• 08Mar

  Sending Out an SMS SOS for European eCall

  Advanced Safety, Business Models, Connectivity, LBS, Sensors, Software, Telematics No Comments

  European service providers have given up waiting for the European Union’s eCall initiatives and mandates to deliver emergency roadside assistance across Europe. A growing number of private service providers are turning to existing technology in SMS-based alternatives to deliver eCall solutions without using the official eCall in-band modem technology. (They are, however, including the minimum data set portion of the standard.)

   

  Volvo, Peugeot and BMW remain the only three OEMs with European eCall solutions implemented, using SMS technology. But third parties including insurance companies, automobile clubs and call center providers are stepping forward with solutions that will work with existing technologies. The latest launches include Allianz’s pay-as-you-drive offering, Allianz OrtungsServices GmbH’s LifeService offered in conjunction with AvD, TCS’s announcement of eCall service in Switzerland in connection with PSA, and ATX’s so-called “self-dispatch” solution.

   

  These new systems are designed to provide eCall and bCall support throughout Europe and in the driver’s own language. But the language barrier is only one challenge to providing a pan-European eCall solution. The other challenge is the choice of connection technology. While the European Commission nominated in-band modem technology – sending data over the voice channel - as the standard for official eCall coverage, no mechanism was put in place for upgrading hundreds of public service answering points (PSAPs). The PSAPs must be equipped with the in-band modem technology to connect properly.

   

  Qualcomm has stepped forward, as the winner of the in-band modem competition, to license its technology at no charge. But no action has been taken at the PSAP level, hence the emergence of private initiatives.

   

  There is a bit of an irony in the focus on eCall. The volume of eCalls that are seen by the current providers number at most in the hundreds per year. This tiny number of incidents calls into question the value of the eCall mandate itself as a lifesaving technology, but this obscures the much more impressive number of roadside assistance calls, which number in the millions. (No one, including this analyst, is questioning the value of eCall services.)

   

  The private service providers clearly recognize the value of the combination of these two services to their customers, hence the new offers. Lurking behind these initiatives is a battle for control of the automotive call center market in Europe. This multimillion Euro opportunity will grow in importance as more OEMs launch telematics services.

   

  By some estimates, ARC Europe, European equivalent of the American Automobile Association, is the dominant provider of automotive call center support with more than a third of the market, followed by Mondial Assistance, Europe Assist and AXA. The Allianz PAYD offer is made in cooperation with Mondial, its wholly-owned subsidiary.

   

  Allianz’s PAYD solution includes a module which provides a portfolio of services including eCall, bCall, stolen vehicle recovery, theft notification, and a hands-free Bluetooth interface. The range of solutions included with the device provide a more comprehensive offering reflecting the priorities of an automobile insurer including, most interestingly, a hands-free phone interface to reduce distracted driving.

   

  From sister company Allianz OrtungsServices GmbH, comes the infrastructure for LifeService112, most recently added by Automobilclub von Deutschland (AvD). AvD, though older, is smaller than the widely known Allgemeine Deutsche Automobil-Club (ADAD), which is part of ARC Europe. With the new service, launched last week, AvD says it will be the first German automobile club to offer members GPS mobile phone localization for emergencies.

   

  The new offer is made possible by the LifeService platform from Allianz. LifeService112 provides the technical platform for mobile phone localization for more than 90% of Germany’s public safety answering points. It is also compatible with both SMS and in-band modem technology.

   

  Accident victims have previously been located via mobile phone cells with the accuracy depending on the number of radio masts. By contrast, GPS technology – independent from the network and available worldwide – can better pinpoint a victim’s location. Special software for the mobile telephone will make precise GPS tracking possible. Allianz OrtungsServices GmbH’s goal is to enable all European rescue coordination centers to access the LifeService112 system. In an emergency, the public safety answering point can locate every mobile phone by way of either radio cells or GPS. Allianz is seeking additional partnerships for the eCall/bCall service including, but not limited to, auto makers.

  PSA has signed an agreement with Touring Club of Switzerland (TCS), announced at last week’s Geneva Motor Show to provide eCall and bCAll services for Peugeot and Citroen models sold in Switzerland beginning this month. In the event of an accident, an eCall SMS (with location data) is sent to TCS to process and contact the relevant PSAP.

  The system is a two-button solution allowing the driver or passenger to activate an eCall or bCall voice connection manually or automatically anywhere in Europe. TCS worked with Alabus AG to implement the solution and the hardware came from Magneti Marelli. The TCS call center will be able to respond in the driver’s language.

  ATX, which has lost its European telematics service relationship with BMW, is making what may be the most radical proposal of what it calls a self-dispatching approach to managing eCalls from vehicles. The company’s announcement says its system will work with SMS or in-band modem technology and will make use of multilingual text-to-speech technology and Internet resources all of which may help to define an entirely new approach to telematics and call center support in Europe.

   

  
  
• 07Mar

  Toyota Impact Part Deux: Virtual Mechanic Concept Will Get a Lift

  Advanced Safety, Connectivity, Consumer Insights, HMI, Powertrain, Software, Telematics, Vehicle OEMs No Comments

  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

  
  
• 05Mar

  HD Radio Technology Finds Success with Both Hands Tied Behind Its Back

  Audio/Video, Business Models, Comfort/Convenience, Consumer Insights, Digital Broadcasting, Emerging Markets, HMI, Mobile phone, Traffic, Vehicle OEMs No Comments

  As an emerging low-cost platform for distributing content and services to passenger vehicles, HD Radio technology has been sneaking up on the automotive and consumer electronics industry for about six years. In that brief time, the company has created a minor sensation in spite of the fact that most of the added value elements of the technology have yet to be deployed and tier one suppliers are only now beginning to master the user interface for automotive implementations.

  Suffice it to say that iBiquity Digital has succeeded in spite of the limitations of early product executions. But the next wave of product promises more dramatic gains as OEMs bring their interfaces up to speed and hardware makers deliver on the enabling technology for conditional access and other value-added services.

  IBiquity Digital has overcome the classic chicken-and-egg quandary, simultaneously convincing device makers and broadcasters to take a leap of faith and get on board the HD Radio technology express. In the six years since beginning its campaign, iBiquity Digital has recruited thousands of radio stations and their broadcast company parents to add the HD Radio signals, convinced portable and home electronics hardware makers to bring devices to market, and drawn in more than a dozen car makers to add HD Radio technology to their line-fit options portfolios.

  Today, in the U.S., there are 1,967 stations broadcasting using HD Radio technology in 250 U.S. markets including 197 of the top 200, reaching 247M listeners. In addition, there are 1,128 multicasts, additional stations within the existing HD Radio bandwidth, with nearly equivalent reach. There are dozens of home and aftermarket automotive systems equipped with HD Radio technology – including an iPhone add-on and an integration on the latest Microsoft Zune. Significantly, many if not most of the aftermarket automotive systems include HD Radio technology as standard whereas competing satellite radio capabilities are typically optional.

  Within the automotive realm, HD Radio technology has rocketed from being available on two brands and seven models (none of them standard) in MY07 to 16 brands and 87 models (34 of them standard fit) in MY10. The outlook is for 19 brands to be offering HD Radio technology on 122 models in 2012 with 65 of those models offering the technology as standard.

  By now, most people in the electronics industry are painfully familiar with the extended product life cycles and correspondingly slow decision-making in the automotive industry. In this context, iBiquity’s success has extraordinary. The rapid rise, however, has spawned poorly executed user interfaces with inscrutable and non-intuitive designs. (Doubly unfortunate is the fact that some of the poorest HD Radio interfaces are offered in high-end luxury vehicles.)

  IBiquity provided limited user interface guidance at its inception, but has since taken more of a position in providing suggested device interfaces. Customers are still left to their own preferences, for the most part, though industry participants will be wise to heed any direction from iBiquity. In the end, if customers cannot fathom the interface the added value will be lost.

  As HD Radio technology moves into the next phase of its global campaign – and make no mistake that the effort is a global one – it is worth taking a look at the services that are

  Current services include:

  Program Service Data – Song, Artist, Album, Genre, Comment, Commercial

  HD2/HD3 Stations

  iTunes Tagging

  Album Art – Station logo, Album art, Advertising

  Premium Content – Data, Concerts and sports programs, Opt-in Adult content, etc.

  Conditional Access

  Additional services in development include:

  Program guide

  Music tagging

  Advertisement tagging

  As for the scope of iBiquity’s efforts and ambitions they indeed span the globe. Countries that have adopted HD Radio technology with nationwide implementation include Puerto Rico, Panama and the U.S. Countries that have adopted the technology with regional operation include Mexico and Brazil. Countries that are characterized by iBiquity as being in testing with advanced interest include Canada, Argentina, Chile, Romania, China, Vietnam, South Korea, Uruguay, Colombia, Poland and the Czech Republic. The company describes several European countries as having a strong interest in the technology.

  If iBiquity has had this much success with a limited offering delivered in hastily configured packages, one can only imagine the results that await the company as the second and third generation products arrive with added value services and enhanced interfaces. Among the most remarkable executions demonstrated recently at the Consumer Electronics Show was the HD Radio integration in the MyFordTouch, just a hint of what is to come.

  

  
  

  
  
• 05Mar

  How TomTom Can Get Its Mojo Back

  Business Models, Connectivity, LBS, Mobile phone, Navigation, Software, Vendors No Comments

  TomTom was once the darling of the portable navigation market, charging onto the scene with innovative marketing and product offerings and buoyed by strong market growth driven by Europe’s world-leading embrace of navigation devices. The latest earnings results from both TomTom and chief rival Garmin, however, paint a picture of a hot hardware market segment hitting a plateau.

   

  Is it game over for TomTom? How did the company peak so soon? Where has the growth in the PND segment gone? It is my contention that one reason for the current decline in prospects derives from the company’s shift to a closed platform back in 2005 more aligned with rival Garmin.

   

  TomTom captured the imagination of consumers and industry observers in the early days of the PND market with innovative solutions that included one of the first major crowd sourcing exercises in the form of its TomTom Live services which included map updates provided by users. The power of the TomTom Live platform was such that TomTom was able to build a more than million-strong user community whose enthusiasm was reflected in both the millions of map updates and corrections they contributed along with the navigation voices they recorded and shared.

   

  It’s hard to overstate the power of the kind of customer connection TomTom achieved with the TomTom Live service. In effect, TomTom solved the challenge of map updating years before any other organization in any other segment had come up with an answer - with the exception of server-based solutions. In the most recent earnings call, the company says it intends to offer map updates on a 48-hour cycle, instead of the industry-standard quarterly updates – once again, setting an industry standard.

   

  TomTom continued to build momentum – let’s call it “mojo” - by capitalizing on the critical importance of traffic and routing applications adding its HD Traffic and IQ Routes enhancements. The company led the way in connected PNDs claiming 900,000 units sold in the past fiscal year and laying claim to 400,000 combined paying or on-trial-period subscribers, admittedly below company objectives.

   

  But something fell apart in the past year. Evidence of the performance shortfall included the inability to successfully convince a sufficient number of consumers to pay 10 Euro/month for traffic data, even if it was demonstrably superior to competing traffic data. But the one-two punch of flattening sales and declining ASPs in 2009 have combined to deflate TomTom’s (and Garmin’s) prospects forcing the company to turn more aggressively toward non-PND sources of revenue including embedded and smartphone-based solutions.

   

  Both Garmin and TomTom reported tepid financial results two weeks ago and offered cautious forecasts for flat PND sales in 2010. Both Garmin and TomTom attempted to dismiss to some extent the impact of smartphone-based navigation solutions. TomTom, in particular, claimed the three different navigation platforms – embedded automotive, smartphone and PND – are not “mutually exclusive” and “somehow strengthen each other.”

   

  Both Garmin and TomTom are targeting mobile applications with TomTom making its traffic solution available for the iPhone along with an iPhone mounting kit for in-vehicle use – a wise strategy of embracing rather than confronting competition. Both companies are also pursuing automotive opportunities with TomTom’s most recent design wins coming at Renault and Fiat. Interestingly, Fiat showed new TomTom solutions at the Geneva Motor Show while also showing a mobile phone mount concept from Magneti Marelli for Nokia navigation phones.

   

  Very much overlooked in TomTom’s run up to its dominant position in the European PND market was the company’s offering of a software developer kit. But the company abandoned the open platform approach in 2005, while driving innovation almost entirely internally along with some targeted acquisitions.

   

  TomTom was first in developing a connected user community willing to correct map data and POIs and share favorite routes and voices. These users also demonstrated that there was a market for content that could be downloaded to TomTom devices. Sound familiar? This is exactly the model adopted by most major handset makers in the past year following the wildly successful Apple iPhone.

   

  The big difference between these handset makers and TomTom is that smartphones are based on open platforms for which independent software developers can create new applications. It probably isn’t too late for TomTom to change its approach to the market, opening up its platform to third-party content and application developers. This could well be the key to turning around the bleak numbers reported in the most recent quarter.

   

  A growing range of new applications from third-party suppliers can add functionality and value to a TomTom device over time, in contrast to the usual perceived decline in value over time of a typical consumer electronic product. Apple, Google and others are demonstrating daily that there is mojo in open platforms. It’s not too late for TomTom to dial in.

  
  
• 04Mar

  Toyota’s Woes Will Have Lasting Impact on Sharing of Vehicle Data

  Advanced Safety, Business Models, Legislation, Software, Telematics, Vehicle OEMs No Comments

  At a recent telematics event in Shanghai a General Motors executive, when asked who owned the vehicle data generated by the OnStar system, said the customer owned the data. His response was somewhat misleading, and it highlighted the quandary facing the automotive industry, particularly in the wake of Toyota’s unintended acceleration woes and related recalls. What vehicle data are car makers going to collect, who will have access to it and under what circumstances?

  In truth, customers have little or no access to the data generated by their telematics systems. In fact, the sharing of this data is anathema within the industry. Some limited information is being shared under very specific circumstances (vehicle location, fuel level, battery charge, etc.), but the volume of data being shared is miniscule in the context of the scope of data collection. Actually, for many OEMs it is a cardinal rule to not preserve or share vehicle data for a wide variety of reasons including, but not limited to, liability and privacy.

  It is for this reason that companies such as BMW, Mercedes Benz and GM have not provided Web delivery platforms for preserving and reporting comprehensive historical vehicle data to their telematics customers. While it might make sense to provide complete driving and service history to the customer it is also possible that either the customer or the OEM does not want all of this information shared for the reasons noted earlier. (Of course, OEMs are particularly concerned with liability, consumers are more concerned about privacy.)

  Toyota’s recent recalls related to vehicle acceleration and other failures have highlighted these limitations and threaten to upend the manner in which vehicle data will be managed in the future. One early press report suggested that the current Toyota on-board systems for capturing event data were limited and definitely not able to shed light on incidents that may have contributed to driver fatalities. Whether that is true or not, it is clear, by now, that Toyota either has insufficient data to properly diagnose the problem(s) in a timely manner or is hiding valuable information from its customers and NHTSA.

  It is hard to envision governmental organizations such as the National Highway Transportation Safety Administration (NHTSA) resisting the urge to demand higher degrees of data collection, disclosure and analysis. (A brake override system mandate is already in consideration, according to published reports.) Consumers may demand more data as well and solutions already exist from suppliers such as Hughes Telematics and QNX. Hughes has been showing for more than three years its concept of a vehicle Website showing the status of various vehicle systems in realtime. And QNX has demonstrated comprehensive on-board diagnostics including data and graphics and complete user interface with its LTE car project in conjunction with Alcatel Lucent.

  Ironically, even in a perfect world, the prospect of diagnosing vehicle problems from vehicle-generated data is far from guaranteed. Still, more data is generally better and the federal government in the U.S. long ago contributed its voice to the debate. A mandate for electronic data recorders – set in 2006 - comes in to being in 2011 in the U.S. laying out requirements for data collection, retention and the terms and conditions for access to the data. Perhaps Toyota would have benefited from such an implementation. (The U.S. mandate contrasts with Europe where privacy concerns have trumped the interest in accident diagnostics thereby forestalling wider EDR adoption either voluntarily or via mandate.)

  EDR data, unlike telematics-related data, is typically only gathered in connection with a vehicle accident and is normally only accessible to public authorities acting on behalf of law enforcement or insurance agencies with the cooperation of the vehicle owner. OEMs that have deployed telematics systems are already capturing, processing and leveraging vehicle data whether consumers have access to this data or not. GM, for one, claims hundreds of millions of dollars in savings from warranty claims avoided by leveraging OnStar data to resolve problems before they become recalls.

  Most consumers are not aware of what data is being captured or how it is being used. This contrasts with the mobile market where Droid phones, for one example, ask the customer to opt into sharing location-related information.

  The proliferation of connected vehicles will force OEMs to reconsider their data management and sharing policies. Toyota is no doubt weighing its strategy for managing its fleet; processing vehicle failure information; sharing that information with regulatory authorities, dealers and consumers; and responding to inquiries from the public and the press. Out of a worst case scenario for the industry is likely to come a new paradigm for information sharing that will be more open and comprehensive and which, hopefully, will lead to greater peace of mind, safety and understanding of vehicle functions among the driving public.

  
  
• 26Feb

  STMicroelectronics sets the pace for Automotive embedded Flash

  Advanced Safety, Powertrain, Semiconductors, Vendors, microcontrollers No Comments

  Strategy Analytics sees high-end automotive electronic control systems driving up on-board MCU data and code storage needs, especially for next-generation designs in powertrain, ADAS (advanced driver assistance) and Infotainment systems.  So this week’s STMicroelectronics announcement of its 55 nm embedded Flash (eFlash) process technology, which will be implemented in its next-generation automotive microcontroller (MCU) chips is significant.  The company plans the first 55nm embedded-Flash product to be available for customer sampling in mid-2011, and automotive qualification in 2013.

  http://www.st.com/stonline/stappl/cms/press/news/year2010/t2482.htm

  The move should give ST a competitve advantage over its nearest industry rivals:  Strategy Analytics currently ranks ST as #3 global automotive semiconductor supplier.  Infineon (#2) announced in November 2009 an extension of its development and production partnership with TSMC to a 65 nm embedded flash process technology targeting a range of applications including next generation automotive systems.  Its automotive MCU qualification and production start is scheduled for the first half of 2013.

  http://www.infineon.com/cms/en/corporate/press/news/releases/2009/INFXX200911-005.html

  Our eyes are on Freescale, #1 automotive vendor overall and # automotive MCU vendor.  Its current 90 nm low power CMOS process for its automotive eFlash Power Architecture MCU products was developed in collaboration with ST, but the Austin-based company has yet to announce a decision on its route to a next generation solution.

  Strategy Analytics sees powertrain and ADAS are critical future battlegrounds for competing 32-bit MCU vendors, and having products with the right performance levels available on time to match designers needs is critical. 

  Forecast demand for these systems is provided in SA’s Automotive System Demand Forecast:

  http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=5073

  MCU demand forecasts for powertrain, ADAS and other systems can be found in SA’s Automotive Semiconductor Demand Forecast:

  http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=5081

  
  
• 25Feb

  Fujitsu Integrates Inova’s APIX into its Graphical Display Controllers

  Audio/Video, Semiconductors, Vendors No Comments

  Fujitsu Microelectronics has recently published a case study describing how it has integrated Inova Semiconductor’s APIX® high-speed serial interface into its graphics display controllers (GDCs).

  Fujitsu currently has three automotive GDCs with integrated APIX:

  • The MB86R02 “Jade-D” SoC, which uses an ARM 926 processor, a Fujitsu MB86296 “Coral-PA,”  graphics controller, two APIX channels, a TFT timing controller (TCON) and other automotive peripherals.
  • The MB88F332 “Indigo”, which combines an APIX deserializer, APIX Remote Hander (ARH) and APIX Automotive Shell, a sprite engine, a TCON, and other automotive peripherals
  • The 32-bit Fujitsu RISC microcontroller MB91F467, which is a 32-bit Fujitsu RISC (FR) microcontroller (MCU) with embedded APIX.

  This APIX high speed serial link interface allows both display and command and control data to be passed back and forth.  It is claimed to significantly simplify the wiring required to support a remote TFT display.

  Strategy Analytics expects significant growth in in-vehicle displays, and forecasts that in excess of 50 million full color displays will be fitted to light vehicles by 2015.

  One strength of the Fujitsu / Inova tie-up is the range of solutions that can be supported, from entry-level clusters to higher-end variants with multiple, independent displays.  The high degree of integration allows for flexible architectures.  For example, in the low-end cluster shown below, no MCU or software is required in the cluster itself, nor is a CAN link to the cluster necessary.  The controlling MCU or SoC can be located elsewhere and communicate to the Indigo chip over APIX.

  • The MB86R02 “Jade-D” SoC, which uses an ARM 926 processor, a Fujitsu MB86296 “Coral-PA,”  graphics controller, two APIX channels, a TFT timing controller (TCON) and other automotive peripherals.
  • The MB88F332 “Indigo”, which combines an APIX deserializer, APIX Remote Hander (ARH) and APIX Automotive Shell, a sprite engine, a TCON, and other automotive peripherals
  • The 32-bit Fujitsu RISC microcontroller MB91F467, which is a 32-bit Fujitsu RISC (FR) microcontroller (MCU) with embedded APIX.

  This APIX high speed serial link interface allows both display and command and control data to be passed back and forth.  It is claimed to significantly simplify the wiring required to support a remote TFT display.

  Strategy Analytics expects significant growth in in-vehicle displays, and forecasts that in excess of 50 million full color displays will be fitted to light vehicles by 2015.

  One strength of the Fujitsu / Inova tie-up is the range of solutions that can be supported, from entry-level clusters to higher-end variants with multiple, independent displays.  The high degree of integration allows for flexible architectures.  For example, in the low-end cluster shown below, no MCU or software is required in the cluster itself, nor is a CAN link to the cluster necessary.  The controlling MCU or SoC can be located elsewhere and communicate to the Indigo chip over APIX.

  Changing to a higher-end cluster requires only a larger, higher-resolution panel and a change in the remote module driving the panel.  Fujitsu claims that being able to easily swap panels and modules in this way increases flexibility and modularity.

  In Strategy Analytics’ opinion, this combination of APIX data and command transfer and Fujitsu display controllers offers an intriguing and highly differentiated alternative architecture.  By enabling the controller to be off-cluster, and thus have a cluster free of application software, the creation of multiple display configuration variants should theoretically become easier and lower-cost for OEMs and Tier Ones.

  Longer term, the way in which image data is moved around the car will be a key battleground.  APIX is not a MOST replacement, but rather concentrates on simplifying the point-to-point controller-to-display connection.  MOST itself, although currently dominant in high-end vehicles, faces a potential future challenge from the Ethernet-based AVnu, which founding member Harman sees as its likely successor.

  
  
• 21Feb

  It is Time to Redefine Telematics

  Business Models, Connectivity, Consumer Insights, Navigation, Sensors, Software, Telematics No Comments

  Telematics has become synonymous with automatic crash notification and roadside assistance, thanks to the admirable and successful marketing efforts of General Motors and OnStar. But telematics is so much more than this and this story needs to be told, particularly in the wake of Toyota’s recall debacle.

  I have been driving a telematics equipped vehicle for the past year.  For me, telematics has meant destination and navigation assistance, movie times and theater locations, and flight arrival times, but, most importantly, telematics has been a powerful connection with my dealer.

  When combined with on-board diagnostics, the telematics system in my car has meant notifications for low coolant, an engine failure (although the vehicle was still able to operate), low oil level, low tire pressure, and scheduled maintenance.  In each case, the warning in the vehicle caused me to contact the concierge service for guidance.  And in almost every case, the guidance led to an on-the-spot invitation to visit the dealer to correct the problem.

  While saving lives via ACN is certainly a valuable contribution for a telematics system to make, it is the daily needs related to maintaining a vehicle (and preserving its function and value) that determines the true worth of a telematics system to the dealer and the customer.  With each dealer visit I have learned more about my car and forged a stronger bond with the dealer and with the brand. The combination of diagnostics and call center connection has made the ownership experience one of the most pleasing automotive experiences I have ever had owning a car.

  In contrast, I receive occasional mailings related to my other vehicle when the computer for the dealer of that vehicle guesses that I have crossed a mileage threshold and am due for scheduled maintenance. (For some reason, dealers – at least the ones I have worked with - routinely fail to properly set the on-board diagnostic systems to the correct mileage thresholds or time stamps, which leads to premature visits for oil changes etc.) There is a big difference between an onboard service notification – which conveys a degree of urgency – and a dealer postcard that looks like a mass mailing come-on.

  The value of integrating diagnostics and telematics systems has not been lost on OEMs, as both Ford and GM have introduced diagnostic elements in their respective systems. Both systems provide email notifications of vehicle status and functionality. And Hughes Telematics’ vision for automotive connectivity includes Internet-delivered vehicle status reporting.

  For me, though, it is the integration in the car itself that is most powerful. What is missing in some systems, though, is a more complete integration. When I call the OEM call center, the OEM should already know that a problem has been flagged. The driver shouldn’t have to tell the call center what the error code is. In fact, there are some indications that OEMs such as BMW are moving toward more pro-active messaging to customers in the event of error codes or system failures. Acura, for example, leverages the XM satellite radio connection to the vehicle to provide for direct one-way communications to specific vehicles in the event of recalls or other urgent service issues. (The market is also moving toward onboard and offboard digital manuals, but OEMs will remain hesitant to focus on enabling the customer to correct any but the simplest vehicle problems.)

  The next step in this process will see a more complete and comprehensive vehicle connectivity solution.  Today’s integrated telematics and vehicle diagnostic offerings fundamentally help to preserve and extend the customer relationship as well as the value of the vehicle investment. For those reasons, it is time for a more complete portfolio of integrated messaging to include leasing, insurance and warranty service partners and their information.

  Customers should only have to go to a single Website to manage or obtain all of their vehicle information including financing, insurance, scheduled maintenance, maintenance history, and warranty information. Bits and pieces of this kind of integration exist, but the OEM or dealer group that makes a more complete solution happen will have a significant advantage in building customer relationships and maintaining the value of the fleet.

  Toyota’s woes – and the many other less noteworthy recalls that regularly afflict the industry – are a wake-up call.  As more OEMs move to bring vehicle connectivity to the market, the focus will be on the leveraging of diagnostic data for enhanced dealer-customer connectivity.

  
  
• 16Feb

  CSR Leveraging Acquired GPS Strength for Automotive Bluetooth, Wi-Fi Wins

  Audio/Video, Connectivity, LBS, Mobile phone, Semiconductors, Telematics No Comments

  CSR is capitalizing on the strength of its GPS line up acquired from SiRF to garner automotive segment wins for its Bluetooth and Wi-Fi solutions, according to the company’s latest earnings report. In its fourth quarter and full year earnings report last week, CSR reported a revenue increase of 149% for its automotive and PND segment. With the addition of SiRF, the combined automotive and PND division now accounts for 21% of total company revenue vs. 7% in the prior year.

  CSR said fourth quarter demand was strong as a result of the increasing volume of new cars being built and a general move to embed more connectivity and location technologies in those new cars. CSR, which is better known for its dominant position in the handset Bluetooth market, claims combined Bluetooth and GPS leadership in the automotive market. The company also noted it had secured a design-win at a Tier 1 automotive supplier for its latest generation Wi-Fi, the UF6000.

  The company noted weak PND demand in Europe and the U.S. which was compensated for by increased levels of demand in the Far East and the developing world. CSR announced a design-win for a leading North American electronics manufacturer’s new connected PNDs where CSR is providing both GPS and Bluetooth. In Europe, CSR secured a design-win with Vincotech for new GPS modules and telematics product platforms. CSR says its SiRFPrima high-end SoC platform focused on the in-dash automotive market also received two design-wins in China expected to lead to significant volumes.

  Overall, CSR says its has begun mass production and shipping of its Wi-Fi/BT/FM connectivity platform; a GPS design win for a N. Am. smartphone maker; and BT and FM design wins for Tier One handset makers. CSR sees “positive trends” in the adoption of wireless connectivity technologies by the automotive sector.  Many vehicles already feature Bluetooth and GPS and the company believes Wi-Fi is a next step.

  The most important development for CSR in 2009 was that automotive emerged as a substantial third market segment, picking up slack from the company’s audio and consumer segment which saw revenue nearly halved during the year. CSR is now poised to leverage its complete wireless portfolio of Bluetooth, GPS, FM, NFC and Wi-Fi to address emerging automotive opportunities.

  For additional Strategy Analytics perspectives on in-vehicle connectivity:

  Global Automotive Vehicle-Device Connectivity Forecast 2008-2016 - http://www.strategyanalytics.com/default.aspx?mod=ReportFormatsViewer&a0=5289

  Vehicle-Device Connectivity to Drive Adoption of CD-Less Systems - http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=5293

  
  
• 12Feb

  KPIT Cummins Attempts To Expand Automotive Business In India

  Business Models, Consumer Insights, Software, Vendors No Comments

  In association with DSK Toyota, KPIT Cummins has developed CLICKSERVICESMILE.com, an internet-based information system that will make car ownership easier for Indian consumers. 

   

  The service aims to provide consumers with:

  • Accurate information for fault detection.

  • Locations of the nearest dealers for servicing.

  • Ability to specify the time and date for servicing.

  • Accurate estimates of servicing costs include retail prices for spare parts.

  • Accurate information on vehicle data and service history, assisting the sales of used cars.

  • Convenient methods of payment and accurate billing information.

  The dealer pays a Rs 50,000-150,000 (US$1,100-3,200) fee a year, or in monthly instalments, but the consumer pays nothing.  The system is being trialled in Pune, India, but essentially this system could operate anywhere in the world and is later going to be rolled out to motorcycle owners as well.

   

  This development is significant for the company as it is its first consumer-based product.

   

  The reasons why are: 

  • While its embedded software business to global players is guaranteed to grow (mainly in safety systems, efficient low-emission powertrains and infotainment), its business in the burgeoning Indian automotive industry has yet made much headway.  KPIT Cummins may receive more domestic business from vendors wanting to enter the CLICKSERVICESMILE.com market place.  In 2007, KPIT Cummins sales by region were US 61.9 percent, UK 29.2 percent and Rest of the World 8.9 percent. 

  • The Indian car market is set to grow further with the recent arrival of the Tata Nano and other low-cost models, and thus expand the used car market as well - this will require a more convenient, safer and cost effective means of purchasing and servicing vehicles for consumers who are likely to be new to owning a car.  JD Power has forecasted an increase in Indian car production from 2.4m units in 2009 to 4.0m units in 2016. 

  • For the OEM customer and for the dealer, CLICKSERVICESMILE.com gives it an advantage over rivals.  As electronic content grows in emerging market vehicles, so more specialised help is required from dealers.  KPIT Cummins’ strength in automotive embedded software will enable it to offer dealers the expertise in dealing with this.

  KPIT Cummins’ industry-based approach and new vertical focus strategy have led to a consumer-based product as a means to tap into domestic demand for automotive embedded software.
  At present, around a third of KPIT Cummins’ business covers automotive and over 90 percent comes from sales in the mature markets.  As a result of this approach, it is attempting to diversify its business geographically and to expand its automotive business further.

   

  Strategy Analytics has published an earlier report on the Indian automotive market: http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=3251 and on the low-cost car market: http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=4038.  Also its recent System Demand Forecast highlights demand levels for specific electronic systems in India and elsewhere: http://www.strategyanalytics.com/default.aspx?mod=ReportAbstractViewer&a0=5073.

  
  

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