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Magazine | Q3 2015
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Welcome
Welcome to Automotive Megatrends Magazine - the only global publication dedicated to the business
models, technologies and trends which are shaping the automotive industry of tomorrow.
Connected
Vehicles
Road Freight
Efficiency
eMobility
Manufacturing
& Materials
Powertrain
Innovation
Retail
(R)evolution
Safety
Readership
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stakeholders:
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Publisher:
Automotive Megatrends Ltd
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Editor:
Martin Kahl
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Chief Executive:
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Megatrends | 3
Contents
Contents
> Safety
/ 3DEXCITE
Americas Inc.
sue
The Safety Is
ightEfficiency
#eMobility #Fre on #Retail(R)evolution
#ConnectedCar
wertrainInnovati
Materials #Po
ing&
ctur
nufa
#Ma
12
18
24
27
automotiveworld.com/megatrends/
Contents
35
38
> eMobility
44
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47
Megatrends | 5
Contents
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Megatrends | 7
Safety
8 | Megatrends
automotiveworld.com/megatrends/
Safety
Megatrends | 9
Safety
fully
10 | Megatrends
and
automotiveworld.com/megatrends/
M
th
16
ch 6
ar 201
The Henry, Dearborn, Michigan 48126, USA
http://autonomouscardetroit.com
Safety
automotiveworld.com/megatrends/
Safety
MERCEDES-BENZ AND THE WORLDS WORST MOST ADVANCED CRASH TEST CENTER
In May 2015, Daimler announced a triple-digit million euro
investment in the worlds most advanced crash test
facility at Sindelngen in Germany. Despite using
simulation for much of its safety development including
around 15,000 realistic crash test simulations for a new
model the OEM continues to place signicant value on
real life crash tests. The new 270m x 170m facility is
scheduled to begin crash testing in autumn 2016. Even
in the age of computer simulation, crash tests remain
indispensable, guaranteeing the high standards of
passive safety in our vehicles - Thomas Merker, Director
for Body and Safety, Mercedes-Benz Cars Development
Marginal, Acceptable, and Good. In
Europe, China and Latin America,
NCAP also scores cars on a scale of
one to ve stars. But in the face of
virtual simulation, these traditional
crash testing methods may be under
threat of going the way of so many
other traditions.
IIHS tests evaluate two aspects of
safety: crashworthiness - that is, how
well a vehicle protects its occupants in
a crash; and crash avoidance and
mitigation namely the technology that
can prevent a crash or lessen its
severity. Asked about virtual crash
testing, Russ Rader, Senior Vice
President, Communications at the IIHS,
told Megatrends he believes that the
tests conducted by the organisation will
remain in the physical realm.
We dont see virtual crash tests
changing or replacing the laboratory
crash tests we conduct at IIHS, he
observed. Computer simulations help
automotive engineers design new
vehicles without having to crash real
cars over and over. They wont change
the crash tests conducted by IIHS,
which are designed to explicitly
demonstrate for consumers the
differences in how vehicles would
protect them and their families in the
real world. We need to conduct tests of
real vehicles in order to do that.
General Motors says it uses simulated
crash tests to help it build safer cars.
While a few decades ago, OEMs might
need to crash over a hundred cars
during the design of a single model,
now, thanks to computer-aided
engineering, its engineers can crash a
fraction of that number, all while
designing new, safer models much
quicker and more cheaply. John Capp,
Director of Global Safety Strategy and
Vehicle Programmes at GM explained
to Megatrends, Simulated crash tests
allow us to learn earlier in the design
automotiveworld.com/megatrends/
Megatrends | 13
Safety
Could it be curtains for the crash test dummy?
14 | Megatrends
automotiveworld.com/megatrends/
Safety
Not so fast!
A closer inspection of the issue at
hand, however, reveals creases that
need ironing out before physical crash
dummies can be completely replaced
by their virtual cousins. The virtual
human body is too complex to be
incorporated into a physical crash test
dummy. Therefore
it
becomes
imperative to verify the algorithm
against all possible human behaviour
just before a collision, states Menon.
Modelling the human brain might then
be the biggest challenge, as each brain
reacts differently to a particular
situation. To effectively use these
sophisticated human representatives
would require more effort than merely
calibrating
software
for
linear
progression, he says.
Menon continues, Physical dummies
will continue to be relevant for the
foreseeable future, continuing to do
what they were introduced for
logging data. And he sees an
important future for physical crash
dummies: In future, the physical test
dummies can be used to gauge the
occupant interaction with different
safety systems at the very start
of vehicle design. Then the
virtual crash dummies can
take over to investigate
occupant
percentile
variations,
age
variations, gender
variations, children
variation, obesity
(BMI)
variations,
automotiveworld.com/megatrends/
Megatrends | 15
Safety
16 | Megatrends
automotiveworld.com/megatrends/
If we were only steel producers, delivering cutting edge steel technology that provides
the highest level of safety would be impossible. To do it we have to be experts in high
strength steel, but also experts in car safety and have the experience to back it up.
For over 30 years, SSAB has been creating Docol High Strength Steel, which makes products
lighter, stronger and more sustainable so that every single car safety component can be
optimized and more lives can be saved.
Its not about steel. Its about life.
www.docol.com
Safety
18 | Megatrends
India
Things came to a head in 2014, when
the rst ever independent crash tests
carried out in India, by Global NCAP,
showed that many popular small cars
in the country failed these tests, most
with a zero-star adult protection rating.
This led to an exchange between
Andrew Palmer, then Nissans Chief
Planning Officer and Executive Vice
President, and Global NCAPs
Chairman, Max Mosley.
automotiveworld.com/megatrends/
Safety
Palmer called Global NCAPs scoring
of the Indian small cars absurd and
stated that people who criticise these
cars for not meeting US or European
crash standards are living in a dream
world.
According to David Ward, Secretary
General of Global NCAP, vehicle
manufacturers operating in emerging
markets such as India, say their
standards are applied in whichever
country they are selling the products
and unfortunately there are many
emerging markets in which this is legal.
They are exploiting the lack of a global
minimum regulation in the market.
Latin NCAP
In 2012, Latin NCAPs crash test results
of eight models revealed that safety
levels of some cars remained 20 years
behind developed nations. Now, Latin
NCAP feels that the region is still on the
same page, despite the progress that
has been made in this area. The
reason for this is that when safety
requirements were adapted in Latin
America, other regions like Europe, the
US and Japan kept moving forward
with newer regulations and ever more
stringent requirements.
As a NGO [non-governmental
organisation] and working in the eld of
safety, we do recommend to
governments certain regulations, and
we are following Global NCAP
suggestions. But unfortunately we have
seen that the inuence from the
industry side in the Latin American
governments is much stronger than the
consumers inuence, or even the
WHO data, Latin NCAP Secretary
General, Alejandro
Furas
told
Megatrends.
We have noticed something that is
very clear in our markets. We are
paying very high prices for some cars
that are locally built, which look exactly
the same as the European cars, but
they actually have much less
equipment. Take for example the Ford
Fiesta, the Peugeot 308 or the Renault
Clio. In all these cars we have seen
that in Latin America we are paying
30-40% more for a car that is
completely stripped from safety other
than just double airbags in the front
and ABS.
Megatrends | 19
Safety
Brazil
To be introduced in
2015/2016
To be introduced in
2017
Mexico
China
South Korea
China-NCAP
China-NCAP
To be introduced in
2017
Under LatinNCAP
Under LatinNCAP
To be introduced in
2017
20 | Megatrends
automotiveworld.com/megatrends/
Safety
automotiveworld.com/megatrends/
Megatrends | 21
Safety
Safety standard levels across the major emerging automotive markets
The number of airbags in vehicles is reaching the same level as Europe
and the US. Automakers in China are asking us for pretensioners for the
rear seats, not just the front. The level of safety electronics and sensing
on board Chinese vehicles is now very similar to the US and Europe.
Norbert Kagerer, Engineering Vice President, TRW Occupant Safety
Systems
Medi
um
Low
China
High
Mexico
Low
Medi
um
South Korea
High
Low
Brazil
Low
Medi
um
High
Medi
um
High
Low
High
India
Medi
um
Safety
Safety
automotiveworld.com/megatrends/
Safety
015 marked a new direction for
truck safety, and the beginning of
the year witnessed the US National
Transportation Safety Board (NTSB)
publish its annual Most Wanted list.
This year, the organisation highlighted
its desire for more industry focus on
truck safety, including anti-collision
technology, better limits on driver hours
and tighter regulation of trucking
companies with high collision rates.
Megatrends | 25
Safety
Passive versus active
Going forward, improving truck safety
is not just reliant on technology,
although it will play an increasingly vital
role. Both passive and active safety
systems are important because it is not
always possible to prevent a collision
due to the actions of other drivers. We
believe it is just as critical to protect the
truck driver when a collision occurs,
noted Spence. If a collision is
unavoidable, many passive safety
systems absorb much of the crashs
energy to reduce its severity. To ensure
passive safety, Volvo builds every cab
with high-strength steel and designs
cabs so that in the event of a crash, the
engine and transmission drop down
and away from the driver and the
steering column collapses. We also
were the rst truck manufacturer in the
North American market to make a
drivers side airbag standard, Spence
stated.
Active safety systems help drivers
avoid collisions through alerts and
other forms of driver assistance. For
example, Volvo Enhanced Stability
Technology has been standard on
highway tractors in North America for a
decade, and the radar-based Volvo
Enhanced Cruise with Active Braking
helps drivers maintain a safe following
distance by reducing throttle and
applying brakes in instances when
drivers dont have time to respond to
sudden events.
Frost & Sullivans Narayanan believes
that, until higher levels of automation
beyond audio and visual alerts allow for
active safety systems to take over,
passive safety systems will continue to
play a vital role in improving safety.
Nowadays, systems that track and
monitor data from safety systems can
also be considered as passive
systems. Packaging of critical data for
actionable information for eets will
gain traction in the years to come.
26 | Megatrends
Autonomous safety
Daimler Trucks gave a glimpse into the
future of trucking safety, becoming the
worlds rst OEM to be granted a road
license for an autonomous heavy-duty
truck. The rst journey in the so-called
Freightliner Inspiration Truck, took
place in May 2015 on US highway 15 in
Las Vegas.
Daimlers initial research ndings
clearly show that autonomous driving
relieves the strain of truck drivers.
Measurements of the probands brain
currents (EEG) demonstrated that
driver drowsiness decreases by about
25% when the truck is being operated
in autonomous mode, and the driver
can
pursue
other
meaningful
operations. The studies also prove a
high acceptance of the Highway Pilot
technology and a rapid adaption phase
of the probands.
We are concentrating on our strengths
when it comes to efficiency, safety and
connectivity, and thereby sustainably
securing our technological leadership.
We remain best-in-class when it comes
to lowering real cost of ownership and
are highly valued by our customers,
said Martin Daum, President and Chief
Executive of Daimler Trucks North
America.
Increased safety, increased
demands
In the next ten years and beyond,
although widespread adoption of fully
automotiveworld.com/megatrends/
Safety
automotiveworld.com/megatrends/
Megatrends | 27
Safety
that not only provide warnings, but also
intervene as driver distraction
increasingly becomes a major concern.
Cost-conscious eet owners are
compelling truck manufacturers and
suppliers to focus on delivering costcompetitive safety systems that provide
multiple safety benets. Integrated
safety systems, which offer stability
control systems in addition to collision
mitigation systems, are increasingly
being preferred in developed markets
such as North America and Europe.
Moreover, bundling technologies
reduces the complexity of systems for
eets and drivers, while also increasing
the ROI factor through the reduction in
distribution costs. Advances in sensor
and radar technologies are facilitating
the sharing of system components and
driving the growth of integrated safety
systems in such markets. In addition to
a shared platform for different
technologies, integration will result in
sensor fusion and sharing, while also
augmenting the growth of V2V and V2I
data connectivity in trucks. Systems in
use today, such as adaptive cruise
control, already enable fuel savings;
V2V and V2I communication in trucks
should further increase savings
potential.
Unlike emission regulations, there is a
wide disparity in standards for safety
systems in various parts of the world.
In North America, there is a greater
likelihood of stability control mandates
in Class 8 trucks. As a result, these
forthcoming mandates in favour of
Electronic Stability Control (ESC)
28 | Megatrends
automotiveworld.com/megatrends/
Safety
regulatory
compliance,
while
effectively
managing
driver
performance. Backed by video
evidence, a video safety solution acts
as a line of defence for drivers in case
of faulty impounds or liability issues,
and reduces insurance costs for the
eet. A few aftermarket vendors offer a
four-camera solution that records a
360-degree view of the truck; this
integrates the existing video safety
solution into a surveillance solution
that provides a comprehensive
package, ensuring complete driver and
eet safety. Currently, the most
prevalent solution is a two-channel
module that deploys a forward-facing
camera positioned to capture the
drivers view of the road and a driverfacing camera that records the cabin
area to monitor driver distraction. In the
mid-term and long-term, four-channel
and six-channel modules are expected
to be in demand, catering to specic
applications like local distribution, oil
and gas, waste, and transit. While
video safety aftermarket solution
providers currently dominate the
scene, the market is expected to be
fragmented by vendors providing
safety systems and telematics, with
Connected Car
30 | Megatrends
automotiveworld.com/megatrends/
Connected Car
in them to multiple risks, the industry
cannot delay in acting to protect the
connected car; indeed, many think the
industry should have acted sooner.
Before the storm
While ethical white hat hackers
open up interesting ndings in the
name of research for the automotive
industry, the concern is that if they can
successfully hack into a car, so too can
those with more malicious intent the
black hats.
The
added
complexity
and
convenience of technologies in cars
comes with the risk of introducing
vulnerabilities which attackers are all
too happy to exploit, explained Joel
Clark, Research Consultant from
vulnerability testing rm MWR
InfoSecurity. Speaking to Megatrends,
Clark insisted that the industry may
begin to see an increase in the
complexity of attacks as vehicles
become more connected. He also
noted that there are some wellunderstood, industry standard best
practices for keeping infrastructure
secure, which the automotive industry
could look to for inspiration. For
example, it is key that safety-critical
systems, such as engine management
or brake-by-wire, are segregated from
non-critical systems, such as the
navigation system. It should be
physically impossible to compromise a
users phone and use it to control
anything but which song is playing on
the radio.
like
controlled
chaos
terms
characterise the connected car
industry. Every smart-car vendor offers
their own hardware and software, with
a custom set of tools and technologies.
They are all focusing on features rather
than security. Such an approach
increases the number of security bugs,
he said.
Using an already existing solution,
such as open source (OS) software, is
the right step towards a secure
connected car, believes Breslavskyi.
Still, not all of the vendors go along
with using third-party software. In this
case, the best way to ensure their
customers security is to establish a
Secure
Software
Development
Lifecycle when all development
processes
from
dening
requirements to production are
performed with security in mind
embodied in all-round security testing,
both automated and manual, he told
Megatrends.
Tim Erlin, Director of Security and
Product Management at advanced
security rm, Tripwire, believes that
while software patches for vehicles
arent new, the demonstration of
vulnerabilities are clearly attention
grabbing. The risks of the connected
car lie in the ability to affect the
operations of the vehicle from the
outside world. The good news is that
secure software development isnt a
novel concept. There are known best
practices that can be applied to
automotive software as well, he
explained.
Controlled chaos?
ith consumer demands for
connectivity in the car increasing
by the day, a stable connection from
the car to the Internet is now a
necessity. But with this growing
necessity comes the increasing ability
of hackers to gain access to essential
vehicle functions and features. Once
inside, an attacker can utilise the
vehicles internal communication BUS
and depending on the vehicles
electronic architecture could
potentially take control of additional
modules, including safety critical
systems such as the anti-lock braking
system (ABS) and engine electronic
control units (ECUs). There is also the
possibility for hackers to take and use
information about drivers habits for
commercial purposes without their
knowledge or consent.
Autonomous dreams
Even though connected car technology
is not new, it hasnt become a
commodity yet, explained Nazar
Tymoshyk, Security Consultant and
Certied Ethical Hacker at technology
solutions
company,
SoftServe.
Tymoshyk told Megatrends that
although the industry is not currently
prepared to handle security threats to
vehicles, standards such as ISO 26262
are raising the ability for the industry to
come together and understand the
kinds of risks facing the connected car.
But the industry is yet to realise a
widely dened standard for security, he
said. For this reason, it is hard to
measure security and the compliance
of different versions of connected car
solutions.
Stanislav Breslavskyi, a colleague of
Tymoshyk and a Security Engineer at
SoftServe believes that in a nutshell,
Connected Car
TE C H N IC A L W H IT
TE P A P E R
Remot e Exploita
a
ion
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oan
Una ltered Passenge
r Vehic
cl
Chr
ris Valas
Valasek,
Direc
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u
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Char
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Copyright
2015.All Rig
hts Reserved.
-1 -
In a white paper released in August 2015, Chris Valasek and Charlie Miller detail a remote attack against an
unaltered 2014 Jeep Cherokee that resulted in physical control of some aspects of the vehicle. The white paper
was published to coincide with presentations at the Black Hat and DEFCON hacker conferences
Elektrobit (EB)
C
om
so in
on g
!
Connected Car
Megatrends | 35
Connected Car
36 | Megatrends
automotiveworld.com/megatrends/
Connected Car
Such functionality may be regarded
more as a nice-to-have extra than a
must-have safety essential, but Epple
believes it has real merit. This
technology offers huge convenience to
our customers. It will help to remove the
tedious and stressful parts of driving,
he explained.
Specically, it allows the driver to check
the precise positioning of the vehicle
when negotiating challenging terrain or
difficult parking situations. In addition to
helping drivers out of a tight space it
could also be used to provide a better
eld of view when exiting a narrow
townhouse garage, he suggests. In an
off-road environment it will allow the
driver to become his - or her - own offroad spotter and control the car while
not actually sitting in it to guide the car
remotely over off-road obstacles, Epple
added.
What about the near-term feasibility of
these projects? Are we likely to see this
system make it into a production car in
the next few years? This is a research
project at this stage, but you will see
these sorts of technologies beginning
to launch post 2020, predicted Epple.
Other OEMs working on remote
parking concepts include BMW, which
has been developing its Remote Valet
automotiveworld.com/megatrends/
Megatrends | 37
Connected Car
38 | Megatrends
Connected Car
and turns them into real-life race
drivers. Originally a one-year project,
the idea was initially slammed by some
industry experts. Now in its eighth
year, it is universally recognised as an
established method for racing teams
when it comes to identifying talent and
selecting racers. Nissans own racing
team now boasts 13 drivers who have
arrived in the sport through gaming.
Part of its success, continues Cox, lies
in the gaming industrys ability to mine
untapped potential in countries where
traditional paths into motor-racing
simply dont exist. This year has seen
us work with countries representing
over 2.5 billion people in population, he
said. GT Academy is not just for
countries where motorsport, or even
motoring is already established. Two
years ago when we explained the idea
to Nissan Thailand, they asked us,
How do you normally nd racing
drivers? People in the UK drive past
go-kart tracks every day, but these
guys have no idea what go-karting
even is. So this is their way into motorracing, and its also a way for us to
bring motorsport and motoring in
general to them.
He added, I knew wed nd good
racing drivers. I had no idea wed nd
great racing drivers.
Gamication
Ford has also been reaching out to the
gaming community, not just to aid its
vehicle manufacturing, but also to
explore the possibility of repositioning
itself as a door-to-door mobility
provider. August 2015s Gamescom,
Europes biggest trade fair for
interactive games and entertainment,
saw
the
company
challenge
developers to gamify the experience of
urban travel.
automotiveworld.com/megatrends/
Megatrends | 39
eMobility
Detroit Electric
HQ: Detroit, Michigan, USA
eMobility
customers a choice of battery
technology, enabling either an ultra fast
charge or a longer range, but always
with supercar levels of performance.
Faraday Future
HQ: Gardena, California, USA
Product: TBC. 100% electric, zero-
Faraday Future
Based in California, Faraday Future
(FF) believes it is poised to lead the
entire automotive industry into the
future. The company is developing an
all-new premium EV using a team of
engineers who boast extensive
experience in the technology and
automotive industries.
emission,
fully-connected
personalised vehicle
Launch date: 2017
and
Atieva
Atieva is another California-based
start-up that is looking to take the EV
segment by storm. It was also created
by a former Tesla employee, namely
Bernard Tse, who was Vice President
and Board member from 2003 to 2007
before he left and created his start-up.
On its website, Atieva says it is
designing and creating a breakthrough
electric car in the heart of Silicon Valley.
Were redening what a car can be, by
building an iconic new vehicle from the
automotiveworld.com/megatrends/
Atieva
HQ: Menlo Park, California, USA
eMobility
the government loan of US$465m that
was available to EV start-ups in the US
is unlikely to be repeated. In April
2010, Tesla Motors received approval
for about US$465m in low-interest
loans from the US Department of
Energys Advanced Technology Vehicle
Manufacturing Program.
Niche inside the niche
Product: Lightning GT
Launch date: 2015
nanoFlowcell
HQ: Liechtenstein
Product: Quant E, Quant F, Quantino
automotiveworld.com/megatrends/
>4000
INNOVATORS
>150
TEST CELLS
>35
LOCATIONS
PASSION
eMobility
automotiveworld.com/megatrends/
eMobility
Norway
Canada
EV Stock: 10,778
EVSE Stock: 3,117
EV Stock: 40,887
EVSE Stock: 6,208
Netherlands
Sweden
EV Stock: 43,762
EVSE Stock: 12,114
EV Stock: 6,990
EVSE Stock: 3,100
Germany
EV Stock: 24,419
EVSE Stock: 2,821
Denmark
EV Stock: 2,799
EVSE Stock: 1,721
United Kingdom
EV Stock: 21,425
EVSE Stock: 2,866
Spain
EV Stock: 3,536
EVSE Stock: 775
Portugal
EV Stock: 743
EVSE Stock: 1,330
Japan
EV Stock: 108,248
EVSE Stock: 11,511
Italy
United States
EV Stock: 7,584
EVSE Stock: 2,520
EV Stock: 275,104
EVSE Stock: 21,814
China
EV Stock: 83,198
EVSE Stock: 30,000
France
EV Stock: 30,912
EVSE Stock: 8,600
India
EV Stock: 2,689
EVSE Stock: 328
South Africa
EV Stock: 48
EVSE Stock: N/A
95%+
eMobility
Adoption and Manufacturing of
Electric Vehicles (FAME) under
NEMMP was announced in this regard
in early 2015.
46 | Megatrends
eMobility
Mercedes-Benz energy storages are also suitable for private
use to buffer surplus power virtually free of any losses
eMobility
Five used Chevrolet Volt batteries work with an adjacent solar array and two wind turbines to help supply power to the administrative offices at
GMs new Enterprise Data Center
48 | Megatrends
eMobility
energy storage, even after it is removed
from the vehicle, says Brad Smith,
Director of Nissans 4R Energy
business in the US.
The rst unit will be installed at a
Nissan facility later in 2015, where
multiple Leaf batteries will offset peak
electricity demand. The system can
also be paired with solar power for
renewable energy.
Private energy storage
Daimlers next venture into domestic
charging came through its subsidiary
Deutsche Accumotive. Established in
2009, the company develops, produces
and markets highly complex drive
batteries for hybrids and EVs for
Daimlers Mercedes-Benz and smart
brands.
In June 2015, Deutsche Accumotive
began the provision of private energy
storage units. These (Mercedes-Benz
branded) lithium-ion battery units can
incorporate up to eight 2.5kWh battery
modules for a capacity of up to 20kWh.
Unsurprisingly, Tesla one of the
pioneering companies to go purely
electric with all its vehicles had
already taken a similar step with the
announcement of Powerwall in May
2015.
The shake up
Powerwall is a stationary battery to
provide power to homes and
businesses in a step to shake up the
entire energy infrastructure of the
world, according to Chief Executive
Elon Musk. In an industry that
produces
increasingly
complex
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Megatrends | 49
Powertrain Innovation
automotiveworld.com/megatrends/
Powertrain Innovation
infrastructure for natural gas refuelling
and consumer demand remains a
challenge, he remarked.
The main message
According to the US Department of
Energy (DoE), CNG fuelling stations
can
cost
anywhere
between
US$45,000 and US$1.8m, depending
on the size, fuelling capability, and level
of equipment that is incorporated.
Some compressors alone can cost
around US$550,000, but price varies
depending on equipment size,
specications and manufacturer.
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Megatrends | 51
Powertrain Innovation
Asked why he thinks Honda cancelled
its CNG programme, he replied, Its
purely to do with economics. While I
applaud Honda their Civic CNG is
great and it has done a lot in terms of
raising awareness for the technology
is a small sedan really the right type of
vehicle to use the technology in? I think
you need something bigger, and to
have an unlimited production run just
wasnt realistic.
Europe is committed
The US is not the only place where
CNG is seeing enthusiasm. Several
European OEMs continue to push the
segment forward with sustained
investment, and many have models
that have been present in the market
for some time. SEAT, for example,
offers two CNG models - the Leon TGI
and the Mii Ecofuel Start&Stop.
The company has recently voiced its
condence in the segment, stating, In
the last ve years, sales of cars
powered by CNG have tripled in
Europe, while they have increased sixfold in Spain in the same period.
Speaking to Megatrends, Andrew
Shepherd, SEATs CNG expert said the
economics behind CNG make it an
enticing prospect for consumers: The
combination of the latest technology
engines and a lower fuel price means
that running costs with CNG are
signicantly cheaper than other
traditional fuels, with savings between
52 | Megatrends
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17
ch 6
ar 201
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http://fueleconomydetroit.com
Powertrain Innovation
Powertrain Innovation
enhanced by sophisticated electronic
control. Its this latter area where we
see the big advances over the next 1015 years, allowing us to provide a
stable physical platform that can
accommodate a huge diversity of
requirements.
Delphi already ships 20 billion lines of
software code every day, across all of
its product lines (which includes active
safety, infotainment and electrical /
electronic architectures) and sees this
gure rising rapidly. In a candid
moment, Fuerst reveals that calibrating
powertrain software already consumes
more time than developing the
hardware, and that the companys
accelerating investment in test systems
traditionally for hardware validation
is now largely focused on rening the
control calibrations.
Electronics
investment
exceeds
hardware
automotiveworld.com/megatrends/
Powertrain Innovation
Powertrain Innovation
What is next for Federal-Mogul and
its ICE development strategy?
There are going to be no big
evolutions made in ICE engines.
Instead, evolution is something that is
relatively gradual and solid. We want
to continue improvement using our
specialist experience in materials,
coatings
and
high
precision
manufacturing.
Megatrends | 57
Contract manufacturing:
quick x, or growth opportunity?
Freddie Holmes investigates the prospects for contract manufacturing in
emerging markets
s Russia works through the impact
of its market crash, domestic
OEMs such as GAZ Group have found
contract manufacturing to be a viable
option to keep prots steady, if not on
the rise.
Despite
unfavourable
conditions
stemming from currency depreciation
and political turmoil, VW and Skoda
have continued to produce cars at the
GAZ factory in Nizhny Novgorod
through their existing contract
manufacturing arrangements.
Russian market shows potential, but
its not straight forward
This initially began with contract
manufacture of the Skoda Yeti in
October 2011. The VW Jetta followed in
March 2013, and then the Skoda
Octavia in May that year. A signicant
overhaul of the plant in Nizhny
Novgorod was undertaken to kit out the
location to VWs standards. Previously,
the general assembly site was used for
the short-lived Volga Siber project in
2009, and most of this equipment was
modernised. The body shop, however,
was a brand new greeneld
development.
Gnther Heiden, who was appointed as
Chief Operating Officer at GAZ Group in
December 2013 after more than 20
years at Magna, notes that currently, the
market situation for VW and everybody
58 | Megatrends
The 10,000th Sprinter Classic rolls of the assembly line in the GAZ plant in Nizhny Novgorod
attended by (from left) Gnther Heiden, Chief Operating Officer GAZ Group, Vadim Sorokin,
President GAZ Group Sren Hse, Head of Mercedes-Benz Vans Russia and Rene Mack, Director
Sales & Marketing Mercedes-Benz Vans
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Megatrends | 61
62 | Megatrends
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Megatrends | 63
Retail (R)evolution
One-stop shop
The concept of authorised 4S shops is
ideal for an OEM to build up customer
relationships and to serve customers
across their lifecycles, providing quality
services and ultimately achieve higher
cross- and up-selling potentials as well
64 | Megatrends
Retail (R)evolution
Retail (R)evolution
Embrace digitisation to
rediscover the art of
customer service
From paperless car sales transactions to robots in the service bay, car
companies need to go digital to improve the sales and aftersales experience,
stay ahead of the competition and retain customers
By Megan Lampinen
utomotive
OEMs
and
dealers/service providers are
catching on to the fact that digitalisation
can improve the customer experience
in the areas of retail and servicing. A
number of forces are at work behind
the trend, but part of it stems from a
rise in the number of transactions that
dealers are handling.
Retail (R)evolution
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Megatrends | 67
Retail (R)evolution
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Retail (R)evolution
Going omni-channel:
An automotive challenge
Ian Woolley, General Manager of EMEA at Ensighten, outlines his vision for the
ideal best-practice, automotive marketing technology platform
Online brand exposure and research often makes a big contribution to a consumers decision to
purchase, even though customers typically visit showrooms to book a test drive or make a purchase
automotiveworld.com/megatrends/
Retail (R)evolution
Online advertising plays a unique role in the automotive sector. Unlike fashion or travel, automotive advertising doesnt result in e-commerce
sales; instead, it is used for upper-funnel marketing actions, such as strengthening brand awareness and reputation
Megatrends | 71
Retail (R)evolution
72 | Megatrends
Retail (R)evolution
demonstrators
specications.
in
pre-designated
What ZeroLight is offering is a tech heavy, asset light solution. There are many
benefits to this, but, most of all, the customer experience is greatly improved Darren Jobling, Chief Executive, ZeroLight
automotiveworld.com/megatrends/
Megatrends | 73
Freight Efficiency
Megatrends | 75
Freight Efficiency
a renewable diesel produced by
hydrotreating vegetable oil or animal
fat, and is classied as HVO. In terms
of its chemical composition, it is a
hydrocarbon comparable to fossil fuel.
As a result, it can be used as such in
all modern diesel engines or blended
with fossil diesel. As a premium-quality
fuel, NEXBTL renewable diesel meets
the toughest requirements set by
automotive manufacturers, and is far
better in terms of quality than
conventional FAME-type biodiesel.
Predicting trends
Just as it did with its Euro V engines, Volvo Trucks is readying its Euro VI engines to be hydrotreated vegetable oil (HVO) compliant
76 | Megatrends
automotiveworld.com/megatrends/
om
so in
on g
!
Weve been
set a target of
54.5mpg by
2025.
Check out our free guide to
the companies making that happen.
http://guidetofueleconomy.com/
Freight Efficiency
Freight Efficiency
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Megatrends | 79
Freight Efficiency
80 | Megatrends
automotiveworld.com/megatrends/
Freight Efficiency
Freight Efficiency
Target in focus
EXHAUST
DIVERTER
Out
Tailpipe boiler
By-pass
Exhaust
gas in
EGR
Expander
LIQUID
FLOW
DIVIDER
Condenser
Electric
Pump
Fluid
reservoir
Engine
cooling
system
Capturing and reusing energy that would otherwise be lost thermally, WHR systems can improve the efficiency of vehicles whilst simultaneously
reducing CO2 / Image source: IMI Precision Engineering
82 | Megatrends
automotiveworld.com/megatrends/
Freight Efficiency
IMI Precision Engineering is targeting an initial 4% fuel saving using waste heat recovery (WHR) systems. We see 5% as a possibility in the longer
term. We think the first systems to be adopted will deliver a 3% to 4% fuel saving, with others that are more developed recording around 5% Mark Sealy, Engineering Director, Commercial Vehicle Sector. Image source: IMI Precision Engineering
Re
N gist
ow e
! r
Whats next
for Indias
passenger car and
commercial vehicle
industries?