Last week’s Los Angeles Auto Show highlighted the rising influence of Apple’s iPad and the contention for in-vehicle display space. While Apple’s iPod sounded the death knell of the automotive CD drive and the iPhone introduced the concept of the unlimited data plan and Internet radio to the car, the iPad is spreading the gospel of the tablet PC as thin client suitable to automotive head unit configuration, rearseat entertainment platform or all-purpose remote control. In a normally slow-moving industry the iPad’s influence has been immediate and unavoidable.

At the auto show in Los Angeles, Audi announced its iPad application......Please register or log-in to read the complete report

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Porsche is changing horses in the stolen vehicle recovery department, opting for Autotxt’s stolen vehicle recovery solution for the 911, Boxter and Cayman, according to industry sources. The change may be coming as a result of Autotxt’s new architecture which enables a single electronic control unit (ECU) to provide a wide range of vehicle diagnostic and remote control capabilities in addition to vehicle tracking. An official announcement is expected later this week. This single ECU solution from Autotxt has the potential to transform the relationship between the driver, the smartphone and the car, providing an enhanced opportunity to sell stolen vehicle recovery systems in the context of a low-cost smartphone-based telematics application. The technology has implications for customer and dealer relationships as well as for broader branding and marketing purposes. It also creates a new path for app distribution to drivers. Finally, the announcement shows Porsche taking one step closer to the inevitable introduction of telematics. Porsche has had a telematics system in place, ready to launch, for many years. The choice of Autotxt move the company that much closer to that decision while providing an in-place solution to satisfy the European eCall mandate. The Autotxt solution for Porsche - which will supplant the existing offering from Cobra Automotive - provides for both reactive and proactive stolen vehicle notification and recovery. In the reactive mode, the vehicle owner must notify the service provider, Autotxt, when the vehicle has been stolen. In the pro-active, or early-warning, application, the service provider is notified of any unauthorized vehicle movement at which point the driver is contacted. The Porsche application – which is a dealer install - may also offer the same functionality provided by Autotxt for Jaguar Land Rover and Aston Martin. Those implementations use the driver’s Bluetooth-enabled phone as the driver identification tag. Alternatively a keyfob can be provided. The system allows for up to seven Bluetooth driver IDs. Porsche is still evaluating this provision. The Autotxt offering is unique in the flexibility of its ECU. Like other modules coming into automobiles for related tracking, tolling and telematics applications, the Autotxt device is deeply embedded in the vehicle with access to the controller area network (CAN) codes. Autotxt expects to make available by Q2 2011 a smartphone application for remote vehicle control and diagnostics. Autotxt executives expect to be able to provide remote control functionality including remote activation of heating and air conditioning, windows, door locks and remote starting along with data logging and vehicle diagnostics. The multifunction ECU, therefore, can become an event data recorder as well as an eCall or bCall platform while also gathering and distributing data on overall vehicle operation available to either the driver or the dealer or both. The device could also handle trip reporting, battery status for electric vehicles and a wide range of location-aware applications. In this way, the car maker retains control of the in-vehicle connectivity experience in contrast to the widely reported terminal mode approach of conveying the smartphone HMI into the car. Autotxt expects to have versions of its system available for Android and other platforms by the middle of next year. The Porsche deal is global in scope as are the implications of the ongoing Autotxt development activities.

While major media and cable companies talk about four screen strategies the telematics industry is abuzz over the emergence of a three screen world. This was never more clear than at last week’s Telematics Update event in Novi, Mich. From OEMs to tier ones, software and service providers, the focus is on leveraging handsets, head units and the Internet to create closer and more profitable customer relationships. Companies on hand preaching the three-screen gospel included Nokia, Continental, Airbiquity, WirelessCar, RealVNC, QNX, Google, ATX, Tweddle Group Technologies and Parrot. The solutions demonstrated and debated point the way to a more connected experience in the car where the customer can access vehicle related information from outside the vehicle or on a phone or online when away from the vehicle. Even meta data provider Rovi and HMI supplier TAT offered their contributions to the three-screen vision. Nokia described and defended its terminal mode technology, a European-oriented campaign built around what some term a “screen scrape” transfer of a smartphone’s display along with a shift of device control to the vehicle HMI. Nokia intends to equip all of its smartphones with terminal mode technology by early 2011 and is working through the CE4A coalition to coordinate tier one head unit implementation of the technology throughout Europe, where Nokia’s market share is strongest. Using similar technology, RealVNC showed development tools for extending terminal mode technology into a wider range of devices and markets. While Nokia claimed to have two competing handset makers interested in the terminal mode solution, RealVNC’s more agnostic approach offers a suitable alternative. Airbiquity promoted its in-band modem technology by extending the platform to include a customized user interface, tied to the user’s mobile phone, along with app store functionality and location and user-relevant advertising messages. Airbiquity is increasingly taking on the role of a content aggregator, tying together content and applications in a single user interface. Airbiquity's Bluetooth-based approach was presented as a powerful and low-cost data-over-voice/packet alternative to packet-only solutions which require a payment for dial-up networking or SPP monthly service fees. Airbiquity estimates that OEMs deploying packet-only solutions will limit themselves to 20% of the penetratable market of which only 3-5% will have extra carrier service plan for BT DUN/SPP packet connectivity. On top of the data-over-voice solution, Airbiquity is layering its Choreo cloud service for both consumer and commercial markets. Airbiquity says Choreo allows OEMs to convert the car to an IT platform, creating a global infrastructure for content and service delivery. WirelessCar has also stepped into the content aggregator role, showing a clever vehicle-to-smartphone integration providing some basic vehicle control functionality and information access. The WirelessCar solution suggested the long-anticipated realization of a vehicle portal also accessible via smartphone for sharing vital vehicle data with the owner. OnStar has found this approach, with key vehicle status information, to be a valuable tool for driving customer traffic and service revenue via the dealer channel. To drive home its message, WirelessCar led a panel discussion with Ericsson and Cybercom, representing the wireless carrier and software integration perspectives on the implementation of a three-screen world.  Actually, WirelessCar has been pushing and demonstrating this concept for at least three years. Tweddle Group Technologies – the combination of Tweddle Group with UIEvolution’s former automotive division – is also looking to fill the content aggregator role. The company brings to the table its long history in the owner’s manual business – which itself is transitioning to electronic delivery – along with a relationship with Pandora. The Tweddle solution, which allows for the delivery of text and video content - via head unit or handset - related to vehicle systems has intriguing possibilities if integrated with CAN inputs such as alerts or other status messages. Tweddle has yet to marry these two sources of data, but the concept is certainly a powerful one. QNX has also envisioned sharing vehicle status information with the driver via on-board displays. The QNX LTE Car demo includes a “Virtual Mechanic” for providing the driver with images of vehicle systems and their status. Given Toyota’s recent disastrous recalls, the opportunity for these types of systems to catch on is strong. For its part ATX was demonstrating its new application for integration with Mercedes Benz’s TeleAid telematics service. The app provides for some basic vehicle control along with the ability to remotely send a destination to the vehicle’s navigation system. Continental’s AutolinQ concept may be a little ahead of its time in promising an on-board app store experience in an Android operating system environment. While car makers and suppliers have broadly embraced a variety of Linux distributions, Android is still running up against some industry prejudice over the issue of vulnerability to hacking and other perceived weaknesses. Industry buzz suggests that Android is being accepted and even specified in some RFQs, which is certainly a promising development for Continental. The growing Android momentum in the automotive, mobile and even consumer electronics markets suggests that Continental is on the right track. In support of its campaign, Continental announced an eco-system of solution providers contributing to the platform including Ygomi, Inrix, Navteq, Navigon and Deutsche Telekom. Continental will no doubt be flexible regarding these relationships if it means sacrificing a partner to obtain a new contract. But at least now the Continental vision has been clarified as a fully evolved proposition. Delphi executives attended the event, but did not demonstrate their own connectivity platform: D-Connect. Delphi has been vocal in its support of connectivity to Android devices, but resistance to building Android into the head unit. Since D-Connect has not been publicly announced it is hard to predict how Delphi’s final implementation will arrive in the market. Tier two Parrot showed chipsets optimized for mobile device connectivity including the latest Bluetooth protocols and Wi-Fi. Android also figures prominently in Parrot’s plans including some active programs, according to the company. Google announced additional “Send to” partners at the event – OnStar and Ford. For Google, the message for the industry is that it is a cloud-based world. Applications are no longer launched for desktop computers, they are launched on and for the Internet. Google’s recommendation is clearly that car makers facilitate cloud connections either on board or via mobile devices. OnStar, with the most powerful brand in the telematics industry, faces perhaps the greatest challenge in developing a cloud-oriented strategy. Not only must the company integrate its infotainment and telematics teams – long at odds over key applications such as Bluetooth connectivity and navigation – it must also reposition a brand identified almost entirely in relation to safety and security, not entertainment. The path is far from clear, but the promise of additional revenue from dealer service work to content consumption and, overall, a tighter relationship with the customer has car makers and their suppliers working overtime. All agree, at last, that the future lies in three screens. Leading the way are OnStar and Ford, each of which has defined its own three-screen strategy. BMW and Daimler are the next logical candidates to implement the handset-head unit-Internet approach. All of which points to common elements in future telematics solutions including: app stores (accessible via all three screens), vehicle control (across and between platforms), access to vehicle status information (all screens), content aggregation partner and back-end system provider, cloud-based content and services, and provision for multiple-handset compatibility. The emergence of these common threads are helping to clarify the future deployment of telematics systems speeding the delivery of in-vehicle connectivity. *Editor's note: Airbiquity executives suggested amending the strategy to FOUR screens. This week, Microsoft's embedded software division touted a FIVE screen strategy at the Fachkongress Elektronik in Ludwigsburg. Further insight: http://bit.ly/cMw4f1 - Solid Q4 for PNDs, but ‘Free’ Navigation is Shaking Up Monetisation - John Canali – Automotive Multimedia and Communication Service http://bit.ly/bMeg36 - Global Mobile Handset Navigation Forecast 2004-2014 - Nitesh Patel – Navigation and Location Opportunities http://bit.ly/8Yo4U6 - Nokia & Google Shake Up $3.8 B Handset Navigation Market - Nitesh Patel – Navigation and Location Opportunities http://bit.ly/6FC6W7 - Smartphone Market Developments Shaking Up Automotive Strategies - Lanctot - Automotive Multimedia and Communications

Stolen vehicle recovery (SVR) suppliers are integrating smartphone and Internet access with remote vehicle control and tracking applications rapidly changing the value proposition for dealers and consumers. The resulting solutions are finding increasing traction as both dealer and port installs and raising the interest of OEMs in offering own-branded SVR solutions.

 

Leading the way in this ongoing integration effort is Guidepoint Systems which has been putting pressure on market leader LoJack. Guidepoint now offers a smartphone integration with remote vehicle control functionality and an Internet portal for determining vehicle location and status – functions which are also supported by the company’s call center.

 

Any confusion as to whether Guidepoint has LoJack in its cross hairs should be removed by the pricing and positioning of Guidepoint’s dealer offer. While LoJack is normally offered at $695 for the basic theft prevention package with a $395 bump for its early warning solution and another $295 for its $5K warranty proposition; Guidepoint has a $795 basic stolen vehicle recovery package with a $395 early theft alert and an additional $5K theft protection plan for $99.

 

Guidepoint’s focus is the automobile dealer channel, but the company has begun closing some direct relationships with OEMs. Competitor Cimble, which showed its products at the Telematics Update event last week, is also pursuing OEM relationships for dealer and port installs.

 

Cimble claims to have port and dealer install programs in the works with Honda, BMW, Subaru and Toyota (for two regions). Mopar is thought to have a similar product offering in the works from an unnamed supplier, due later this year. And Ford offers SmartAlert from Skyway Systems (acquired several years ago by Innelec) as an official licensed Ford product.

 

The importance of these developments is that it shows OEMs seeking to take more control of a valuable piece of dealer aftermarket business. Stolen vehicle recovery has long been the captive realm of LoJack and its RF solution – to the consternation of OEM accessory managers.

 

The arrival of telematics systems with their own stolen vehicle recovery capabilities at OnStar, BMW, Mercedes-Benz and, most recently, Toyota Motor Sales in the U.S., have had only a modest impact on LoJack’s dealer business. OnStar probably had the greatest influence with its vehicle slowdown enhancement. But the new branded accessory solutions, integrating both GPS and cellular technology, may be beginning to get LoJack’s attention.

 

LoJack still has the advantage of being built around stealthy RF technology, which is better able to penetrate a wider range of barriers, and is supported by the installation of tracking equipment by cooperative police forces in 28 states – most recently joined by Utah. But LoJack has been reporting consecutive quarters with losses, including $5.6M in its first quarter reported last month.

 

LoJack’s weaknesses include its inability to offer universal geographic coverage and the lack of a relationship with OEMs. Since OEMs have not been given a “cut” of LoJack’s business, the company has long been seen as an interloper.

 

Perhaps a greater shortcoming of LoJack is its business model. LoJack is a set it and forget it solution. After the initial upfront payment and installation there is no further interaction with the customer. This lack of interaction means there is a limited upsell opportunity.

 

Worse even than this business model, though, is the fact that most LoJack systems are sold as a basic package which requires the customer to report the stolen vehicle to LoJack. (LoJack does offer a step-up keyfob-based service which provides an early warning to the customer if the vehicle is moved without the keyfob.)

 

In contrast, GPS-based products not only provide vehicle locator functionality they also allow, in the case of Guidepoint, for a pro-active call to the customer if the vehicle is moved, violates a geo-fence or if the wireless connection to the vehicle is lost. Guidepoint can then notify the police and the vehicle can be located by Guidepoint.

 

The added functionality afforded by GPS technology means the new OEM-branded offerings allow more flexible pricing and marketing models. Guidepoint is perhaps the most unusual market player in maintaining its own call centers and offering services ranging from roadside assistance and concierge support to the ability to disable a vehicle if it is stolen.

 

Interestingly, Guidepoint also offers a member rewards program and has a relationship with Liberty Mutual and is also active in the buy-here pay-here market for customers with compromised credit. Guidepoint also has a cooperation in aftermarket navigation systems with Rosen Entertainment integrating Guidepoint SVR and concierge functionality via an on-screen button.

 

 Guidepoint privately refers to its offering as “OnStar on steroids,” but the company does not offer automatic crash notification functionality because of liability concerns. The key to the Guidepoint business model is the initial call the customer makes to Guidepoint upon activating the service. Guidepoint call center responders are trained to introduce new customers to the complete range of available service enhancements.

 

The power of the integration of smartphone and Internet interfaces has not been lost on companies in the 12V aftermarket channel, such as CompuStar and Auto Page. Later this year, CompuStar (by Firstech) will introduce an iPhone app which works with the company’s DroneMobile iPhone app/module for remote starting, tracking and security.

 

According to a report in CEOutlook (http://ceoutlook.com) the CompuStar solution works with remote starters from multiple companies and allows users to lock and unlock the car, release the trunk, remote start the vehicle, control sliding doors and heated seats, track the car and control the security system from their phone.

Users can also view the car’s battery voltage, temperature and alarm status and can set geo-fenced areas. CEOutlook says the DroneMobile DR-1000 will be available in two packages: $549.99 suggested list including basic installation or a $349 package available without the remote starter. Users get one year of basic service. GPS tracking requires a premium service plan. Auto Page is another company that has taken the iPhone plunge.

 

As for LoJack, the company reported in Q1 that “penetration rates are consistent with those of the fourth quarter of 2009, demonstrating that our business has not been negatively impacted by any competing technology.” LoJack says its U.S. unit volumes increased each month of the first quarter with March delivering a double-digit increase. .

 

In the words of one LoJack executive on the company’s earnings call: “As the U.S. auto market recovers, we expect that our installations will increase in a manner that is consistent with the broader domestic auto market trends. We are cautiously optimistic about the broader U.S. auto market based on recent projections that indicate new vehicle sales may exceed prior expectations of 11 to 11.5 million units.”

 

LoJack clearly anticipates healthy business as usual, but even in an environment where theft rates are on the rise, the company may be challenged by the growing influx of GPS/cellular-based solutions - especially as car makers seek to take back the SVR business. The added enhancement of smartphone integration and remote functionality may ultimately force the company to reconsider its RF-only proposition.

Further Insight: http://bit.ly/aIm4vK - Global Automotive OE Telematics Market 2008-2016 - Joanne Blight

The arrival of Nokia’s Terminal Mode technology for smartphone integration and ATX Group’s downloadable application for Mercedes-Benz’s TeleAid telematics service has highlighted the intensifying battle between OEMs and third-parties over car owners and the in-vehicle experience. OEMs are being forced into the business of certifying applications for use in the car at the risk of losing control of both the customer and the user experience. And the encroachment of third-party apps is raising serious security concerns. The introduction of the ATX downloadable app is perhaps the worst case scenario for an OEM given the existing relationship with Mercedes TeleAid subscribers. The application was neither created by Mercedes nor was it certified or approved by Mercedes. The result is the first instance in the industry of a service provider competing with an OEM for the OEM’s customers. The clever application allows for the wireless transmission of destinations to Mercedes navigation systems equipped with TeleAid connections and also allows for remote door unlock among other features. The purpose of the application is to extend and maintain the existing ATX relationship with legacy TeleAid subscribers. But it is an intrusion most unwelcome at Mercedes headquarters. Most of the functions offered by the ATX app were made available in a similar app launched by Mercedes last Fall as part of its mbrace telematics service launch. The difference between the two is that mbrace, launched on November 16, 2009, is part of Mercedes’ introduction of a new telematics service relationship with Hughes Telematics. Aside from the relevance of the ATX announcement to the ongoing contretemps between Mercedes and its service provider (the two have yet to resolve their legal differences), the implications for the industry, telematics and the app store model are critical including: Management of the telematics service Ownership of the customer Control of the telematics marketing message Control of dealer marketing and incentives Certification of vehicle related applications Control of the in-vehicle user experience But these issues are inherent in the app store model itself. For Mercedes, the mbrace app, for select iPhone and Blackberry smartphones, enables a similar feature set as the ATX app and also sets up the ability for Mercedes to create its own app store. The mbrace app was groundbreaking because it was the first from an OEM to enable remote functions from a handset – demonstrated but not delivered by others – while simultaneously changing the telematics service provider and call center phone numbers – effectively transferring existing TeleAid customers (now using ATX) to the mbrace service. Mercedes even stated plans to introduce new applications periodically, the first of which are expected to arrive later this summer, propelling Mercedes to the front of the automotive app store class, where it is now joined by Ford (which seems to introduce new applications monthly). The ATX announcement, however, reveals the proverbial fly in the app store ointment. If ATX can divert Mercedes’ TeleAid customers, which OEM will be the next to see an app divert their customers? ATX’s app allows the existing TeleAid subscribers, of which there are an estimated 400,000, to maintain their relationship with ATX and provides them with functionality similar to that offered by the new mbrace service. Since customers are paying ATX in total nearly $100M for the service, this is important. To help drive the message home, ATX is offering Mercedes dealer sales personnel $100 spiffs to communicate the message to existing Mercedes owners. (The only service being offered by dealers on new vehicles is the mbrace service.) Meanwhile, Mercedes is offering a 20% commission - worth about $100 - to dealer F&I and sales executives to promote longer-term (18 month) initial mbrace subscriptions. (Customers already get six free months of the basic service and three free months of the Plus service which includes concierge support among other functions.) There is the potential for a mixed message here, although the ATX message is only for existing owners, while mbrace is targeted at both existing owners and purchasers of new Mercedes cars. (A recent visit to a Mercedes dealer revealed no visible onsite literature or POP materials for either TeleAid or embrace – ie. telematics is still not part of the core Mercedes message. To top of the lack of telematics enthusiasm at the dealership, the F&I exec said he didn’t see the need for telematic services since he owned an iPhone!) Because of the terms of its now concluded agreement with ATX, Mercedes cannot promote, sell or install the mbrace service for any Mercedes vehicles purchased between Nov. 16, 2008 and Nov. 16, 2009 until after Nov. 16, 2010. It is also for this reason that Mercedes is hampered in its marketing and promotion of mbrace, although various Mercedes Websites make clear that the only service currently endorsed by the company is mbrace. The irony in this battle for customer ownership between ATX and Mercedes is that the average Mercedes customer is likely not purchasing the vehicle for the telematics service. Little or no advertising activity is committed to conveying the telematics message. And, yet, with an estimated 400,000 subscribers paying upwards of $240 per year, the revenue stream is valuable to ATX, Hughes and Mercedes. Although unique, the ATX-Mercedes situation is analogous to the emerging automotive app store proposition. Nearly every OEM is scrambling to demonstrate or introduce an app store strategy of some kind following the perceived success of Ford’s Sync model. But no one is pondering the potential for an application to commandeer an OEM’s marketing, sales and telematics strategy as well as the user experience in the vehicle. Nokia’s Terminal Mode capability has raised similar questions of control of the user experience in the car. It is for this reason that Delphi introduced its own alternative to terminal mode which provides for a Delphi application certification process and OEM control of the HMI (http://bit.ly/94Mn1V). The broad industry perception of the Nokia solution, which reproduces the display of a mobile device into the vehicle and enables the use of on-board interfaces, is that it fundamentally alters the carefully crafted vehicle HMI. There is no doubt that no single company – Nokia, Delphi, RealVNC, Airbiquity, Continental, Parrot, etc. – will control the critical smartphone interface. But what is clear is that it has become a critical battleground Not surprisingly, Apple must be watching these developments and snickering. Apple’s iPhones have enabled a wide range of services, application and content delivery to drivers with marketing, revenue and HMI implications outside of the scope of the OEM’s plans. Customers enter dealer showrooms on a daily basis looking for cars with which their devices can connect – the classic case of the tale wagging the dog. The Mercedes-ATX situation provides a glimpse of a brave new world where car makers are simple pawns in a chess match controlled by carriers, handset makers, application developers and service providers all seeking to extract revenue from car owners. The good news is there is opportunity for those companies able to offer a secure smarthone interface that enables an OEM’s brand definition. OEMs have already taken steps to create certification procedures along with their own in-house development teams. Car makers will never have complete control over applications such as Internet radio or location-based services. But applications that tap into vehicle data and functions, such as remote door unlocking or vehicle starting, are areas that OEMs will demand control. Mercedes’ new telematics partner, Hughes, was once the ultimate embodiment of the external third party seeking to implant a revenue-generating module in consumer vehicles. The automotive industry rejected the Hughes model – particularly its hardware platform – opting instead, as in the case of Mercedes, to leverage the Hughes back-end infrastructure. What could help to make all parties play nicely together is revenue sharing. OEMs clearly want a cut from the stream of revenue flowing from off-board applications. The long-term winners will be those solution providers that provide for that OEM piece of the action and, most importantly, bullet-proof security. Hughes had the right idea: to create a platform in the vehicle for accessing revenue-generating content, services and applications. Little did Hughes know at its inception that the smartphone would replace its embedded module. OEMs know now that they must take the steps today to create the connections and define the relationships that will allow for mobile device connectivity while keeping the OEM in a secure user experience/revenue producing loop. Additional Insights: http://bit.ly/94Mn1V - Delphi Emerges at SAE with Answer to Nokia Terminal Mode - Lanctot - blog - Strategy Analytics http://bit.ly/b5W8ZS - Nokia and RIM Push Into Automotive as 'Apps' Competition Mounts - Joanne Blight - AMCS http://bit.ly/aIm4vK - Global Automotive OE Telematics Market 2008-2016 - Joanne Blight - AMCS

Audiovox Corporation reported a profitable fourth quarter and fiscal year today suggesting a significant turnaround fueled by the resurgent automotive industry generally and recovering satellite radio and rearseat entertainment categories specifically. The report was terrific news for Audiovox, which held its earnings call this morning, but the good news seemed somewhat empty in view of a lack of innovative new solutions or even a stated vision of vehicle connectivity from the normally creative electronics supplier.The company built upon the good earnings news by announcing that it foresees developing a $100M OE portfolio for fiscal 2011 thanks to the addition of Qualcomm’s in-vehicle Flo-TV business and the acquisition of RSE supplier Invision and remote start/vehicle security player Omega. Invision’s existing RSE deals with GM and Toyota represented a solid shot in the arm to Audiovox’s own aftermarket business. The electronics segment of Audiovox’s business saw a revenue decline in fiscal 2010 due to reductions in inventory and the exit from several product lines including flat panel televisions and portable navigation devices. Combining the Invision RSE line with its own aftermarket RSE business, Audiovox now boasts relationships with GM, Ford, Chrysler, Nissan, Hyundai, Porsche, Kia, BMW, Toyota, Subaru and Mazda. With expectations of 11M cars being sold in calendar 2010 in the U.S., Audiovox expects the current boost in its fortunes to continue. The electronics segment’s sales were $375M for fiscal 2010, down 16.6% vs. the year-ago period due mainly to the decline in automobile sales and the recessionary economic environment. The company pointed to the positive impact from new programs with Sirius XM, Sony (PS3 integration with RSE system) and Flo-TV and noted that the acquisition of Invision has been instrumental in positioning the company to build on its existing OE relationships. Many of Audiovox’s existing relationships derive from the support of its own expeditor network, one of the largest and most effective installer networks in the industry. In its earnings call, Audiovox said mobile sales were up over the fiscal 2009 fourth quarter due primarily to increases in satellite radio, security and multi-media products, and the addition of new sales from Invision, Omega and Flo-TV. As a percentage of net sales, Electronics represented 71.4 percent of sales for the fiscal 2010 fourth quarter as compared to 62.3 percent for the comparable period in fiscal 2009 - demonstrating the increased importance of mobile electronics sales.

Audiovox is uniquely positioned for a range of significant automotive business opportunities including remote vehicle connectivity and security and video distribution within the car. The company does offer a range of head unit products that provide for multiple connectivity options and continues to offer non-desktop computing platforms suitable to automotive applications. The onset of connectivity and social networking present a range of potentially profitable opportunities awaiting a solution from Audiovox..

 

If there was anything missing from the earnings call it was a statement of strategy vis a vis social networking applications and Audiovox’s plans to capitalize on the trend. The partnership with Qualcomm for Flo-TV represents one avenue for Audiovox to connect with the rapidly growing smartphone market. The company introduced the Jensen Anyware Ultra-Mobile PC last fall, but there was no mention of the product on today’s earnings call, nor was their mention of Audiovox’s range of head unit offerings under multiple brands. Perhaps the next earnings call will bring news of more creative mobile initiatives and a vision of future vehicle connectivity.

While people are using mobile phones for a wider range of functions than just making phone calls, such as remote vehicle access and microtransactions, it is not likely that anyone will ever replace their vehicle key fob entirely with a smartphone application. With that in mind, Delphi has introduced a Smart Key Fob that uses near-field communication (NFC) - for systems intended to be used in Europe or Asia where NFC is more widely implemented, Bluetooth and UHF technology to provide drivers with remote access to vehicle information while helping to ensure the security of the data exchange.

The “key” advantage of the Delphi solution is that it provides for application to vehicle data and vehicle control and status access without the need for a cellular subscription. For this reason, the company has positioned the Smart Key Fob as a low cost solution to vehicle connectivity. The Delphi-implemented NFC solution and Bluetooth connectivity offers, secure information transfer from the fob to the phone with a low power consumption mode and a low-range communication profile – only 2 inches (5 cm) for NFC – that helps prevent hacking. The company says the data exchange is made possible with modules integrated in the vehicle. The UHF system antenna enables data transfer from the vehicle to the key fob with a range of more than 650 feet, and the transferred information can be accessed by the driver via any NFC-compatible portable device that has an active display such as a smartphone. Data that can be accessed and managed includes mileage and fuel level, safety and security information (such as tire pressure, door or window open or closed status, etc.), maintenance warnings and alerts, personalization features (seat, steering wheel, A/C configuration), vehicle location (via GPS), driver identity, in-case-of-emergency (ICE) contacts and vehicle type. Of course, the onset of electric and hybrid vehicles only intensifies the potential interest in Delphi’s low-cost solution as drivers will need to remotely assess vehicle charge. The complete roster of accessible applications for the fob-to-smartphone system includes: Enhanced command/control of all vehicle functions Notification of vehicle security and diagnostic alerts Vehicle finder Pre-trip remote vehicle setup Diagnostics Eco-scores Driving history/patterns Linkage to OEM Web portals Automatic opt-in marketing data on vehicle usage and driver preferences Control of vehicle functions remotely with graphical confirmation (e.g. doors, windows, engine start, HVAC, seat, navigation, audio) Reconfiguration of vehicle preference settings easily and remotely Delphi says the marketing propositions for the system include branding opportunities through the phone app and connected Internet portal and the opportunity to establish opt-in marketing programs to automatically collect driver usage data. Delphi has shown the solution to some OEMs, but has yet to announce a platform win. Further Insight: http://bit.ly/cPilqP - Advanced Entry and Start System Supply and Fitment Database – Mak – Strategy Analytics http://bit.ly/prpYX - Vehicle Entry and Go: Passive Systems Set to Challenge RKE – Mak – Strategy Analytics

Amid the hybrid hype and horsepower hoopla at the New York Auto Show this week Ford Motor company presented a unique vision of the future of efficient driving in its partnership with Microsoft’s Hohm power management initiative. Launched in June of last year, Hohm is an energy management application developed in cooperation with U.S. energy suppliers and intended to manage and conserve home energy consumption.

Ford president and CEO Alan Mulally acknowledged what few car makers have addressed, which is the potential doubling of home energy consumption for home owners who choose electric vehicles. Ford is working with Microsoft to help mitigate that added cost of ownership. Hohm is an Internet-based application that will help owners of electric and plug-in hybrid vehicles determine when and how to most efficiently and affordably recharge their batteries.

Microsoft says Hohm is available for free to all U.S. residential energy consumers and has multiple partnerships with utilities and other relevant partners. Ford is the first auto maker partner in the program. Ford also announced its plan to offer a smartphone-based application to remotely assess vehicle charge status and find charging locations, not unlike the application shown earlier this year by OnStar in connection with its Volt EV launch.

Ford’s electric vehicle and hybrid plans announced at the New York show include five vehicles in North America and Europe by 2013. For North America, Ford has planned the launch of the Transit Connect Electric later this year, the Focus Electric in 2011, a plug-in hybrid and two next-generation hybrids in 2012, joining four Ford and Mercury hybrids already on the road and a new Lincoln MKZ Hybrid coming this fall.

Other major EV and HEV announcements at the New York Auto Show included:

Kia said it will offer a 2.4L hybrid version of the Optima late in 2011.

Lincoln introduced its first hybrid – the 2011 MKZ Hybrid premium midsize car. The car is expected to deliver 41mpg in city driving when it arrives in the fall.

Think announced plans to begin selling the Think City EV in New York and other select cities later this year.

Hyundai showed its first hybrid, the new Sonata Hybrid based on lithium polymer technology offering what it claimed as more horsepower (169hp), more torque (156 lb. ft.) and better gas mileage (52mpg) than competing hybrids and using Hyundai’s Hybrid Blue Drive architecture with its 2.4L Theta II engine.

Volkswagen showed its first hybrid at the show – a Touareg with a nickel-metal hydride battery due later this year. The hybrid drive is paired with a 3L supercharged, direct injection V6 and VW claims a 40% reduction in CO2 emissions and 25/21mpg in highway/city driving.

Porsche showed its first production hybrid, the 2011 Cayenne S Hybrid due this fall, which will sell for $4,000 more than the $63,700 Cayenne S with a 400hp V8.

 

For further insights into global EV/HEV programs:

http://bit.ly/bv3Q0B - Hybrid and Electric Vehicles: OEM Strategies Reviewed – Kevin Mak

BMW’s wholistic EfficientDynamics campaign is the latest and clearest manifestation of an industry movement that is propelling telematics technology adoption. In a recent presentation to the International Motor Press Association (IMPA), BMW executives clearly defined an integral role within the EfficientDynamics agenda for navigation, embedded vehicle connectivity and even smartphone integration. The company has already made impressive gains in fuel efficiency and CO2 reductions while preserving or enhancing performance via mechanical means, such as optimizing transmissions and adopting brake energy regeneration and auto start-stop functions. Now, BMW foresees even greater gains coming from the integration of on-board sensor inputs. BMW seeks to extend efficiency gains from the fusion of data inputs from navigation systems, adaptive cruise control and parking distance control systems, cameras and light/rain sensors, DME and DSC systems and V2X communication. The output of this data fusion will lead to the prediction of upcoming driving situations and optimized vehicle conditioning (ie. charging or discharging of the battery). These system enhancements will help optimize operating strategy and determine optimal driving distance for available consumption. The integration of navigation and safety system inputs means that in the future both the navigation set-up and the portfolio of safety systems will increasingly be standard equipment. They will be integral to the efficient operation of the vehicle. And connectivity will be necessary so that the very latest information on road conditions (including traffic) is available. While a growing proportion of cars will have embedded connectivity, smartphones will still play a vital role in the drive for more fuel efficienct cars. The company has already learned from its Mini E field trial that smartphone applications have a key role to play. Drivers will use smartphone applications to remotely check the state of vehicle charge as well as to signal the car to begin heating or cooling batteries while still connected to the grid. OnStar has foreseen this as well, showing just such an application at the recent Consumer Electronics Show. It is true that range anxiety is a very real customer concern with electric vehicles. In fact, it is yet another reason for such vehicles to be equipped with standard navigation systems. But BMW executives told the IMPA delegates that customers in the Mini E trial found that “charging (was) not a big issue even without (an) extensive network of public charging stations.” According to the results of the trial, the range of the Mini E was sufficient for most trips. This finding corroborates GM’s finding that 78% of people drive 40 miles or fewer per day. In the end, therefore, the role of the on-board map and navigation will likely have more to do with maximizing vehicle range as opposed to easing driver anxiety. And road elevation data will no doubt play a greater role as well in route planning. The drive for fuel efficiency and electrification will combine to bring cars to market that are not only more efficient and emitting less carbon dioxide, but that are also safer with the additional sensor content and map data. Further insights are available: http://bit.ly/bv3Q0B - Hybrid and Electric Vehicles: OEM Strategies Reviewed – Kevin Mak http://bit.ly/alm4vK - Global Automotive OE Telematics Market 2008-2016 – Joanne Blight

It is very strange indeed to find Toyota at the focal point of a vehicle recall imbroglio after years of immaculate quality ratings and at the peak of its global market share. But the strangeness of the timing is even more severe than that, because it was Toyota’s Prius that was used by QNX and Alcatel-Lucent to promote their “ng connect” LTE Car initiative late last year. The Toyota Prius became the mascot for the ng connect program, popping up in Detroit, Los Angeles, New York, Washington, D.C., and Las Vegas, in fact anywhere cars or automotive technology were on display. The purpose of the ng connect tour was to spread the word about the onset of 4G LTE technology and what it will mean for connected cars. Of course, the tour was also a showcase for QNX’s vision of both on-board and connected applications. Chief among the roster of on-board applications was a so-called Virtual Mechanic. The virtual mechanic is intended to provide live in-vehicle status reports on a wide range of vehicle systems including brakes, transmission, fuel, etc. with text and graphics. QNX is already the enabling software behind OnStar which, like Ford’s Vehicle Health Report feature, provide drivers with emailed status reports. The difference with virtual mechanic is that the information is live and delivered inside the vehicle. For QNX, the virtual mechanic was merely a concept shown in the context of a wide range of other concepts including in-vehicle displays of remote traffic cameras, access to Internet radio (Pandora), and a host of other location-aware and entertainment oriented applications. But the plot thickens with the emergence of Toyota’s recall nightmare because QNX is a supplier to both GM and Toyota. The virtual mechanic concept appears to belong to QNX, but the possibility for GM or Toyota to adapt the technology for their own marketing and customer relations purposes changes the prospects for this technology considerably. The question now is which manufacturer, Toyota or GM, will be first to enable a virtual mechanic-type application in the car. Or could some other QNX customer leap to the front of the queue: BMW, Peugeot, Mercedes Benz, Chrysler, Hyundai? Any one of these companies can look at Toyota’s difficult situation and realize they could be the next car company with software-laden cars producing unexplained, and seemingly unfixable, failures. A challenge for both Toyota and GM in implementing QNX's virtual mechanic will be the limited number of cars both companies sell with full-screen navigation sufficient to graphically display on-board systems. But LCD attach rates are improving for all OEMs in all segments and this application is yet another justification for large display fitment. Suffice it to say that the virtual mechanic is a concept that has arrived just in time to offer a way forward for a damaged auto maker and possibly for the entire industry. Whether QNX’s customers view this prospect from the same perspective remains to be seen. A final note: In this analyst’s opinion, the virtual mechanic will also make a great customer demonstration for car dealers. Source:  Strategy Analytics