International Executive Newsletter international Executive Newsletter 1 2013 13 Study A road map for the connected car A German think tank has produced a three stage road map for car connectivity predicting high potential returns in new automotive business areas The Center of Automotive Management CAM at the University of Bergisch Gladbach working with consultants Management Engin eering projects that the market for automotive connectivity will grow twenty fold to more than 200 billion euros by 2020 In the study which is called Connected C R The Future of Syn chronized Mobility the authors expect appreciable additional income for connectivity service providers and suppliers starting in 2014 Short term revenue growth will come in particular from mobility management and well being applications such as fatigue detection and vitality aids Beginning in 2016 the authors predict that component packages in the areas of safety and semi autonomous driving will join well being services And from 2020 onwards there will be profits to be made in the areas of safety and semi autonomous driving At the same time service offerings most likely in the form of apps will cover mobility management and well being in the car Here one of the primary drivers will be demand in the US where the researchers project a business volume of 69 9 billion euros by 2020 China with 54 8 billion eu ros and the EU with 37 2 billion euros will be in second and third place The authors of the study Stefan Bratzel who heads CAM and Richard Viereckl who runs the automotive division of Ma nage ment Engineers foresee potential returns of about 4 600 euros per vehicle in the future especially in the field of assisted driving The study suggests that will be the largest business area for networking with a market value of 92 billion euros by 2020 The researchers put the market for safety related services at 59 5 billion euros by the end of the decade with potential returns of about 1 800 euros per vehicle CompetitionTo capitalize on new demands for automotive connectivity car companies will have to change Automakers must not only rede fine their value chain said Viereckl They must also expand their operational product oriented core competencies and turn them selves into strategic system managers in precisely the technolo gies where they hardly have their own expertise at this point The study says automakers and traditional automotive suppliers must assert themselves in an environment where players from the political world electronics and telecommunications are intruding and entering into competition with them Two things are clear says the Connected C R study Automak ers that quickly and profitably bring customer friendly solutions to market can profit from the trend to vehicle networking But the authors also expect that about 80 pc of the vehicle networking business will take place outside the actual automobile industry Good business opportunities abound for automakers that succeed in combining the complexity of multifaceted vehicle functionality with simple controls Automakers for example should assume re sponsibility for turning the overwhelmed driver into an assisted driver The Connected C R study singles out one automaker in parti cular as a strong innovator BMW The Munich based premium car maker is seen as having more innovative strength than competi tors such as Ford Motor Daimler VW Group By Werner Beutnagel Stefan Bratzel Richard Viereckl international Executive Newsletter 1 2013 23 Imprint Contact Media Manufaktur GmbHMauerstrasse 4D 30982 Pattensen Tel 49 5101 99 039 60Fax 49 5101 99 039 61Verlag automotiveIT eu International Web site www automotiveIT com German Web sites www automotiveIT euwww car IT com Important This is the fourth dition of the automotiveIT Executive Newsletter Only subscribers get full interviews with top decision makers extensive background information and insightful stories on the hottest issues in the industry Order your personal copy of the automotiveIT Executive Newsletter now and get it e mailed in PDF f rmat directly to your inbox Order now at www automotiveit com newsletter and get the automotiveIT Executive Newsletter for only 199 euros a year Editors Arjen Bongardabongard automotiveIT comHilmar Dunker Ralf Bretting Gert ReilingAdvertising Patrick Krumbachkrumbach automotiveIT eu Art Direction Henrik Schramm enjoy design de Publisher Dominik Ortlepp Carmakers as IT system integrators Car companies are increasingly becoming system integrators as they connect the various software based functions that define how their in car electronics work In lane departure warning systems for example data on the car s position are gathered by sensors and cameras These are evaluated by the car s computers And if the car is leaving its lane those same computers tell the steering wheel to send an alert to the driver All parts exchange information on the ar s internal data network And adding to the complexity all information often runs on dif ferent in car computers that often come from different suppliers Driver assistance and other safety and infotainment systems rely on the complex interaction of data from diffe ent parts of the ve hicle And the car company is responsible for making this all work The challenges will be even greater once connected cars start re lying on a much larger set of functions and applicat ons Apps will need to access sensor based data such as distance driven driving dynamics and accident information Because thes data intercon nect across different automotive functions individual suppliers cannot take responsibility for how the entire system works That s where the car company comes in The automak r of the fu ture is also a systems integrator said Reinhold Stolle who heads software architecture development at BMW In the past suppliers delivered their software together with an electronic control unit ECU but today many software comp n ents from different suppliers all run on one ECU Car compani s therefore need to develop software competence Automakers want to maintain sovereignty over integration and want to keep system competence in house to defend their in ovation leader ship said Juergen Reiner a partner at consultants Oliver Wyman Automakers benefit from the gradual emergence of an ecosystem of tools and operating methodologies that mimic the software in dustry And their growing software expertise will help them lower costs by reusing programs again and again in new car models Oliver Wyman s Reiner said carmakers can reap major benefits from further rationalization of in car electronics and this can be achieved he said through better and more efficient software By Christoph Hammerschmidt All driver assistance functions need to work together Photo Continental www automotiveIT com newsletter international Executive Newsletter 1 2013 22 This display has a proximity sensor Move your finger in the di rection of the screen and it will automatically switch into a mode where the various functions are enlarged and can be easily op erated The display also allows swiping through lists of features or content items Discover Pro comes with a DVD slot voice operation 3d naviga tion 64GB flash memory and optionally a UMTS phone module The system provides a wifi hotspot for mobile devices What it doesn t have yet is real time traffic data Multi collision brake The new Golf comes standard with an innovative multi collision braking system which was developed by supplier Continental The system is designed to protect drivers and passengers from collisions that could occur after an accident Following a crash the brakes which take instructions from an airbag sensor auto matically slow down the vehicle to about 10 km hour so a driver can still remove the car from the danger zone The Golf has a range of other driver assistance technologies on board many of them handed down from the premium segments The model offers adaptive cruise control Front Assist which mo nitors the environment Lane Assist which uses cameras to keep the car in its lane and an enhanced parking assistant It also has a city emergency brake option which comes from the Up small car This technology uses a radar sensor to che k for ob stacles on the road If the system spots such an obstacle and the driver isn t responding it triggers an emergency stop to minimize any impact The system only works up to 30 km hour The Golf is equipped with fatigu detection which monitors the driver s behavior for signs of tiredness It was adapted from the current VW Passat The Golf also has a proactive passenger pro tection system called PreCrash When a driver makes an emer gency stop or when sens s detect that the car is out of control the system tightens safety belts shuts the sunroof and closes the windows Head airbags func ion better with closed windows Few flaws H w does the new Golf do in real life tests Most reviews of the car are positive though many cite the Golf s traditionally high pri ce as a negative factor And Germany s Der Spiegel magazine poi ted out that with many of the now avai able driver assistance systems the Golf has only just arrived where many less prominent competitor models have been for a number of years Autoweek a leading US car enthusiasts m gazine praised the Golf s quantum leap i refinement The suppression of engine road and wind noise at typical highway speeds is so good it would shame many big name luxury cars Autoweek said London s Daily Telegraph newspaper said the Golf has few flaws and exudes so much quality that it risks losing character It s an odd thing to be criticizing a car for b ing so competent The Tele graph said but the latest Golf is one of those cars that you strugg le to form much of an opinio about other tha to say it s good And Germany s Focus magazine also finds little to criticize in he new Golf The car once again sets the standard in the compact class Focus said That s because it shows only minor weak nesses and none whatsoever in the key are s By Peter Rademacher and Arjen Bongard VW s Discover Pro system provides a hot spot inside the Golf The Golf s infotainment is based on a new modular architecture internatio nal Exe cutive Ne wsletter 1 2013 21 Volkswag en launc hed the latest seventh edition of its signature Golf mo del in S eptember 2012 a nd alrea dy the automake r is repo rting the same ki nd of str ong dem and that has chara cterized s ales of th e car for 3 8 years Our deal ers have already ta ken over 100 000 o rders for the new Golf VW Group C EO Marti n Winter korn said in a sta tement January 1 6 Despit e the 201 2 model changeov er VW s hipped more than 800 000 G olfs last y ear down from 879 000 in 20 11 The lower tota l also resu lted from the initia l availabi lity of few er ver sions of t he new G olf a VW spokesma n noted Europe s best selli ng car ha s been on the mark et since 1 974 and 29 4 milli on have b een sold t o date in more than 120 coun tries The lates t Golf stil l looks ro ughly the same as the earlie r models but this G olf is not just a fur ther deve lopment o f its prede cessor It s a com pletely ne w car VW built the new Golf on it s modula r platform MQB w hich it will be us ing for all small to mid sized models w ith front e ngines across its various b rands MQB help ed engine ers to red uce the w eight of t he Golf b y 109 kilos des pite a 56 mm incre ase in th e car s le ngth Thi rty seven kilos wer e shed in the struc tural area s 26 kilos in the ch assis 40 kilos in va rious mot rs and 6 k ilos in the electroni cs That the G olf s elect ronics we igh less is remarkab le becaus e VW is keen to set new s tandards in this are a and is e quipping the Golf with a br ad array o f new IT b ased feat ures Modular i nfotainm ent The comp any is usi ng the ne w modula r infotain me t arch itecture MIB tha t also has been ado pted for th e Audi A3 MIB puts a cen tral contr oller in th e car s gl ove comp artment It consist s of two parts a r adio cont rol unit a nd an MM X board MMX sta nds for Multi Me dia Exte sion It is co ceive d as a plu g in mod ule that can easily be excha nged The modu lar constr uction me ns VW ca n now up date the info tainment system w henever r equired w hich has b een a per sistent demand f rom consu mers frus trated wit h aging fix ed in car s ystems Audio vi deo pho ne comm unication navigat ion and various media are driven by a du l co re 1 2 GH z processo r coupled with a fast graph ics card S peed is im portant fo r an infot ainment s ystem that in it s top of t he line ve rsion ca ll d Disco ver Pro features an 8 inch touch scr een M et the new Golf The new G olf looks the same but is act ually a ne w car Ph otos VW intern ation al Execu tive N ewsle tter Janu ary 20 13 CES P 7 In Las Vega s aut omak ers show they are pa rt of t he consu mer I T revo lution Audi P 9 VW s prem ium b rand says pilote d driv ing w ill be here befor e the en o f the d ecade Makin g Mon ey P 11 New techn ologi s mea n new r evenu e stre ams for th e car i dus try Conne cted P 13 A 3 s tep ro ad a p for ca r conn ectivi ty predi cts hi gh re turns GM re think s P 15 A new execu tive s ets differ ent pr ioritie s for comp any s autom otive IT Copyi ng IT P 19 C r co mpan ies em ulate IT pra ctices to ad dress semic ondu ctor g ap The n ew Go lf P 21 Europ e s sa les ch ampio n weigh s l ss and as mo re drive r assi stanc e on b oard Conne ctions P 23 Car co mpan ies be come IT sys tem in tegra tors Execu tive N ewsle tt r This is the fourt h edi tion o f the autom otiveI T Exe cutive New slette r In it you will find e xclus ive i tervie ws news stori es an d ana lyses cover ing th e top issue s faci ng IT decis ion m akers in th e glo bal au tomo tive in dustr y Sub scribe rs rec eive t he Ex ecutiv e New s letter in PD F form at 10 time s a ye ar de livere d dire ctly t o the ir e m ail in box T he ne xt iss ue w ill be publ ished in Fe bruar y Ma ke su re yo u rec eive t he autom 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