the active component with a source of ignition such as a spark or heat. The most viable safety solution, says the company, is to significantly reduce the flammability of the electrolyte by increasing the fluorochemical content by 20% or more. According to Daikin, separate independent laboratories have shown that this strategy leads to superior cycling behavior compared to conventional hydrocarbon electrolytes. Daikin is working closely with the scientists at a number of national laboratories such as Argonne National Laboratories, Lawrence Berkeley National Laboratories, and Sandia National Laboratories.

The Orangeburg, New York-based Daikin America is a wholly-owned subsidiary of the Osaka, Japan-based Daikin Industries, which is a leading manufacturer of air conditioning, refrigeration equipment and fluorochemical products. Daikin America is one of the largest fluoroproduct suppliers in the world. It provides molding resins, fine powders, aqueous dispersions, melt processable

innovation

Fluorochemistries to unlock lithium-ion battery potential

By: Esther Francis

Research into lithium-ion battery technology has been given a boost through the awarding of a US$1 million grant to Daikin

America by the Department of Energy (DoE) to develop advanced high performance electrolytes based on fluorochemis-

tries. This technology will allow lithium-ion batteries to operate at higher voltages and temperatures.

Raw Material Feeds.


“Daikin America, and

its parent company, Daikin

Industries of Osaka, Japan

have significant resources

dedicated to the develop-

ment and testing of energy

storage materials, which

includes lithium-ion

battery electrolytes.”teams. These experts will be actively involved in the execution of the DoE grant program.

AI: Tell us about the work Daikin is doing in advanced high performance electrolytes, based on fluorochemistries.

Hendershot: Daikin is developing advanced electrolyte formulations containing solvents and/or additives based on proprietary fluorochemistry. The solvents/additives have increased electrochemical, chemical and thermal stabilities due to the inherent strength of the carbon-fluorine bond. Daikin is accomplishing direct performance and longevity measurements of these materials in batteries at our Decatur, Alabama research labs. The thermal properties of these electrolytes, as they relate to the other active materials in batteries, are being studied in an effort to make safer, more reliable lithium-ion batteries.

AI: What progress is Daikin making with battery manufacturers and national level laboratories?

Hendershot: As the battery makers push the operating voltages for the next generation lithium-ion batteries to 4.3V and higher, they are finding that conventional, non-fluorinated co-solvents and additive packages for electrolytes cannot deliver the life cycle performance that they have guaranteed at lower operating voltages. Fluorinated compounds are needed to stabilize electrolytes so that current and longer life cycles can be achieved at these higher operating voltages.

AI: What impact do you hope your formulations will have on the growth of EVs and PHEVs?

Hendershot: It is well known that that the $/KWhr cost for lithium-ion batteries must drop precipitously from where it is

today to drive EV and PHEV prices to the inflection point, where demand would accelerate. Making higher voltage batteries with higher energy densities that have 10+ year warranties are the critical elements needed to reach the price points to accelerate sales. The development of stable battery electrolytes is one of the key elements of this effort. Daikin, with its unique fluorochemical technology, has one of the enabling technologies needed to allow these performance targets to be met.

AI: Describe to us Daikin America’s new manufacturing facility located in your fluoroproduct plant complex in Decatur, AL.

Hendershot: This facility has the ability to make any custom electrolyte formulation for lithium-ion batteries. The flexibility of the plant is key, as there are virtually no two electrolyte formulations in the industry that are the same. All of Daikin’s fluorochemical compounds can be added at either the co-solvent or additive level. The Decatur plant, including the electrolyte mixing facility, is ISO 9001:2008 and ISO 14001 certified. The Decatur plant was also named Medium Manufacturer of the Year by the State of Alabama for 2013.

AI: How do you see the growth in lithium-ion batteries evolving over the next few years?

Hendershot: Daikin sees next generation of lithium-ion battery technologies being introduced to the market starting in 2014. These technologies will lower the cost of lithium-ion batteries and increase their use in many transportation, energy storage, and industrial markets. We believe Daikin will be an active participant in this growth because of our unique fluorinated electrolyte technology.

Electrolyte Mixing Vessel.

AI


Lightweight windshields going mainstream By: Nick Palmen

innovation

Lightweight windscreen technology developed for premium marques such as Ferrari is now moving to production cars.

Automotive Industries (AI) asked Patrick Dupin, chief executive officer of Saint-Gobain Sekurit what the brief was for the windshield for the new LaFerrari.

Dupin: On the previous model, the cutting-edge technology for automotive glazing was the low-emissivity roof on the Ferrari FF, the so-called SGS ComfortSky. By providing an impressive vision without disturbing heat radiation in summer and prevention from the cold wall effect in winter, it set the standards for the objectives for the new model.

AI: How is Sekurit’s latest technology enabling the car manufacturer to save weight?

Dupin: When every gram counts, lighter windshields contribute to keeping the weight down. Since its introduction in 1981, the thickness of the laminated windshield has been constantly reduced. Today windshields are usually 5mm or 4.5mm thick. A 5mm windshield is made up of an outer pane and inner pane of 2.1mm

each with a 0.76 PVB interlayer. The adaptation of the glass thicknesses of 5mm into 4.5mm yields already 1.5kg of

weight reduction for a windshield of 1.2m2. With the use of the new innovative 4mm windshields another

1.5kg can be saved compared to 4.5mm, and 3kg can be saved compared to 5mm.

AI: How did you reduce weight without compromising safety, robustness and comfort?

Dupin: A major function of the windshield is its contribution to car safety, which is defined by various requirements in

ECE R43 and similar standards. Thanks to the chosen product, and process parameters for

glass and interlayer, light-weight glazing shows in such tests comparable results to standard glazing

to assure the safety of the passengers. In some cases like EuroNCAP pedestrian impact they are even superior.Robustness of the glazing is another important aspect. The

stone-impact-resistance of windshields is of common interest as the replacement of the windshield is costly and annoying. Hence, car makers and end consumers have the aim to assure or even improve the stone-impact-resistance of windshields. The outer and inner panes of more common 5mm windshields are of the same thickness, whereas the new 4mm windshield features an asymmetric combination. A 4mm windshield is configured with a 1.8mm outer

Patrick Dupin, Managing Director of Saint-Gobain Sekurit.

The technology allowed for savings on space and weight through the removal of the roof sun shade shutter. One of Ferrari’s major objectives for the new model was weight reduction. The LaFerrari, the latest sports car from Maranello is the first car with a lightweight innovation in a 4mm windshield. Saint-Gobain Sekurit’s latest technology enabled the luxury car manufacturer to save 1.3kg on the windscreen alone. Compared to current standard thickness of 4.5mm, the introduction of this lightweight 4mm innovation reduces the glazing weight by 12%. The thicknesses of each layer of the glass sandwich with the 0.76mm PVB interlayer has been reduced to 1.8mm for the outer pane, and 1.4mm for the inner pane.

Typical glass defect at the windshield through stone impact.


pane and a 1.4mm inner pane with a 0.76mm PVB interlayer. Thus, the inner pane is notably thinner than the outer pane. Through asymmetric design, the lighter 4mm windshield shows an increased stone-impact-resistance compared to 5mm thick windshields.

Acoustic properties must also be considered when it comes to good overall comfort in lightweight design. A large amount of exterior noise can enter through the windshield of the car. Hence it is important to pay special attention to this property, and indeed it has been possible to develop thin windshields with a special “acoustic” interlayer that lets less noise into the car than standard windshields. This means that solutions have been found to beat the classical mass effect and to provide at the same time low weight and good acoustics.

AI: Is there an opportunity for other car manufacturers to experiment with the new technological solutions?

Dupin: We can say that several car manufacturers are much more advanced than experimenting, which means that we will see low weight glazing on new car models from different brands in the coming years. Besides the indicated weight reduction through windshields, there are further weight reductions possible through lightweight glazing in the other body openings. In total, for a family car with about 5.5m2 glass surfaces, the maximum possible weight saving through glazing is estimated to be around 10 kg.This results in a fuel saving of 0.037l/100km being equivalent to 0.847 g CO2/km, when taking the fuel reduction value FRV into account. With an average annual mileage of 24,000 km per year, one obtains approximately 20 kg less CO2 emissions per car every year.

AI: Would the new lightweight technologies for windscreens be limited only to the premium sports automotive segment?

Dupin: Consequent development of lightweight design plays a major role for further fuel consumption reduction in all

segments. Hence low weight windshields will find applications in all car segments. As an example, the new Citroen C4 Picasso will be equipped with this innovation. Due to the large size of the panoramic windshield of the C4, the weight saving in this car is as much as 2.6 kg.

AI: Can we expect any further models with the new lightweight windshield to follow soon?

Dupin: This new lightweight technology will be featured in two more car models in 2013. And in 2014 several further car makers will start to use this technology. Over the next five years we expect a very rapid growth of this market, since many car manufacturers are seriously considering applying the technology to future models.

AI: What else can we expect from Sekurit in the near future? Dupin: With our future solutions we support general trends

in automotive glazing. The ability to offer environmentally friendly solutions such as solar control glazing for reduced AC energy consumption will be key. Another focus is the contribution to the vehicle design: automotive glazing is becoming bigger like the C4 Picasso, and more complex as in the Peugeot RCZ. Finally, end consumer expectations regarding comfort and perceived quality are becoming higher and higher. Therefore, heatable and heat-reflecting windshields such as the SGS ClimaCoat all-weather windshield are important innovations for all car makers.

AI: And for the long term, what are you focusing on?Dupin: General principles for branding and development

in the automotive industry are freedom, status, ownership, environmental awareness, and driving pleasure. For the long term, our further development focuses includes designing sophisticated products for these future mobile living spaces. Following fundamental trends by offering corresponding innovations is the key for long-term success. AI

Stone impact resistance of windshields comprising different combinations of inner and outer glass thickness. Higher values indicate better stone impact resistance. Here a 1.8/1.4 windshield has a better resistance than a standard 2.1/2.1, even though it is 1mm thinner.


One of the leaders in the development of battery management is Austrian company ams (formerly austriamicrosystems), which develops and manufactures high performance analog semiconductors.

Automotive Industries (AI) asked Bernd Gessner, Exect. VP & General Manager, ams Automotive Business Unit, why cell monitoring and balancing are such important functions in battery management.

Gessner: Without the balancing of a cell stack which accumulates differences in state of charge for the individual cells over time, the cell with lowest or highest state of charge (SOC) is a weak point. It can be easily overcharged or over-discharged, while other cells only undergo a partial cycle. This has a very negative effect on the ability of the battery to store energy. It leads, for instance, to reduced run-time for battery-driven power tools or limits the range of electric vehicles.

computations for cell diagnosis, functional safety, state of charge (SOC), state of health (SOH) data capture and balancing decisions.

This approach is quite complex and costly. It requires robust communication architecture across voltage domains, many highly accurate measurement systems, a powerful host controller, the development and qualification of complex software in a safety critical system and the provision of redundant components to support functional safety. As the electric vehicle automotive community reported severe difficulties in fulfilling the requirements with existing products on the market, ams decided to rethink the entire subject.

AI: What makes the product unique?Gessner: The AS8506 is the first cell monitoring and balancing IC on the market that is able to

overcome the obstacle of the communication load. It does this by shifting the majority of the monitoring and balancing functions from software to hardware using an autonomous, highly integrated balancing solution which allows simultaneous measuring with reduced communication. The AS8506 is also a small form factor solution, having the balancing

switches integrated and using sequential balancing. Just one external discharge resistor

is needed per seven cells. An even more efficient active cell balancing mode can be configured

together with the passive solution. In this mode cells below the reference voltage will be charged in preference to

the others through a small fly-back converter and the integrated switches. The autonomous approach enables communication without the need for fast data management by a central controller. This drastically reduces the amount of data to be processed, meaning that a smaller, down-sized battery controller can be used with much less software effort in a safety-critical BMS system.

innovation

Balancing battery cellsfor safety and longevity By: James Hilton

The architecture developed by ams is not a direct response to car manufacturers’ specifications, but rather a response to the difficulties that battery manufacturers and BMS electronic system integrators are faced with. ams developed the AS8506 ASSP with funding support from EU research projects E3Car and Estrelia, where European wide experts come together.

Today battery management systems capture individual cell voltages in a more or less time-deterministic way and communicate them to a powerful host controller. Comprehensive data logging and software functions are needed to perform the required

Bernd Gessner, Exect. VP & General Manager, ams

Automotive Business Unit.

Battery management for both hybrids and fully electric vehicles is focusing on the individual cells. By balancing the cells, it is possible to halt a battery’s capacity decline, increase operating time, and improve the overall system run-time.

Balance state of charge on individual cells.


AI: Where do you see this being used?Gessner: Generally, this IC covers all lithium-based cell

packs, as well as EDLCs (Electrical double-layer capacitors “supercapacitors”), in applications such as: • Mobility: 12V and 48V automotive applications, e-mobility,

motorcycles, e-scooters, e-Bicycles • Consumer electronics • Power tools • Off-grid energy storage• As well as many more applications

AI: Tell us about the dual voltage onboard power supply and why it is important?

Gessner: The implementation of the 48V power voltage system in passenger cars will certainly help to reduce power losses and CO2 emissions. The 48V power supply enables a much more efficient way of supplying power-consuming components in the vehicle, while reducing the wiring costs and weight. The standard operational voltage level is below 60V, meaning that no additional safety measures for human beings are required.

In order for this implementation to be successful, however, the entire supply chain for electronic components – including semiconductor suppliers, manufacturers of electronic control units and component and system suppliers – will need to examine the impact on their products carefully. For the semiconductor industry a significant and costly investment is needed to be ready for the technical specifications of the 48V power supply. As each semiconductor fabrication process is designed to support one narrowly-defined voltage domain, the automotive industry’s 48V domain, with its demand for a minimum 70V break-through voltage introduces a new process requirement. The effects of this, including the trade-off between figure of merit and voltage capability, are the subject of much debate in the industry.

There is not much experience among car manufacturers and suppliers with the new 48V power supply. Devices connected to the battery voltage and the communication wiring will require even higher break-through voltage than 70V, most likely 90V. This means that process technologies need to be developed by the semiconductor companies, and be implemented in their production lines with stringent automotive qualification.

AI: What in your mind is the role of semiconductor manufacturers as far as automotive OEMs are concerned?

Gessner: Semiconductor companies will be the enabler for the dual-voltage supply in vehicles. With the first ICs now designed for the 48V grid, the implementation costs for OEMs are known.

Reliability, safety functions and cost efficiency are the key for this new technology, and semiconductor suppliers play a major role in achieving these goals.

AI: Is there a connection between battery management solution and the dual-voltage supply?

Gessner: Unlike the existing 12V vehicle battery, the 48V battery will be Li-ion-based which requires a battery management system. This includes the ability to measure current and cell voltage, functional safety features, cell balancing, a driver for the battery disconnect switch, a BMS controller and communication with the in-vehicle CAN bus. In the dual-voltage supply, the 12V and the 48V net are typically linked together through a bi-directional DC-DC converter.

The dual-voltage supply system requires 48V energy storage, typically a Li-Ion-based 48V battery (LFP, LFP/LTO chemistry). As mentioned, Individual cells need to be monitored at all times to stay within the safe operating area. The 48V battery has high energy content and therefore makes a battery disconnect switch mandatory.

ams offers its flexible battery management standard products which perfectly fit the application for a 48V BMS. Battery pack current is measured through a shunt synchronous unit with battery voltage by the AS8510. Cell voltage monitoring, measurement and balancing is handled by the new AS8506. Communication to the vehicle’s CAN bus and power supply may be accomplished with the AS8601, a supply IC with high-speed CAN interface.

ams released a cell monitor and cell balancer IC – the AS8506 during the October VDI Congress “Elektronik im Kraftfahrzeug in Baden-Baden, Germany”.

The conference, held on the 16th and 17th of October 2013, was the launch pad for the AS8506. It is the first cell balancing product which can be operated completely without micro and serial communication thus reducing software complexity while offering high accuracy. It allows for simultaneous cell capture across the entire cell stack which improves noise margin for balancing decisions. It can balance currents as low as 100 mA to ensure maximum battery life, says ams.

AS8506 launch

ams controllers are designed to be plugged into each other to expand number of battery cells.

AI

AI

The ultra-modern headquarters of amsin Austria.


services, like streaming online video to TVs in the back seat, videoconferencing and advanced navigation services. Audi, for example, is already using LTE to integrate advanced Google Earth navigation and real-time location services into the vehicle dashboard. Even more exciting for auto manufacturers, however, are the services LTE enables “under the hood.” For example, when a vehicle is capable of OTA connections of hundreds of megabits per second, it becomes possible to update the complete software in vehicles much more frequently and easily.

LTE also significantly improves the driver experience even for services that don’t require higher-bandwidth connections. LTE has a tenth the latency of previous-generation cellular technologies. This speedier communication translates directly to a more responsive “feel”. Many LTE networks also operate at lower frequencies than today’s 3G networks, which means that LTE-connected vehicles should have better cellular coverage.

Automotive Industries (AI) asked Olivier Pauzet, Vice President, M2M Marketing, Sierra Wireless, what has changed since LTE first hit the scene.

Pauzet: A few things: First, with the deployment of LTE technology around the world, OEMs are seeing the possibilities that LTE can offer to improve the driving experience and bring services to the vehicle that weren’t possible before. Second, it has become increasingly clear that, when building solutions that will operate in the field for the next 10 or 15 years, LTE is the smartest long-term investment. Finally, the emergence of new LTE cellular technologies specifically for automotive is making it easier and less expensive to build in-vehicle LTE solutions than ever before.

AI: What are some of the new services?Pauzet: The most obvious benefit of a faster cellular data

connection to the vehicle is the ability to stream high-bandwidth services over the air (OTA). This can include infotainment

innovation

Automotive GoesAll-In on LTE By: Nick Palmen

Long Term Evolution (LTE) cellular technology is a relatively new concept to the motor industry. Up to a few years ago, automotive manufacturers, suppliers and OEMs saw LTE as a curiosity or treated it with skepticism. But as with most things in technology, a couple years is a lifetime. Today, virtually every auto company has plans to add LTE to their vehicles, and OEMs increasingly view LTE as the de-facto standard for in-vehicle cellular connectivity.

Shared information in the cloud will enable drivers to anticipate

problems around the corner.

The LTE standard was designed to allow ad-hoc communication between vehicles — such as vehicles sharing real-time traffic information with each other — even when they are outside network coverage. Data delivered by LTE will light up the road ahead.


Of course, this is all just the beginning. Looking down the road, there are all sorts of interesting things that auto companies and OEMs can do with LTE. For example, in the future the LTE standard could allow ad-hoc communication between vehicles — such as vehicles sharing real-time traffic information with each other — even when they are outside network coverage. We are still a ways away from seeing such solutions on the road, but the possibilities are intriguing. LTE also has the potential to bring “Big Data” applications to the vehicle. Consider that most of today’s connected vehicle applications collect a narrow, specific set of information for a specific purpose. In the future, when all cars are linked to the cloud by a high-speed LTE connection, data from every system in the vehicle — and from every vehicle on the road — could be captured in real time, enabling automotive, safety and logistics applications that we can only begin to imagine.

AI: How does one plan for the future?Pauzet: These possibilities are exciting, but automotive

manufacturers and OEMs have a much more pragmatic reason to begin looking seriously at LTE: longevity. The fact is that even if older 3G or 2G networks are sufficient for many of the applications a vehicle will run today, those cellular technologies may not exist for the full lifespan of vehicles being produced over the next few years. Several major mobile network operators (MNOs) around the world have already announced plans to shut down their 2G networks. Today’s 3G networks will likely continue operating for many more years, but when manufacturers consider the expected lifespan of a new vehicle sold in 2015 — a vehicle that will likely still be on the road in 2030 — it only makes sense to think longer term. Even when MNOs move to the next generation of LTE, LTE Advanced, newer LTE cellular networks will still be backwards-compatible with today’s LTE-equipped vehicles.

AI: is there already a new generation of automotive LTE technologies?

Pauzet: In just a few years since the launch of the first LTE, the cellular modules have become more efficient and cost-effective. The latest generation of multicore LTE modules provide separate microprocessors for cellular connectivity and the in-vehicle application pre-integrated on a single application-specific integrated circuit (ASIC). Pre-integrated multicore solutions like these make it possible to develop and deploy powerful connected applications much more quickly and at a much lower cost than when OEMs have to integrate all cellular components themselves. These cellular technologies are also smaller, consume less power, and provide superior security and reliability.

In addition, OEMs and their Tier suppliers can now take advantage of cellular solutions from vendors like Sierra Wireless that are designed specifically for in-vehicle solutions. New multicore LTE solutions like the Sierra Wireless AirPrime® AR7 series (the first automotive LTE module available for Verizon’s 4G LTE network) have been built from the ground up as “automotive-grade” cellular modules. These solutions are designed to meet the unique and demanding requirements of in-vehicle operation, including compliance with stringent automotive quality processes and industry certifications. They are also designed with automotive-specific development tools and libraries that simplify the process of developing, testing and launching in-vehicle cellular applications.

AI: What is the Road Ahead for LTE?Pauzet: LTE may have been little more than a curiosity for

automotive companies a few years ago, but today it is the clear standard for the connected automotive applications of the future. As a pioneer and global leader in automotive cellular technology, Sierra Wireless plans to continue working with our automotive industry customers to push the boundaries of what’s possible in a connected vehicle. As LTE networks and automotive cellular solutions continue to evolve, we can’t wait to find out what the future holds. AI

“It has become increasingly clear that, when building solutions that will operate in the field for the next 10 or 15 years, LTE is the smartest long-term investment.”

High-speed data is needed to keep the driver connected to conditions on the road.


Automotive Industries asked Danny Shapiro, Director of Automotive at NVIDIA, what contribution the company had made to the BMW i3 electric car.

Shapiro: Due to the restrictions placed upon us by BMW, we are unable to comment about the specific content in the i3 until its North American showcase at CES, 2014. However, NVIDIA works very closely with BMW in the design and production of its current infotainment systems where they leverage our advanced processor technology to bring smooth, high-resolution visuals to life inside the car.

AI: What role does your company play in furthering the scope of safety in vehicles’ advanced driver assist systems and in-vehicle-entertainment?

Shapiro: The GPU is a highly parallel processor. In order to perform computer vision in the car, numerous video cameras are utilized (front facing, side facing, rear facing) and those video feeds are then analyzed in real-time by the GPU. Computer vision algorithms can read traffic signs, detect pedestrians, track lane markings and serve as the basis for a collision avoidance system.

innovation

electronic demands. Implementing innovative solutions year-over-year traditionally has required complete re-design, and a start-from scratch approach for each new development. These approaches to development cannot keep pace with consumer electronics. The NVIDIA VCM is flexible and designed to power digital instrument clusters, rear-seat entertainment, infotainment systems, advanced driver assistance systems (ADAS) and head-up-displays. The modular system enables OEMs and Tier 1 suppliers to simply upgrade their designs as soon as a newer VCM version is available. The scalable platform speeds time-to-market, offers better system performance, scalability and upgradability, while simultaneously reducing overall system design effort.

NVIDIA’s Tegra SoC device is a unique combination of a quad-core ARM CPU, a low power ARM shadow core, GPU, and dedicated audio video and image processors, all packed in a tiny

silicon footprint the size of your thumbnail. Multi-core Tegra mobile processors are able to handle a wide range

of tasks simultaneously, including high resolution graphics, audio processing, gesture recognition

and object detection, resulting in visually stunning in-vehicle infotainment systems and safety critical applications that truly bring the driving experience to life. NVIDIA’s VCM is in production within the newest car models from Tesla, Volkswagen, Audi and BMW, with more to follow.

AI: How does augmented reality help promote safety in vehicles and how has

your company effected the change?Shapiro: The ability to sense the external

environment surrounding a vehicle and to display appropriate information on a head up display will give

drivers important advantage. Imagine receiving alerts about traffic congestion, displays of important vehicle data, or warnings of potential hazards ahead, all without having to take your eyes off the road.

AI: Tell us a little about what role NVIDIA’s Tech Center hopes to play in promoting automotive technologies in Detroit.

Shapiro: As automakers integrate more electronics into their vehicles, the requirement for hardware and software expertise also increases. With the establishment of the Ann Arbor Technology Center, NVIDIA is able to work more closely with Detroit-based automakers and Tier 1 suppliers to quickly design and develop innovative solutions. Ann Arbor is an ideal location, close to automakers and Tier 1s, as well as emerging talent from the University of Michigan.

AI: What role has NVIDIA played in the development of the Connected Car that links up to Cloud.

Shapiro: Several years ago, NVIDIA acquired a modem company called Icera. Today the Icera incorporates a software-defined radio, which means it can be upgraded to add new capabilities. In essence, it is a future proof strategy, enabling easy evolution of standards, from 2G to 3G to 4G. In order to enable faster computing in the cloud, NVIDIA has also recently announced GRID technology. Essentially racks of server appliances loaded with powerful GPUs deliver true high performance computing (HPC). GRID also enables live streaming of interactive content from the cloud.

AI: How does NVIDIA’s platform approach to IVI with your visual computing module help close the gap between consumer demand for regular electronic device updates and the automakers’ approach to updating IVI?

Shapiro: Automakers, with their traditional approach to development are unable to keep pace with consumer

Using visual computing power to meet rising customer expectations By: Esther Francis

Danny Shapiro, Director of Automotive

for NVIDIA.

In-vehicle visual computing allows OEMs to cost-effectively differentiate models, and to regularly update the look and feel of the car from driver’s perspective. A leader in the technology is the BMW i3, which was unveiled at the 2013 Frankfurt International One of the leaders in visual computing technology is NVIDIA, which has a long association with BMW.

AI

Engineering is Our PassionEngineers solve problems. Our optical sensors team solves the most demanding optical and thermal sensing problems. Providing sensors to measure incident radiation of visible light, infrared energy or far infrared heat energy. Sensors arrays and CMOS camera ICs for precise encoders, night vision imagers and low resolution thermal cameras. Active Lighttm optical sensing technology to precisely measures shapes and movements in real time and the real world.

Enhanced Safety Systems for a Sustainable FutureSafer Lifetimes by Design. Our engineers work together with our customers to improve quality of life through better sensing. Automated Driver Assistance (ADAS) systems help avoid accidents. Infrared thermometers detect fevers and save lives. Gesture Recognition sensors simplify complex controls so attention is on the road not the radio. Melexis takes inspiration from human eyesight, delivering engineered optical sensors for safer living.

We Engineer The Sustainable Future.

n Optical Sensing - Visible and Near Infrared sensors.n Far Infrared Temperature Sensing - Precise non- contact thermometer and thermal sensing arrays.n HMI and Time of Flight Sensing - Advanced Human Machine Interface Sensors and 3D Imaging Sensors using Active Light Technology. See All Our Optical Sensors At:

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WE ENGINEEROptical Sensors

For The Sustainable Future

Programmable Optical Sensors Automotive Industries.indd 1 5/29/13 12:13 PM


innovation

Light adds personal touchto automotive interiors By: Michael Bender, Melexis

plus they often proved fairly expensive to implement. The degree of customer adjustability needed to be increased markedly if such a feature was to ever have serious market appeal. This has led to a move from a passive approach to smarter ambient lighting systems with a much greater depth of features. Through the development of fully adjustable ambient lighting, vehicle occupants will, in the near future, have the ability to adjust the color of the interior to anything they chose, whenever they wish. They will be able to set specific lighting characteristics for different parts of the vehicle interior, create a particular start up lighting sequence, change the mood (perhaps when music by a particular artist is playing on the CD/radio for example). It also means that the driver (or passengers) can adapt the lighting system in response to diurnal and seasonal alterations in external illumination to maximize the overall lighting effect. Ambient lighting implementation

For ambient lighting to have real impact on the in-vehicle environment and add to passenger/driver comfort, a large number of solid state light sources need to be deployed throughout the cabin interior - in the foot wells, along the dashboard, across the underside of the roof, the door panels, etc, as well as illuminating certain mechanical parts (such as the interior door handles, cup holders and such like). Progress already made in the field of optoelectronics enables the combining of red green blue (RGB) light from single package emitter devices dispersed throughout the vehicle cabin - making it is possible for a broad spectrum of colors to be produced without the need for separate LEDS for each primary color. Nevertheless, the cost associated with providing interconnections to all of these RGB LEDS has the potential to seriously restrict ambient lighting implementation, with the effect being that it might only be considered for luxury cars. This would be unfortunate as there are clear opportunities to jazz up the interiors of mid-range and entry level car models too if the price is right.

Solid state lighting is now becoming commonplace in automotive designs, replacing more costly, less energy efficient and less reliable incandescent lamps. Though the technology has only recently been considered for the parking lights, brake lights, side lights and front lights on the car’s exterior, it has been used for illumination purposes in some car models for over a decade.

Now, by employing more sophisticated, highly integrated semiconductor solutions, car manufacturers can make their interior lighting systems far more exciting for vehicle occupants and thus enhance the whole driving experience. Some OEMs are now looking to utilize solid state lighting in their mid-range models. The only real issue how to implement such lighting systems while controlling costs.

Rudimentary ambient lighting mechanisms first started to be included in vehicles about four years ago. They were, however, very limited in terms of the functionality that could be supported,

The more forward-thinking automobile brands have already started to recognize the value of ambient lighting as a way to facilitate greater differentiation in what is an increasingly competitive market.

“Advanced technology of this kind will be of major benefit to

car manufacturers, allowing greater personalization of their models

through more compelling and entertaining ambient light features,

so that they can stand out from those of their rivals.”

MLX81106 functional block diagram.


constant current high voltage capable outputs are included too. LEDs show a difference in light intensity caused by the production process used. This leads to a change in output color mix. To compensate the EEPROM of the IC can be used to calibrate the LEDs within the end-of-line (EOL) module production process. The integrated LED threshold monitoring capability provides aging and temperature compensation for the LED emitters’ changing color values without the need for any external components.

As there is the need for a large number of solid state light sources to be deployed throughout the cabin interior, it is vital that all the modules are the same (in terms of hardware and software) for logistic reasons. To simplify the car production process together with the need to individual control a single module it is necessary to implement a system to detect the position of a single module in the car. This is done with the help of the field proven auto-configuration mechanism, based on bus-shunt (already used in climate systems). This implemented system allows the position of the modules to be detected during the EOL process of the car. As a result, though all modules within the car are physically the same, they can be addressed via LIN on an individual basis. Melexis offers a simple-to-use reference design with the LED emitter and the driver electronics all contained on a highly compact board.

The high degree of built-in functionality in this function-packed single chip solution enables the creation of streamlined highly optimized ambient lighting systems without the need for inclusion of large number of external components. It means that RGB ambient modules can be interconnected with the vehicle’s LIN system without requiring long drawn out development processes or heavy use of engineering resources. Advanced technology of this kind will be of major benefit to car manufacturers, allowing greater personalization of their models through more compelling and entertaining ambient light features so that they can stand out from those of their rivals. This functionality will no longer be confined to high end automobiles, but will potential be applicable across the board.

Control through LINWith the curbing of any financial outlay required for implementation

deemed to be of paramount importance, utilization of the local interface network (LIN) has emerged as a way to control the arrays of LEDs in ambient lighting systems - thereby making use of an existing bus infrastructure. The lightweight, single wire LIN bus supplements the communication carried out by the high performance but costly controller area network (CAN). As each RGB LED module can be connected to the LIN network there is no need for any addition to the car’s cabling. As a result the overall system costs are kept to minimal levels, plus the vehicle’s overall weight is not increased - thus avoiding the fuel consumption penalty that would be observed if current point-to-point wired arrays were used.

To respond to the very real demand now being witnessed from car manufacturers for a way to implement ambient lighting cost effectively, Melexis has recently introduced the MLX81106. Constructed on 0.18µm high voltage CMOS technology, this is a highly integrated, freely-programmable LIN RGB LED slave interface IC that contains all the necessary internal driver technology. Taking up just 9mm x 9mm of PCB, it is capable of driving up to 4 LEDs (red, green, blue and additional white if necessary) directly thanks to built-in constant current sources. It incorporates multiple functions, including a physical-layer LIN transceiver, a 19.2kbit/s LIN controller (supporting LIN 2.x and SAE J2602), a 10-bit analogue-to-digital converter (ADC) with integrated pre-divider, a voltage regulator and 16-bit microcontroller (with 24/32kByes of Flash, 512Bytes of RAM, 128Bytes of EEPROM memory).

Through the microcontroller each of the four outputs can be programmed to give up to 35mA (with internal boost function up to 48mA) of drive current. If an optional white channel needs more output current it can be supported with just one external component thanks to the IC’s high voltage capability on its IOs. A total of 2.7 x 1014 different colors can be generated – for an expansive user selection. Key supporting functions like 16-bit current control and

An example of a MLX81106 application schematic.Melexis LIN RGB lighting solution.

AI


Innovation behind transporting the transporters By: Lenny Case

With the globalization of the motor industry, the contribu-tion made by transport and logistics companies in the au-tomotive value chain coming to the fore.

Salzburg-based transport firm VEGA International Car Transport and Logistic Trading was recently presented with an export award by the Austrian Federal Economic Chamber and the Austrian Federal Ministry of Economy, Family and Youth for the Transport and Traffic category. VEGA, which specializes in transporting commercial and utility vehicles, buses, trailers and cars, was given the award in recognition of its success in international markets.

innovation

knowledge of working in different sectors of the transportation and logistic industry, VEGA’s primary area of expertise is in the transport of new trucks and buses.

In order to cater for the increasing size of commercial vehicles over the years VEGA has pioneered the use of multimodal logistics chains which include road, roll-on roll-off ships and rail solutions. Using special low-bed rail wagons makes it possible to transport vehicles with heights of up to four meters.

VEGA’s customers are primarily OEMs such as MAN, Mercedes, Scania, Iveco, Volvo and Schmitz Cargobull. The company has

subsidiaries and representatives in Germany, Benelux, Czech Republic, Croatia, Russia, Romania and Turkey, generating

revenue of 65 million Euro in 2012. VEGA International handles the entire transport

logistics process, including clearing. VEGA’s shipping department collaborates with the main shipping companies and is able to offer shipments to any destination required. Around 50,000 commercial vehicles are transported every year – most on their own axle with up to 800 specially trained drivers. A joint

venture with a French company has enables VEGA to establish its own railroad sidings. VEGA says the main

bulk of shipments are within the Mediterranean region. Automotive Industries (AI) asked Franz Blum,

General Manager, VEGA International, what were some of the reasons VEGA won the Austrian award for excellence in innovation.

Blum: VEGA is located in Austria, but 95% of its turnover is made with international truck and bus movements, so the export value chain is very significant. This has been regarded as an excellent performance by the Austrian Chamber of Commerce, in

VEGA is also the first recipient of the Daimler special award for innovation. The passenger and commercial vehicle transport awards are given to the top ranking carriers in Daimler’s key performance indicator (KPI) monitoring system, which includes categories such as meeting the OEM’s specified pickup windows, maintaining fleet and equipment standards and low damage rates.

Founded in 1990 by five shareholders who combined their

Vega International’s more adventurous delivery to the city of

Tashkent in Uzbekistan

Franz Blum, General Manager, VEGA International with Unal Ergun, (right) Vice Chairman of Vega Lojistik A.Ş. Istanbul responsible for Turkey and together with his team, made the Daimler bus delivery to Uzbekistan.


which is self-attaching on one side. Working in close cooperation with Daimler we developed the right product, which has reduced the damages by stone hits from 25% per bus to almost 0% !

AI: Your company also has innovative ways to protecting windshields. Tell us a little about the process.

Blum: The same challenges for the protection of paintwork are, of course, valid for the windshield when it comes to stone hits. Therefore we have developed a very elastic and fully transparent self–attaching foil, which can be taken off easily after the bus has arrived at the final destination.

AI: How does VEGA look for better ways of transporting large trucks, buses, and cars?

Blum: We have a company-wide competition to come up with new ideas, and we listen very carefully to our staff when it comes to innovations which can help us to become more cost efficient and to achieve a higher quality. In addition, using a new data program, we are working on a bonus point system which will help us to select the best performing drivers and to award their achievements in driving our business in the best possible direction.

AI: What are some of the future challenges?Blum: A big challenge is the driver shortage ahead, as young

people are not being attracted into the industry. The European driver license regulation only allow young people to get the heavy truck license only at the age of 21 years, by which time it is too late for them to select truck driving as professional career. In addition, the working conditions for drivers have become very difficult. Driving regulations force them to work against their biorhythm, which is on the long run not healthy at all.

Another challenge is the big volatility in the truck market. In the peak months we deliver three to four times more vehicles than in the quieter periods.

“One of our logistic hubs has even become the delivery center for Daimler trucks, where we deliver the Daimler trucks to the final customers.”

particular as our company is very successful in emerging markets like Turkey and Russia for example.

AI: Describe the innovations VEGA developed for Daimler. Blum: VEGA has been cooperating with Daimler since 1993. It

started with a local importer in Europe, followed by bus production in Istanbul. Our business with Daimler has continued to grow over the decades as our high quality standards are in line with the demand of Daimler: Das Beste oder nichts (“The best or nothing at all”). VEGA has invested extensively into a modern infrastructure all over Europe, especially in logistically well-located hubs for the commercial truck manufacturers, as well as in skills training. The VEGA motto: “Excellence is our driver” is a company-wide program to drive permanent improvement and innovation. One of our logistic hubs has even become the delivery center for Daimler trucks, where we deliver the Daimler trucks tothe final customers.

AI: What does it mean to win an award for excellence from a customer – such as the one Daimler gave VEGA?

Blum: It is a great honor, as well as a huge challenge, to keep the wheels turning in a modern logistic environment, which includes paperless and real time documentation. VEGA recently invested a significant amount in order to achieve new standards in this area. We are very proud that we have been recognized by the award, and it helps motivate us to continue to innovate in all our areas of business.

AI: What was the inspiration for your bubble innovation to protect paintwork?

Blum: Once, when opening a bubble-protected envelope, I realized that this type of protection for sensitive contents would be perfect for our type of transport, where new and very valuable buses are driven across the Continent and where stone hits are a real problem, especially in winter months. We then started discussions with foil producers to develop a bubble plastic foil AI

The “bubble wrap” developed by VEGA to prevent road damage during delivery.

VEGA’s multi-modal delivery system includes rail.


innovation

But in 2009, newly-elected Governor Jay Nixon had a plan to bring this industry – and the thousands of jobs it supported – back to life. Through the concerted efforts of state, labor and industry leaders, the State of Missouri is seeing a strong resurgence in the automotive industry, led by historic expansions by Ford and General Motors and automotive suppliers around the state.

Missouri has always enjoyed a proud history in the automotive industry, dating back to 1897 when the St. Louis Gasoline Engine Company manufactured some of the first gas engines. When the U.S. economy slipped in the mid 2000s, so did Missouri’s auto sector. The global decline in auto sales forced the closure of Ford’s Hazelwood plant and both Chrysler’s North and South Assembly plants. Additionally, General Motors’

Detroit for meetings with CEOs Alan Mulally and Dan Akerson, to develop a plan that would keep these industry giants in Missouri for generations to come. The Governor also worked to make government smaller, smarter and more efficient – holding the line on taxes while making strategic investments in education and workforce training.

In June 2010, Governor Nixon called a special session of the Missouri General Assembly to enact the Missouri Manufacturing Jobs Act, a landmark package of targeted economic incentives credited with bringing Missouri’s automotive manufacturing

industry back from the brink and laying the groundwork for the significant expansions now underway. Today,

automotive manufacturers and suppliers are making major investments in the Show-Me

State, as this important industry continues to roar back to life. Ford is making US$1.1 billion investment in its Kansas City assembly plant to build the all-new Transit van. The company also recently announced a third production crew of the Ford F-150, the most popular pick-up truck in the world.

The expansion, which is creating more than 2,000 new jobs in the region, includes

upgrades to the facility’s body shop, paint shop and final assembly, as well as construction of a

new, integrated stamping plant.On the other side of the state near St. Louis, General

Motors is adding 1,600 jobs and investing $380 million to bring production of the newly redesigned Colorado pickup to its Wentzville plant and to support demand for its existing vehicles. In June, GM announced an additional $133 million investment at the facility to add a third stamping press.

Missouri’s growing automotive industry has helped spark a parallel resurgence by automotive suppliers across the state. In May, Yanfeng USA Automotive Trim Systems, an industry leader in interior component supplies, announced plans for a US$45 million facility that will create 263 new jobs in Riverside. Last year, LMV Automotive Systems, a division of industry giant Magna, broke ground on a facility in Liberty to build parts for the Transit van.

Rebuilding theMissouri auto industry

By: Esther Francis

Gov. Nixon speaks at Ford’sKansas City AssemblyPlant to

announce a third production shift for the popular F-150 pickup truck.

Wentzville plant discontinued its second shift. From 2004 to 2009, employment in Missouri’s auto manufacturing sector declined by 35%.

Recognizing the importance of the automotive industry to the long-term economic well-being of the state, Governor Nixon, on his first full day in office, issued an executive order establishing an 18-person Missouri Automotive Jobs Task Force to develop a plan to bring the state’s automotive sector back to life. The taskforce, comprised of a diverse group of industry experts, found that Missouri offered unique advantages for automotive manufacturers: a skilled workforce, a central location, low taxes and excellent transportation assets.

In September 2009, the taskforce submitted its detailed recommendations for jump-starting automotive industry investment in the state. With the taskforce’s report in hand, Governor Nixon and his economic development team worked closely with leadership at Ford and GM, including travelling to

During the depths of the recession, Missouri’s automotive industry was on the ropes. Once-thriving plants had closed, workers had been laid off, and thousands of jobs had been sent overseas. Many analysts predicted that this trend would continue and that it wouldn’t be long before the last Missouri-made vehicle rolled off the line.


historic expansions underway in Claycomo, Wentzville, and auto suppliers creating jobs across the state.

AI: What did it take to convince GM and Ford to continue to invest in Missouri?

Nixon: From Day One, my administration has worked tirelessly to make Missouri an attractive place for automakers to invest. Unlike some other states, we balanced our budget every year without raising taxes and protected our spotless Triple-A credit rating. In fact, we continue to cut taxes in targeted, strategic ways designed to spur growth and create jobs. At the same time, we upped our investments in worker training to make sure our workers had the skills to compete for the jobs of the future. We also worked very closely with the leadership at Ford and GM, including meetings in Detroit with CEO Alan Mulally and Dan Akerson to develop a plan that would keep these two industry giants in Missouri for generations to come.

AI: What are some of the reason foreign companies like Yanfeng are investing in Missouri?

Nixon: Obviously the significant expansions underway at Ford’s plant in Claycomo and General Motors’ plant in Wentzville have been vital to laying the foundation for a revitalized network of automotive suppliers. But it’s important to note that even companies like Yanfeng, which supplies the GM plant across the border in Kansas, are choosing to invest in Missouri. These companies are finding that with low-taxes, a skilled workforce, and a predictable business climate, the Show-Me State is a great place to do business.

AI: What has the increased investment by automotive OEMs in Missouri meant to the state and its people?

Nixon: Missourians get up early, stay late, and work hard to get the job done. These auto jobs are held by skilled workers who not only build quality vehicles, but also buy these cars and trucks. Their families, friends and members of the community buy these vehicles because they know the people behind the product. The rebirth of Missouri’s auto industry has created jobs for thousands of hard- working Missourians in Kansas City and Wentzville, and strengthened communities in every corner of our state. We look forward to seeing these investments pay dividends for many generations to come.

And Adrian Steel is constructing a new manufacturing facility in Kansas City to support Ford’s Claycomo Plant. These announcements followed expansions last year by suppliers including TG Missouri, Henniges Automotive, Bodine Aluminum and Spartan Light Metal Products.

Governor Nixon and his economic development team have continued to focus on the automotive sector, supporting training programs and incentives specifically designed to strengthen Missouri’s automotive supplier network. In July, Governor Nixon signed into law the Missouri Works initiative, which consolidates the state’s existing business development incentives into a single, business-friendly program with a uniform set of definitions and a streamlined application process to cut through red tape. The Governor also signed into law legislation lowering the tax burden for Missouri manufacturers by allowing companies to elect a new single-factor apportionment option to calculate their corporate income tax.

Automotive Industries (AI) asked Governor Nixon what were the challenges that led him to establish the Joint Task Force.

Nixon: A generation ago, a job at the local auto plant was more than just a job – it was a lifelong career, an opportunity to achieve the American dream. And parents were confident their children could achieve that dream as well. When I took office, that job security at the local plant didn’t exist anymore. Too many American auto jobs had moved overseas, too many plants had closed and the global recession accelerated the decline. But, we always had faith that this industry would recover. The vehicles of the future had to be built somewhere. It was up to us to make sure they were built here in Missouri – and by rolling up our sleeves and working together, that’s exactly what we’ve done.

AI: How did the Missouri Manufacturing Jobs Act help kick start auto production in your state?

Nixon: The Missouri Automotive Manufacturing Jobs Act, based on the recommendations of our Automotive Jobs Task Force, allows qualified manufacturing facilities or suppliers that bring next-generation production lines to Missouri to retain withholding taxes typically remitted to the state. It includes strict taxpayer protection, as incentives are only available once workers are actually on the job. The results speak for themselves, with AI

Gov. Nixon tours the Portageville, Mo., facility of SRG Global, one of the world’s largest manufacturers of chrome-plated plastic auto parts, in June 2013.


innovation

Robots and people are working side-by-side on production lines in order to maximize the abilities of both.

An example is the 2,800,000 m2 Volkswagen plant in Salzgitter, Germany. It is one of the largest engines production plants in the world. Some 6,000 employees manufacture approximately 7,000 gas and diesel engines in over 370 variants every day.

The OEM recently deployed a collaborative industrial robotic arm from the Universal Robots for the purpose of inserting glow plugs into the cylinder heads. Production line staff had been stooping over the components in order to insert the glow plugs into concealed drill holes. This step is now being taken over by the six-axis UR5 lightweight robot from Universal Robots. It picks up the delicate glow plugs using a collaborative gripper system developed by system integrator Faude Automatisierungstechnik, and places them into the hard-to-reach drill holes.

Lightweight robots canwork alongside people By: Jon Knox

are working on numerous projects with them, but due to the confidential nature of our partnership we can only publicly talk about our car door application already released and installed at their plant in Spartanburg, South Carolina. In this setup, the UR10 robot (UR5’s big brother with a payload of 10 kilos) is performing a roll operation that follows the perimeter of a door panel, pressing a glue bead around the panel to create a watertight seal.

AI: Tell us a little about the relationship between Universal Robots and VW.

Visti: We first visited Volkswagen in Salzgitter in 2009, where I did a demo at their plant. At that time, Universal Robots was a

brand new product and we had only sold around 100 robots – about the same amount that we sell per month right

now. Not long after our visit, Volkswagen purchased the first robot. Since then, we’ve had regular

meetings with them, but the primary contact for this project has been our competent distributor, Faude Automatisierungstechnik.

AI: How would you rate the success of your collaboration with VW and how do you see this impacting future automotive business?

Visti: Our collaboration with Volkswagen has been successful on all levels due to

Faude Automatisierungstechnik’s ability to implement the solution. The fact that Volkswagen

has integrated the first collaborative robot into its mass production facility has attracted a significant

amount of interest around the world, both from automotive manufacturers and other companies seeking easy, affordable ways to automate production.

AI: How did Universal Robots and VW work together to maximize benefits?

Visti: Our distributor Faude Automatisierungstechnik worked closely with Volkswagen to develop a customized solution that was right for them. The robot grippers installed in the application have been specifically developed by Faude.

AI: How do you see this helping future advances in streamlining automotive manufacturing?

Visti: Our collaborative robots have pioneered a new trend within automation and robots – in all industries. Being able to work directly alongside a portable robot with no safety guards enables an unprecedented amount of cost saving and

Thomas Visti, Vice President & Chief Commercial Officer, Universal Robots.

An employee is then responsible for fixing the glow plugs and insulating the cylinder head.

“We would like to prevent long-term burdens on our employees in all areas of our company with an ergonomic workplace layout. By using robots without guards they can work together hand in hand with the robot. In this way, the robot becomes a production assistant and can release staff from ergonomically unfavorable work,” explains Jürgen Häfner, project manager at Volkswagen’s Salzgitter plant.

The robots are able to work alongside humans because of their integrated safety mode (matching Standard EN ISO [AJ1] 10218). If the robot comes into contact with an employee, it will stop operating without injury to the human.

Automotive Industries (AI) asked Thomas Visti, Vice President and CCO of Universal Robots whether it was true that BMW was looking at deploying the same safety technology to insert glow plugs into the engine block as VW.

Visti: BMW has collaborated closely with us from the time Universal Robots was a young and unknown company. We


Mullen: Our technology allows any small, medium and large company to successfully implement automation where it was impossible to in the past. The ability to potentially run unguarded, coupled with the flexibility to quickly reprogram or

even reallocate our robot opens up endless possibilities to implement automation. Implementation is quick due

to the user-friendly, intuitive nature of the robots. Often, programming and installation is done in

a matter of hours.

flexibility in your production; your new colleague can be a robot that optimizes both the production and alleviates workers of monotonous tasks, often promoting them to higher skilled positions. This concept is thrilling to many companies looking for new ways to stay competitive while also creating better working conditions for employees.

Currently, 80% of Universal Robot installations worldwide operate with no safety shielding, but of course every installation depends on prior safety assessments.

Automotive Industries then asked Edward Mullen, National Sales Man-ager, Universal Robots USA what kind of business Universal Robots does in North America?

Mullen: Universal Robots introduced itself to the North American Market in September of 2012. Since then, we have implemented a high tech distribution channel throughout the US and Canada, giving us 100% coverage of all areas. Our distributors have done a phenomenal job penetrating a wide variety of industries including automotive, machine tools, medical, packaging, assembly, pharmaceutical, and electronics to name a few.

AI: Has it broken into the automotive sector? Mullen: Yes absolutely. We have had tremendous success

with BMW here in the US. In addition, we have the attention of most all other automotive manufacturers. Successful applications like parts placement, assembly, screwing, and gluing continue to help us grow through this industry.

AI: What benefits can North American automakers get from Universal Robots’ technologies?

Vision driving the successThe idea of creating a light and inexpensive robot that is easy to install and program arose in 2003 when Kristian Kassow was working on an analysis of the requirements for robots in the food industry. At the same time Esben Østergaard and Kasper Støy were working on a PhD project about the market for robots.They identified that the market was characterized by heavy, expensive, and unwieldy robots. It was decided, with help from investor Syddansk Innovation to establish Universal Robots in 2005. Universal Robots currently has approximately 100 employees. The entire development and production takes place at its Odense site in Denmark.

A UR10 at BMW performs a roll operation pressing a glue bead around the door panel to create a watertight seal.

A UR5 operates next to employees at Volkswagen, inserting glow plugs into cylinder heads.

Ed Mullen, National Sales Manager for Universal Robots USA, Inc.

AI: What are some of the advances in auto-motive manufacturing that makes North Amer-

ica an important market for Universal Robots? Mullen: I believe North American manufacturing is

focused on becoming more efficient and keeping manufacturing here at home. It is, therefore, imperative to be able to convert existing process to automation. In addition, there is a major focus on ergonomics and of relieving workers of repeated, monotonous tasks.

AI: How do you see business growing in the region? Mullen: We have only been here about a year now and see

tremendous interest across the board in all industries. I truly believe the growth will be epic, as awareness grows around collaborative robots and the safety organizations continue to evolve the specifications. AI


Another source of concern is the outsourcing of maintenance, which can mean that staff is exposed to new and unfamiliar hazards every time they carry out a job. In order to manage the risk companies need to invest in ongoing training in order to increase worker understanding and improve their skills and knowledge.

With the right help, support and guidance, there is much that an individual can do to protect their own wellbeing while boosting productivity and profitability. Meanwhile, there are some tips for steps which can be taken immediately to minimise risk, in line with the principles of Lean Manufacturing.

Users themselves are the best source of insight into their use of supplies and PPE – and that knowledge should be used:• Go onto the factory floor to understand working conditions• Identify what can be done to minimise exposure to solvent emissions • Establish what solvents workers use, and how do they are

applied - do they take gloves off for certain tasks? Do they leave solvent dispensers open?Simple changes or new procedures can soon become routine

and can be documented to help new workers or those unfamiliar with a particular location or process. Addressing these seemingly small details can easily result in a significant reduction of VOC emissions. Identifying hazardous area zones and equipment categories also helps workers use the correct PPE and supplies.

Zones can be classified 0, 1 and 2 on the basis of the frequency and duration of the occurrence of a dangerous atmosphere. In Zone 0 danger is present continuously or for long periods or frequently, in Zone 1 danger is occasional and in Zone 2 danger is rarer.

It is true that getting internal support for compliance can be an uphill struggle, and even the best-intentioned can find the topic slipping to the bottom of their agenda. But by minimising the VOC emissions, it’s possible to significantly reduce waste and lost productivity. Thus the benefits of Lean Manufacturing can be achieved by better managing solvent usage. There’s a stick as well as a carrot.

Failure to deal with these issues can lead to large fines, increased insurance premiums and, potentially, plant closures.

Chemicals, solvents, dust, gaseous pollution and particulates are all part and parcel of life in manufacturing environments. Studies show that some 46% of industrial workers are exposed to at least one chemical in their daily work while 21.6% are exposed to at least three.

A typical facility will use up to five tons of solvent a year, potentially exposing workers to dangerous toxic chemicals. These solvents include paint and lacquer thinners, mineral spirits, Turpentine, and hazardous or noxious products such as MEK, IPA and Acetone. Dusts might include metal or wood dust, while emissions containing gaseous pollutants include ozone, oxides of nitrogen and carbon monoxide.

Exposure to inhalants causes a number of effects, including chronic respiratory problems and fatigue – all of which can have detrimental effects on health and productivity. It is estimated that the effects of exposure to dangerous substances contributes significantly to the 350 million working days lost a year in Britain alone through occupational ill-health and the suffering of over seven million victims from occupational illnesses.

Industrial supplies and PPE supplier Kimberly-Clark Professional has identified that VOC emissions can be reduced, safety enhanced, and the benefits of Lean Manufacturing achieved by better managing solvent usage. For many manufacturers and production activities in Europe there is high level of an experienced but aging workforce. This poses a challenge in itself for future solvent use and management. When the current generation retires, a great deal of knowledge about solvent use will be lost. With solvents it is vital to understand risks related to product, and how best to use them for a particular task.

Adding to the challenge is a growing number of young people are entering working life with asthma, allergy or hypersensitivity problems. Growing understanding of VOC emissions raises the concern that they not be adequately protected by existing preventive measures.

innovation

Cutting VOC emissions: Why the shop-floor offers new ways to drive Lean Manufacturing By: Nick Palmen

AI

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incentive programs specifically targeting Kentucky’s OEMs and major auto suppliers, the Kentucky Jobs Retention Act. This led to Toyota announcing it would invest $530 million to expand its Georgetown manufacturing plant and establish its first U.S. production site for the Lexus ES 350. The move will result in an estimated 750 new jobs in the Commonwealth to produce about 50,000 vehicles a year starting in 2015. The investment is the second-largest ever made by Toyota in its Georgetown plant, and the largest since the $800 million addition of Plant 2 in 1991, more than 20 years ago.

It was this same incentive program that was used to encourage Ford Motor Company to invest $1.2 billion between its two

Louisville assembly plants. The Louisville Assembly Plant, which now produces the Escape, was

transformed into the company’s most flexible high-volume plant in the world, while its Kentucky Truck Plant also got an overhaul. The rest of the auto industry is paying attention. Since January 2010, approximately 225 auto manufacturers and suppliers have announced $3.6 billion in planned capital investment and more than 15,000 new jobs in Kentucky.

AI: Tell us about the kind of infrastructure, talent pool and other benefits companies

can hope to get in Kentucky.Beshear: Located at the center of a 34-state

distribution area in the Eastern United States, our location advantage facilitates the expedited distribution of products to industrial and consumer markets. Bolstered by 19 interstates and major highways, major rail networks, barge traffic on the Ohio and Mississippi rivers, five commercial airports and dozens of regional airports, Kentucky’s logistics network makes it easy to reach all points of the globe easily and efficiently. Kentucky businesses are also served by two major shipping hubs (UPS and DHL) located at Kentucky’s two international airports. UPS and DHL help rank the state third in the nation in total air cargo shipments.

I know that workforce considerations are always at the top of any site selector’s check list and we take that seriously. We strive on our ability to provide companies with the skilled and available workforce it needs to compete in the global economy. Our state workforce partners work collaboratively to deliver the customized and flexible solutions clients need. Our approach can be validated

Automotive Industries (AI) asked Kentucky Governor Steve Beshear how the state established itself as a text-book case on showing leadership and innovation in the development of a powerful engineering and manufacturing base for global automakers.

Beshear: Automotive manufacturing is in the DNA of Kentuckians, and we manufacture them to the best standards in the world. Kentucky is also looking to the future and is on its way to becoming the epicenter of advanced automotive manufacturing. In August of last year, we cut the ribbon on the Kentucky-Argonne Battery Research & Development Center, which is a partnership between the Commonwealth of Kentucky, University of Kentucky, University of Louisville and Argonne National Laboratory, a leader in basic battery research. Over the past

innovationKentucky smooths the way for auto investorsBy: Lenny Case

Steve Beshear, Governor of Kentucky.

year joint research projects have been developed with several major automotive manufacturers, including Ford, Hitachi and Toyota. The presence of three global OEMs, combined with world-class research institutions and capabilities and a highly skilled workforce, has attracted an ecosystem of Tier I and Tier II suppliers in all parts of the state. Today, Kentucky boasts more than 450 motor vehicle-related facilities that employ approximately 80,000 people. We’re the third-largest producer of light trucks and vehicles in the U.S., with more capacity being added in the near future. It’s a great time to be in the automotive industry in Kentucky.

AI: What incentives do you offer automotive companies?Beshear: Our most popular program is the Kentucky Business

Investment program. Approved new and existing companies can receive corporate income tax credits and wage assessments when creating new jobs and making an investment in Kentucky. We also offer approved companies a refund on Kentucky sales and use tax for building and construction materials, R&D and data processing equipment. I recently signed into law legislation expanding one of our

Kentucky is leveraging its geographic position and skilled workforce to attract and grow its automo-tive sector. Automotive manufacturing in the state dates back to when Ford Motor Company began assembly of 12 Model Ts per day in Louisville in 1913. Bowling Green has been the exclusive home of the iconic Corvette since 1981, and in 1985 Toyota began production at its first North American plant in Georgetown, and later located its North American Engineering and Manufacturing headquarters and parts center in Northern Kentucky.


by the fact that, in 2012, we facilitated the training of nearly 85,000 Kentuckians, while also assisting clients with pre-employment activities, such as job fair hosting, screening applications and posting over 120,000 hiring vacancies. Kentucky is also one of the first states in the country to implement a Work Ready Communities Program – an agreement whereby communities meet certain educational, workforce development and collaboration goals to earn certification. In fact, we have implemented the most rigorous Work Ready Communities certification program in the nation.

AI: Why are German automotive companies choosing Kentucky?

Beshear: The most important factor is location – many German suppliers already supply VW, BMW and Mercedes in the South. They are winning more contracts from U.S. OEMs, and are choosing to locate somewhere in the middle of the Southern Automotive Corridor. We are also finding out that many German companies like the small town communities they find in Kentucky. Interestingly, our German prospects have expressed a desire to have a strong bond with local officials. This is because they believe they will get help in dealing with problems that inevitably occur and believe such personal relationships are best built in smaller communities.

AI: How do you hope to see the sector grow in the future? What role does the Kentucky Cabinet for Economic Development play in promoting the sector?

Kentucky’s automotive industry will continue to evolve through increased investment in research and development and engineering – not just manufacturing. Furthermore, I envision Kentucky to be the location of choice for international investment. Our Cabinet for Economic Development is responsible for leading this effort and has been unwavering in its commitment to support, expand and diversify our state’s automotive industry. Our economic development team, which includes two international representatives in Germany and Japan, continues to aggressively market Kentucky’s many advantages and serve as that single point of contact companies are looking for to make their decision process easier.

Examples of our success include Hitachi Automotive U.S., which has its North American headquarters in central Kentucky, ZF Steering’s $150 million expansion in northern Kentucky and nGimat, which relocated to Kentucky to partner with the Kentucky-Argonne Battery Research & Development Center. The bottom line is – we are open for business and welcome the opportunity to showcase what Kentucky has to offer.

•CentralLocation:Kentuckyiswithin300milesof11ofthetop20mostpopulousplacesintheUSandwithin600miles of over 65% of the nation’s population and manufacturing establishments.

• Site&BuildingInventory:Thereisnoshortageofavailablesitesorexistingbuildingstosuitanyautomotive-relatedoperation. Greenfield sites selection includes three certified mega sites, all prime development opportunities for large-scale manufacturing facilities, as well as hundreds of additional shovel-ready sites and available buildings.

• HighQualityWorkforce:Kentucky’sworkersarevaluedforthecraftsmanshipandqualitytheybringtotheworkplace.Kentuckians take pride in their work and that pride is reflected in the thousands of quality products made there every day.

• BusinessCosts:KentuckyconsistentlyhasoneofthelowestoverallcostsofdoingbusinessintheeasternUnitedStates. In a CNBC Special Report, America’s Top States for Business – 2012, Kentucky secured the recognition for having the lowest overall costs of doing business in the country. It is also ranked by the Tax Foundation as the 7th most business-friendly state in the country for new firms and 6th lowest cost state in the country for new corporate headquarters. In addition, Kentucky can claim the 6th lowest industrial power costs in the country, and the #1 lowest among the top vehicle-producing states.

Kentucky geared for the motor industry

Toyota is investing US$530 million to expand its Georgetown manufacturing plant and establish its first U.S. production site for the Lexus ES 350.

Bowling Green Kentucky has been the exclusive home of the iconic Corvette since 1981.

AI

AI


innovation

Automotive Industries (AI) spoke to Brigadier General Hank L. Taylor, USAF (Ret.) Vice President, Global Business Development for the Charleston Regional Development Alliance, and asked what makes South Carolina - Charleston in particular - attractive to automotive manufacturers.

Taylor: Charleston offers several competitive advantages: a deep concentration of technically-skilled workers, a strategic location halfway between New York and Miami, and globally-connected infrastructure with quick access to world markets. South Carolina is a right-to-work state with low unionization rates and the lowest work-stoppage rates in the US. We have a business friendly tax climate, a diverse real estate portfolio and a world-class lifestyle attributes, as shown by Charleston’s No. 1 spot in Travel + Leisure’s 2013 “World’s Best Awards” for the Best City in North America.

AI: Tell us a little about the experiences of companies like BMW.

Taylor: BMW’s decision to produce its entire X-series model in Spartanburg was a huge win for South Carolina, and the company’s continued investment in our state illustrates the benefits of doing business here. Since Robert Bosch located in Charleston four decades ago, our region has experienced a cascading effect — welcoming companies such as Cummins Turbo Technologies (in 1989), Weber Automotive (in 1996) and Daimler (in 2006). The Charleston region has received more than $91 million in automotive investments over the past two years.

AI: How has the port of Charleston helped establish the automotive hub?

Taylor: Automobiles and auto parts are among Charleston’s top 15 commodities and the entire BMW X-Series fleet is exported

Revving up the SouthCarolina auto industry By: Esther Francis

from the deep water port of Charleston. As the nation’s fourth busiest container port and the deepest in the South Atlantic, we handle more than $3 million in cargo every hour, offering direct service to more than 150 countries.

AI: What are the other big ticket auto investments in the state?

Taylor: Another major contributor to Charleston’s automotive sector is Streit USA, maker of armored utility vehicles. Charleston is also home to more than a dozen secondary suppliers. South Carolina is on track to becoming America’s tire capital, and is the number one exporter of US-made automobiles.

AI: What role do the educational and training centers in the area play in enabling this vision?

Taylor: The strongest workforce training asset in South Carolina is the Clemson University -

International Center for Automotive Research (ICAR), which hosts the US’s only graduate Department of Automotive Engineering. Clemson’s Center for Workforce Development with offices in Charleston and Greenville is a state-wide program to improve workforce educational capacity in STEM fields across South Carolina, particularly for automotive

and aerospace sectors. The readySC program works directly with companies to tailor workforce

training and education to the company’s specific needs, for free or little cost. It’s also important to note

that Charleston’s Trident Technical College was named the national winner for the Automotive Industry Planning Council’s “Award for Excellence in Automotive Education.”

AI: What are some of the major investments you hope to see come into Charleston this year?

Taylor: While we continue to promote Charleston’s competitive assets to the global automotive sector, we are also focused on attracting investment from aerospace, advanced security, energy systems, information technology and biomedical industry targets. In addition to blue chip automotive companies, our region is home to leading corporations like Boeing, Google and BAE Systems.

Brigadier General Hank L. Taylor,USAF (Ret.) Vice President, Global

Business Development for the Charleston Regional Development Alliance.

AI

Since 2011, South Carolina’s auto industry has been in the fast lane, attracting over US$5 billion in capital investment from the world’s leading OEMs and Tier 1 suppliers. The region is home to more than 100 automotive manufacturers and suppliers.

Aerial view of the Robert Bosch plant

in Charleston.

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climate in Macedonia. Our product is continuously getting better. Our government is constantly organizing roadshows to numerous countries worldwide, where they present the excellent climate for investing in Macedonia. There is also a network of 30 economic promoters around the world.

AI: What role do your special economic zones play in promoting automotive investments?

Fida: The government has set up four technological-industrial development zones (free economic zones) or TIDZs offering special incentives. TIDZs are centers in which highly productive clean manufacturing activities are concentrated and new technologies are developed. Currently, the four TIDZs (two in Skopje, one in Stip and one in Tetovo), together have over 400 hectares of available industrial land. Additional zones are being constructed in Kicevo, Gevgelija and Prilep, and there are also four other zones planned to be developed in near future: TIDZ Strumica, TIDZ Rankovce; TIDZ Struga, and TIDZ Radovis.

AI: What makes the TIDZs attractive?Fida: Macedonia offers a number of incentives in addition

to those normally associated with free economic zones. Investors in TIDZs are entitled to personal and

corporate income tax exemption for the first 10 years. Investors are exempt from payment

of value added tax and customs duties for goods, raw materials, equipment and machines. Moreover, up to €500.000 can be granted as incentive towards building costs depending on the value of the investment and the number of employees. Land in a TIDZ in Macedonia is available under long-term lease for a period of up to 99 years.

Other benefits include completed infrastructure that enables connection to natural

gas (in Skopje), water, electricity and access to a main international road network. Investors are

also exempt from paying a fee for preparation of the construction site. Fast procedures for business activity registration are provided in TIDZ that further reduce the costs of setting up.

AI: What makes Macedonia an attractive option for investors from countries like China?

Fida: Macedonia has a history of auto component manufacturing. In a recent privatization process, a number

The Republic of Macedonia has become an emerging hub for automotive components producers. Investment is being attracted by the country’s proximity to automotive plants in Central Europe and Turkey, as well as its infrastructure. The geographical proximity of these markets coupled with cost-efficient logistics allows low distribution costs and “just-in-time” product delivery from Macedonia.

Automotive Industries (AI) asked Visar Fida, CEO, Agency for Foreign Investments & Export Promotion of the Republic of Macedonia, why the country is attracting FDI from automotive OEMs even in a dull economic climate.

Fida: Macedonia is a macro-economically and fiscally stable, rapidly growing, and forward-looking country. It is positioned strategically close to the European Union, Central Europe and Turkey. The association agreement with the European Union, EFTA and CEFTA, as well as the free trade agreements with Turkey and the Ukraine enable free access to a market of more than 650 million consumers. Macedonia also boasts availability of highly educated young people with advanced language skills and strong work ethic at a competitive price. Part of the general incentives package is the flat tax rate of 10% on corporate and personal income and 0% tax rate on reinvested profit. As a result of a regulatory overhaul starting a business

innovation

Macedonia establishing itself as manufacturing hub By: Michael Stewart

Visar Fida, CEO, Agency for Foreign Investments &

Export Promotion of the Republic of Macedonia.

in Macedonia can be done in only four hours for a cost of €42. Overall, the business climate is blooming, and the incentives package is unmatched. Very importantly, Macedonia is managed by a government dedicated to meeting the needs of the foreign investors.

AI: What are some of the governmental initiatives in promoting the sector?

Fida: The whole government is focused on the process of advancing Macedonia as a business destination and in promoting its potential. Reforms are ongoing to further improve the business

“Very importantly, Macedonia is managed by a government dedicated to meeting the needsof the foreign investors.”


of companies have been bought by overseas investors and continue to produce a range of components for cars, busses, trucks and locomotives. Macedonia offers a particularly cost-competitive operating environment. The labor force is well educated, flexible and has a strong work ethic. The educational system is willing to collaborate with investors to find ways to meet their skills needs, as demonstrated by one of the major universities training 165 students in Java and C++ for Johnson Controls, which has constructed a US$40 million facility outside Skopje. Moreover, there are no customs duties for importing raw materials and equipment and all the final products from Macedonia can be delivered duty free to all European countries plus Turkey and Ukraine (market of 650 million people).

Significant recent foreign investors include Johnson Matthey (UK), Mobilkom Austria (Austria), EVN (Austria), Deutsche Telecom (Germany), Kromberg & Schubert (Germany), Dräxlmaier Group (Germany), Van Hool (Belgium), Societe Generale (France), Johnson Controls (USA), KEMET Corporation (USA), the National Bank of Greece (Greece), Hellenic Bottling Company S.A. (Greece), QBE Insurance Group Limited (United Kingdom), Mittal Steel (Netherlands), Duferco (Switzerland), and Titan Group (Greece).

AI asked Dejan Velickov, Head of the International office, Agency for Foreign Investments & Export Promotion of the Republic of Macedonia how much investment into Macedonia was growing.

Velickov: Despite the economic downturn in Europe the foreign investments in Macedonia are growing steadily and by the end of the second trimester in 2013 we have US$133 million in foreign investment compared to 2012 when we had US$89 m for the whole year. The automotive industry accounted for 20-30% of the manufacturing investments over the past year.

AI: What are some of the events your organization is planning to further push the country as an attractive investment destination for automotive manufacturers?

Velickov: We are planning to attend all the major automotive conferences and events in the United States and Europe as

exhibitors with promotional stands. We use these events to approach executives from the industry to learn more about the opportunities offered in Macedonia. For many of them the first reaction is “no way, too good to be true” but after they hear about the experiences of the global automotive companies who are already in Macedonia they put Macedonia on the map for future projects.

AI: What gives Macedonia an edge over other Western Balkan nations – who incidentally, have suffered due to the economic slowdown in Europe?

Velickov: Macedonia has the best business climate from all the countries in the Western

Balkans. The World Bank “Ease of Doing

Dejan Velickov, Head of the International office, Agency for Foreign Investments & Export Promotion of the Republicof Macedonia.

Business Report” has ranked Macedonia among the best reformer countries in the world

for the past six to seven years. In 2013 Macedonia was ranked 23rd out of 180 countries globally. We

are champions in our region in terms of business friendly environment and Macedonia scores better than the majority of EU countries. Macedonia is one of the lowest debt countries in Europe, which gives the country an advantage when discussing financial aid packages with potential investors. Last, but not least, we are a small country, with a small very pro-business government which is very flexible and willing to assist and help investors in any possible way.

AI: Where do you see future automotive investments coming from?

Velickov: We expect projects from American companies in the near future, and also from Germany and India. Lately we have seen a trend for Chinese automotive companies to look at Macedonia as a manufacturing hub and gateway into the European automotive market. AI

Macedonia offers a cosmopolitan lifestyle for investors.


AI: Since the automotive market in Europe is stagnating, what advice is the CBI giving suppliers based in developing nations?

Dieleman: Use the current period to improve production processes. In most cases this will result in cost savings. Let people know that you’re there. Spread the risk by exploring other applications if possible, and follow market developments.

AI: What are some of the areas in which automotive exports from DCs are growing?

Dieleman: In automotive-related field like agricultural equipment there are possibilities. Manufacturers may not be producing too much for the European market, but exports of manufactured products are doing well.

AI: What do potential automotive exporters to Europe need to keep in mind when wanting to do business in the continent?

Dieleman: It is a very competitive market. Therefore they should be well prepared. Know your own company

(strengths and weaknesses), do research to find out the opportunities, plan how to approach the

market, and be persistent.AI: What is the situation for

automotive exporters to some of the Eastern European countries?

Dieleman: Eastern Europe offer slightly better opportunities.

AI: How does the stringent legislation governing the automotive sector in Europe impact exporters?

Dieleman: They have to follow the requirements set by OEMs. Corporate

social responsibility is another issue, so companies have to also comply in these

aspects. They have to follow developments regarding mobility closely so as not to get caught by

surprise. Developments include E-mobility, the move to lighter materials, the growing number of hybrids, etc.

AI: Tell us a little about the programs CBI is conducting for automotive exporters to Europe.

Dieleman: New programmes have started for Bosnia, Indonesia, Pakistan, Philippines, South Africa and Vietnam. About 25 companies in the automotive sector are participating, and another 30 in metalworking, machining and assembly. The sector associations in these countries are also involved in the programmes. They are: Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) in Pakistan; the National Association of Automotive Components and Allied Manufacturers (NAACAM) in South Africa; and the Automotive Parts Manufacturers Association (GIAM) of Indonesia.

There are still pockets of opportunity in the European auto industry for manufacturers based in developing countries despite the fact that the Western European market is char-acterized by stagnation and over-capacity, according to the Netherlands-based Centre for the Promotion of Imports (CBI).

The organization helps companies increase exports from developing countries to the European Union – especially small and medium enterprises.

“Although the European automotive parts and components sector is highly competitive, with strong buyer power and intense supplier competition, it is possible for DC (developing countries) exporters to improve their position in the marketplace through increasing their technological and R&D capacities; using innovative techniques, materials and concepts in their production processes; carefully choosing their buyers; and nurturing their client relationships,” says the CBI.

It points out that worldwide car sales are reaching record levels due to the development of emerging economies, and will expand further. The share of the European market in global sales will, however, decrease

innovation

Helping suppliers fromemerging countries to support European manufacturers By: James Hilton

Cor Dieleman, CBI Senior Program Manager, Asia and

Eastern Europe.

significantly, from 29% in 2004 and 24% in 2012 to 20% in 2020. This will lead some European players to pursue more overseas exports, as well as look into either high-end or cheaper, entry level products, believes the CBI. It has developed what it calls the “CBI Buyers’ Black Box,” which offers exporters and Business Support Organizations (BSOs) in developing countries a clear and up-to-date view of what goes on in the minds of European buyers when they are sourcing from suppliers in these countries.

Automotive Industries (AI) asked Cor Dieleman, CBI Senior Program Manager, Asia and Eastern Europe, how the current state of the European automotive sector affects exporters from developing countries.

Dieleman: Possibilities in the passenger cars are limited. However, looking at commercial vehicles, agriculture machinery, earthmoving equipment possibilities seem better. European companies are preparing for better times to come, which will have also impact on their suppliers. AI

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AI: How attractive is Saudi Arabia to US car makers? Burton: At our event in June representatives from the major

U.S. manufacturers spoke candidly about the excellent growth opportunities for manufacturing and services in Saudi Arabia, which imported 982,000 vehicles in 2012. That is a 33% increase in numbers and 42% increase in value from 2011. That kind of growth is a clear indicator that Saudi Arabia and the greater Middle East and North Africa region are offering robust opportunities for the companies willing to invest time and money.

AI: How have investments from companies like JLR and Isuzu Motors impacted the perception of global automotive OEMs?

Burton: Names like Jaguar Land Rover and Isuzu are certainly raising awareness about the viability of manufacturing in Saudi Arabia. At the same time, there are ongoing joint ventures with

Johnson Controls and Denso on the OEM side that people occasionally overlook.

AI: What are some of the issues that still need to be tackled?

Burton: One issue is the need to provide correct information to international companies. We regularly see firms that have operations around the globe but have misconceptions regarding the Saudi market. Another issue is that the industry is relatively young and the Saudi Government is working

to streamline the development process and remove barriers to entry.

AI: How does the USSABC hope to meet these challenges?Burton: Our core mission at the USSABC is helping

U.S. and Saudi companies build successful partnerships. AI: It’s the 20th year anniversary of the council – what are

some of the initiatives USSABC is planning for this year?Burton: We are excited as we have emerged from a

top-to-bottom review of our mission, efficacy of programs, events, and activities, and strategies for future growth. In collaboration with Booz & Company, we conducted an analysis of our organizational strengths and challenges, methods of improving our alignment to the developmental goals of Saudi Arabia, and the impact the USSABC is having on the U.S.-Saudi strategic relationship.

Now that we are in the early stages of implementing that plan, we are bringing a renewed focus to key industrial sectors. The automotive sector is a perfect tie-in for those goals and promoting the sector has allowed us to leverage our relationships with key Saudi partners to USSABC members and U.S. companies. Our efforts at the conference also established new relationships with major stakeholders, such as NICDP and Sadara Chemical Company that we look forward to strengthening over the next 20 years.

Saudi Arabia is paving the way for investment from the global auto industry to build on the successes manufactur-ers based in the country are already enjoying.

A presentation hosted in mid-2013 in Detroit by the U.S. - Saudi Arabian Business Council attracted over 200 delegates, including prominent government representatives and executives from the likes of Ford, General Motors and Chrysler.

Automotive Industries (AI) asked Edward Burton, CEO and President of the U.S.-Saudi Arabian Business Council (USSABC), what role the automotive industry plays in the Saudi government’s diversification master plan.

Burton: The automotive industry is an integral part of the Saudi Government’s plan to diversify towards a non-oil economy that capitalizes on the country’s current strengths. At our conference in Detroit, H.E. Dr. Tawfig Alrabiah, Minister of Commerce and Industry, noted that Saudi Arabia is well aware that more than oil and gas is needed to sustain the country. In pursuit of that, petrochemicals, advanced plastics, and an automotive industry are being developed to inspire new industries, create new jobs, and expand exports.

innovation

Saudi Arabia opens doors to auto companies By: Paul Cooke

Edward Burton, CEO and President of the U.S.-Saudi Arabian

Business Council (USSABC).

AI: What are some of the plans for the auto zone?

Burton: Companies in Saudi Arabia have identified specific product lines and training programs that will expand automotive growth. NICDP will oversee the automotive cluster program and develop the Auto Zone which will house community living areas, suppliers and services, OEMs, shared facilities that focus on vocational training, and the required infrastructure. It will be completed in phases with targeted production numbers ranging from 50,000 vehicles in the first phase to 400,000 in the fourth phase.

AI: How have automotive OEMs responded?Burton: OEMs are learning about the many benefits, and are

moving into the market. By the numbers, total sales should exceed $20.5 billion by 2015 compared to $16.24 billion in 2012. On the manufacturing side, companies are looking at utility and industrial land pricing as low as $0.032 per KwH and $0.26 per square meter, respectively. Additional benefits include duty drawback, duty-free importation of machinery and equipment for projects, and no export duties within the 17 countries of the Greater Arab Free Trade Area. Meanwhile, investment authorities, such as the Saudi Industrial Development Fund and the Public Investment Fund, are providing medium and long-term loans that cover up to 75% of project cost and tenures that extend up to 20 years. AI


markets. Investors are being encouraged to consider South Africa by making a small start and attending South African Automotive Week which will provide them with a comprehensive view of the opportunity and capabilities while showing them the wonders and beauty of the country. South Africa – the numbers

According to KPMG Africa Automotive leader Gavin Maile South Africa exported 24,281 vehicles to Algeria in 2012, followed by Nigeria as second most popular export destination, at 14 874 units – this up from 7,151 units in 2010. Ghana exports grew from 2,451 units in 2010, to 5,062 units in 2012, with Angola importing 7,783 vehicles from South Africa in 2012, up from 934 in 2010.

“These countries all have high gross domestic product growths,” Maile said at a KPMG briefing.

“Africa is a real solution for South Africa’s vehicle exports.”

Healthy export growth is largely attributed to the South African government’s new Automotive Production and Development Programme, which came into effect in January, and which rewards volume production. KPMG believes imported passenger cars into South Africa may decrease from 72% of all local car sales

in 2012, to 71% in 2013. This comes as the duty rate on imported vehicles has now

stabilised at 25%. If it materialises, the fall in percentage of imported cars in the sales mix will

be the first drop since 1994. In 1995 the import duty rate was 71% and the percentage of imported

cars sold in South Africa stood at 9%. This 9% has steadily increased as the import duty rate has come

down, hitting 32% of all car sales in 2001, 50% in 2005, 61% in 2007, and 69% in 2011. Overall vehicle production in South Africa is expected to increase by 21.3% or 654 300 units up from 539 424 units in 2012. About 390 000 vehicles were produced in South Africa in 1995....reflecting growth of 59% over 18 years. Opportunities in truck and bus markets

Truck and bus assemblers and original equipment manufacturers based in South Africa are confident about the future of the industry. Speaking at the Johannesburg Truck & Bus Show held in October 2013 said MAN chairman Geoff du Plessis, said MAN’s strategy remains focused on using the South African infrastructure as the platform to supply products and services into Africa.

Helping component suppliers and manufacturers wanting to enter the African market or to grow their market share is the South African Automotive Week, which is held bi-ennually, as an open and comprehensive showcase of the automotive supply chain’s capability at the tip of the continent. It will next take place in October 2014 in Africa’s economic powerhouse, Johannesburg.

The event has full industry support. It is endorsed by the Automotive Industry Development Centre (AIDC), National Association for Automotive Component and Allied Manufacturers (NAACAM), National Association of Automobile Assemblers of South Africa (NAAMSA), the dti (South African government) and other key stakeholders.

Automotive Industries (AI) asked South African Automotive Week Director, Andrew Binning what the focus for 2014 will be.

Binning: We will use a combination of a tradeshow, conferences, networking, match-

innovation South Africa positioned as gatewayto African market By: Ed Richardson

South African Automotive Week Director Andrew Binning.

making and site tours, in order to attract more international delegations. The South African government will cover the travel costs of eligible delegates to visit the initiative and the industry and its associations are rolling out the red carpet to woo prospective investors and buyers.

AI: How does the South African auto industry rate in global terms?

Binning: While South Africa produced around 1% of global vehicle output, it exports components around the world. It is seen as a prime investment location for companies racing to reach the fresh African markets. Sixteen of the world’s 30 fastest growing economies are African and while the growth is off a small base, the figures must be attractive to global manufacturers looking for new growth markets. South Africa is already exporting vehicles to Africa, and this volume is expected to grow. South Africa’s vehicle exports to Africa (now ranked the 2nd fastest growing economy) looks set to position it as a gateway for the world to African

Situated geographically half-way between the Americas to the west and Asia to the east, South Africa is positioning

itself as a base from which investors can access the aggressively growing economies of the rest of Africa.

AI

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In 2012, our 450 motor vehicle-related establishments helped Ford, GM and Toyota produce over one million cars and light trucks in Kentucky. That makes us per capita the #1 vehicle producing state in the nation.

Our extensive automotive ecosystem and skilled workforce also helped those OEMs all decide to make substantial new investments at their four Kentucky assembly plants. Most recently, Toyota announced the fi rst-ever U.S. Lexus production facility will be located at its Georgetown, Ky, plant, where the top-selling Lexus ES 350 luxury sedan will be built by Kentuckians – further testimony to the top-tier quality of our workers.

GM is investing $134+ million in its Bowling Green, Ky, plant to build the 2014 Corvette and relocate its Performance Build Center for engine assembly to the exclusive Corvette plant. Meanwhile, Ford, which is celebrating its 100th anniversary in Kentucky, is making a combined investment of $1.2 billion in its two Louisville assembly plants.

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Semcon is an international technology company active in the areas of engineering services and product information. We have 3,000 dedicated employees who are creating the future together with our customers.

Customers’ demands for expertise, innovation, ability to supply and market adaptation, encourage us to constantly be at the cutting edge throughout the entire product development chain. We challenge ourselves everyday to be in the forefront and we develop the products and systems for the future.

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