Figures just published by Strategy Analytics show that the surge in small car demand during 2009 has had a noticeable impact on the demand for automotive electronics. Government incentive programs around the world have fuelled a one-off boom in the sales of smaller, lower-cost vehicles, as the incentives on offer have typically been for a fixed amount, regardless of purchase price.  A €2000 discount is thus far more attractive on a €10,000 car than a €50,000 one. The result has been an interruption in the otherwise fairly smooth rise in the value of electronic control units (ECUs) fitted to vehicles, with the 2009 value essentially unchanged at just over $650. The incentive effect is expected to reverse next year, however.  With demand for small cars at such a high level in 2009, 2010 is likely to see sale of these vehicles fall back.  Coupled with the growing electrification of the powertrain and the increased sophistication of vehicles produced in fast-growing regions such as India and China, the average value of ECUs fitted to global light vehicles is expected to start growing again in 2010. While some effect on profits will be felt by car makers (there is typically a lower margin on smaller cars) it's the electronic tier ones and semiconductor suppliers that are feeling the full impact of the temporary slow down in electronics demand. Details of the full data table can be found here.

STMicroelectronics has introduced its second automotive grade MEMS motion sensor, for use in systems such as adaptive front lights, anti-theft systems, navigation and control of vehicle dynamics. The AIS226DS is a two-axis in-plane accelerometer capable of sensing acceleration up to ±6g.  The new device can also resolve incredibly tiny angles of incline, smaller than 0.02 degrees.  The ability to accurately measure incline is important in auto-leveling lamp, e-parking brake, and HSA (Hill Start Aid) applications. http://www.st.com/stonline/stappl/cms/press/news/year2009/p2421.htm This is the second product ST has introduced that is designed to maintain highly stability and accuracy (±70mg) throughout the automotive temperature range –40 to +105 degrees C:  In 2H2008 ST introduced its first automotive grade device, the 3 axis, low g AIS326DQ. ST has been content to focus its MEMS resources on less operationally stringent applications, scoring two major successes for its MEMS accelerometers in the Nintendo Wii and Apple iPhone.  However the company nows seems intent on also leveraging its position in the automotive semiconductor sector (where Strategy Analytics analysis ranks it at #3 vendor with $1.52B sales in 2008) to advance its MEMS sensor business. http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=4738 This will further increase the competitive pressure on the other incumbent automotive inertial sensors vendors which include Bosch, Infineon, Analog Devices, Denso, Freescale, Melexis, MEMSIC, Sensata, Panasonic and Systron Donner.

Two key themes have emerged at the VDI Baden Baden event this year.  The first is perhaps the expected: reducing vehicle CO2 emissions.  Numerous technical sessions have detailed developments in areas such as high-voltage networks and battery systems. 

Baden Baden has also dealt with the pragmatic, however, with as much time seemingly given to the less high-profile but much higher volume start-stop technology.  This mixture of developments for the future and practical solutions for now seems to hit the right mark.  It's easy to get carried away on the hype of electric vehicles, but the reality is they'll make negligible impact on global vehicle emissions for many years to come.  Stop start is almost the opposite - a technology that is growing incredibly fast with no hype at all. This pragmatism extended into and even dominated the final panel discussion, with delegates (largely engineers) being encourage to and tell the world about the severe difficulties in EV development, and puncture some of the hype - a siginificant difference in tone from the more public-facing IAA Frankfurt Motor show of a few weeks back!

The second main theme is a topic previously highlighted by Strategy Analytics in relation to its ongoing in-vehicle infotainment analysis: HMI.  Although HMI issues have been bubbling in the background for a while, they have come to the fore at Baden Baden, with the significant challenge of reducing the apparent complexity of the vehicle to the driver at the same time as that complexity is growing faster than ever.  There seems no firm agreement on the way forward: touchscreens have been both praised and dismissed as an important part of the solution!  HMI touches also on the main theme of energy efficiency, in the the driver needs to be informed about how they are driving.  This becomes vital in the electric vehicle, where the limited power on board means that decisions as to temperature, entertainment and cruising speed may make the difference between reaching your destination and not.

Other streams looked at areas including safety, vehicle architectures and AUTOSAR, but the two themes above highlight the essence of the event, as does the mix of the aspirational and pragmatic - with the emphasis on the latter. 

The German auto industry may not have all the answers, but it has put out a believable vision of the future, and a potentially viable path to get there.