TRW has announced the establishment of its second North American Driver Assist Systems Engineering Center at the Company's Livonia, Michigan headquarters. The new engineering center will focus on the development and testing of advanced radar applications to support TRW's North American customers.  http://www.prnewswire.com/news-releases/trw-establishes-driver-assist-systems-engineering-center-in-north-america-69750272.html  Strategy Analytics has been noting increasing interest in Advanced Driver Assistance Systems (ADAS) in the North American market  and sees the move as part of TRW's aim to broaden its portfolio of products away from more commoditized areas such as braking, steering and suspension systems – areas that have been badly hit by the recession.  The reasons behind TRW's move are: 

• The company has a strong presence in airbags,  seat belt systems and chassis electronics , all mature areas where growth is flattening but all being foundation elements upon which to build an ADAS business.
• Raising new business, particularly high-end automotive systems that command better profit margins and potential expansion of sales across OEM platforms.
• North America is a key market for ADAS adoption:  U.S. authorities typically have a higher propensity to mandate vehicle safety system implementation than other regions - the latest is the forthcoming NHTSA mandate on backing-up systems based on the Gulbransen "Kids and Cars" bill;  There is growing consumer awareness;  There is increasing ADAS deployment by North American  vehicle  OEMs  - that include the new Ford "Cross Traffic Alert" radar-based system, which enables drivers to monitor their blindspot when changing lanes and when backing out of parking spaces.
• Growing moves towards "sensor fusion", namely to combine input from different sensor types, in order to enhance the performance of ADAS systems.  Such systems that could see the benefits of "sensor fusion" include ACC (Adaptive Cruise Control) and PCS (Pre-Crash Safety) , as cameras are deployed for object classification while radars are deployed for accurate, long-range, all-weather object detection.  The sensor fusion approach requires much development to achieve commercial and performance optimization, hence the new TRW radar design center will make collaborative developments with its earlier camera counterpart inFarmington Hills, MI., which has already launched its camera-based Lane Departure Warning System (LDWS).

The focus behind the new design center in Livonia, MI., is the development of new radar-based ADAS systems, which may include the newly-launched, cost competitive 24 GHz radar system for ACC and PCS systems.  Current TRW ACC/PCS radar customers include Volkswagen, which is planning to expand its North America based manufacturing and start assembly of a mid-sized sedan in the U.S.  TRW is also hoping to extend its customer base further.   However, the ADAS supply scene is becoming more crowded and TRW has to act fast in order to stand out from the other players in the market - see Strategy Analytics ADAS Supply and Fitment Database:  http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=4642.  Despite the current woes of the automotive industry, which are now beginning to ease, Strategy Analytics has seen continued investment in new engineering development centers in North America and elsewhere, which it has documented in its latest "Tier 1 Vendor Regional Design Center Database ": http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=4982.�

On the 9th Nov. 09 NXP announced the release of the UJA107x family, its second generation of CAN/LIN System Basis Chips (SBCs) for in-vehicle networks. http://www.nxp.com/news/content/file_1638.html SBC devices have been around for a while, from NXP and other IC vendors, but demand has been patchy.  The main challenge to adoption has been, and still is, integrated SBC chip cost versus the low cost of an application optimized "discrete" IC design solution using very mature components. Lessons learnt from the first generation are sure to have been applied to help close the gap, while also improving the performance and utility of the new propducts.  Strategy Analytics thinks NXP can expect revenues from SBC products to grow as: - the use of LIN protocol vehicle master-slave subnetworks in  continues to grow in Europe and elsewhere - optional comfort and convenience (multi-node) systems become standard in lower vehicle segments - the use of the "domain-based" E/E architectures approach becomes more widely adopted by volume car makers in new models .......all helping to make the the cost-benefit argument for SBCs stronger.

Strategy Analytics has been tracking the deployment of both types of stop-start systems and concludes that the modified starter-based system, mainly supplied by Bosch, is gaining the upper hand. 

Also because of increased interest from the emerging markets, Strategy Analytics has raised its forecast for all stop-start systems worldwide.

The reasons behind the changes to the market are:

• Consumer demand in the automotive market has shifted towards compact models, due to the recession and the "cash-for-clunkers" incentives that has made compacts better value for money.  Therefore, when purchasing a stop-start model, modified starters have become more attractive because of its lower cost and greater likelihood of deployment in the compact segment.

• The growing consumer demand for more fuel efficient models has raised the profile of efficiency sub-brands such as BMW's "EfficientDynamics".  As more OEMs join the bandwagon, so the desire to offer a model with stop-start increases.  Development of a model with a modified starter is usually shorter than for a model with a starter-alternator, thus enabling the rapid marketing of an efficiency sub-brand.

• Government incentives and mandates are putting further pressure on OEMs to bring in efficiency improvements to a higher level or to bring them earlier than previously planned.  For example, BMW is also implementing the modified starter system on six-cylinder mid-segment models as a more cost effective way in meeting the tough European mandates on carbon dioxide emissions rather than deploying costlier hybrid powertrains.  Through volume purchasing and from previous experience in the compact segments, BMW is hoping to deliver efficiencies that do not adversely impact its bottom line.

• Also such government measures are also being adopted in the emerging markets domestically, and not just to comply with the demands of an export market.  China is planning a corporate average fuel economy limit that is tougher than the one set in the US earlier this year.  Modified starters are ideally suited for emerging markets, being the more cost effective solution available. 

• Starter-alternators have found favor by only a handful of OEM customers: Daimler, PSA and Toyota.  Deployment has been limited to a few models, with wider PSA deployment only to commence next year.  Furthermore, the recently growing development of mild and full hybrid powertrains, such as the new Honda Insight, will raise competition for starter-alternators.

For clients wanting to see the full revised forecast on stop-start systems, please go to http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=5112 to download the relevant Insight report.

Chrysler has given extensive insight into its future plans in a series of presentations that were released recently.  Its future roadmap shows the introduction of Chrysler Group-branded Fiat-based models from 2012, with a C-segment compact sedan to be built by Chrysler for both the Dodge and Chrysler brands leading the way.  This will be joined by a couple of Fiat-based commercial vehicles the same year.  2013 will see more new products, including:

• A Fiat-built B-segment small car for Chrysler and Dodge
• A Fiat-based B-segment small SUV for Jeep
• A Fiat-based Patriot/Compass replacement for Jeep
• A Fiat-based D-segment sedan for Chrysler and Dodge
• A Fiat-based Liberty replacement for Jeep
• A Fiat-based mid-sized crossover for Chrysler

These new models, along with the launch of the Fiat-branded 500 from 2011, are hoped to help revive Chrysler’s US market share from a low point of under 9% in 2009 to approaching 14% by 2014. This will not be easy, with competitors such as a resurgent Ford, chastened Toyota and ambitious Hyundai-Kia keen to fight hard for market share as well. One key part of Chrysler’s plan is the rapid adoption of many of Fiat’s powertrain technologies.  Strategy Analytics believes that Chrysler has fallen somewhat behind the curve in the US, with engine line-ups such as Ford’s EcoBoost having no current Chrysler-derived competition. In its powertrain strategy document, Chrysler states that is wishes to implement a “Rapid introduction of all Fiat Group technologies: downsize/turbo, MultiAir, start/stop, Gas Direct Injection”.  By 2014, Chrysler envisages offering a wide range of downsized units, including a 400+ hp 3.0-liter 6-cylinder direction-injection turbocharged unit based upon Fiat MultiAir technology. The result is that by 2014, Chrysler Group predicts that 38% of its products to be fitted by a 4-cylinder gasoline engine, up from an expected 19% in 2010.  Diesel demand will also expand, up from 9% to 14%.  The 6- and 8-cylinder gasoline units will see sharp declines, down from 54% to 38% and 18% to 10% respectively.  By 2014, only 12% of powertrains are expected to be Chrysler legacy designs. Chrysler is less forthcoming when it comes to hybrid and electric vehicle technology.  Although its short-medium term strategy includes “Electrification/hybrids to complement advances in conventional technologies”, this would appear to be limited in ambition with a longer-term strategy stated as “Electrification/hybrids will expand once they become a cost effective proposition to final customer”. Firm commitments to the electrification roadmap are few and far between, and include a stop-start Jeep Wrangler diesel for late 2010.  The Chrysler Group electrification plan slide contains little of substance, other than asserting that “Chrysler Group is lead engineering center for hybrid /electrification for Chrysler & Fiat Group”, as shown below. Strategy Analytics is not surprised by this approach.  It is highly pragmatic, and concentrates the engineering resource on what needs to be done: getting a highly-competitive range of conventional powertrains on the road soon.  However, there is a danger.  GM has generated huge numbers of column inches with the Volt, and Ford now has its electric Focus on the Jay Leno Show.  Chrysler is getting done what needs to be done, but risks losing out on what needs to be seen to be done.