UNIVERSIDADE TÉCNICA DE LISBOA

INSTITUTO SUPERIOR TÉCNICO

INNOVATION FOR AUTOMOTIVE INTERIOR COMPONENTS:

IMPLICATIONS FOR THE PORTUGUESE INDUSTRY

João Veríssimo Meyer

(Licenciado)

Dissertação para obtenção do Grau de Mestre em Engenharia e Gestão de Tecnologia

Orientador: Doutor Paulo Manuel Cadete Ferrão

Co-orientador: MSc Andrew James

JÚRI

Presidente: Doutor Manuel Frederico Tojal de Valsassina Heitor

Vogais: Doutor Paulo Manuel Cadete Ferrão

Doutor Francisco Miguel Rogado Salvador Pinheiro Veloso

Julho de 2004
Resumo

O presente trabalho analisa a inovação nos componentes para o interior automóvel a nível europeu
com base numa técnica de Prospectiva Tecnológica conhecida como Mapeamento Tecnológico, a
qual foi aplicada a três módulos de interior automóvel.

Os dados colhidos no Reino Unido e em Portugal permitiram traçar linhas de evolução numa escala
de tempo respeitantes a configuração de produto, materiais e tecnologias, para cada um dos três
módulos considerados.

A indústria de componentes para o interior automóvel portuguesa foi caracterizada com base num
inquérito tecnológico conduzido em 2002, o que permitiu concluir sobre a capacidade tecnológica do
sector face às perspectivas de evolução tecnológica identificadas no estudo prospectivo.

Esta análise foi detalhada num caso de estudo relativo a um módulo assento produzido numa
empresa de componentes nacional, donde foi possível retirar implicações relativamente à
capacidade tecnológica e estratégia organizacional da referida empresa.

Este trabalho permitiu obter uma representação gráfica numa escala de tempo de materiais e
tecnologias chave para o interior automóvel da próxima geração de veículos. Com base nesta visão
futura foi possível identificar desafios e oportunidades para o sector de componentes para o interior
automóvel português.

Palavras-chave:

Prospectiva, Mapas Tecnológicos, Indústria Automóvel, Autointeriores, Inovação, Gestão de

Tecnologia

ii
Abstract

The present work analyses innovation in automotive interior components on a European level, based
on a Technology Foresight technique known as Technology Roadmapping, which has been applied
to three selected automotive interior modules.

The data gathered in the United Kingdom and Portugal enabled to draw evolution paths on a time
frame for each of the three modules considered regarding product configuration, materials and
technologies.

The Portuguese automotive interior component industry was characterized drawing on a

technological survey conducted in 2002, which enabled to conclude on the technological capacity of
the sector in view of the technologic evolution perspectives identified on the Foresight study.

This analysis was extended on a case study, regarding a seat module produced by a Portuguese
automotive component company, where implications were drawn in terms of technological capacity
and organizational strategy for the company considered.

This work enabled to obtain a graphic representation on a time frame of key materials and
technologies for automotive interiors on the next generation of vehicles. Based on this future vision it
was possible to assess the challenges and opportunities facing the Portuguese automotive interior
component sector.

Key words

Foresight, Technology Roadmaps, Automotive Industry, Autointeriors, Innovation, Technology

management

iii
Acknowledgements

I would like to thank the following persons who had a direct participation on this work:

Paulo Ferrão, for accepting to be my supervisor, and for his support on the structuring of this thesis.

Andrew James, for accepting to co-supervise my work. I want to thank him also for welcoming me in
Manchester and transmitting me confidence to getting on with the work.

Manuel Heitor, for his permanent availability and insightful comments along my work.

José Ferro Camacho, for his essential contribution on the automotive industry and for his friendly
dedication to this work.

I would like to acknowledge IN+, PREST and INTELI, and all the people working there for the
institutional support and the material conditions provided for conducting my work.

Then I would like to thank the contribution of all interviewees who accepted to participate on this
research and without which, it this work would have been impossible.

All my colleges’ contribution was fundamental for helping me structuring my ideas and stimulating my
creativity: Pedro, Joana, Aldina, Cristiano, Özcan, Lee, Rafael, Ko, Miguel.

Finally to those people who were not directly involved in this work but who supported and trusted me:
my parents, and sister and all my friends.

Paljon kiitos, Silja

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Index

RESUMO .............................................................................................................................................................II

ABSTRACT ....................................................................................................................................................... III

ACKNOWLEDGEMENTS .............................................................................................................................. IV

INDEX ..................................................................................................................................................................V

LIST OF FIGURES..........................................................................................................................................VII

LIST OF TABLES............................................................................................................................................. IX

ABBREVIATIONS..............................................................................................................................................X

1 INTRODUCTION ........................................................................................................................................1

1.1 OBJECTIVES AND MOTIVATION ...............................................................................................................1

1.2 AUTOINTERIORS DYNAMICS ....................................................................................................................2
1.2.1 Industry trends................................................................................................................................3
1.2.2 Autointeriors Global Key players ...................................................................................................8
1.2.3 Autointeriors characterisation......................................................................................................12
1.2.4 Drivers of Innovation in Autointeriors .........................................................................................14
1.3 PORTUGUESE AUTOINTERIORS ..............................................................................................................17
1.3.1 The macro level ............................................................................................................................17
1.3.2 The technological dimension ........................................................................................................18
1.4 RESEARCH QUESTIONS ..........................................................................................................................23

2 METHODOLOGY .....................................................................................................................................26

2.1 REVIEW OF BIBLIOGRAPHY ....................................................................................................................26

2.1.1 Foresight: background and definition ..........................................................................................26
2.1.2 Methodologies used in Foresight..................................................................................................27
2.1.3 Overview of Technology Roadmaps..............................................................................................28
2.2 METHODOLOGY FOLLOWED ..................................................................................................................35
2.2.1 Preparation...................................................................................................................................36
2.2.2 The Consultation Process .............................................................................................................36
2.2.3 Construction of the Technology Roadmap....................................................................................38
2.2.4 Product Segmentation...................................................................................................................40

3 TECHNOLOGY ROADMAPPING IN AUTOMOTIVE INTERIORS................................................43

3.1 THE MODULES UNDER ANALYSIS ...........................................................................................................43

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 3.1.1 Door Module.................................................................................................................................43
3.1.2 Instrument Panel...........................................................................................................................47
3.1.3 Seat Module ..................................................................................................................................49
3.2 RESULTS ................................................................................................................................................51
3.2.1 Industry trends..............................................................................................................................51
3.2.2 Door Module.................................................................................................................................57
3.2.3 Instrument Panel...........................................................................................................................58
3.2.4 Seat module...................................................................................................................................59

4 CASE STUDY: APPLICATION OF TECHNOLOGY ROADMAPPING TO A SEAT MODULE

MANUFACTURED IN PORTUGAL...............................................................................................................60

4.1 INTRODUCTION ......................................................................................................................................60

4.2 DESCRIPTION OF THE COMPANY ............................................................................................................60
4.3 DESCRIBING THE SEAT S7.8 ..................................................................................................................61
4.4 APPLYING THE ROADMAP EVOLUTION TRAJECTORIES TO THE S7.8 SEAT ...............................................66
4.4.1 The scenarios offered by the Technology Roadmap .....................................................................66
4.4.2 Expected evolution of the S7.8 Seat ..............................................................................................67
4.5 IMPLICATIONS OF EXPECTED EVOLUTION IN THE S7.8 SEAT ..................................................................69

5 DISCUSSION..............................................................................................................................................75

5.1 METHODOLOGICAL ASSESSMENT ..........................................................................................................75

5.2 TECHNOLOGY ROADMAP.......................................................................................................................77
5.2.1 Door module .................................................................................................................................77
5.2.2 Instrument Panel...........................................................................................................................81
5.2.3 Seat Module ..................................................................................................................................84
5.2.4 Key technologies for Autointeriors ...............................................................................................87
5.2.5 Implications on the Portuguese automotive interior component companies ................................91
5.3 POLICY IMPLICATIONS AND FUTURE WORK............................................................................................94

BIBLIOGRAPHY...............................................................................................................................................96

ANNEX A – INTERVIEW OUTLINE ...........................................................................................................101

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List of Figures

FIGURE 1: COMPANY POSITIONING IN THE SUPPLY CHAIN (CONCEIÇÃO ET AL. 2003).............................................3

FIGURE 2: AUTOMOTIVE INTERIORS NAFTA MARKET - VALUED AND INDUSTRY CONCENTRATION (CSM 2002)...9
FIGURE 3: EVOLUTION OF MODULARISATION AND INTEGRATION IN THE AUTOMOTIVE COMPONENT INDUSTRY
(FIXON 1999) ................................................................................................................................................11
FIGURE 4: FUNCTIONAL REQUIREMENTS OF AUTO INTERIORS SUBASSEMBLIES ....................................................13
FIGURE 5: MATERIALS BY PRODUCT AREAS ..........................................................................................................13
FIGURE 6: SPECIALISATION OF THE PORTUGUESE AUTOMOTIVE COMPONENT INDUSTRY ......................................18
FIGURE 7: CHARACTERIZATION OF THE RESPONDENTS ..........................................................................................19
FIGURE 8: MATERIALS PROCESSED ........................................................................................................................20
FIGURE 9: NUMBER OF MATERIALS PROCESSED ....................................................................................................21
FIGURE 10: TYPOLOGY OF TECHNOLOGIES DOMINATED ........................................................................................22
FIGURE 11: POSITION OF FORESIGHT METHODS ON THE FORESIGHT TRIANGLE (ADAPTED FROM CAMERON ET AL.
1996).............................................................................................................................................................28
FIGURE 12: TAXONOMY OF ROADMAPS (KOSTOFF ET AL. 2001) ...........................................................................31
FIGURE 13: ROADMAPPING TAXONOMY (KAPPEL 2001) .......................................................................................31
FIGURE 14: METHODOLOGY FOLLOWED FOR THE CONSTRUCTION OF THE TRM ...................................................39
FIGURE 15: DOOR MODULE SUBCOMPONENTS ......................................................................................................44
FIGURE 16: EXAMPLE OF AN INTERIOR TRIM PANEL AND HARDWARE CARRIER (GRUPO ANTOLIN).....................46
FIGURE 17: DOOR EXTERIOR PANEL (RAUTARUUKKI) ..........................................................................................47
FIGURE 18: INSTRUMENT PANEL SUBCOMPONENTS (SOFT PANEL) ........................................................................48
FIGURE 19: INSTRUMENT PANEL COMPOSITION (GE PLASTICS) ............................................................................49
FIGURE 20: SEAT MODULE SUBCOMPONENTS .......................................................................................................49
FIGURE 21: SEAT FRAME (FAURECIA) ...................................................................................................................50
FIGURE 22: SECTIONED SEAT (LEAR) ....................................................................................................................51
FIGURE 23: MAIN FEATURES OF S7.8 SEAT (INAUTO - B2: ECO-DESIGN, IST) ....................................................62
FIGURE 24: SEAT'S MAIN TECHNOLOGIES AND MATERIALS....................................................................................63
FIGURE 25: PROCESSES ASSOCIATED WITH THE PRODUCTION OF THE SEAT'S STRUCTURE .....................................64
FIGURE 26: PROCESSES ASSOCIATED WITH THE PRODUCTION OF THE SEAT'S FOAMS .............................................64
FIGURE 27: PROCESSES ASSOCIATED WITH THE PRODUCTION OF THE SEAT'S COVERS ...........................................65
FIGURE 28: SWITCH FROM STEEL TO HIGH STRENGTH STEEL ...............................................................................70
FIGURE 29 IMPLICATIONS OF A TECHNOLOGICAL UPGRADING IN THE FOAM PRODUCTION ....................................71
FIGURE 30: ADOPTION OF “IN-SITU” FOAM INJECTION TECHNOLOGY IN FOAM PRODUCTION .................................71
FIGURE 31 USE OF VIRTUAL ENGINEERING DEVELOPMENT ...................................................................................74
FIGURE 32: DOOR MODULE'S TECHNOLOGIES AND MATERIALS .............................................................................89

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FIGURE 33: INSTRUMENT PANEL'S TECHNOLOGIES AND MATERIALS .....................................................................90
FIGURE 34: SEAT MODULE'S TECHNOLOGIES AND MATERIALS ..............................................................................91
FIGURE 35: HUMAN RESOURCES QUALIFICATIONS - NATIONAL AND INTERNATIONAL COMPARISON (* - INTELI
2003).............................................................................................................................................................92

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List of Tables

TABLE 1: GENERIC TECHNOLOGY ROADMAP, EIRMA 1997.................................................................................32

TABLE 2: TIME FRAME OF CONSULTATION PROCESS ..............................................................................................37
TABLE 3: VARIABLES INFLUENCING PRODUCT SEGMENTATION .............................................................................40
TABLE 4: QUALIFICATIONS OF THE HUMAN RESOURCES IN CASE STUDY COMPANY (2002) ..................................61

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Abbreviations

Technical Abbreviations

ABS - Acrylonitrile-Butadiene-Styrene

CAD-CAM - Computer Aided Design-Computer Aided Manufacturing

CMF – Compression moulded natural fibres or wood agglomerate

EPP – Expanded Polypropylene

GFR – Glass Fibre Reinforced

HHS – High strength steel

HSNy - High stiffness nylon blend

HyF -Hydro-Formed

iC –-in-colour

IM – Injection moulding

LGF – Long glass fibre

LPIM – low-pressure injection moulding

NV – Niche vehicle

PP – Polypropylene

PU - Polyurethane

Sc – Self-coloured

SMA - Styrene Maleic Anhydride

SS - slush skin

Tf – Thermoforming

ThC – thermo-covered

XLPO - Cross-linked Polyolefin (PP based solution)

x
Non Technical Abbreviations

FDI – Foreign Direct Investment

MNE – Multi National Enterprises

MPV – Multi Purpose Vehicle

NAFTA – North American Free Trade Area

NHV – Noise Vibration and Harshness

NIC – Newly Independent Countries

OEM – Original Equipment Manufacturer

SME – Small and Medium Enterprise

TRM – Technology Roadmap

xi
1 Introduction

1.1 Objectives and Motivation

This work analyses the technological evolution on automotive interior components. The objectives
consist of identifying possible transformations in materials used and technologies adopted in the next
generation of automotive interior components, as well as the main transformations in product
structure. It also draws implications of those changes on the Portuguese automotive interior
component industry.

The motivation for this work results from the realisation of the critical moment the Portuguese
automotive component industry is facing. It has been acknowledged the need for a transformation on
the development model followed until now (Veloso et al. 2000, Lobo et al. 2002).

The history of the automotive component industry is much connected to its consecutive stages of
development. Ever since the start of the first assembly lines in the late fifties and early sixties, it has
focused on process improvement and manufacturing and drawn on low cost labour (Féria 1999). The
most recent milestone has been the Autoeuropa project, in which Ford and Volkswagen set up an
assembly line through a joint venture. The settling of this assembly line has made a decisive
contribution to the growth and consolidating of the Portuguese automotive component sector, but
striking differences still persist between foreign and national suppliers. Presently, these Portuguese
suppliers are facing challenges from increasing competitiveness of new European accession
countries and the opening of new markets in Asia (China and India) and South America. These new
global players have typically inexpensive labour costs and often highly skilled workforce, thus
becoming very attractive option for investing companies. (Veloso et al. 2000, Selada et al. 2003)

On the Portuguese side, there has been a strong commitment by Universities, the Government,
industry associations and research and technology centres to promote activities and programs
directed at increasing the competitiveness of this industry. Recent examples of such commitment are
the constitution of the CEIIA (Centro de Excelência e Inovação para a Indústria Automóvel1), the
implementation of INAUTO Program2, and the creation of the CEDP (Centro de Engenharia e
Desenvolvimento de Produto3) in Maia.

1
Centre for Excellency and Innovation in the Automotive Industry
2
http://inauto.ceiia.com
3
Centre for Engineering and Product Development

1
Due to this joint commitment, the present moment is also of an opportunity to launch the industry into
another stage of development and implement a new strategy with increased focus on collaborative
research, towards the conception and development of more complex and added value products
through design and integration of technology and a stronger presence on foreign markets.

The present work results from the participation on two activities of the INAUTO Program. The first
activity - Autointeriores, analysed the automotive interior industry, namely major innovation-driving
forces, new developments in materials and technologies and product structure evolution. The second
activity - Keyteck aimed at studying and applying Foresight methodologies to the automotive interior
industry, in order to assess possible evolution paths in automotive interior components, which could
be relevant for the strategic positioning of the Portuguese automotive interior component industry.

This work analyses possible evolution paths in automotive interior components and the implications of
such changes in the Portuguese automotive components industry. These evolution paths are drawn
based on key technologies and materials that have been identified, following a technology foresight
methodology.

This technology overlook has not the prophetic intention of determining the future of autointeriors and
its technologies and materials, but contribute to define the positioning of the Portuguese suppliers
and shed light onto the main challenges and opportunities that result from that evolution.

1.2 Autointeriors Dynamics

This section explores the main issues influencing the automotive industry on a global scale and
considers possible implications of such influence on the Portuguese automotive interiors components
sector.

As consequence of the global status that the automotive industry has achieved, technological
strategic choice of companies should be consider not only in its supply push dimension, but also
including other dimensions, often exogenous to its self, such as political and regulatory constrains,
shifts in economic and social values or increasing competition on a global scale.

These issues are essential to understand dynamic aspects of the automotive components industry,
made of choices that often seem irrational from a strictly technological perspective. The major trends
in the automotive components industry should provide inputs to prevent possible threats and explore
new opportunities for the Portuguese autointerior component sector.

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1.2.1 Industry trends

Characterizing the Supply chain

Modern vehicles are in general very complex systems and presently, most manufacturers are
reluctant to handle the whole production process. Instead, they prefer to keep the development and
production of core products and other strategic activities, and turn to external suppliers for
strategically less important components. The industry is therefore organized into rather complex and
long supply chains, constituted by OEM (Original Equipment Manufacturers); the several tiers of
suppliers, including system integrators, component assemblers and component manufacturers; and
raw materials suppliers, whose features are worth highlighting here.

At the top level, OEM focus their activities on design, product development, part of the final assembly
stages and marketing, leaving most of the production and labour intensive stages of the process to
sub-contractors. OEM are therefore obliged to deal with a great number of suppliers - raw materials,
first- tier, second tier, and so forth4.

First tier suppliers work often in close relationship with OEM, and participate in development
activities, thus supplying subassemblies and components of considerable complexity and integration.

At a lower level of the supply chain operate the commonly called “component suppliers”, who take on
the most labour intensive stages of production, focusing on simple manufacturing processes involving
a reduced number of parts and families of materials.

2nd + Tier 1st Tier

Module
Component Subassembly
System
Commodities Differentiated Development
Commodities Components
É Small Stamps É Rear View Mirror É Door
É Small Injected É Fuel Injector É Dashboard
Parts É Steering Column É ABS

É Low Value Added É Medium Value Added É High Value Added

É Build to Print É Grey-Box Design É Black-Box Design

Growth Strategy

Figure 1: Company positioning in the Supply Chain (Conceição et al. 2003)

4
Although second tier may not supply OEM directly, they are often chosen by them. For this reason, OEM must
be aware of the capacity and technological resources of second or third tier suppliers, in order to control the
selection stage.

3
Important to emphasize is the fact that the greatest added value activities are those which involve
development in design and engineering, occurring in a more intensive way on the upper levels of the
supply chain (Figure 1).

A sustained growth strategy aims therefore towards a scaling up of the supply chain. In order to
remain competitive companies should be able to continuously add value to their products by offering
innovative solutions. This can consist of gathering different techniques to produce a more complete
assembly, where style and design can be applied and systems can be integrated as differentiating
features. This transition - from component to subassembly manufacturing - involves a risk taking
commitment of companies to invest in technological upgrading. There are several factors critical for
being able to take this step. Some of them endogenous to the company, like the culture, the size, the
human capital or the technological capabilities (Veloso and Kuhmar 2002), but also exogenous
factors related to competition or inter-firm relations (Meyer 1999).

Competition

The competitive nature of the industry has, among other effects, originated recently a wake of
mergers and concentrations at a global scale. The automotive industry has become increasingly
concentrated and there have been consolidation trends pointing towards a significant reduction on the
number of first tier suppliers (PWC 2000). It has been estimated that the number of 2500 first tier
suppliers that existed in 1995 may be reduced to 1500 by 2005, (MacDuffie 2001). As a result OEM
have been focusing on development and marketing activities, leaving to their suppliers the burden of
most production and assembly work. Consequently, it has also been observed an increase on the
manufacturing and assembly business in general, and the emergence of a number of 1st tier
suppliers5, with considerable dimension and engineering capacities, comparable to OEM its selves.
First tier suppliers are able, due to their dimension, to focus on the development of complex modular
assemblies, which are then supplied to OEM. The supply of components to different OEM has also
enabled to benefit form scale of production. In fact, modular construction in autointerior components
enables the sharing of some components throughout different products (non-differentiating
components such as structural parts, cables and harnesses, or HVAC units). First tier suppliers
typically offer high production volume solutions, and due to their market domination, make it difficult
for other smaller dimension suppliers (such as the Portuguese autointeriors suppliers) to ascend in
the supply chain.

On the other hand customers’ expectations have been evolving influenced by the instability of shorter
social and economic cycles. Faced with a mature product, costumers are now more aware of their

5
most originating from spin-offs of OEM like the case of Faurecia from PSA group, Delphi form GM or Visteon
from Ford

4
needs and aspirations, demanding increasing variability and customisation of their vehicles. If some
components in the autointeriors can in fact be shared, there are others that play a crucial role in
differentiation between brands and segments, thus originating a huge variety of solutions. This
pressures the industry to diversify its offer, reduce development time and increase the rate of product
renewal.

Therefore, the dynamic pace of the industry and the constant demand for differentiation create also
opportunities for new comers proposing niche solutions that mainstream suppliers are not prepared to
deliver, thus further intensifying competition. The Portuguese suppliers, due to their reduced
dimension should therefore focus on development activities based on collaborative work pursuing
innovative solutions, seeking and creating market gaps left by bigger-dimension players.

Demand Changes

The geographic distribution on the demand for automobiles has also been shifting. Existing mature
markets are becoming saturated and at the same time new markets have been coming into play
showing high growth rates of car ownership. A definition proposed for the production locations of
automakers, offers, per se, a good insight for understanding the market issues being discussed
(Veloso et al. 2000).

Accordingly, the author defines Large Existing Market Areas (LEMAs) such as NAFTA, Europe
(except Iberian Peninsula) or Japan, as markets with high income and vehicle per capita ratio, but
where sales growth is stagnant of negative.

Countries like Portugal, Spain, Mexico, Eastern European countries, on the other hand, are usually
referred to as Periphery of Large Existing Market Areas (PLEMAs). Their main feature is having low
cost labour where LEMAs can turn for supplies. Their proximity enables OEM in LEMAs to implement
complex logistics at a competitive cost.

The third group of countries is the Big Emerging Markets (BEMs). Countries like Brazil, China or
India, highly populated and with high growth rates and low vehicle per capita ratio, have a potential
increase in demand for vehicles. This imbalance in demand and supply has been originating a wave
of relocation of production units from mature markets (where they originated) towards emerging ones.
Several reasons can be pointed to justify the re-location of production units (Camuffo 2002):

• Models produced on matured markets often fail to address emerging markets’ customers
needs.

• Governments of emerging markets often introduce constrains to trade in order to reduce import
rates and create incentives to attract foreign direct investment.

• The location of production units near target markets favours marketing sales and logistics

5
 • Cost differentials (particularly in labour) often justify per se the process of relocation

Considering this structure, it is easy to understand the motivation for a re-location of OEM factories to
countries where the demand for new vehicles is high and growing (BEMs) or in countries where low
labour cost and geographical proximity make it attractive (PLEMAs).

The relocation of production units, not only alters the geographic distribution of supply of automobiles,
but also induces important organizational changes. In recent literature (Camuffo 2002) it has been
observed that in the process of re-location, OEM tend to reduce the scale of the assembly plant. The
main reasons are as follow:

• Reducing investment costs

• Distributing risks throughout a number of suppliers

• Increasing flexibility in the case of sudden changes in supply

• Shortening equipment upgrading and product restyling

• Minimizing job impact in case of crisis

This has decisive effects on local economies. Not only it opens up opportunities for local companies
to access more demanding customers, but may also trigger important spillovers such as innovative
business practices and technology transfer.

The relocation can constitute an opportunity for local suppliers to access the supply chain and this
may boost local technological capabilities as local companies try to access.

On the other hand, relocation can have a negative impact in countries that cannot remain competitive.
Considering the particular case of the Portuguese industry, the expansion of the European Union can
motivate the relocation of existing production units to new accessing countries due to their highly
skilled labour force, lower salaries and proximity to LEMAS like Germany and France.

After a period of inflow of production units to Portugal due to its privileged conditions, the attention of
OEM has drawn other actors such as the new accessing countries as well as China, India and Brazil.

The implications to the Portuguese industry can be of two natures. For one, relocation processes are
becoming increasingly agile, which means that more countries can now compete with Portugal in
attracting production units. This means that the Portuguese supply industry has to be able to become
more competitive and differentiate itself from new players. On the other hand, the type of production
unit originated by these relocation processes is changing, requiring more capability and commitment
from the local supplier base.

It is therefore needed to define Portugal’s position in the group of relocation receivers, namely since
other competing countries are coming into play, and the nature of relocation is changing.

6
Political Intervention

In view of the potential for knowledge creation, technology transfer and economic growth, public
policies play a key role in attracting the relocation of production units.

The broadness of the auto industry entails the possibility to reap very important spillovers, through
synergic interaction among different sectors. Hence, the interest of governments on creating
conditions through special regulatory frameworks in order to attract Foreign Direct Investment (FDI)
and promote trade. This has been demonstrated by the Autoeuropa project, which attracted the
largest amount ever of FDI in Portugal and enabled to create conditions for fundamental “upgrading”
of the sector (Veloso et al. 2000).

In the present work, it is important to emphasise on the other hand, some challenges and barriers that
may arise in the presence of governmental incentives to promote trade and attract FDI.

The influence of FDI incentive policies can do more than spicing up local competition. They can also
cause distortions and asymmetries, which pose additional challenges to local suppliers. In an analysis
of the MNEs’ influence on Eastern European Countries, Meyer (1998) points out some factors that,
due to the nature of the countries under analysis, are of particular relevance to Portugal.

When an OEM establishes an assembly plant on a less developed country, there is a process of
selecting the suppliers integrating the supply chain. The local government is usually particularly
committed in involving national suppliers to participate, through the promotion of total or partial
acquisitions and incentives to technological upgrade or quality certification. A number of the best
ones manages to adapt to the new level of demand (costs, quality, on-time delivery, etc.) either
supported by their own dimension, or through mergers and partial acquisitions with MNE.

The smaller ones however, seem to experience difficulties to adapt to the new circumstances. OEM
tend to prefer the long lasting business relationships, since they foster “relationship–specific human
capital”. This closeness is self-enhancing since the costs of transaction tend to diminish over time
(Meyer 1998), giving incumbents an increasing competitive advantage over new entrants (a sort of
switching cost at a corporate level). So instead of turning to local suppliers, the establishing OEM is
usually followed by their long lasting suppliers, who enter like was said before, either directly, or
through acquisition.

Moreover incentive to investment may offer special benefits to incoming firms such as more flexible
hiring and firing policies, (Blomstrom 1996). This creates inevitable market competition distortions.
Meyer (1998) goes further on claiming that most studies show that foreign-owned firms and firms with
non-equity cooperation with foreign partners outperform purely domestic firms.

This influence of foreign owned companies is also noticeable on the Portuguese context, considering
their importance on the automotive components sector. The biggest eight foreign companies out of a
total of 180 (national, foreign and mixed), accounted for 45% of turnover in 1999 (Basauto 2000). In

7
spite of constituting a positive influence on the way they spiced up internal competition, the presence
and dominance of multinational players constitutes a strong challenge for Portuguese companies
even when operating in their own market. This has happened with the Autoeuropa case and is bound
to happen with any other OEM that may move to invest in Portugal in the future.

Political incentives should also consider the technological dimension. The Autoeuropa project has
undoubtedly contributed for an upgrading of the sector, but the reality is that there are still great
differences between local national suppliers and multinational ones. Now that the certification process
has been overcome, it is essential for national suppliers to develop a “to the future” attitude based on
informed knowledge of the evolution in their businesses and start being aware of the major innovation
trends, in order to adopt a move proactive approach.

1.2.2 Autointeriors Global Key players

There is not a definition of automotive interiors, but observing solutions proposed by the major first
tier suppliers can contribute to a characterisation. In 2002 the biggest European-level suppliers were
Faurecia for the Instrument Panel and the door module and Johnson Controls Inc (JCI) for the Seat
module. Occupying leading positions both at European and Global-level were also Visteon, Delphi
and Lear. (Autointeriors 20026)

Each supplier specialised in the following types of systems:

• Faurecia: cockpits, door panels, insulation, IPs, seats/seat parts, trim

• JCI: door panels, electronics, headliners, IPs, seats/seat parts, trim

• Visteon: door panels, electronics, glass, HVAC7, IPs

• Delphi: door panels, IPs, safety restraints, steering wheels

• Lear: door panels, IPs, electronics, headliners, seats/seat parts

From the list above it is possible to notice the predominance of systems such as the door panel, the
instrument panel or the seats, as well as sub-systems in a different aggregation-level as is the case of
electronics, insulation, trim and HVAC.

6
Leading European Suppliers – Model 2001, downloaded from www.autointeriors.com in 2002
7
Heat Ventilation and Air-Conditioned

8
The interiors Market

Considering the automotive interiors market – the focus of the present work –, a recent study on the
automotive interiors NAFTA Market shows the relative importance and distribution of each
subassembly.

Figure 2: Automotive interiors NAFTA market - Valued and industry concentration (CSM 2002)

For the different subassemblies or modules, it is observable different realities. Whilst in the restraining
and acoustics systems, the concentration is much more significant, due probably to a trend towards
standardisation and scale related issues, on the cockpit, door and seat modules, the number of
suppliers is much greater and so is the distribution among them. One could say that there is not so
much propensity for standardization, since the range of possible solutions is much wider.

Modularisation and integration

The international Motor Vehicle Program (IMVP) in MIT has been concerned with modularisation and
outsourcing issues, namely it’s implications on automotive assembly. Through the use of specific
cases studies on the door module and instrument panel they have been investigating the extent of
these trends in the auto industry and the implications for the role of automotive assembly and
structure of the industry.

A common feature to various practices of modularisation has been identified: “It [modularisation]
entails having larger units in subassembly and also often involves outsourcing these subassemblies
to suppliers (as most frequently observed in the European auto industry)” (Takeishi et al. 2001).

The increasing trend towards the production of modular units as a way to optimise the production
system has influenced both the hierarchies in production systems (and how they are organised) and
inter-firm relationships (between OEM and their suppliers). The nature of modularisation presents

9
significant variations depending of many aspects including industrial culture or product strategy. The
general belief is that an increasing responsibility is being given to suppliers. It has been reported that
the turnover associated with manufacturing and assembly in the auto industry has increased five fold
in 2002 (ADM Press 2003). This can be attributed to modularisation and the increasing role attributed
to suppliers (inter-firm relationships), but also to a certain extent to the increasing number of
variations, which increased the business volume (production systems).

On a more global perspective, there has been a trend towards a growing importance of the interiors
as part of an automotive. More specifically, on the interiors market, it has been observed a growing
participation of “n-tier” suppliers on product development. The value chain has been expanding
together with the “lean-thinkingness” of OEM. Due to the new division of labour, it is natural that
suppliers try to add more value by supplying subassemblies with more integration. In view of
increasing demand for variability OEM have been trying to rationalise products’ structure by pushing
the concept of platforms and modular construction. This consists of developing standardised
components that can be shared throughout different models of vehicles, thus seeking to obtain a
certain degree of diversity while maintaining scale related benefits. It has been accounted along the
90’s an increase of 33% in the production volume for each platform of vehicles sold in the European
market at the same time as an increase on the number of vehicle body types (Sako, et al. 1999). So
in spite of a greater number of vehicles sharing a same platform, the number of vehicle body types
has increased. Within the same platform it has been possible to share components and at the same
time maintain product diversity.

On the other hand, modular development allows certain autonomy in the development of different
areas of the automotive, which may ultimately lead to the development in outsource. Helper et al.
(1999) have presented three scenarios for the evolution of modularity and outsourcing on the
automotive industry.

The first is similar to what has been occurring on the computer industry. It represents the paradigm of
modular production. Components are standardized offering common interfaces. OEM outsource each
component and all the activities related to its fabrication – development, production and testing. They
keep some core technology development in-house, as well as the marketing and sales strategy.
Commoditisation is present due to the little differentiation between products and therefore suppliers
are under a lot of pressure to reduce costs and be the first to market in order to try and reap profit
from fast declining prices.

The second corresponds to the opposite situation, where OEM refuse to accept undifferentiated
products that might attenuate or even eliminate their “distinctive look”. They refuse to move to
modularity due to the great variability that exists between brands and models. Modular production has
also the risk of information leakages, particularly when suppliers work with more than one OEM.

10
Finally, the third scenario points to a milder hybrid version of the previous two: modularisation
occurring on some modules, but not all – OEM controlling critical modules and outsourcing non-
modular structures, or modules of little strategic significance.

Fixon (1999) clarifies this point by presenting a scenario for the evolution of modularity and
integration in automotive components (Figure 3). Accordingly, it is expected that interior products
evolve from a fragmented to a more integrated structure with a decrease on the number of
components per module (dashed curve). Simultaneously, it is expected a consolidation of
components into modules in the mid run followed by a decrease on the number of modules as a
result of the integration trend (uninterrupted curve).

Figure 3: Evolution of modularisation and Integration in the automotive component industry (Fixon 1999)

Considering the current product structure in automotive components, MacDuffie (2001) has
underlined the difference that still exists between the products “computer” and “motor vehicle”. The
differences are clear and the evolution trend seams to point towards a hybrid scenario on
modularisation, according to the description above. Further he systematised the forces driving
modularisation in the automotive industry. These are related with Product Strategy (increasing
complexity, integration and multidisciplinary nature of products), Financial Strategy (leanness in
organization for increased flexibility and risk reduction), Technology Strategy (integration of design
and concept competition) and Marketing Strategy (increased focus on customer through variability,
differentiation and customisation)

The impact of these drivers on suppliers is not yet fully understood. As it was said before, within the
auto industry it is possible to find different contexts of production systems. While the European auto
industry has been interested mainly in modularisation in inter-firm system, the Japanese has focused
on modularisation in production. Neither of them has addressed “modularisation in product

11
architecture”. However, this is at the moment an inevitable consideration8 since it has been affecting
products, both technology and materials choice, and industrial relations. It is determinant for suppliers
to be aware and consider modularisation in their strategic positioning when approaching their
customers (both OEM and other suppliers).

In the context of this work it is pertinent to consider modularisation in view of the possible changes
induced on product configuration and also inter-firm relation particularly in what the Portuguese auto
components companies are concerned. It is clear that modularisation has strong conceptual links with
outsourcing in a way that there has been a shift of responsibility towards suppliers. Modular supply
involves dealing with increasing complexity of outsourced components, competence in design,
integration of systems, request for innovative solutions and technologies addressing current
requirements in style, differentiation, safety or environment.

1.2.3 Autointeriors characterisation

Automotive interiors are a set of components and subassemblies included in the vehicle’s passenger
compartment. Many classifications and configurations have been adopted throughout the industry, so
it is always a challenge to make an attempt to draw the boundaries of this product. Considering
automotive interiors as a set of integrated systems or modules can be a first step towards that
division. Consequently, the following modules can be found in most passengers’ vehicles: Seat
module, Door module, Instrument panel, Overhead module and Floor module. Being part of a bigger
system (the vehicle’s interior) these subassemblies have certain functional requirements. A possible
systematisation is offered below (Figure 4).

8
there is clearly a modular architecture in certain systems (safety and comfort systems, for example) and
components (door interior trim panel)

12
 Functions in Interiors

Seats Instrument Panel Overhead Door Panel Floor Module

Aesthetics
Ergonomics Support for
Structural integration
Safety Ergonomics
Aesthetics Support for
Insulation
Comfort integration
Safety
Insulation

Figure 4: Functional requirements of Auto interiors subassemblies

It can be seen from the figure above that many modules share functional requirements. These
functional requirements correspond to particular product areas, such as a structure or a cover. As a
result, a further systematisation can be made considering the materials used for a particular
functionality (Figure 5).

Materials

Structure Covers (“skins”) Upholstery Panels Knobs & switches

Steels Leather
Aluminum Textiles Polymeric
Magnesium Polymers: Composites (fiber
ABS, PP,
Composites PVC, PU, PP, glass, Woodstock,
Flexible PU, PE, PA,
Hybrid TPO, ABS... Natural Fibers...)
TPO Foams PVC...

Figure 5: Materials by product areas

It can be noticed that the automotive interiors are complex product composed by a significant amount
of different subassemblies, which are not always connected in a harmonious way.

There are also different functionalities and requirements that autointeriors have to satisfy, and for
each function, several options in terms of materials and technologies.

13
Figure 5 also evidences the wide knowledge base required to produce such components due to the
diversity of materials and technologies necessary to master and also the great challenge from an
organisational point of view to put together each subassembly.

This factor stresses the importance of the technological dimension in the autointeriors and the need
to develop methodological tools of technology forecasting to understand and gain insight into future
developments in this industry.

1.2.4 Drivers of Innovation in Autointeriors

The recent evolution of autointeriors allows concluding on the major innovation driving forces that
have been and are still thriving change, both on product structure, materials or manufacturing
technologies. These driving forces are based on trends and innovations observed on recent evolution
of automotive interiors components.

Innovations in autointeriors have been driven by market issues, regulatory framework, and even by
the evolution of the supply chain management.

The Drivers of Innovation express the pressures subjected to automotive interiors components on a
technological level, and were used to assess possible transformations on existing products during the
present work. The following drivers have been identified.

• Cost reduction

• Weight Reduction

• Environment

• Comfort

• Customisation/ variability

• Safety

• Product Architecture

These were thought to be the drivers, which could be generalised to the whole industry. There might
be other factors (technological path dependence, surrounding industrial environment) influencing the
auto interiors industry in a localised way, at corporation level, or country level9, but those were not
considered.

9
An existing expertise in a certain technological process or long term contracts with suppliers may be such
factors to influence the choice of technology in a given company

14
Cost reduction

This driver concerns the costs in the activities related to the beginning of the product’s life cycle –
conception, development and production. It can be translated in the use of alternative less expensive
raw materials, technological improvements, improved assembly processes and all assembly related
stages. The reduction of cost or the decrease in the ratio cost vs. benefit is an implicit requirement for
the introduction of innovations on an industrial context. But cost reduction can also be a reason per
se like the use of PVC covers to replace leather on seats and interior trim areas.

Weight Reduction

Weight reduction is an important goal, which relates to cost reduction and environmental
performance. Reducing a vehicle’s weight by 100 kg may reduce fuel consumption by approximately
0.8 liters per 100 km (HypoVereinsbank 2001). From the suppliers’ point of view, a weight reduction
can reflect it’s self on savings in raw materials and improved handling and distribution (Faraday
Advance 2003). Although the average car’s weight has increased slightly in recent years (from 1
015kg in 1990 to 1 132kg in 1998) (APME 1999), this was due to increasing safety concerns and
comfort requirements and has been attenuated by the increase of plastics utilization.

Environment

The environmental issues are linked with the recent EU directives concerning ELV (ELV directive
2000), establishing a minimum limit for the recycling of these products (EU Directive on ELV). This is
particularly important for the automotive interiors. Not only the share of interior components in total
vehicle weight is increasing in modern vehicle - meaning that, in order to comply with the limits of
recycling, it is no longer enough to separate the ferrous metals -, but it also poses some serious
challenges when it comes to sorting out the expanding myriad of different materials present
(Environmental Defence 1999, Net composites10). Many OEM (particularly the higher volume ones)
are working with their suppliers to find environment friendlier solutions – design for disassembly or
mono-material constructions (Shah et al. 2000).

Another issue considered in this trend is the reduction of VOC (Volatile Organic Compounds), which
can be released from some plastics used in car interiors (e.g.: PVC) when exposed to high
temperatures and which can constitute a serious threat to human health.

Comfort

This trend is related with increasing demand from customers of new features and functionalities. Most
companies are aware of this and try to gain some extra competitive edge by offering a more

10
http://www.netcomposites.com/news.asp?1644

15
“complete pack”. Some of the issues addressed are human comfort (improved ergonomics, thermal
management systems), NVH (Noise, Vibration and Harshness), connectivity though telematics,
fatigue countermeasure systems, amongst others.

Customisation/ variability

This driver relates to satisfying the customer’s need for variability11 and differentiation. The interior is
one of the most important sources of differentiation and automakers have been trying to provide it
through product segmentation and allowing a certain personalisation by offering optional features.

With the outsourcing of some of those components, it has been possible to offer some differentiation
whilst maintaining scale related benefits12.

Safety

Road accidents are still one of the major causes of casualties in developed countries13. In spite of
continuous efforts of European countries to reduce this number, this was still the cause of death of
about 41.000 EU citizens in 200014.

In-vehicle safety has been one of the issues addressed to fight this problem. Nowadays vehicles
include more safety features and the tendency is to increase. It has been observed that many of the
safety features only present in top class vehicles are becoming more common in the lower categories
as well. Further, due to the increasing presence of telematics, new features are being proposed with
focus on accident prevention, through sensors technology.

Product Architecture

Current interior architecture is going through a period of undecidedness (Mercer 2003).

In an initial phase, the outsourcing of some components to assemblers and suppliers has favoured
modular construction. This allowed reducing the number of parts and optimising the assembly
process. From the perspective of improving coordination and optimising the assembly process, an

11
On variability see Article of Just Auto: Automotive Product Development, conquering complexity -
https://autoassembly.mckinsey.com/html/knowledge/article/ProdDev.asp

12
In the case of a seat frame, for example, vehicles of the same segment belonging to different brands can
share it, as long as the brand’s distinctiveness is assured though the shape of the foams and the type of seat
cover.
13
ACEA
14
CARE for EU data, http://europa.eu.int/comm/transport/home/care/index_en.htm; For U.S. data:
http://grouper.ieee.org/groups/1616/37StatisticsShowSafety.pdf

16
expected trend would be to continue to integrate, ideally having the suppliers supplying the whole
interior rather than each component separately (MacDuffie 2001). This would allow a further reduction
on the number of parts, and at the same time a more integrated interior where the different modules
would fit together in a more harmonious way. Current challenges faced by OEM are: an imperfect
integration (variation in module boundaries), the risk of losing brand differentiation and the risk of
giving up too much responsibility to suppliers. The first, pushing towards an increasing integration,
and the second and third, to rethinking the supply chain management.

1.3 Portuguese Autointeriors

1.3.1 The macro level

Having considered the main factors associated with the dynamics of the automotive industry and the
major trends in autointeriors, this section intends to frame the present work on the Portuguese
industry, by offering a characterization of the Portuguese automotive interior component sector. The
characterization will be made in view of the threats and opportunities mentioned above and also in
view of the crucial role that technology and innovation plays on the automotive industry.

The Portuguese automotive industry is constituted by five Original Equipment Manufacturers (OEM)
supplied by around 180 component manufacturers. The automotive component sector is constituted
by a few large multinational corporations and a series of nationally owned Small to Medium
Enterprises (SME) most of them having less than 500 employees, (INTELI 2000).

In recent years there has been a growing convergence of the national components sector towards
automotive interiors components. As Figure 6 shows, interior components have outcome “Electric
Components and systems” and “Engines Brakes an transmissions” to become the most important
product area in the Portuguese automotive components industry when measured in turnover.

17
 Turnover by product area

4500
4000
3500
3000
1992
M Euro

2500 1995
2000 1998
1500 2000

1000
500
0
rs

es

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s

si

ta
tc
re
em

on

s
rio

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is

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tri

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Figure 6: Specialisation of the Portuguese automotive component industry

Considering the distribution along the supply chain, the Portuguese companies are typically
positioned on the lower levels, operating as “component manufacturers” or “manufacturers with
assembly capacities”, with more than half of the components produced being supplied at a first tier
level, but with a significant amount being also supplied at a second tier level (Veloso et al. 2000). The
organizational structure is characterized by a focus on production process and reduced product
improvement, supplying mostly simple components with a low degree of integration (Selada et al.
2003).

1.3.2 The technological dimension

A survey conducted between April and June 2002 as part of the activities in the project A8 –
Autointeriores of the INAUTO Program, allowed acquiring newer and more specific information of
capabilities and challenges faced by Portuguese companies (Camacho 2003). The sample included
companies whose activities addressed automotive interiors products or whose technology expertise
could be directed to that market. A total of 42 companies were contacted, and a rate of response of
43% has been obtained. The sample represents a total turnover of 594 M €, corresponding to around
52% of the total turnover in the components sector for automotive interiors. The following distribution
of company size was obtained based on sales volume in 2001:

18
 Sales in 2001

Average: 33 M€
>100 Standard Deviation: 48 M€

50-100

25-50
M€

10-25

5-10

<5

0% 5% 10% 15% 20% 25% 30% 35%

Number of Companies

Figure 7: Characterization of the respondents

The picture evidences a predominance of medium sized companies. This sample has on average
greater dimension companies – with around 35% of the companies being situated above the 25
million Euro level –, when compared with recent statistics for the automotive component companies in
Portugal (INTELI 2003). It also shows a heterogeneous distribution, consistent with the asymmetries
in company size pointed in the same source.

The materials processed by a firm can constitute an indication of the technological areas that it
controls. The following graphic compares the percentage of companies whose main activities involve
processing a certain type of material:

19
 14 500

Number Companies 450

12 Sales value
400

10 350
Number of companies

Sales value [M €]
300
8

250

6
200

4 150

100
2
50

0 0
Steel Aluminium Cork Rubber Foam Fibres/ Nat. Leather Plastics
Fabrics
Type of material processed

Figure 8: Materials processed

Data presented in Figure 8 provides a description of the materials preferably supplied in Portugal for
automotive interior components (both considering companies and their sales). It can be noticed a
strong presence of plastics producers as well as fibres and fabrics, steel and foams.

Rearranging the data, it is also possible to obtain the degree of specialization of firms, considering the
array of materials processed. As it was shown in section 1.2.3, an automotive interior product is a
complex one constituted of several subassemblies of different materials. A wide array of different
types of materials processed is an indication of an equally wide array of technology expertise and
potentially of increased complexity of the products produced.

20
 60% 70
Percentage of Companies
Average size based on sales
60
50%

Average size based on Sales [M €]

50

Percentage of Companies
40%

40
30%
30

20%
20

10%
10

0% 0
1 2 3 4

Figure 9: Number of materials processed

The majority of firms integrate a reduced array of different type of materials into its products, with half
of the firms considered processing a single type of material, as represented in Figure 9. This fact
demonstrates the low degree of complexity concerning automotive components produced in Portugal,
as already referred above. Still in Figure 9, a similar kind of comparison was made, in order to
account for company size. The group of companies who processes only one material has a very
small average company size, whereas the group of companies who processes two materials a much
greater average size. The remaining groups have a medium average size. This relationship between
company size (given by sales volume) and diversification (given by the number of materials
processed) seams to suggest (at least for the sample considered), that a focus on a few array of
materials is the best compromise between specialisation and diversification, as supported by
extensive literature (Anupindi et al. 1998)

Another indication of the degree of specialisation of firms operating in Portugal can be assessed by
the type of technologies used. Based on the array of technologies that the firms inquired claimed they
dominated, these were divided into four groups. Figure 10 presents the results for each group.

21
 35

30

25

20

15

10

0
Simple Forming/ Welding/ Joining Surface Treatment Simultaneous
Shaping processing
Type of Technology

Figure 10: Typology of technologies dominated

• Forming and shaping – this group includes basic manufacturing technologies based on
mono-material processing in simple production steps. Some examples include steel sheet
stamping, tube bending, machining, plastic injection, fabrics cutting and sowing, among
others

• Welding and joining – this includes assembly processes with additional complexity requiring
the capacity to integrate different parts into an assembly. Some technologies include different
types of metal welding (spot, Mig/ Mag), aluminium brazing, plastics friction welding, hot-melt
bounding.

• Surface treatment – this group of technologies can be associated with a stronger focus on
aesthetics, design and styling, areas where the greatest added value of the component often
resides. These include painting, surface treatment, embossing, soft paint of plastics, laser
engraving.

• Simultaneous processing – it involves production processes with increased complexity, that

often agglutinate a series of steps into a single stage. Some examples are low-pressure
injection moulding over a cover, “pour-in-place” foam injection, “in-mould” assembly, bi-
injection of plastics (two different materials). It demonstrates a higher technological capacity
due to the increased complexity of the process.

Figure 10 demonstrates a predominance of simple processes and a low focus on integration of

components, as well as a reduced emphasis on appearance and sensorial aspects, so important in

22
automotive interiors. It also demonstrates a limited use of complex production technologies involving
the simultaneous processing of different materials and one-shot processes.

1.4 Research questions

The strategy followed so far by Portuguese automotive suppliers is threatened by the increasing
global competitiveness of the industry. Newcomers challenge the Portuguese industry to differentiate
itself from its competitors, moving up on the supply chain and participate on those highly profitable
and technologically advanced activities involving conception, development and production of complex
assemblies making use of innovative materials and technologies. Selada et al. (1999) have
suggested four strategic paths that could foster these changes:

• stronger inter-company cooperation in order to take advantage of synergic interactions

• increase of the added value, both upstream and downstream of production

• evolution on the complexity of products, going from simple component production towards
modular assembly

• demonstrate technological and organizational capacity in order to attract the attention of OEM
and promote an image of innovation and competence at an international level

According to the description of the Portuguese autointerior component industry, there are a number of
limitations in terms of technologic capacity. Section 1.3 has shown that the majority of the Portuguese
companies, when analysed autonomously, are focused on a reduced array of technologies and
materials (Figure 9), producing parts of limited complexity, and with a technology portfolio oriented
towards process with limited focus on complex assemblies and product differentiation technologies
(Figure 10). The focus on process hampers the capacity to integrate different technologies in order to
produce complementary components on a modular construction basis.

However, it is also possible to notice in the Portuguese automotive component industry an increasing
focus and competence building around autointerior components. When put together, Portuguese
autointeriors manufacturers hold most technologic capabilities that it takes to produce an interior
module.

Considering the technological aspects, it becomes critical for Portuguese companies to be aware of
the perceived evolution of automotive components at a product level. This includes different product
configurations, their constituting components, technologies and integrated systems. Having a vision
of such evolution will enable to reduce the uncertainty caused by the fast pace of innovations in the
automotive industry, and the intense competition among its actors.

In order to move from a reactive to a proactive attitude, companies must be capable of mastering
information about future developments in their businesses, beyond the normal planning framework.

23
They should have the knowledge about the whole product and not just remain attached to the
process they dominate. Proactivity involves being aware of future needs in terms of market – in the
case of Portuguese automotive components companies, the needs of their customers: OEM and First
tier suppliers – and being able to anticipate those needs.

It is therefore critical for the Portuguese automotive interior component sector to be informed about
major innovation trends and possible development pathways in this sector. The first research
question for this thesis is:

™ What are the key technologies and materials for the future of the automotive interior
components industry?

In this dissertation a Foresight technique known as Technology Roadmapping was used with the
purpose of gaining insight into the future of automotive interiors. The role of Foresight in the context
of the present work aims at obtaining an extended vision into the future developments of automotive
interior components. By identifying the key technologies and materials, it was possible to draw
evolution paths and introduce the discussion of the implications for the Portuguese autointerior
component industry.

The hypothesis pursued is that the roadmaps will indicate the future evolution in autointeriors for the
modules considered, and that that future vision is consistent with the trends observed in the previous
scanning process. The Roadmaps will also reveal evolution trajectories that can followed the
Portuguese industry.

Having perceived an evolution for the autointerior components, it becomes critical to assess its
implications on the Portuguese industry, in view of their technological capability. This has led to the
second research question:

™ What are the implications of that vision, for the Portuguese automotive interiors industry?

These implications have been analysed at two distinct levels: firstly, concerning the industry in
general, based on the results of a technology survey done in 2002 described in section 1.3; secondly,
through a case study performed in a Portuguese automotive interior component manufacturer
presented in section 4, where the general trends are applied and validated.

From the description of the dynamics of the automotive components industry and the innovation
drivers of autointeriors there are, for a number of reasons, challenging opportunities for Portuguese

24
companies to position themselves with innovative solutions, particularly on niche markets. This
relates, on one side to the volume of production involved (usually substantially smaller) and on the
other, on the choices in design and materials (preferably dissenting with existing mainstream
solutions). There is, in this case, a combined effect of volume and technology that may discourage
global tier one suppliers (the volumes of production are too small) and open up opportunities for
smaller dimension players relying on niche technologies.

The hypothesis is that the existing capacity of the Portuguese autointeriors industry is not prepared to
address future technological needs. In a more detailed way, there is a lack of strategic areas in the
application of new materials, an evolution in product structure towards a more modular construction,
and the clear demand for niche solutions, which represent market needs that are not being currently
addressed by incumbent players, and that can therefore constitute an opportunity for the Portuguese
automotive component sector.

25
2 Methodology
This chapter addresses Technology Roadmapping as an activity within the field of Foresight. In the
first section, a brief overview of Foresight will be made. The second section will present an overview
of the Technology Roadmapping methodologies done in recent years. In the last section, the
methodology followed in this work will be presented, including the definition of the consultation panel
and the description of the procedures adopted during the consultation process.

2.1 Review of bibliography

2.1.1 Foresight: background and definition

Futures studies have achieved growing recognition in the 50’s and 60’s from public initiative to assist
on managing complex and far reaching military projects. The need for such approaches was mainly
due to the following realisations:

• The awareness that the expenditures with research had to be managed with a greater
efficiency and prioritisation couldn’t be avoided

• Technologies were becoming increasingly multidisciplinary and hence the need to bring
together actors that normally would not interact

• The pace of technological change was increasing, requiring a longer vision planning of policy
making and research activities

Helmer-Hirschberg and Resch (researchers at Rand) have established in 1958 the philosophical base
for forecasting in “The Epistemology of the Inexact Science” (Helmer-Hirschberg, O. et al. 1958).
Accordingly,”...in fields that have not yet developed to the point of having scientific laws, the
systematic use of expert judgement and pseudo-experimentation” can be used as a valid source of
knowledge, as long as methodologies are defined, which take that into account. This intrinsic
characteristic implies the definition of suitable methodologies that can enable appropriating this useful
but sometimes spread and unstructured pool of knowledge.

Since their first applications, foresight studies have gained increasing importance in other sectors of
activity – form governments to industry associations, to direct their strategic action, promote the
construction of shared visions or prioritise actions.

A recent definition of Foresight is offered by Miles et al. (2002): ”Foresight is a systematic,

participatory process, involving gathering intelligence and building visions for the medium-to-
long term future, and aimed at informing present-day decisions and mobilising joint actions”.

26
Analysing the key words in the definition above, the following points should be emphasised. A
systematic process should have two basic characteristics: it should be dealt like a broad and inclusive
system constituted by other subsystems; on the other hand, the process should follow an ordered
approach, drawing on a predefined methodology. Several acronyms are often used to define the
kinds of information that should be considered in Foresight studies. A common approach draws often
on the STEEPV acronym (Social, Technological, Environmental, Economical, Political, Human
Value). The subsystems considered are characterised by having strong interconnections and
interdependencies with each other.

The process should also involve a minimum critical mass of participants, representing the interested
parties (government, industrial associations, academia…). These different actors should be involved
in working together to build a shared vision. It should be created an environment that promotes the
interchange of opinions and knowledge. The discussion should inform present policymaking of future
needs, challenges and opportunities.

The recent rationale for organising foresight studies when compared to the first initiatives in the 60’s,
draws on the growing evidence that technologic actions cannot be detached from their implications in
society from a social equity and sustainable development perspective (Castells 1998). Hence there is
an increasing need for tools which enable multidisciplinary approaches and the analysis of complex
realities.

The networking aspects have been equally relevant since the knowledge base required for current
technologies is both extent and diversified. The subject under analysis – the automotive interiors –
clearly illustrates that.

2.1.2 Methodologies used in Foresight

The systematic nature of Foresight Processes implies the use of appropriate methodologies and tools
for collecting, structuring and analysing data. Some of these methodologies consist of Delphi surveys,
Cross-impact Analysis, Trend analysis or Scenario analysis, as well as Technology Roadmaps, the
later being described in more detail on the next section.

As Loveridge (1996) refers, the choice of methods should be eclectic. There should not be a strict
application of one or other technique, but rather the attempt to pursue the benefits offered by each of
the available techniques.

Foresight methodologies can be broadly divided into (i) Quantitative and (ii) Qualitative; the first
drawing heavily on past and current data, such as Trend Extrapolation or Simulation Modelling and
Systems Dynamics, whilst the later with a more future-oriented vision. Miles et al. (2002) make an
additional distinction within the qualitative methods. A further division between methods for “eliciting
expert knowledge to develop long-term visions and scenarios” (Expert Panels, Brainstorming, Delphi

27
Method, Cross Impact Analysis) and on the other hand those methods for “identifying key points of
action to determine planning strategies” (SWOT Analysis, Critical / Key Technologies).

Another classification draws on the relative importance of three different kinds of activities (Cameron
et al. 1996): Different methodological emphasis can be organised in a triangle like in figure 1.
Methodologies with strong focus on the expertise of the participants like “Panels” should be placed on
the apex of Expertise, while science fiction writing, should instead be place next to the Creativity
apex, and so on.

Creativity

Science
fiction

Brainstorming

Scenario
writing La Prospective

Combinations
Essays of Methods
Workshops
Delphi
Impact
Panels Conferences
matrix
Expertise Interaction
Alignment

Figure 11: Position of Foresight Methods on the Foresight Triangle (adapted from Cameron et al. 1996)

2.1.3 Overview of Technology Roadmaps

In this section it will be described the tool utilised in this methodology. First, a definition will be offered
based on recent publications, followed by a description of the most commonly used frameworks and
steps to be taken. Then there will be given an overview of processes where the methodology has
been applied.

Technology Roadmaps (TRM) are one of the tools available in Foresight studies to assist on
gathering, structuring and analysing data collected. One of the main elemental characteristics of
Technology Roadmaps is to map an evolutionary path of technology, product development, R&D
needs or other strategic issues on a time frame.

Galvin (1998) has defined Roadmaps as “an extended look at the future of a chosen field of inquiry
composed from the collective knowledge and imagination of the brightest drivers of change in that
field…”. The underlying definition being: a document representing the evolution in time of a certain
theme, industry or corporation, which, was obtained with the contribution of a diversified group of
leading people, related to that theme.

28
Its visual output should enable the understanding of the complex interactions and interdependencies
occurring between customer needs, technology responses and R&D programmes (Barker 1995). It
should facilitate a systemic approach to foresight studies by enabling the condensation of large
amount of information.

Benefits of Roadmapping

More recently, due to the increasing competitive environment surrounding most firms, other
organizational aspects of TRM have been emphasised. TRM have increasingly become part of an
integrated activity in some greater dimension companies and industry associations, such as the
American Glass Industry (Energetics Incorporated 1997), the Aluminium Industry (ORNL 2000),
Sandia National Laboratories (Garcia et al. 1997) or Philips Electronics (Groenveld 1997) enhancing
the exchange of knowledge between business units (Phaal et al. 1999). TRM have been seen, not
only as mere tools of Foresight processes, but also as a framework for introducing the discussion of
business trends, challenges and opportunities faced by companies governments and academia
(Barker 1995, EIRMA 1997, Phaal et al. 1999, Kappel 2000). Moreover, there should be a clear
distinction between a project and a roadmap exercise. In EIRMA’s words: “A TRM is a living
document and is constantly evolving as circumstances change. It is quite different from a project plan
with its precisely defined milestones and objective to deliver a completely specified outcome” (EIRMA
1997). In each case, the time scales are incompatible, since the uncertainty and risk between the two
are different.

The essence of building a Technology Roadmap implies the following (Probert et al. 2003):

• A team engaged on building a common vision of their future and what they intend to achieve

• A collective learning process where members identify discontinuities and new directions of
evolution

• A team developing a common language, thus improving the communication among its
members

• A process where a team improves its ability to communicate their strategic vision to other
actors – suppliers, customers or partners

• The achievement of a evolution paths in a given sector

As it is implicit above, there are more benefits resulting from TRM than their bare outputs. As Galvin
has put it, “Roadmaps communicate visions, attract resources from business and government,
stimulate investigations, and monitor progress. They become the inventory of possibilities for a
particular field” (Galvin 1998). In this sense, they can be used to guide or support policy decisions as
well as its subsequent application, particularly in the fields of Science and Technology.

29
Coates et al. (2001) go further when referring to foresight studies by stating that one should rather
benefit from the knowledge sharing while working to build a common vision and not be too attached
to the accurateness of the results.

Classification

Several researchers and businessmen have acknowledged the usefulness and benefits of
Roadmapping. However, there isn’t still a systematic procedure to build them.

Many TRM have been built, particularly from the end of the 80’s onwards. It has been estimated a
total of 250 industrial TRM initiatives in the US, many of which supported by the Office of Industrial
Technologies in the US Department of Energy (Probert et al. 2003). The “Next Generation
Manufacturing” was a project developed with the purpose of compiling several TRM conducted or
ongoing at an industrial level in US. A task force was created to gather over 150 contributions
describing the major trends, challenges strategies and goals for the development and evolution of the
North American industry (NGM 1997).

Due to the myriad of applications of this tool, a very diverse set of procedures and outputs has been
pursued. In addition to this, the fact that most of these exercises were done within the business
environment, has contributed for the existence of very heterogeneous approaches.

It follows that classification of roadmap exercises has been a subject occupying many researchers.

Radnor (1998) has divided several roadmap exercises into the following types:

• Industry Roadmaps: Aluminium Industry, Glass Industry, Semiconductor (SIA)

• Technology Roadmaps: Semiconductor (SIA), NEMI Component Roadmaps

• Product Roadmaps: Motorola and others

• Product-Technology Roadmaps: Lucent

Kostoff et al. (2001) have proposed a taxonomy where they organise roadmaps according to their
domain of application and their objective (Figure2). According with the emphasis placed on each of
these two characteristics, one can divide roadmaps into four main groups:

A – Science and Technology roadmaps

B - Industry technology roadmaps

C - Corporate or product-technology roadmaps

D - Product/ portfolio management roadmaps

30
 Figure 12: Taxonomy of Roadmaps (Kostoff et al. 2001)

Kappel (2001) has proposed a different taxonomy based on the roadmap’s emphasis and purpose
(Figure 3). The emphasis of the roadmap can vary between a positioning roadmap, where an
introspective analysis in made and expectations are set, and a trends pursuit approach where a
specific alignment is sought that directs the course of evolution of a given Industry (vertical axis).
Roadmaps can also vary according to whether the main purpose was to gain insight into the industry
or if instead the goal was to address local coordination at a company or even product level (horizontal
axis).

Figure 13: Roadmapping taxonomy (Kappel 2001)

Finally, Phaal et al. (2000) make a thorough description of several types of roadmaps according with
their format and also their purpose. The structure or formats of the Roadmap output are as diversified

31
as the existing methodologies. There can be multiple layers (e.g.: market, product and technology)
roadmaps. It depends directly on the focus chosen and desired output. When dealing with a product
level Roadmap, it is common to link the technologic trends as well as the market requirements with
the product evolution. The idea is to be able to obtain an equilibrium in terms of alignment between
supply push and demand pull forces.

Conceptually, as indicated by EIRMA (1997), TRM processes are basically the same, even though
they “may vary very much in content, scope, detail and level of aggregation”. Its starting point should,
therefore be in agreement with the focus of the process under consideration (type of industry, levels
of analysis, etc).

Table 1: Generic Technology Roadmap, EIRMA 1997

External influences

Deliverables

Technology
Science, skills,
know-how
Internal
Resources External

The above representation, being a generic result, is often impossible to conciliate, in the sense that, if
dealing with a company or a sector, the amount of information is incompressible to such a crystal-
clear format. It is often necessary to divide the themes into more limited branches to assure that the
final output is understandable.

32
Phases/ stages:

The process of Roadmapping involves determined phases to be overcome. In this particular point,
many different suggestions are offered, according with the type of roadmap.

EIRMA (1997) designates the following stages:

1. Pre-project phase

2. Setting up the team

3. Preliminary plan for the TRM-project

4. Processing of inputs

5. Compression to a working document (“the” TRM)

6. Checking, consulting, communication planning

7. Formulation of a decision document (optional)

8. Update

Most authors emphasise the preparation stages as well as the implementation as key stages for the
success of the Roadmapping process. For now, the focus will be on the activities in between those
stages related with the gathering of information and its subsequent processing and “assembly” into a
roadmap format. Considering EIRMA’s proposed structure, this corresponds to steps: 3 – Preliminary
plan for the TRM-project; 4 – Processing of the inputs; and 5 – Compression to a working document
(“the” TRM).

There can be two approaches when building Technology Roadmaps (EIRMA 1997): a top-down or
“backward” approach is taken when a goal is identified and there is a need to find the required
product evolution to achieve it and the necessary technology developments. It is also called a “from
the future” approach. The second one runs opposite to the previously described and is hence named
bottom-up or “forward” approach. It consists of unveiling the potential of an emerging technology on
achieving innovative product features that will address specific future market needs. It is also called
“to the future” approach. The first approach (Top-down) is more suited to market driven businesses,
whilst the second (Bottom-up) to technology driven ones.

It is not essential to impose a clear-cut separation of the two directions of analysis. For practical
issues one should start with the most convenient way according to the subject considered. Both
market and technological trends can dictate an evolution path for a given product or service. The
most important thing is to consider both and manage the equilibrium between market pull and
technology push.

33
In this work, a top-down approach has been pursuit. The reasons for this will be shown in the next
section. The present section follows with a description of other works where this approach was used.

In their “Fast Start Technology Roadmaps” approach, Phaal et al. (1999) propose a combination of
the results of four workshops, resulting in:

1. Identification of the main market drivers

2. Relation between those market drivers and product features that might enable it

3. Relation between the product features and the enabling technologies to achieve it.

4. Construction of the Roadmap

The results of each consultation round (workshop) are to be crossed with those obtained in the
previous one on a matrix. By the end of the process, there should be a direct link between market
drivers and its’ impacts on technology developments. The purpose of that is once again to achieve a
better alignment between demand and supply issues.

In a similar approach, Groenveld (1997) stresses the linking between market needs and technology
requirements: “A typical workshop starts with presentations on consumer needs and technology
trends. It continues by translating defined consumer needs into functional specification elements, and
from there into technologies”.

Industry Canada (1996)15 summarises the steps required to build the roadmap in the following
scheme.

15
Industry Canada, CANADIAN AIRCRAFT DESIGN, MANUFACTURING AND REPAIR & OVERHAUL
Technology Road Map, downloadable at: http://www.strategis.gc.ca/SSG/ad03117e.html

34
 Figure 5: Technology Road Map - Major steps (Industry Canada)

The process starts with finding the market’s requirements and the possible influence of regulatory and
environmental trends.

On a second stage, the supply side is addressed, with the evaluation of the impacts related to market
trends on existing products. In a third stage, the final link is made by examining the technological
needs to address the market’s requirements. It should be noted the non-linearity of this process and
the necessity the make periodic iterations in order to adjust the market requirements and the
technological developments (see picture).

The iterations allow having insight on a bottom-up approach as well and taking in consideration
possible technological trends or limitations.

This alignment is particularly important when considering company level TRM since the knowledge
technology capital available is limited by the company’s strategic positioning. In the case of a cross
industry TRM, as is the case of the one in this research, this issues is not so critical, due to its wider
scope.

2.2 Methodology followed

The autointeriors is a complex theme, as section 1.2 has showed. In addition, most of the research is
done at a company level in very competitive environment. For this reason, there is no readily
available information about the technologies involved and the materials used within the industry.

35
Hence, interviewing different people is essential in order to collect this spread and unstructured
knowledge. Technology Roadmapping provides tools that help structuring the information gathered,
and putting it together on a harmonious, logical and complementary way. Additionally, a Technology
Roadmap is an output that condensates a broad and diversified vision into a single document.

Within the limits of this thesis, it was not possible to conduct a full Technology Roadmapping process.
Technology Roadmapping in the context of this thesis has the primary goal of identifying key
technologies on a European level that can be relevant for the future of this industry in Portugal. The
boundaries of this study are thus set on pointing possible evolution paths to the Portuguese industry,
considering it’s current technologic capabilities. It is not the view of the Portuguese autointeriors
industry, but a preliminary technology perspective that can contribute in the future for building that
joint vision.

2.2.1 Preparation

The technology Roadmapping process started with a scanning of the environment surrounding the
automotive interiors industry. This was undertaken throughout the different activities of the
Autointeriores Project16. These included reviewing of relevant bibliography, the participation on two
conferences on automotive interiors (AutoInteriors 200217 and InterAuto 200218) and the visit to
several companies in Portugal. This initial preparation work enabled an insight into the industry before
addressing the interviewees. It was possible to create a vision of the current composition of the
automotive interiors and identify the industry’s major evolution trends, which were then condensed in
the “Key Drivers” presented in section 1.2.4.

Based on this background work it was also possible to prepare an inquiry outline (see annex A) to
provide guidance to the interviews. Since this was built on the vision that resulted from the preliminary
scanning work, there was a concern about bias. However, the questions were open enough to allow
the interviewees to freely express their views, minimising the possible preconceived notions that
might have followed-on from that fact.

2.2.2 The Consultation Process

After the initial preparation work, it was then possible to address the consultation panel.

16
Autointeriores – Activity A8 of the INAUTO Program. This program has been promoted by CEIIA and
coordinated by INTELI
17
www.autointeriors.com
18
http://www.interauto.co.uk/

36
The interviewees were selected from lists of participants involved in other projects relating with the
automotive industry in UK, namely the UK Foresight Vehicle Program. Further contacts were
indicated in a “snowball effect” by the first interviewees. There were contacted people working at
different levels of the supply chain, namely: OEM, 1st and 2nd tier suppliers, raw materials producers
and research institutions and university related groups. Considering the typology of the interviewees
there was also a variation. Both “technologists” and “strategists” were interviewed. As an example,
there was an interview to a senior researcher in an automotive research centre, a senior engineer of
materials design in an OEM’s European Technical Centre, a European Program Manager from a
multinational materials supplier, or a Group Leader of interior trim development.

Table 2: Time frame of consultation process

March 2003 April 2003 May 2003 June 2003

Interviews

Processing of
results – Draft
TRM

Feedback on draft
TRM

Final TRM

The first stage in the consultation process lasted from the beginning of March until the end of April
2003 and consisted of face-to-face interviews with an open-ended questionnaire. The second
interaction, which consisted of email exchange of information, lasted from that point on, to the
beginning of June of 2003.

The interview started with the exposition by the author of a personal current view of the object of
study, which had emerged from the previous scanning process. This information was to be completed
and validated by the interviewee. Then, the interviewees were presented with seven “key drivers” of
innovation for automotive interiors19. They were asked to sort them by order of importance for each
module of the automotive interiors considered. Then, for each module, the interviewees were asked
in a systematic way about the implications of those drivers in the materials, technology and product
evolution. The interviewees were offered tables to fill in their responses20. The answers were
transmitted both written directly onto the inquiries or orally, for which a tape recorder was used.

19
The driving forces are described in section 1.2.4
20
See annex A

37
During such process, it is not sufficient to ascertain obvious trends but also to unveil emerging
developments that might induce technological breakthroughs or significant changes in evolutionary
paths. This was also inquired. It is critical for performing Forecasting that there is enough room left for
diverging. In order for experts to express their visions, aspirations, desires and hopes, total freedom
should be granted. As Winzenried (2001) has put it, “In dealing with the future, we are not dealing
with the concrete realities of human existence. Rather, we are dealing with hopes, aspirations and
plans. Since different people will have different hopes, etc. then the best way to "analyse" them would
appear to be by comparing as many as possible to each other”.

After each interview, the information was collected (tape recordings, notes taken during interview,
notes done by the respondent) in a text document, organized and systematized. Typical
systematisation consisted on grouping the information accordingly with each module or generic
industry trends, associating driving forces with possible transformations, attribute a date of occurring
for each event, as well as its enabling factors. This document was then sent to the respondent to be
completed and validated.

After the first round of interviews was complete, a first draft Roadmap was drawn, by “assembling” all
the inputs gained from the consultation into a single document for each autointerior module.

The same interviewees were then consulted once more and asked to give a feedback about the
complete structure. They were also asked to sustain their visions, should they be dissenting with
common opinion. These feedbacks were integrated on the existing draft document, which led to the
final version of the roadmap. This procedure of individual consultation followed by a second round
iteration is similar to that followed in Delphi surveys (Loveridge 2001, Miles at al. 2002). The method
brings some advantages, relatively to brainstorming sessions with a wide number of participants,
typical of Technology Roadmapping exercises. According to Miles et al. (2002): “Delphi was designed
to provide the benefits of a pooling and exchange of opinions, so that respondents can learn from
each others views, without the sort of undue influence likely in conventional face-to-face settings
which are typically dominated by the people who talk the loudest or have most prestige”.

2.2.3 Construction of the Technology Roadmap

The TRM resulted from the methodology described above, which can be summarised into the
following steps:

1. Creation of a vision of the object of analysis in 2003

2. Analysing the main trends driving innovation in product design, materials used and key
technological developments.

38
 3. Specifying the major transformations, identifying key technologies and materials and assigning
them a date of most likely occurrence at a widespread level throughout the industry.

4. Analysing the enabling key technologies in order to achieve the desired product features

5. Drawing a graphic representation of the perceived evolution in terms of product design,

materials and main technologies over the next two product generations

6. Identification of possible research trajectories for each module in order to achieve the desired
future

7. Constructing a vision of the desired future for each module

Time Shot Medium Long

Status quo Vision
Module term term term
Component A
(e.g. Structure)

Component B
(e.g. Foam)

Component C
(e.g. Covers)

Figure 14: Methodology followed for the construction of the TRM

As it was mentioned before, this process is far from being linear and thus some iteration had to be
made. The first interviews allowed asserting whether the inquiry was suited to collect the information
needed. The information about the market requirements was confronted with the technology
developments suggested in order to assure that the later addressed the needs of the former.

While assembling the data, the greatest challenge is to handle the information in much diversified
formats. The qualitative nature of the interviews performed doesn’t always allow having readily
available systematic information, independent on the author’s effort to do so.

The approach was bottom-up. This means that the analysis started with a description of the current
vision of the automotive interiors. The visions for 2003 – the “status quo” – consisted of a brief
description of the following aspects: the constituting sub-assemblies of each module, the most
commonly used materials and technologies, and a few observable trends.

39
The analysis then took an exploratory procedure by judging the influence of the “key drivers21” in
product evolution, materials and technologies relative to the previously defined current vision.

When drawing a Roadmap it is desirable to establish links between “status quo” and the farthest that
the experts can go with their predictions (the desired vision), independent of eventual diverging paths.
In order to strengthen those links, which are often incomplete due to the lack of information, the
second interaction was done. This served, not only to promote the share of visions, but also to
complete some of the information that was not possible to unveil during the first interaction.
Additionally, based on the results of the interviews a future or desired vision was consolidated (for
each module and for each market segment), which was also subjected to the participants’ comments
in the second interaction. This vision seeks to introduce a top-down exploratory approach into the
methodology.

The main challenge of this stage is the degree of participation. It is extremely difficult to maintain the
participants engaged and motivated all along the process and this was observable by a lower
response rate in the second interaction.

2.2.4 Product Segmentation

During the consultation process it was possible to notice that the evolutions would be better described
in terms of visual output if it were to be divided according to market segments. Market segmentation
results from the fact that a high specification vehicle manufacturer has different priorities relative to a
lower specification one, when making their choices of materials and technologies.

From the first round of consultation, it became clear that there is not a single solution for each
module. The evolution in the auto interiors is strongly influenced by two variables. These are the
vehicle’s specification level, and the production volume. The segments considered are High, Medium
and Low, and vary according to what is presented on the next table.

Table 3: Variables influencing product segmentation

Variable
Volume Specification
Segment

High # ###

Medium ##/ ### ##

Low ### #

21
Presented in section 1.2.4

40
High Segment

The High Segment is characterised by a high specification level and considerably reduced production
volumes. The comfort and quality requirements influence the materials used, resulting in demanding
sensorial properties of covering materials.

The performance of semi-structural and structural components is also a priority in this segment and
for this reason weight reduction and optimised structures is a major goal.

The integration of comfort, functionality and connectivity systems is done on a continuous cycle and
on an anticipated way relative to the lower segments, to maintain product differentiation.

Modularity is driven by performance and functionality, without compromising appearance and quality.
Excessive modularity and physical integration may introduce design constrains and hinder the
utilization of certain materials thus forcing the adoption of compromise solutions22.

The key drivers with less influence in this segment are cost reduction and environmental impact.

The choice of materials and technologies is greatly influenced in this segment by existing expertise.
Constructors in the high segment tend to be conservative and technology change is done when
enforced by regulations or when there are proven benefits to the end product.

Medium segment

In this segment the specification of the materials chosen will have to follow a compromise between
cost and performance, in which the first will have a greater importance, if compared with the high
segment.

The integration of components is more present particularly for high production volumes (Volkswagen,
for example), in order to reduce cost associated with assembly. In lower production volumes (MG-
Rover, for example) however, there might not be such significant cost advantages resulting form a
greater integration and modularity23. (Sako, et al. 1999)

The adoption of new solutions is usually delayed in relation to the High segment, although earlier than
in the Lower segment so that product differentiation is preserved.

22
An example of the introduction of constraints in design is the integration of mechanisms (door lock or window
regulator) on the door interior panel. As a result of that integration, the outer surface of the panel can show
bumps and grain definition problems in these areas where connection points have been placed, which imply that
these should be concealed.
23
Interview with interior trim Group Leader on a European OEM

41
Low segment

The choice in materials on the low segment is strongly influenced by cost reduction. Environmental
issues are having as well growing influence. High production volumes associated with lower profit
margins, make the end of life processing in this segment be considered with greater concern. There
is thus a preference for the adoption of mono-material solutions allowing an effective dismantling and
subsequent processing of end products.

The lower requirement in this segment favours the use of rigid uncovered interior trim panels obtained
in the final colour (moulded in-colour) with a lower tactile quality relative to higher segments. The
adoption of new solutions is delayed in relation to the higher segments.

Limitations of this division relate to the negative issues associated with generalisation. There is a
limited capability to assess pioneers in the introduction innovations and there is also a limitation in
detecting non-mainstream solutions that constitute an alternative path to what is established and may
be concretised in niche segments.

This has led the establishment of a different division for the seat module, which is presented in the
results section.

42
3 Technology Roadmapping in Automotive Interiors
The next section presents the results of the prospective analysis to the autointeriors. It starts by
presenting a current vision of those modules concerning the product structure, the most commonly
used materials and manufacturing technologies. The section follows with a description of the
roadmaps obtained for each module.

3.1 The modules under analysis

This section presents a vision of what the modules under analysis are – its constituting
subassemblies, the materials used and the most common manufacturing technologies, as well as a
brief description of their main evolution trends. The modules under analysis will be disaggregated into
its basic components. The process will stop at the level of “black-box” systems (a seat belt, an Airbag,
where the complexity of the component increases), or of simple components (steel bar, simple
injected plastic component) on which the connection with the production technique becomes clear. It
should be noted that the division in subcomponents intends to be representative of the current
situation. It doesn’t mean that this configuration is uniform throughout the industry, or that it is static.
In fact, the results show that product architecture is both heterogeneous and dynamic in this industry.

The unit of analysis consisted on the modules door, instrument panel and seat. A further division was
made of the modules into its most common subcomponents: structure, mechanisms or foam and
covering. Market segmentation has also been considered since the choice of materials and
production technologies, as well as the integration of systems is strongly influence by the vehicle’s
market segment. The choice of these particular modules has to do with the fact that they present a
good example of the complexity associated to the automotive industry, as is demonstrated by the
disaggregation done in this section.

In spite of many on the subassemblies that belong to the modules considered not being related
directly with the interior, it is essential to have an understanding of its composition since this affects
the whole module’s constitution. Some components although treated here as separate subassemblies
are often produced in an integrated way and the evolution trend is for their increasing integration and
modularity. An example of this need to be inclusive is the door module, where trends point towards
the supply not only of the interior trim panel with integrated inserts, but also the integration of the
doors mechanisms and the supply of the whole door module.

3.1.1 Door Module

Starting with a door module, several configurations are being proposed from both OEM and suppliers.
Generically, a door can be divided into three physically and functionally separate components: an

43
 inner trim panel which covers the door from the interior side of the vehicle, an exterior structural panel
which covers the door from the outside and assures the resistance of the door against impacts and in
between a set of mechanisms that ensure the door latching and the elevation of the windows, often
grouped into a cassette module, the hardware cassette (Figure 15).

Door

Exterior Structural Panel Harware Cassette Interior trim Panel

Hardware Carrier Substrate Skin

Body Panel Metal Frame
Latch and Hinges
Door Lock
Side Impact Protection
Window lift
Loud Speaker
Water shedder
Wiring harness

Figure 15: Door Module Subcomponents

These components have been supplied separately. OEM usually take on the exterior structural panel,
mostly due to the fact that they are still keeping the development and production of body-panels. The
hardware mechanisms are often outsourced to specialised suppliers focused on metalwork and
black-box assembly, and the interior trim to plastics supply industry.

Recent trends reflect the intention of some suppliers to produce the entire door module, structural
parts included. In this context, a broader perspective of the module is needed, since many options are
present concerning product configuration. As an example, the structural resistance can be assured by
the exterior panel, or then by the hardware cassette (which would act as a side intrusion beam); the
hardware components may be attached to the interior trim panel, or directly to the structural
components of the door module. These different product configurations were explored during the
consultation process and the roadmaps will provide insight into possible evolution paths.

Current vision

Inner trim

As an interviewee has put it24, the challenge for a door interior trim is “getting the soft feel plus the
rigidity of the component in an environment friendly way”. Currently, there are several options for
constructing the door trim panel. The choice depends on the vehicle specification level. The most
commonly used are:

24
Interview with a senior researcher of a university-related automotive group

44
 • Injection Moulded-in-colour of Polypropylene (IMiC PP) for a low specification level

• High Pressure Injection Moulding of Acetyl-Butadiene-Styrene (HPIM ABS) covered with a PVC
or TPO skin for a medium specification vehicle.

• Low Pressure Injection Moulding PP covered with PVC or TPO skin for a medium specification
vehicle

• Compression Moulded Natural Fibre or Wood Agglomerate also covered with PVC or TPO
when the specification level is higher.

The moulded-in-colour option is usually used only when cost reduction is a major priority. This often
happens in small sized high volume vehicles or working vehicles (vans, light tucks). From a recycling
point of view, this option performs quite well, due to its simplicity and reduced mix of materials.

For the Medium segment vehicles, the two options presented are the most common ones. ABS
presents as advantages a better crash performance due to its energy absorption capabilities. It is
often associated with PVC due to its reduced cost. The major advantage of using TPO is the
possibility of recycling the part. This happens if the whole part is made from PP base material only. If
the substrate is made of ABS, this option becomes more expensive or even technically impossible. It
allows producing thinner walls when compared to the LPIM PP. The PP based solution presents a
better compromise between cost and tactile properties. The possibility of recycling is better since it is
a mono-material solution if a TPO skin is chosen. Temperature stability during use for PP causes
excessive flexibility in very hot environments, and can cause the material to become brittle at low
temperatures, thus constituting a disadvantage in relation to the ABS based solution.

The forth option – Compression Moulded Natural Fibre or Wood agglomerate – is considered the one
that offers the best performance. It offers the lowest specific weight, the best side impact absorption
characteristics and a good dimensional stability that makes it suitable to be used in a wide range of
temperatures. Its higher cost and its limited possibilities to recycle once covered by a skin are the
down sides of this solution.

Hardware carrier

This component is responsible for carrying the mechanisms mounted on the door. These include the
window lift mechanism, locks, wiring harness, various switches, loud speaker, cable for door latch.

Due to its considerable complexity, it is a high assembly labour content part. The integration of all
these mechanisms outside the assembly line can reduce significantly time (and therefore costs) of
manufacturing and potentially improve quality and reliability.

45
However, cost advantage may not be straight forward for low production volumes (less than 50.000
vehicles per annum25) (Sako et al. 1999). The figure bellow presents an example of an interior trim
panel with integrated hardware26.

This picture represents an inner trim

panel. In addition, this panel has an
integrated hardware which can be seen
on the bottom picture where the photo
has been taken from the opposite side.

Figure 16: Example of an Interior Trim Panel and Hardware carrier (Grupo Antolin)

Exterior Structural Panel

This component assures the structural integrity of the vehicle’s door. It is usually composed by a
metal frame of pressed steel and an impact protection structure consisting of extruded or stamped
profiles. An example is presented on Figure 1727.

There is a trend for the use of lighter materials such as aluminium and high strength steel which can
be observable in high specification vehicles and Sport Utility Vehicles (SUV).

25
Interview with Interior trim engineer of a European OEM
26
Gupo Antolin – www.grupoantolin.com
27
Rautaruukki – www.rautaruukki.com

46
 Figure 17: Door Exterior Panel (Rautaruukki)

3.1.2 Instrument Panel

This module is part of a larger assembly often called the “cockpit”. Due to current trend on integration
and modularisation it is coherent to consider the whole subassembly including structural elements,
such as the cross-car beam and instrumentation, like telematics, airbags, and the instruments cluster.
Many OEM require the supply of these elements in a modular architecture, so a supplier who wishes
to position itself in this market, should consider such product configuration.

Current vision

There are at the moment two types of instrument panel substrates: the rigid panels and the soft
panels.

The rigid panels are often obtained in a single material or an assembly on different mono-material
parts (inserts). These materials can be injection moulded PP, injected ABS, or sheet-moulded
thermoplastics such as SMA.

The soft panels are mostly used in low specification vehicles due to cost constraining and are usually
obtained by injection moulding “in-colour” of different thermoplastics.

The soft panels are constituted by three layers of materials:

• supporting structure

• Foam

• Skin

47
 Instrument Panel

Support structure Foam Skin Cross-car Beam Systems

Telematics

Airbags

Intruments Cluster

Figure 18: Instrument Panel Subcomponents (soft panel)

The supporting structures are usually constituted by an injected thermoplastic part reinforced by a
metallic component, similar to that for the hard panels. The major difference is the fact that in the hard
panels, the surface is exposed, so aesthetics have to be foreseen, whereas for the soft panels, the
finishing touch will be given by the skin. The materials used are diversified – PP, SMA, ABS/PC,
although there is a trend towards the use of PP.

The foam is usually made of PU although there is a trend towards the used of cross-linked polyolefin
in order to obtain a whole PP panel solution.

The skins are produced in various materials and have been the focus of attention for a while due to its
importance for the interiors aesthetics and performance.

This module can also integrate a cross car beam for structural purposes and an array of systems as
indicated in the next figure. Much research has been recently done over the optimisation of
Instrument panel design, namely the development of the cross car beam. This structural component
has been used to support the instrument panel and its sub components, but it caries out other
functions: it is often projected to provide structural resistance to the body structure and a support to
the steering column28 (which should be steadily positioned during collisions to enable correct air bag
deployment). The main driver for the use of cross car beam is crash performance, but in the case of
big, complex instrument panels, it facilitates modularity. Additionally, a modular panel performs better
in terms of dimensional stability. A stiffer structure allows tighter tolerances and has fewer
propensities to develop rattling noises and vibrations29.

28
Interview with the Manager of Interior Safety Research in a European OEM
29
Interview with the Manager of the Cockpit Area at a European OEM

48
 Figure 19: Instrument Panel composition (GE Plastics)

As it was said above the systems will be treated as black-box assemblies since their analysis is
outside the scope of the present work.

3.1.3 Seat Module

The seat module is considered to be an assembly where modularisation concept has been taken
further. Due to the requirements that it needs to accomplish, the design of seats has been quite
regular throughout the industry.

Current vision

It is generally divided into the components and subassemblies indicated below (Figure 20).

Seat

Frame Foam Cover Systems Mechanisms

Lumbar support Reclining

Head rest Longitudinal

Climate systems

Anti-fatigue systems

Integrated Seat belt

Figure 20: Seat Module subcomponents

49
Other product architectures have been proposed in smaller scale niche vehicles, but so far, the
structure presented above is dominant. The systems for any of the modules considered are referred
as an example and its integration is generally dependent on vehicles’ segments.

Once again, some of the seat’s subassemblies will not be considered in detail on this work, since
their composition is too complex. In the case of the seat module, emphasis will be given to its frame,
foams and covers.

Frame

The seat’s frame is usually composed by a metallic structure and a series of adjustment mechanisms
(hinges and locks), which support it and enable a number of freedom degrees to adjust it to the
occupant – longitudinal, tilt and height. It is usually made of steel through traditional processes – tube
bending, sheet stamping, welding. Currently, seat structures are produced in very large scales since
the nature of the seat enables the sharing of components throughout different models (Figure 21).
They are very optimised as well, so further developments are usually made through the utilization of
lighter materials – aluminium, magnesium, high strength steel or even fibre-reinforced thermoplastics.

Figure 21: Seat frame (Faurecia)

Foam

The foam is made of flexible PU to offer comfort and ergonomics. There has been a progressive
elimination of metallic clips, which were often embedded on the foam and hold the cover in place with
the desired shape; these have been replaced by Velcro strips made of thermoplastic materials.

Covers

The covers are made of very different materials including natural leather, synthetic skins – PVC or PU
– or webbed fabrics – nylon, wool, polyester or natural fibres.

50
The seat can also include several systems for increasing its comfort or safety. These include climate
systems, lumbar support, armrest, active head restrain (to prevent whiplash injuries), airbag,
integrated seatbelt, anti-fatigue systems.

Figure 22: Sectioned seat (Lear)

3.2 Results

In this section, the results of the consultation process are reported. In this process, information was
gathered about the key technologies and materials for the door module, the instrument panel, and the
seat module and their time of adoption at a widespread level throughout the autointeriors industry.
Based on this information, evolution paths have been drawn for the autointerior modules mentioned.

Two types of results will be presented. In the first section, there will be described Industry trends that
were brought up by the interviewees and that were not systematic enough to be introduced in the
roadmaps. In following section a Technology Roadmap will be presented for each of the autointerior
modules considered: door module, instrument panel and seat module.

Whenever possible, there will be given an anonymous reference of the source of information. Due to
the secrecy compromise assumed, a full indication of the source will not be provided.

3.2.1 Industry trends

During the consultation process, beyond addressing the inquiry, most respondents included other
statements, opinions, hopes, and beliefs, which are essential to frame this research and complement
the summarised and systematic type of information, portrayed in the Roadmaps. By presenting these
insightful comments this section provides a more descriptive vision of the industry.

51
There will always be market for low cost high volume cars, although these will tend to have increasing
features as these become more common and affordable.

High segment customers tend to be more conservative. This is the segment where it is less likely
occurring radical changes; the strategy being “stick to what they know, and won’t change unless they
have to”30. One of the reasons for the resistance to change is the high quality standard these
customers expect. Leather utilization illustrates with clarity this point. In this segment there is a high
demand for this material in trim areas, such as the instrument panel, the console, de door module,
and most important, the seat. In the door module, the utilization of leather compromises the
recyclability of the trim panel.

Modularity in autointeriors isn’t still a rule, and it is only likely that it becomes one in the mid to long
term. Although there is a continuing trend for outsourcing, there are limitations in terms of the degree
of modularity of the several components (modules) that constitute the interiors. Considering the
modules under analysis, the degree of modularity is quite different. For the Instrument panel and the
seat, the modularity is almost complete even for low production volumes. Considering the seat, this
means that most of today’s vehicles, independent of their segment or production volume, receive on
the production line fully assembled seats that need only to be fitted. As for the instrument panel, there
are still some minor assemblages done in the production line, particularly in the case of very complex
ones.

On the other hand the door module has not such an extended degree of modularity. There is some
degree of integration (integrated inner trim, integrated hardware module) in high volume cars, and
only few examples of door modularity: the smart car, where a complete door is delivered ready to be
fitted into the car body, and the Porsche Cayenne/ VW Touareg where a structural door is delivered
and the OEM simply attaches the inner and outer panel.

Once again the issues of vehicle volume and specification are paramount to understand this
difference. The production volume dictates primarily the bargaining power of an OEM. The
outsourcing of modules and systems is much dependent on the volumes of production involved.
Besides, there will be more difficult in the case of low volume medium spec cars (MG-Rover) because
of uncertainty of cost advantage; reduced bargaining power of small OEM doesn’t make it profitable;
installed capacity (labour and tools);

On the other hand, according to an OEM, the capability of 1st tiers is yet to be proven31, in order to be
possible the transition of the modules development to suppliers in a generalised way.

30
Interview with a Senior Engineer in an Engineered Polymers Multinational Corporation
31
Interview with Senior Materials Design Engineer from a Japanese OEM

52
As for the trends relating to full integration of the interior, once again there is not one unanimous
opinion, except that it requires long-term relationship with supplier. For some of the interviewees,
there is a big risk from the OEM of being too dependent on the supplier. This is particularly critical for
smaller dimension OEM. Being dependent of a single supplier, smaller OEM might be forced towards
price increases. The loss of brand differentiation32 was not seen as a critical issue, as long as OEM
do not outsource engineering development as well.

On the supplier’s side, there is a believe that the move to full interiors systems will become inevitable
essentially due to the more competitive nature of the suppliers. Another argument is that it would be
very difficult to have a supplier with expertise in every module.

As for the risk of information leakages, this is considered to be equal for OEM and suppliers – there
should be mutual trust.

Accordingly to one of the interviewees33, there is still an unsolved conflict relating with the view of
suppliers and OEM: the former seeing vehicles as made of components and systems and the later
viewing it as a sum of successful functionalities. Suppliers seam to have understood the importance
of design modularity and consequently, of going further than the simple choice of components, but
OEM don’t seam to want to grant too much autonomy to their suppliers.

There is a need to distinguish “Physical” and “Functional” integration. The underlying difference being
that in the second case, there is a synergic gain in from the integration of two components each with
its function, which is superior to the sum of the parts. Physical integration can solve some problems
(assembly, weigh) but for being profitable, there is a need to deliver more functionalities

New experimentations in automotive interiors:

There is an aspect, which has to do with the wide demand for diversity, and variability, which makes
room for some experimentation to occur in this industry. Some technology trials can be done on niche
vehicles - the environmental friendly car, the ultra-light-weight car, or the ultra-comfortable car,
among others - but once these concepts are proven, these will be progressively included in higher
volume cars. Niche vehicles work as incubators of new technologies.

32
The pursuit for additional profit and bigger scale has been leading to rationalisation of components and its
sharing throughout several models of vehicles. There are concerns that vehicles might start loosing their brands
distinctiveness.
33
Interview to a Researcher at an Automotive Industry Association

53
Environment

Environmental issues are gaining increasing importance particularly in Europe due to increasing
legislation forcing manufacturers to address it. Its importance is related with the fact that vehicle
manufactures are now responsible for the whole product’s lifecycle.

Accordingly, the use of the vehicle is considered to be the stage where this impact is greater.
Environment is being firstly addressed through weight reduction, which will translate into a reduction
in vehicle’s emissions. With growing importance, the end of life of vehicles is also being considered
(ELV Directive 2000). If not thought of during development, the disposal of vehicles and its
components can signify a considerable cost burden. This is more critical for high volume producers
where profit margins are narrower.

Materials

There are some moves towards the replacement of materials. In the trim areas, PVC is likely to be
used in the short to medium term. After a move towards its replacement, some OEM have adopted it
recently again, due to its good quality finish at a low cost. However, in the medium term, the trend is
towards its elimination.

Polyurethane is being increasingly used in trim particularly in high specification vehicles to its soft
touch characteristics. This is likely to continue being used in these vehicles with relying on spray and
powder slush technologies. In the medium specification vehicles, the chosen material is more likely to
be Thermoplastics Olefins, driven by the demand for an all-polypropylene solution.

In the upholstery, it is unlikely that PU be replaced. Its comfort feeling is difficult to match by other
materials. There is a trend for the use of other types of upholstery in niche vehicles where weight
reduction is paramount. Their application is marginal and consists of membrane type upholstery of
diverse materials.

Composites will have an increasing demand in structural applications (e.g. seat frame) or energy
absorption elements. Its application is though to become cost effective for small production volumes34
(about 150,000 per annum). However, it should be restricted to high specification vehicles.

Hybrid materials have been seen with a great potential of application in interiors. The association of
metals (steel, or aluminium for extreme weight constraints) and plastic enables to benefit, both from
the strength of the former and the flexibility of design of the later, with the advantage of a weight
reduction due to part integration.

34
Interview to a Senior Researcher of a Automotive Research Group at a University in UK

54
Safety

In addition to what was said previously in the description of the key drivers, many car manufacturers
have been using safety as a marketing advantage. Much of the trends relate to the importance that
OEM give to providing a safety image, and the results obtained on the EuroNCAP35 tests are one of
the most influential measures. The integration of certain safety systems is often determined by “how
important it is to achieve the 5 star results or reach where everyone else does with 4 stars”36.

Other factor that may gain increasing influence in product architecture and safety features relates to
the influence of insurance companies, who in the event of a crash have to support the costs of vehicle
repair and health care37. Thatcham,38 a motor insurance repair research centre has been acting on
two fronts:

• Assessing vehicle’s safety in the event of crashes and consequent injury of the occupants

• Assessing product architecture of aftermarket parts in order to evaluate repair costs

This provides more specific background information to inform insurance companies on the insurance
policies to charge.

Manufacturing

Considering manufacturing trends, there is a strong tendency for the elimination of processing stages.
The elimination of painting and paint-shops and the search for “one-shot” solutions are two examples.

In the first case, a solution resides on the use of self-coloured plastics, such as self-coloured
thermoplastic olefins – a plastic clad vehicle. For body panels, for example, these can be co-extruded
over a supporting metal structure.

On the other hand, one-shot technologies relate to simultaneous injection and stamping technologies.
It results from the need to obtain in one production stage a finished part with several functions given
by different layers of material. A final part can be obtained resulting from the bounding of virgin
material for surface finish and recycled one as filler or even different materials with complementary
functions.

Need for a better coordination between design, engineering and production departments. The
complexity of the finished parts associated with a long supply chain characteristic of this industry
make this communication process between the different business units (design, engineering and

35
http://www.euroncap.com/index.php
36
Interview with Safety Systems Engineer from a European OEM.
37
Idem
38
http://www.thatcham.org/

55
production) increasingly challenging. This calls the need for better and more articulated
communication between these parties and innovative organizational structures (Holman, R 2003).

The next section will present the Technology Roadmaps obtained for each autointerior module
considered.

56
 3.2.2 Door Module

Door Module
2003 2007 2011 2015 2019
High Spec Aluminium

Struct. Panel: Steel, High Transition NV LVol, single

steel processing strength to HSS component: hinge +
Hardware Carrier: steel cross beam + latch Low weight metal structural
Steel, some panel; integral hardware
integration cassette; No compromise for
Trim Panel: CMF/ NV, polymer quality of Inner panel;
Wood Aglom. + PVC/ ntegration of technology - Integration driven by
TPO/ Leather/ fabric functions: hardware Carrier: LGF ScTfO performance and weight
(always covered) in cassette + impact thermo- plastic
(07)
Trim material chosen
according to regulation
and customer: Further
increase of leather?
Medium Spec
ExtPanel: Steel,
Struct. Panel: Steel Beam: High Aluminium with some parts
strength steel Further integration – in HSS
Hardware Carrier:
EPP blocks for Structural cast carrier Compromise between
Steel, Integration Integration of
energy cost and performance
depending on other Hardware and
management Integration for Strong integration due to
factors (volume, ExtPanel
high production scale
knowledge bases,
volumes Increase
Contracts…)
use
Trim Panel LPIM one-
composites
shot PP or ABS + TPO
or PVC skin All PP solution Integration of
(ScTPO, High hardware + trim
scratch resit.?) + absorption
Low spec: Transition to
Struct. Panel: Steel, Low Spec?
Mono-material, cost
steel processing When?
limited; more intelligent
Hardware Carrier: For when integration in use of trim – integration
Steel, little integration Elimination of Low Spec? (Structural into structure?
PVC in skins Panel + Hardware + All plastic solution: outer +
Trim Panel: IMiC PP/ absorption) inner sandwiching
Sc PVC (HVol.) For next 5 years IMiC PP - Trim merging with hardware components (18’)
Sub B cars rest of door

57
 3.2.3 Instrument Panel

Inst. Panel 2007 2011 2015 2019

2003
High Spec Cross-car beam, Mg replaces Fully assembled and tested
Mg some plastic module with integrated cross car
Structure: ABS/
Any future for it? content of beam;
SMA IM over
HyF HSS Possible use in structure Touch and appearance driven;
cross-car beam. GRF PU or RIM
Foam: PU structural PU med Spec? No compromise for quality;
Skin: PVC, PU Whole PU increase use of telematics;
slush solution? dispersed thermal systems; use
of translucent effects(e.g.
PU foam XLPO Separate Soft topper personalized displays); safety
Alternative foam? and hard unpainted Back-lid displays ? elements imposing relocation of
thermal lower panels Nano-clay, metalocene components – airbags, knee
systems Growth of tech (PP based) bolsters.
powder slush, Spread leather-
away form PVC like skins

Medium Elimination of Need for an environment

Spec Cross-car beam friendly, cost effective, good
Coming down
Structure: PP to Med Spec: appearance solution: PP
based with cross- SMA thin when? based? ; no cross-car beam;
car beam or ABS PP based
walls, no beam technologies coming down
based without FGR, no
PP with varying from High Spec
beam XLPO beam
density for
Foam: PU, need comfort + energy foam?
for improving Merging of foam management
XLPO foam and skin? Foam + skin: soft feel with mono-
Skin: ThC TPO or Increasing PU and PVC material one shot solutions –
PVC; soft paint Slush skin, TPO TPO, if environment legislation
over ABS thermo-covering maintains trend
Modularity still 90% of high volume Full integration
difficult due to cost cars have modular IP including
Low spec: No Cross-car beam.
and reliability electronics
Structure: IMiC PP Modular mono-material low-
Polymer structure: Xenoy
Foam: none? cost solution – no cross-car
(PC/PBT), GFR TPO
Skin: none or Sc beam; room for translucent
PVC (HVol.) Translucency in materials addressing
Soft panels niche or low spec cheerfulness, functionality,
cascaded down cars personalization

58
 3.2.4 Seat module

Seat Module 2003 2007 2011 2015 2019

Conventional
Design HSS with HyF enabling Further optimization
some optimisation of Steel with HSS
(High spec) components
Structure: Steel frame, Improved integration with Conventional design, comfort
stamped parts ISOfix system car body (eliminating –oriented, multiple
Active Head Plastics allowing more structural redundancies) –
combined with bended integration with trim – adjustments, differentiation
tubes Restrains implications? in gadgets, quality of covers
Progressive reduction HSNy, GFR PP
Foam: PU, variable of thickness and foam design
density, no room for maintaining resilience
XLPO (compression
ratio)
Covers: leather, Flexible and configurable
Conventional trimming, arrangement – light weight,
woven fabrics,
finish depending on foldable, storable – mix of
acantara
3D fabrics specification level conventional design with slim
(spacer) approach (e.g. MPV)?

Alternative
Approach Increased use of
(niche composites or hybrid
vehicles) structures in NV? Fully integrated cast, light-
weight solution –
NV - Membranes: personally personalised structure - Mg,
formed cushion? Al, Composites or Hybrid
materials

59
4 Case Study: Application of Technology Roadmapping
to a Seat module manufactured in Portugal

4.1 Introduction

In this section, results obtained in a prospective study will be used to infer implications on current
production of automotive interiors in Portugal. Based on a foresight methodology, a Technology
Roadmap has been produced offering distinct evolution trajectories for automotive seats.

A seat currently in production will be used as a case study for the analysis. The following aspects
will be considered:

• the seat’s constituting components,

• the materials employed

• the technologies used to produce each part

The seat under analysis will be disaggregated into its basic components. The disaggregation
process will stop at the level of “black-box” systems (a seat belt assembly, an articulation
belonging to the structure, where the process gets too complex), or of simple components (steel
bar, simple injected plastic component) where the connection with the production technique
becomes clear. The analysis will take into consideration the parameters referred above and will
apply the changes expected according to the corresponding evolution path.

The seat will also have to be characterised according to the market segment that it intends to
address. In the roadmaps, different evolution paths have been achieved depending on the
specification required. The analysis of future evolution cannot be detached from the market
segment pursued. A key assumption for this relates to the fact that the company’s market
positioning on that product will not change significantly along the time of the expected evolution,
which is to say that future developments in the seat will improve the product but pursuing the
same market segment.

Based on the modifications suggested by the technology roadmap, implications will be drawn in
terms of technological capacity and organizational strategy for the company being considered.

4.2 Description of the Company

The company considered operates on the sector of automotive interior components, with focus on
seats. It has 100% Portuguese capital. Most of its production is destined for the German and

60
French markets focusing on niche markets, of vehicles for special uses such as mini-buses,
ambulances, vehicles to be driven without driver’s licence39 and in the particular case of the S7.8
seat, motor-homes. The company’s size in total sales is, according to the classification used in
section 1.2.3, on the 25-to-50 million Euro interval.

Another relevant characteristic of the company for the present analysis is the qualification
typology of the work force (Table 4).

Table 4: Qualifications of the Human Resources in case study company (2002)

Qualification Under 9th grade 9th to 12th 12th University degree

Percentage of total 68% 16% 7% 9%

4.3 Describing the Seat S7.8

The seat being considered is used on the niche market of vans that are transformed into motor-
home vehicles. These vehicles have a complex interior, since they are transformed to provide
room for a small group of passengers to travel and inhabit it. They are meant for long journeys, so
comfort is one of the primary requirements. Depending on the target market, configurability of the
interior arrangement is often a valued characteristic. The seats are destined for the driver
position, the front passenger, and often an additional third seat in the rear area of the motor
home, to be combined with a desk. Other applications of this seat include vans transformed for
the transport of passengers. The annual production volume of this seat is around 5000 units. This
is considered to be a modest volume, even when taking into account the average dimension of
Portuguese companies.

According to the segmentation proposed in section 2.2.4, this seat should therefore be classified
as belonging to the medium segment with conventional design. The detailed analysis of its
constituting components and technologies and materials used (presented below) and the
comparison with the Roadmap for the seat module substantiate this classification.

The interpretation of the evolution offered by the roadmaps should therefore take such issues into
consideration, namely considering the seat’s market positioning, the main functionalities it should
provide and the use that it will be destined for.

39
Commonly know as Véhicules Sans Permis -- VSP

61
In section 3.1.3 the seat module was analysed and the results show that its constitution is
considerably standardised throughout the industry concerning product structure. The S7.8 seat
analysed here follows that pattern, as the next figure demonstrates:

Integrated
seatbelt

Adjustable
armrest

Seatback Pneumatic
reclining lumbar
mechanism support

Figure 23: Main features of S7.8 seat (INAUTO - B2: Eco-design, IST)

The S7.8 seat is constituted by the following subassemblies: seat cushion, seat back, headrest,
armrest, integrated systems (airbag, lumbar support) and adjustment mechanisms (e.g. reclining,
longitudinal).

The seat can also be decomposed into the following elements grouped accordingly to
predetermined functions: Seat structure, foams, covers, integrated systems and mechanisms.
This identification is more suited for the technological analysis done, since there is a strong
correspondence between function and both technology and materials chosen.

62
 Seat

Structure Foam Cover Systems Mechanisms

Steel PU Foamed Textile Lumbar support Reclining

Longitudinal Adj Mech

Cutting, Stamping PU Cold Injection Cutting (Assembly)
Armrest*

Welding Gluing (contact) Knitting/ Sowing Headrest*

Resistance, Mig (Industrial) (Assembly)
Integrated Seat belt
Machining, Bending

Zincking * Headrest and Armrest: similar constitution as seat (structure, foam and cover)
Epoxi Painting

Figure 24: Seat's main technologies and materials

In the context of the present work, the components that will be studied are those produced and
transformed in-house. The purpose is to consider the technical and technological capabilities of
the company. Parts that are developed produced or transformed in-house will be considered in
the technological analysis. Those that are simply subjected to assembly operations, such as the
Lumbar support system are not considered.

The outsourced components are the following:

• seatbelt assembly

• the pneumatic lumbar support system

• the reclining, longitudinal and armrest adjustment mechanisms

Finally the functional elements that are going to be considered are described below.

Structure

The seat has structural elements on the cushion, the back, the headrest and the armrest. The
material used is steel of different grades, according to the properties required as well as the
processing technique – DIN 1623 St12 (sheet - cutting and stamping), DIN 1651 9SMnPb28k (bar
– machining, bending), DIN EN 10016-1 (clips and inserted wires – cutting and bending).

63
 Steel Cutting Stamping Welding
sheet
Structures:
- Back
- Cushion
Steel Bending/ - Headrest
Machining Welding
Tube Stamping

Steel Cutting Stapling Metal Clips

Bending
clips

Outsourced Armrest structure

Figure 25: Processes associated with the production of the seat's structure

Foam

For cushioning, the material used is predominantly Polyurethane (PU) (obtained by mixing Polyol
and Isocyanate), cold injected. PU foam is used on the back and the cushion pillows, the
headrest and the armrest.

Foam:
Remove from - Cushion
Polyol + Insert Manually mould; manual
Spray mould - Back
Isocyanate metallic clip pour mixture compression - Headrest
cycle - Armrest

Figure 26: Processes associated with the production of the seat's foams

The process of obtaining the foam has in the case of the present seat a high content of manual
labour intervention. All the stages of the process are controlled by an operator including the
spraying of the anti-sticking agent, the pouring of the mixture, the removal of the foam and the
compression cycle.

Covers

For covering material, the seat considered uses “foamed” textiles. These kinds of textiles have
foam backing that improves comfort and allows disguising possible imperfections on the foam. On
the cushion and back covers, there is an additional layer of a Polypropylene used as
reinforcement. This layer works as a protection pad, reducing the friction between the foam and
the cover and allowing some adjustability. The covers are kept in place by means of a Velcro strip

64
(made of Polyamide) on the headrest, by metallic clips on the cushion and back elements, and by
a zipper (made of Polyamide) on the armrests.

Covers:
Industrial High - Cushion
Covers Embroidering Industrial - Back
Cutting frequency
sewing - Headrest
(stamping) welding
- Armrest

Figure 27: Processes associated with the production of the seat's covers

Still related to covering material, several components are produced through plastic injection to
cover steel structures. These components have an aesthetics function but should also comply
with structural resistance requirements. Examples of these components are the upper covering
piece on the seatbelt, the reclining mechanism knob and the plastic coverings for the armrest.
These components are developed in-house but their production is outsourced.

Adjustment mechanisms

Considering the adjustment mechanisms – reclining, longitudinal, headrest and armrest, for
internally developed seats as is the case of the S7.8, these are after a process of selection,
acquired to suppliers and assembled to the seat’s structure. It is the company’s responsibility to
perform all the necessary modifications and adaptations, tests and homologation (including the
components). These components are not part of the company’s core business, so their
production will not be considered and they will be treated as black-box assemblies. It should be
noted, though, that it is obviously critical for the company to know how they work and their
limitations. During the development of the present seat, it was necessary to reinforce the
longitudinal adjustment mechanism since it did not withstand the homologation test after the
integration of the seatbelt.

Integrated systems

The seat has an integrated lumbar support, a seatbelt and an adjustable armrest, which are
sourced to external specialised suppliers and the role of the company is to assemble and
integrate these systems. For this reason, there isn’t any significant process transformations
performed in-house and these systems will not be considered in further detail. The particular case
of the armrest should be referred though, since it is a mechanism developed on a subsidiary
division in Germany, so even though there is not a direct control over the development of the
component, the knowledge associated with it is owned by the company.

65
4.4 Applying the roadmap evolution trajectories to the S7.8 seat

4.4.1 The scenarios offered by the Technology Roadmap

The prospective study was done considering a current vision of the object of study (the
automotive interiors) and taking on an exploratory work identifying possible evolution trajectories.

In the case of the seat module, the starting point is based on the current status of automotive
seating. Accordingly to what was possible to observe, current seating solutions offered by OEM
do not differ significantly in architecture. They are constituted by a metallic structure articulated to
allow a certain degree of adjustment, a cushioning material made of injection moulded
Polyurethane and a covering layer that can be made of very different materials, like plastics,
fibres, leather or wool. The differentiating elements reside on the design of the cushioning, the
materials employed, the kind of comfort and safety systems integrated and the degrees of
movement of the structure. Such standardised configuration enables in some cases (global first
tier suppliers) the sharing of a considerable amount of components over different models, thus
increasing scale benefits. This configuration also originates that the technologies necessary to
produce a complete seat be constant throughout the main seat manufacturers.

Some constructors though, have been proposing other alternative solutions that point towards a
more minimalist approach in design and equipment. Considerable space and weight can be
saved by adopting a slim design of cushioning and lighter seating structures. Moreover, new
concepts of automotive interiors have been focusing on greater flexibility and rearrangement of
the occupants’ positioning, being the MPV40 a good example. Such demands call for the need for
lighter and more articulated structures than the currently existing ones with slimmer upholstery.

The roadmap offers therefore three different visions, which capture the needs currently identified.
Two relating to a more conventional approach evolving from the existing solutions, and another
based on an alternative approach breaking up with the existing evolution path.

As it has been referred above, the S7.8 Seat has characteristics of a conventional design
produced for a medium segment vehicle. Due to the conditions of use however, the evolution of
this seat should aim at the “Multi-Purpose Vehicle” (MPV) category due to its characteristics of
use. This means that it should allow a flexible and configurable arrangement, be foldable and
storable and have a reduced weight.

40
Opel Zafira, Fiat Múltipla, VW Touran, among others.

66
4.4.2 Expected evolution of the S7.8 Seat

Seat structure

According to the current product architecture, the seat’s structure accounts for the greatest share
in total weight (approximately 80%). Steel is the material predominantly in use. Only a limited
amount of High Strength Steel is used on the longitudinal adjustment mechanisms. The roadmap
indicates an increase use of this material throughout the seat’s structural elements, and an
optimisation in design of such structure through innovative production techniques – Hydro-
forming – in the short term (4 years). In the mid term (7 years) an increase use of plastics is
expected which will enhance the integration of the seat with surrounding trim areas, and at the
same time will contribute to further reduce the seat’s weight. However, in the long run, a
significant reduction in weight is unlikely to be achieved unless a revolutionary way of producing
the frame is implemented – cast Mg or Al solutions or through the use of hybrid materials. This
will inevitably originate different structures from the ones in use at the moment, with fewer
degrees of freedom, but possibly much lighter and with slimmer profiles.

Seat foams

Considering the foams used, current solution of Polyurethane is likely to continue being used on
conventional seats. In this seat however, metallic clips are still employed to attach the cover and
give it the right shape. The trend in this area is for the replacement of these metallic clips for
thermoplastic fasteners or Velcro strips (the later are already used in some areas of this seat like
the headrest). Such trend relates to environmental issues, in particular the disposal of PU
material and consequent processing and reuse. If metallic clips are inserted in the foam, this will
prevent its recycling (Brunner et al. 2000).

The expected evolution in seat cushioning in general points towards the achievement of thinner
and lighter cushioning components. The challenge put forth relates to reducing the foam’s
thickness while maintaining its resilience. This can be achieved by varying the foam’s density,
from a soft outer layer to a denser inner core.

As for alternative technologies to foam injection, it is expected also in the short term the
application of the one-shot “foam-in-place” technology. This technique allows saving
manufacturing time by injecting the mixture directly into the cover, thus obtaining a finished
product after the injection of the PU mixture and avoiding the intensive labour activities related to
upholstering. This technique is being applied in areas of the seat that are not in permanent
contact with the occupant, such as the head-rest or the arm-rest. Due to breathability problems,
this technique has had little penetration in other areas of the seat which are in permanent contact

67
like the back or the cushion41. However, this should start being employed in lower segment
vehicles, as the breathability of the fabrics used is further developed42.

Seat Covers

Considering seat covers, it is expected a continuous increase in leather use (natural and
synthetic). This will call for increasing demand in natural leather and the development of good
imitations in synthetics, like PVC, PU and Alcantara. Due to the high degree of subjectivity
though, it is not possible to point towards a single direction. The range of covering materials
offered is very wide and the solution chosen highly dependent on trends in colours and patterns.

The use of three dimensional fabrics (3D fabrics) however, is bound to become a consideration in
the short term. The production of this kind of fabrics is less human-labour intensive, but at this
point, the implications of its introduction on traditional textile production is not yet possible to
account for.

Safety systems

The present seat includes an integrated seat belt. Trends in seating safety point towards the
concentration of safety systems attached onto the seat. This is believed to offer a more efficient
coordination and adjustment of the different systems in spite of increasing the loads the seat
structure is subjected to.

In the near future however, other safety systems are expected to be introduced in a diffused scale
on automotive seating. These are the ISOFIX system, the side airbag and the active headrest.

The ISOFIX is a system attached on the passengers’ seats providing a rigid connection between
the seat’s structure and child seats. It creates a rigid, thus more secure connection of the child-
seat with the car’s structure. It also reduces significantly incorrect fitting of the child seat, pointed
as one of the major causes of severe injuries in case of a crash (Child Car Seats Organization43).

Considering side airbags, different possibilities have been explored by constructors, some
integrating the side airbag on the seat’s backrest others choosing to integrate it on the door
interior panel or even on the pillars. Following an evolution line that favours the concentration of

41
This happens due to the fact that the covers need to have foam backing impermeable to the Polyol-
isocyanate mixture to prevent it from staining the cover.
42
Bayer offers a range of products which address this specific issue:
http://www.epurex.de/index.cfm?SEITEN_ID=1126
43
http://www.childcarseats.org.uk/standards/isofix.htm

68
safety elements on the seats, it is expected the inclusion of this safety element on a diffused
scale in the short term.

The active head-rest has been also proposed by some manufacturers and systems suppliers. Its
function is to prevent whiplash effect in the event of a collision. According to the roadmap, this
safety system is likely to be fitted in most passengers’ vehicles in the mid term, starting on the
upper segments.

Comfort systems

There is a trend for continuous increase in the use of comfort systems in automotive interiors in
general, and seats are no exception. Considering the market segment this seat addresses,
comfort systems have a very significant importance. Motor homes are mostly used in long
journeys and not only passengers travel on it, but they also live on it.

Beyond the systems already offered by this seat – such as the pneumatic lumbar support and
adjustable arm-rests – the trend in this segment is for the increase of such mechanisms.
Depending on the specification level (within the niche of motor homes, there are different levels of
comfort and distinction) the evolution will be towards the increase on the number of adjustments
possible, their electrification, complex massage systems, thermal systems (heating and cooling),
and telematic systems (such as entertainment screens integrated on the back of the seat or on
the head-rest).

4.5 Implications of expected evolution in the S7.8 Seat

Having obtained a possible evolution path for the S7.8 seat, it is now pertinent to consider
possible implications of the introduction of such changes.

Seat structure

The evolution offered by the Technology Roadmap (see section 3.2.4) points towards an
optimization in design and engineering of the structure so to increase its performance and the
progressive inclusion of lighter specific weight materials to reduce its weight.

The expected outcome is in this sense the result of an evolution in materials used and in
technologies to support its project and production. The introduction of high strength steel is a
natural evolution in the context of this company since it implies few transformations of existing
processes and know-how. High strength steel can be processed in existing machinery, as log as
there are specific tools for it. The behaviour of the material is similar to that of normal steel, the
difference being that the same part will have to be processed on a more powerful machine in the
case of the more resistant one. Currently, a number of parts in high strength steel are already

69
produced by that company, including frames for other kind of seats, so the knowledge exists as
well as the technology. The intensive use of high strength steel in seat structures may account for
a weight reduction of about 20 per cent, relative to a conventional steel structure, according to
estimates of the company. A known example of the application of this material is the ULSAC
project (Ultra Light Steel – Auto Closures). In this project it has been achieved a weight reduction
of 22 per cent for a stamped High Strength Steel frameless door, relative to the best-in-class
benchmark (AISI 2001).

Steel Cutting Stamping Welding

sheet
Structures:
- Back
- Cushion
Bending/ - Headrest
Steel Machining Welding
Tube Stamping

High - New tools to account for higher elasticity modulus

Strength - Scale up of existing presses
Steel - Development of experimental prototypes

Figure 28: Switch from Steel to High Strength Steel

The structure of seats, being one of the fundamental components, critical for the homologation of
the seat, is also the least visible from the customer’s standpoint. Given the market segment
where this company operates, it is in fact not so relevant which technologies and materials are
used or how optimised has been its dimensioning. In terms of optimisation and aesthetics, it is up
to the manufacturer to decide on the way it addresses the challenge of obtaining a structure that
provides the necessary mechanical resistance and performs the required tasks. If not specified in
the project requirement, drastic weight reduction and optimisation are not main priorities. This is
in part a reason why there is still room for improvements on seat structure production.

Seat foams

The foam injection division has been pointed as an area needing technological upgrading in the
company considered for the case study. Limited automation of existing equipment makes foam
production a rather labour intensive one. This also hinders the production of complex
components. Trends in foam design include the progressive reduction of foam thickness in order
to gain interior space and reduce weight and also the possibility of obtaining foam components
with variable density, to ensure optimum comfort and support. This requires equipment upgrading
including Polyurethane injection machines with dedicated mixing heads (Taverna et al 2000), with
automated movement of injection nozzle and possibility to premix different components to obtain
different density grades. Another procedure in foam processing consists of applying a

70
compression cycle to the finished foams after being removed from the mould. In the current
production line, this process is done manually.

Remove from
Polyol + Insert Manually Foam:
Spray mould mould; manual
Isocyanate metallic clip pour mixture - Cushion
compression cycle
- Back

New foam Automated

New injection
design compression
nozzle
system

Remove from
Polyol + Automatic mould; automated Foam:
Spray mould Insert Velcro pouring of - Cushion
Isocyanate compression cycle
mixture - Back

Figure 29 Implications of a technological upgrading in the foam production

As for the elimination of metallic clips inserted on the foam, this will have a considerable impact
on current production. The metallic clips used so far are part of the company’s array of
expertises. Replacing them by Velcro strips will imply the source of external knowledge and
expertise. In addition a redesign of the foam components will be needed to accommodate the
Velcro strips inserted “in-mould” prior to injection, which will also imply new injection moulds.

“In-situ” or foam-in-place injection is also a forthcoming technology to be used in non-permanent

contact areas of the seat like the headrest and armrest. This may be part of the equipment
upgrading to be considered by the company’s administration. It has significant implications on
labour since it allows reducing most of the work content involved in upholstering. It will also
involve a period of experimentation and optimisation to new process requirements.

Remove from Upholster

- Armrest Insert Manually mould; foam and
- Headrest Spray mould
metallic ring* pour mixture compression cover on
cycle structure

- Armrest Assemble Insert

Inject Finished
- Headrest structure and assembly in
mixture assembly
cover mould

*Only for headrest

Figure 30: Adoption of “in-situ” foam injection technology in foam production

71
Seat covers

Trends in seat covers for the European market point towards an increasing use of leather (natural
and synthetic). However, more specific trends relating to patterns, colours and textures are
volatile and cannot be generalized in this kind of study. Design and aesthetic issues fall outside
the aim of this work and therefore have to be analysed with different tools.

Relating to what has been mentioned about foams, if “In-situ” foam injection technology is
implemented, special covers with an isolating foam layer need to be used. This happens,
because the liquid mixture is injected directly onto the cover, and if a protection barrier in not
used, the cover will get stained. This company already produces these kinds of covers to other
customers, so the transition to their own products will be straightforward.

As for the use of 3D fabrics, the company is at the moment engaged in a collaborative project
involving the use of this material. In the present case study, it was not possible to assess the
impacts of such trend. However, the undergoing project will assess the main characteristics of 3D
fabrics and the implications of its application in future products.

Adjustment Mechanisms

The electrification of adjustment mechanisms in the present seat is seen as an inevitable

evolution, considering the increasing diffusion of these systems throughout the industry. The
inclusion of such equipment will imply the redesign of the anchorage points in the seat structure.
Additionally it will influence the structure’s integrity, so testing and homologation is required. The
electrical units will be sourced to external suppliers, but the adaptation to the seat will compel the
company to strengthen their knowledge base with human resources qualified in electronics and
control engineering.

One of the main priorities in terms of evolution for this seat is the inclusion of an articulation that
allows the seat back to recline forward. This functionality permits the seat back to be used as a
table or to reconfigure the interior in order to increase the cargo capacity. Such apparently minor
transformations in product structure have significant impact in development and engineering
since they involve additional testing and homologation of the new solution. Once again the
development of expertise of the company in engineering and development is determinant.

Comfort and safety systems

The inclusion of an ISOFIX system has been considered before in the context of this company.
The restricting barrier continues to be the definition of an industry standard. Its inclusion on the
seat structure implicates minor transformations.

Side airbags are seen as an effective safety protection. However, there isn’t one unique option
regarding its location within the vehicle interior. Being part of a major system – the vehicle’s

72
passive safety, its location is dependent on the OEM, who can choose to include it on the seat on
elsewhere on the side panel. The inclusion of side airbags however won’t influence significantly
the existing product. The system needs to be mounted onto the seat’s structure, an opening on
the foam has to be predicted and in certain situations a cover with special stitches to allow the
airbag to burst through44.

An active headrest though, is a far more complex system. On one hand, its application has been
until now restricted to a limited number of car models, making it a rather exclusive system; on the
other hand, its inclusion involves significant changes on the seat structure as well as considerable
amount of testing and approval by legal authorities. Although being an efficient system in the
prevention of car accident injuries, this system is not a priority for the company since its
development and implementation would require significant financial and human resources
allocation.

Concerning comfort systems (massages, climate systems), their integration is straightforward

involving few modifications in the seat structure and the design of foams. Its introduction will
depend on the availability of the client to support the costs associated with the introduction of
such equipment.

Organizational issues

Concerning process improvements, namely towards the design optimisation of the structures, this
will include a more intensive use of CAD-CAM interface as well as Finite Element Analysis, in
order to shorten design and engineering development through simulation in virtual prototypes and
decrease lead-time and cost of development, homologation and production implementation. The
implications of such improvements in view of the current company structure include the
acquisition of adequate software and the upgrading of existing hardware as well as the need to
train existing member of staff and eventually the hiring of additional highly skilled employees.

In terms of production technologies, the low volumes of production in this company call for the
need of more flexible technologies. Laser Cutting has been pointed a valuable technique in
obtaining a high degree of variability and flexibility of produced parts. This technology is better
suited to the company’s profile, inasmuch as it involves low cost of equipment and set-up.

Other technologies include hydro-forming. This technology can be applied to forming of tubes
with optimised variable section or stamped metallic sheets. However, hydro-forming was seen as
outside the company’s strategic positioning, since it involves high cost of equipment that can only
be amortised with very high production volumes. In the above-mentioned ULSAC project, which

44
these specially stitched covers are already produced to other clients

73
has considered the application of this technology for the optimisation of automotive closure
structures, the production volume considered for the cost model was of 225,000 parts per year.
The seat structure considered here aims at 5,000 parts per year, hence a much lower volume of
production.

Current needs:
- Acquisition of software tools of engineering and
product development
- Fast prototyping technologies
- Upgrading of existing hardware
- Highly skilled technicians
- Adoption of flexible technologies
Future implications
- Development of prototypes (virtual and
physical)
- Reduce development lead time and cost
- Increase reliability of developed solution

Figure 31 Use of virtual Engineering Development

74
5 Discussion

5.1 Methodological assessment

Prospective studies are valid tools for introducing the discussion on major challenges in the
business sector. By considering future developments and technologies it is possible to anticipate
them by directing research activities, investment in technology and learning.

The methodology followed can be assed in two ways – the panel of experts that participated on
the exercise, and the usefulness of the results obtained.

The panel chosen markedly influences the consultation process and the results obtained. There
are three factors influencing it:

• The number of participants

• The typology of the participating panel

• The commitment of each participant

Considering the number of participants, this was limited, since it was not possible to reach the
saturation point every area inquired. Additional interviews would have contributed to reach a level
of responses closer to saturation and thus a more complete picture of the evolution for the
different autointerior modules analysed.

The typology of the panel can be measured by two variables: the position of the interviewee
within the company he or she belongs to, and the location of that company within the supply
chain. The panel included a good variety in terms of both measures. As it was said previously,
there were interviews with people more focused on technology development and others on
strategic management. Considering the supply chain, there were participants belonging to OEM,
first tier suppliers, raw materials suppliers, and research centres.

In every process that relies on the access to a pool of knowledge from a group of experts, the
commitment to participate on the different stages is of extreme importance. In the first round – the
face to face interviews – the enrolment was extremely positive in a way that most interviewees
were willing to provide the necessary time for it and an effort on answering the questions in a
complete and precise way. In the second round of interaction – the request for comment on the
draft roadmaps, where the participants had access to the aggregated results – the rate of
responses as well as the commitment to it was well below the expectations offering limited
additional information to add onto the results.

75
Technology Roadmaps

Considering the usefulness of the result obtained, Technology Roadmaps proved to offer a good
description of the main evolution pathways for each module. The context on which this research
has been carried out allowed having access to critical information, which on a different
institutional setting might not have been possible. In fact, the academic nature of the work has
favoured a closer approximation to actual development and research activities within companies.

The results achieved should not be regarded as “turn key” or prophetic solutions. Rather, they
have a particular role in the pursuit of knowledge creation and diffusion. The roadmaps point
towards possible evolution paths and should be appropriated as a reference or orientation for
companies, which, like the majority of the Portuguese automotive components, have limited
access to development and research activities. It is therefore essential for Portuguese companies
to be aware of the expected evolutions on a European level, in order to acquire the necessary
technologies and expertise that allows them to adjust its offer to European level standards. In this
sense, the Roadmaps contribute as valid inputs for such catching up process to accelerate.

The nature of the analysis presents some limitations. It has limited capacity to unveil pioneers in
the adoption of new solutions. The type of transformations inquired refers to a change that has
occurred at a widespread level in the industry, which implicates that it has been pioneered before
that. It also presents a weak appropriation of solutions that break with existing ones. This is due
to the fact that the prospective work has, in this case, been built on an existing vision, thus
hampering the analysis of “out-of-the-box” ideas.

There are other factors, which are difficult to appropriate. The choices of technologies are not
always based on logical sourcing of the best ratio of performance to cost solution. The decision
has often other criteria exogenous to technological characteristics which relate to path
dependence and the complex nature of the automotive industry: existing pool of knowledge,
installed capacity, location relative to raw materials or networks of suppliers and socio-cultural
factors, among others.

Case study

Considering the case study preformed, the use of Roadmaps should be assessed in two distinct
dimensions, inasmuch as they were obtained in a different industrial context: the first concerning
the positioning on the supply chain; the second the differences in size of the company used in the
case study and those consulted on the Prospective study.

Firstly, the roadmap relates to a European level market. It results from a pool of experts with an
active participation in research and development activities at different institutional levels
(Academia, Research Centres, Industrial Associations, First Tier suppliers and OEM). The
company considered in this case study positions itself on a much lower level of the supply chain.

76
In spite of most of its production being for German and French markets it focuses on a particular
niche market of vehicles for special uses such as mini-buses, ambulances, and in the particular
case of the S7.8 seat motor-homes. Comparing the timeframe of the Roadmap with the specific
context of the company analysed, it is possible to observe a disparity in terms of the time to adopt
certain solutions. This company lags behind because it operates in a less demanding niche
market, which has consequently a diffusion lead-time in the adoption of innovations. In spite the
time lag, there is a convergence trend, as solutions introduced in higher segment vehicles
(represented on the Roadmap) cascade down to lower segment ones and become more
disseminated. This way, the Roadmap indicates trends that are likely to be verified for this
company’s market segment on a lagged time frame.

Secondly, there is a significant distinction on a technology strategy level. The company

considered has a limited size and hence operates with reduced production volumes when
compared with international players. This hinders the adoption of certain technologies suggested
by the roadmap such as hydro-forming or the diversification into other materials such as
composites. The evolution path in this aspect is conditioned by the company’s size.

5.2 Technology Roadmap

5.2.1 Door module

Importance of key drivers

Analysing the importance of each driver, it results that there is an overall concern about reducing
weight and cost. Comfort is an obvious priority particularly evident when the interior panel is
analysed separately. Product architecture is also often mentioned particularly associated with the
hardware carrier.

Evolution paths

As mentioned above the analysis of the evolution of the interiors cannot be detached from the
level of specification of the vehicle.

For the high specification vehicles the vision presented was the following:

In terms of trim, the option will always be that which offers the best quality perception and
performance. The substrate is likely to continue being made of CMF and the skin transmitting as
much as possible a handcrafted look that combines with the rest of the interior. The preferred
materials are skins (natural or artificial) such as leather, alcantara, fabrics PVC, or TPO. Each

77
OEM will favour the use of the technology which better dominates, not risking to make drastic
changes unless if imposed by legislation.

As for the Hardware carrier, a transformation will always be driven by an attempt to increase
performance of reduce weight, but never motivated by cost reduction.

There is a trend at the moment to integrate impact absorption on this component and in a short to
mid term (by 2007) for the use of lighter materials such as Long Glass Fibre reinforced
thermoplastics (LGF) or a structural cast metallic technology.

The exterior structural panel will move away from steel into lighter weight materials such as
Aluminium (Al) and High strength Steel (HSS) in the short term. In the mid term (5 years) it is
expected a consolidation in HSS although the adoption will be influenced by existing expertise
and knowledge from OEM. As one of the interviewees has mentioned “it’s [aluminium’s] durability
is questionable for structural applications”45, requiring special attention to it’s limitations during the
designing stages. Moreover, accordingly to another interviewee46, there is still developments do
be made by the steel industry which will be driven by the competition put up by present efforts of
the Aluminium industry.

It will not be very likely in the near future a plastic structural solution for this specification level. A
door that is too light gives a perception of a low quality product. Moreover, the door should have a
minimum inertia moment to assure a correct latching. Previous attempts have been made. The
reduced weight forced the use of electric latches, which cancelled all the weight savings47. More
than trying to further push down the weight, there should be an effort on controlling the inertia
moment, by distributing the weight of the mechanisms over the door length48.

Plastic technology potential has been referred for niche vehicles where weight savings are
fundamental. A possible solution for a plastic technology to be used in vehicle body panels was
mentioned by one of the interviewees49: “co-extruded high gloss thermoplastic parts (self-
coloured sheets) over a stiff backing material (aluminium or high-strength steel)”.

45
Interview to a Senior Researcher at an Automotive Research Group in the UK
46
Interview with a Senior Engineer in an Engineered Polymers Multinational Corporation
47
Interview with a Senior Engineer in an Engineered Polymers Multinational Corporation
48
Interview with the Manager of the Cockpit Area at a European OEM
49
Interview with a Senior Engineer in an Engineered Polymers Multinational Corporation

78
In the same logic of low volume vehicles where weight is crucial, it has been suggested the
integration of the door hinges, side impact beam and latch into a single mono-material component
for a mid to long-term solution (7 years).

In the medium specification vehicles, the driving forces are slightly different. Due to the scale
of production and the lower added value of the final product, there is a stronger need to establish
a compromise between cost savings and perceived quality.

Considering the interior trim panel, there is a strong push towards a mono-material solution due
to imposed legislation to the recycling of End of Life Vehicles (ELV). The solution that presents
the best overall performance, capable of complying with environmental legislation, is a PP based
mono-material solution (PP substrate covered with TPO skin). It is likely to see PVC being
eliminated from the interior trim in this segment in 5 years.

For the hardware carrier, in the short term (4 years), there should be an integration of the
hardware into a structural cassette, with energy absorbing capacity. The energy absorption
elements are likely to evolve from EPP foam blocks, towards alternative energy management
systems based on formed material of the same kind as the surrounding components50. In the mid
term, there can be foreseen two alternatives:

1. A structural cast carrier (7 years) that would merge with the exterior structural panel in the
future (10 years)

2. A merger with the interior trim panel, in which case the solution would be a composite
carrier (LGF PP, for example) without structural properties that would simply integrate the
hardware mechanisms and the impact absorption materials

In any case, a considerable increase in the degree of integration is expected due to the high
production volumes of this segment.

Considering the exterior structural panel, there is a potential for weight savings. In the short term,
it is likely that some components of the structure, such as the hinges or the side impact beam will
shift, first to HSS and then to Al51. However, most of the panel will continue to be produced in
steel for the next 5 – 8 years. During this period it is very unlikely a shift to other different
technologies at a widespread scale.

In the lower specification vehicles, cost reduction is the strongest motivation for change.

50
Interview with Product Manager of a Composites company in UK
51
Interview with Senior Materials Design Engineer from a Japanese OEM

79
The exterior structural panel is likely to continue being made of steel. There should be some
applications of lighter weight materials, but at a smaller scale, compared with the medium
specification vehicles. A shift to a plastic solution is not foreseeable on the next 15 years (at least
on a widespread basis) due to the production rate imposed by high production volumes.
However, a more permissive customer base might accelerate its introduction. Moreover, once
some of the experiences have been demonstrated in upper segments (very light weight door for
speciality vehicles – alternative propulsion or racing cars), the production rate might be resolved
for this solution to be applicable in low segment as well.

The same logic of cost constrains applies to the hardware carrier, which is likely to continue being
made of steel. The integration of the hardware might occur, due to the high production volumes –
there is not enough information to allow such generalisations, and even in the presence of such
information it would be likely to find different options for different OEM.

Considering the interior trim panel, this is likely to continue being produced in Self-coloured PVC
(Sc PVC) or IMiC PP for the next 5 years (and as long as there’s demand for low cost, high
volume solutions). In a longer term future (8 years) the interior trim panel is likely to become more
integrated into the rest of the door. The reason for that is that it doesn’t add any functionality
besides aesthetics and comfort, which are not the main priorities in this vehicle segment52. OEM
will seek for a more “intelligent” use of the prim panel, by seeking to integrate it into the carrier
and door structure while keeping its functionalities.

Door module visions

High Specification: in this segment, the vision can be summarised by a priority on comfort, quality
and customisation, which reflect on the choice of materials and manufacturing technologies. The
structural panel should be light without compromising safety and quality perception, the hardware
should be integrated to assure the maximum level of performance and reduced weight and
comply with the growing amount of integrated systems. The choice of the materials for the interior
trim panel is equally dictated by quality with the choice of noble materials (leather, Woodstock,
wood), seeking a “handcrafted” look.

The key technologies found are the progressive replacement of steel in structural components for
aluminium and high-strength steel. For the hardware carrier, injection moulded long glass fibre
reinforced thermoplastics (namely Polypropylene). On a niche level, the integration of the side
intrusion beam with the door’s latch and hinges. Again on niche logic, an alternative technology
for the production of exterior panels would be through co-extruded high gloss self-coloured

52
Interview with a Senior Engineer in an Engineered Polymers Multinational Corporation

80
thermoplastic sheets over a stiff backing material (aluminium or high-strength steel). This solution
is set to eliminate possible colour mismatches when producing a complete door module on an
outsource basis. For the interior trim panel, the research didn’t allow to point towards a key
technology in particular.

Medium specification: in this segment a compromise between cost and performance should be
found, leading to a choice of lower cost materials, a greater integration between the constituting
components (hardware merging into structural panel or interior trim panel – two possible evolution
paths) in order to reduce assembly work, and a trend for environment as a growing driver, leading
to mono-material construction.

Low specification: in this segment cost constrains point towards a simplification of this module,
through mono-material integrated solutions (in the long term, an all-plastic solution, sandwiching
the hardware components), permissible due to the lower requirement level.

5.2.2 Instrument Panel

Importance of key drivers

Considering the importance of the “key drivers” it is possible to notice a greater emphasis on
comfort and customisation issues. The instrument panel is the most visible area of the interior, so
aesthetics requirements are the most important.

From a safety point of view, it is the area where it is most likely to be contact with the occupant
during crashes - EuroNCAP imposes strict requirements for energy absorption. Moreover, having
the airbags bursting through the IP skin requires that the behaviour of the material should be
consistent and appropriate in every driving condition. Being in a more advanced level of
integration compared to the door module, production related issues such as cost reduction are
not pointed as being so important.

Evolution paths

Considering the high specification vehicles, the following visions were obtained:

In these vehicles, the instrument panel in usually considerably bigger and with more equipment.
From an engineering point of view, there is an increased challenge in designing such a massive
self-supporting structure. There can be two options. Either the sub components are mounted
separately directly on to the body structure in the final assembly line, or the panel is supplied
completely assembled and integrated. In the first situation, the construction is not modular but
there isn’t a need for a separate cross car beam, since the several subassemblies of the
instrument panel are mounted directly in the vehicle’s structure. In the later option, a cross-car

81
beam that supports the panel and all the integrated systems is indispensable. The construction of
this module depends therefore on the strategy pursued by the OEM.

For these reasons, it is likely that the cross-car beam will continue to be used. There will be an
evolution to higher performance (lower weight) materials, such as magnesium or hydro-formed
HSS (4 years)53 or, from a functional integration perspective, structural Heat Ventilation and Air-
conditioned (HVAC)54 ducting, which can provide the necessary structural support. In the long
term, there has been a suggestion that the magnesium will start replacing even some of the
plastic content of the panel, however, the technological means to achieve it are not yet known.

In terms of foams, there has been, particularly on this segment, a strong effort in achieving a soft
feel surface, capable of absorbing energy during impacts. Currently, Polyurethane foams (PU)
have been the most suitable material for these requirements. However, the use of such material
compromises (or even jeopardises) the recycling efficiency. Consequently, there have been some
propositions of using Cross-linked Polyolefin foams (XLPO), which are compatible with PP based
materials. Similarly to what is observed for the door module, in the instrument panel too, OEM in
this segment are not willing to give up on quality perception. Therefore, PU foam solutions are
likely to continue being used due to the better touch feeling transmitted. Varying foam density is
desirable, comprising a lower density surface for soft touch feel with a growing density towards
the core for better impact absorption.

Considering skins, a similar analogy can be made with the door panel. Quality perception aligned
with sane crash behaviour is a decisive requirement. Real leather and wood inserts are often
used to address customer’s requirements for high quality appearance. In the short run, PVC
solutions (PVC Slush technology) are likely to continue being used, since they offer a good
compromise between tactile properties and cost (air bag deploys better as well) but in the mid
term (5 years) there should be a move away from PVC to Polyurethane (PU) powder slush
technologies. In the longer term (10 years), a continuous demand for quality finish is likely to lead
to automated foamed “polymeric leather” skins. At the same time there is a strong pressure to
move to mono-material solutions. TPO skins could be combined with XLPO foams and PP
structure, but this is very unlikely to happen (at least not in the next 5 years) in the high
specification market due to a not yet right soft feel required in this segment.

There is also a trend related to back-lid, semi-translucent displays, which can be personalized.
This can have an influence in the material selection and product configuration but the implications

53
Interview with a Senior Engineer in an Engineered Polymers Multinational Corporation
54
Interview with Design Studio Engineer from a Multinational 1st tier supplier

82
are not yet fully understood55. There is a need for further development in areas such as very high
output Light emitting diodes, or metalocene PP with possibility of very translucent effects56.

Considering now the medium specification vehicles it is possible to notice the following
evolutions

As far as the structure is concerned, it is likely that a single trend might not be enough to fully
describe the perceived evolution. Currently, there is a strong trend towards the use of PP based
structures. However it is not possible to assure dimensional stability without a cross car beam. On
the other hand, some manufactures are opting to use an ABS or SMA based structure capable of
being self supported without cross-car beam. There seams to be a move towards the elimination
of the beam. In the mid term, this is likely to occur through the use of SMA based solutions. In a
longer term, associated with the trend for PP based mono-material solutions, the choice is likely
to go Fibre Glass Reinforced (FGR) PP.

The instrument panel foams for this segment should move towards an olefinic solution (5-6
years), the constraining factor being the tactile properties. Until then, a PU foam solution will
provide the correct soft feel and on lower segment vehicles, this will be delivered simply with the
skin.

As for the skins, thermoformed TPO will be used when combined with other PP based materials
on the remaining layers. When PP is not used on the lower layers, there is no point on using TPO
skin, since its cost will be higher, without significant benefits – it is more expensive than PVC, it
offers the less good touch feel from both PVC and PU, but it has better airbag deployment
compliance57.

However, in the long run, environmental regulations should become dominant and a move
towards thermoformed TPO should be inevitable.

In the lower specification segment, cost will be the strongest constraint just like with the door
panel.

The structure should be done in IMiC PP with a steel beam. In the long run the cross-car beam
should be eliminated (10 years), and there should be available an advanced engineered polymer
capable of being self supported – PC/ PBT resins or GFR PP. in the mean time, depending on
the type of vehicle, it is likely that some aesthetic skin and foam solutions will come down form
the mid range vehicles. Translucent materials are likely to appear in these vehicles (in 10 years),

55
Interview with Senior Engineer in the Interiors Systems Development of a European OEM
56
Interview with Senior Materials Design Engineer from a Japanese OEM
57
Interview with Interior Trim Group Leader from a European OEM

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since the consumer is more permissible to experimentation and more sudden changes. The
sensations transmitted will be of joyfulness and functionality, images that medium specification
vehicles tend to move away from.

Instrument panel visions

High Specification: the vision for this segment converges into an increasing in modularity of the
instrument panel, being delivered fully assembled and tested. Such massive structure with all the
equipment integrated (safety systems, telematics, HVAC) will need an integrated cross car beam,
not only to support the integration, but also to ease its assembly. The materials selection of the
skin and foam is driven by touch and appearance, where quality is not compromised. This
segment will be characterized by an increasing use of telematics and the use of translucent
effects (e.g. personalized displays). The thermal systems are also likely to evolve from
concentrated to dispersed diffusion, and a growing focus on heat transfer through conduction. In
this segment, safety elements are equally paramount and may impose the relocation of integrated
systems – airbags, knee bolsters.

Medium Specification: in this segment there is a much greater concern for environment and cost
issues. The choice of materials and technologies is being done in pursuit of an environment
friendly, cost effective, good appearance solution and PP seams to be the material to achieve it.
The development of the structural substrate in this segment seams to point to the goal of
achieving a self-supporting structure (without requiring a cross car beam to be integrated in the
module) that can be attached directly onto the vehicle’s own structure. Integrated assemblies
such as the thermal management system being adopted from the high segment with a time lag of
one or two generations of vehicles.

Low Specification: in this segment the vision converges into a modular mono-material low-cost
solution – no cross-car beam – imposed by cost constrains and enabled by the simplicity of the
module and the relatively reduced amount of integrated systems and subassemblies. Due to
market issues there is also room for translucent materials addressing cheerfulness, functionality,
personalisation, although conveying a different image from the High Specification segment.

5.2.3 Seat Module

Importance of key drivers

As mentioned above, the seat module is one of the most “modular” modules of vehicle interior, in
the sense that in general, it clearly sticks out as a separate “chunk” from the rest of the interior.
The organization according to specification is a bit different from the modules analysed above,
since the requirements do not seam to change so much with the specification level. Every seat

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should carry a passenger with comfort and safety. Additionally, for the driver’s seat, provide the
necessary conditions to allow the driver to adjust his driving position. Analysing the components
of a seat it is possible to notice the following similarities throughout the several segments:

• The structure should contain enough degrees of movement to allow the seat to be
adaptable to a wide range of occupant morphologies

• The foam should equally accommodate in a comfortable and ergonomic way the same
wide range of occupants with different sizes

• The cover should transmit a feeling of comfort allowing enough breatheability

Most seat makers enjoy great scale effects, the functions are standardised and don’t significantly
interfere with the differentiating elements of the seat thus enabling the sharing of components
throughout several models.

For these reasons the output of the results is presented in a way to implicitly extrapolate the
several specification levels (medium and low), based on the evolution of the higher specification
segment. In fact, the differentiation occurring between different segment vehicles in terms of seat
seams to reside on the following issues:

• integration of comfort and entertainment systems

• at a more sensorial level, through the materials used in covers and the shape of the
cushions

• through the use of higher performance material in the structure such as aluminium, high
strength steel, magnesium and composites

Considering this, the analysis starts from a conventional seat and tries to branch into several
niche market opportunities.

Evolution paths

Starting with the seat frame, it is likely (due to what was said before), that currently available
solutions can be optimised through the increasing use of high strength steel. Plastics, such as
High Stiffness Nylon blends (HSN) or Glass Fibre Reinforced PP (GFR PP) are likely to be
considered in some applications of the seat frame to optimise the integration with the surrounding
trim (6 years)58. In the longer term, there should be an increased commitment to improve the
integration of the seat structure with the car body, with the purpose of reducing structural
redundancies between these elements. However, a significant reduction in weight is unlikely to be

58
Interview with a Senior Engineer in an Engineered Polymers Multinational Corporation

85
achieved unless a revolutionary way of producing the frame is implemented – cast Mg or Al
solutions or through the use of hybrid materials. This alternative evolution path is present further
down in the text.

The seat foams will continue being made in Polyurethane (PU). Recent attempts to introduce
Cross-Linked Olefinic foam (XLPO) have proven this material to be incapable providing the
required compression ratio59. The evolution trend for PU cushions is to continuously reduce its
density and thickness while maintaining its resilience. The key for this is to vary the foam’s
density from a soft surface to a harder cushion core.

The one-shot, foam-in-place solution still presents breathability limitations, which make its
application limited to areas that are not in permanent contact with the occupant, such as head-
restrains or armrests. In the short to mid term (3-4 years), however, this solution may be
optimised and be used in lower specification vehicles cushioning, due to the cost reduction that
enables60.

Concerning seat covers, the higher specification segments will continue to demand leather and
high quality woven fabrics. This will be one of the sources of differentiation together with the foam
shape. The most environment friendly solution however, will still be Polyester or Nylon fibre
solutions61, acceptable on low specification vehicles.

There will also be a trend towards the use of 3D fabrics (spacer) in the medium specification
range. However the implications of the use of this technology have not been assessed.

The need for other functionalities might lead to new niche markets in seats. The Multi Purpose
Vehicles vision obtained reflect that market need. MPV have often three rows of seats that should
be light and adaptable enough to allow the user to modify the interior arrangement. In this
situation, lighter seats are fundamental to achieve that and there is a possibility for a more
extensive use of lightweight materials and innovative seat frame design. Since MPV design seats
have different purposes in comparison with conventional design, developing specific solutions for
them can constitute an opportunity to niche players.

Alternative approach

In situations where vehicle weight is critical, the use of alternative constructions might be a
solution to contribute to its reduction. The progressive use of lightweight materials in conventional
seats is likely to lead towards its adoption in niche, low-volume vehicles. This is the case of

59
Idem
60
Interview with Senior Materials Design Engineer from a leading OEM
61
Interview with a Material Sciences Laboratory Professor in UK

86
electric vehicles or racing cars. In these cases costs are not so restrictive to prevent the use of
premium low-density materials such as magnesium, aluminium or composites, which are more
expensive, but offer an improved performance-to-weight ratio when compared to standard steel.
However, this will require radical transformation in the seat structure design, with slimmer and
less articulated, (if even articulated at all) frames. Due to the limited application, these seats
require less flexible adjustments so a more optimised personalised structure is achieved
according to the size of the occupant. In consistency with this minimalist approach, innovative
cushioning materials drawing on personalised membranes of Neoprene and gels are likely to be
adopted, instead of the traditional combination PU foam plus cover. This upholstery solution will
contribute in achieving slimmer profiles.

Vision

Conventional Design: the design of the seat is conventional and much similar with current options
in seat modules, as described in the beginning of this chapter. The evolution follows a path of
incremental innovations, with the continuous integration of comfort and safety systems, and the
introduction of lighter weight materials, such as fibre-reinforced thermoplastics.

The differentiation between segments is done through the introduction of innovations in different
timeframes, starting on the high segment and diffusing down to the low segment. Some of the
innovations relate to materials used for covers and other exterior elements, as well as integrated
systems like comfort, safety and customisation.

MPV Design: a seat very similar to the conventional design, but where the need for a bigger
mobility and configuration pushes the need to include more flexible structures (with more degrees
of freedom), a lighter weight and a slimmer construction. This can be achieved in detriment of
some comfort systems and the use of less noble materials. The introduction of lightweight
materials is likely to start on this segment due to the requirements expressed.

5.2.3.1.1 Alternative approach

The alternative approach constitutes a rupture with the existing evolution trend, where an Ultra-
low-weight seat is obtained through personalised structure and cushioning. The progressive
introduction of lightweight materials on the conventional segments, as referred above, will provide
increasing expertise for the development of these techniques on a whole seat for a niche
application

5.2.4 Key technologies for Autointeriors

This section will start by presenting general industry trends in materials and manufacturing that
were identified during the Technology Roadmap process. These general trends will be followed

87
by the identification of specific key technologies and materials for each of the autointerior
modules analysed.

Materials

In the recent years, low specific density metals have been increasingly used in the automotive
industry. The results of the Roadmaps show that this trend is likely to continue. Fuelling this trend
should be the competition between the different material suppliers – aluminium industry
(Aluminum Association. 1999), high strength steel (AISI 2002)62 and magnesium. It should be
noted though that the switch on the use of these materials might open up other opportunities and
it would be reductionist not to refer them. Many of these materials – the aluminium, for example –
have been used, not only due to its mechanical properties, but also to convey a certain image,
often related to style and technological edge.

In interior trim, it has been observed for a while now the growing use of olefinic materials. Much of
the influence is attributed to the demand for environmentally sound and recyclable mono-material
solutions. The use of thermoplastic olefins can potentially address these needs, due to its
compatibility with PP, although there are aspects requiring further development. In order to have
high specification soft feel trim panels, olefinic foams should be improved to guarantee a better
touch quality. In the mean time though, PU has been the material offering the best touch quality.
Mono-material solutions of PU have been proposed but the effectiveness of its recyclability still
needs to be proven on industrial contexts.

Plastics have been having increasing importance not only in finishing and trim elements, but also
in structural and semi-structural elements. Its lightweight associated with flexibility in design
contributes to part integration, which in its self can favour cost reduction, reduction of assembly
labour content, increasing reliability and integration of new functions.

Manufacturing

In terms of manufacturing technologies the results of the roadmap show a trend for the production
of integrated optimised structures, using lighter weight metals such as aluminium and
magnesium. The key technologies seam to be metal casting and Hydro-forming. This trend is
observed namely for seat structures, hardware carriers and instrument panel cross-car beam,
thus substantiating recent literature (Ryan 1999, AISI 2001, Phaal 2002)

The trend towards elimination of processing stages has also been confirmed driven mostly by
cost issues and functionality of the integrated parts. Simultaneous injection of plastics has been

62
American Iron and Steel Institute

88
 observed to be a strong area of research. The elimination of paint shops has also been seen as a
way to reduce production costs. The use of “self-coloured” plastics has been presented as a
solution for it.

Door module

Considering the Roadmap obtained for this module, the most important technologies involved in
its production have been condensed in Figure 32.

Door

Exterior Structural Panel Harware Cassette Interior trim Panel

Hardware Carrier Substrate Skin

Body Panel Body Structures

Black-box Injection Low Pressure Inj. Thermoforming

Stamping Hydroforming Assembly LGF PP PP TPO, PVC
Steel, Al, HSS HSS, Al Cast High Pressure Inj. Painting
Co-extrusion AL, HSS ABS Soft Paint
Sc Thermoplastic Welding
Mig-Mag, Laser Stamping Compr. Mould. Kniting
Steel, Al Wood, Fibre aggglom. Textile, PP,PE
Extrusion Inj. M. "In colour" Leather
Steel, Al, HSS PP, PVC
Stamping
Steel, Al, HSS

Figure 32: Door module's technologies and materials

Considering the structural elements, key technologies are Aluminium and high-strength steel
processing in replacement of current steel parts. As for the hardware carrier, the Roadmap offers
diverging technologies that relate with the way integration will evolve in this component (see
section5.2.1): a structural cast hardware carrier made of high-strength steel that would merge into
the door’s exterior structural panel; a long glass fibre thermoplastic hardware carrier, which would
evolve into merging with the interior trim panel, made of compatible thermoplastic material
(Polypropylene).

For the interior trim, since it is a visible component, aesthetics are paramount. For this reason
different technologies were identified depending on the vehicle’s segment. Industry trends refer a
strong trend for leather-like trim surfaces. This can be achieved with the use of natural and
synthetic leather.

Instrument Panel

Figure 33 presents some of the technologies and materials that were pointed by the Roadmap.

89
 Instrument Panel

Substrate Foam Skin Cross-car Beam Systems

RIM PU Foaming Spray Hydroforming Black-box

PU PU,Cross-linked PP TPU, TPO HSS, Al Assembly
Injection Mould. Powder Slush
LGF PP, ABS, SMA TPU, PVC, TPO Compr. Mould.
Pos/Neg ThermForm Thermopl. Composite
TPO, PVC Technology?
Painting Magnesium
Soft Paint
Kniting
Leather

Figure 33: Instrument Panel's technologies and materials

In instrument panels, an important priority in R&D is being given to covering skins. Hence, the
Roadmap has offered diverse technological solutions for this component. However, it was not
possible within the group of experts consulted to elicit one single key technology, since the
choices throughout the industry are very diversified and difficult to generalise. In foam technology,
two key technologies have been found: foamed PU and foamed cross-linked PP, where the last
alternative was pointed as in need of research in order to improve the soft-feel of the resulting
component. In substrates, it has been identified the need for obtaining self-supporting structures,
that would not require a cross-car beam. Fibre-reinforced thermoplastics injection has been
identified as a key technology to achieve it. In the low segment, advanced engineered polymer
capable of being self-supported, being PC/ PBT resins the material to provide such
characteristics.

Seat module

Figure 34 presents some of the technologies and materials offered by the Roadmap:

Seat

Frame Foam Cover Systems Mechanisms

Inj. Mould Inj. Mould Gluing "Black-box" High Precision Cutting

Fibre reinforced plastics PU Kniting Assembly Steel, HSS
Casting Foam "in-situ" Textile, PP,PE Inj. Mould.
Al, Mg PU Leather PP, ABS, PA/PC Extrusion
Forming/ Shaping Cutting/ Sowing Steel, Al, HSS
Steel, Al, HSS Person. membranes
Welding/ Joinning neoprene, gels?
Mig/Mag, Laser 3D fabrics
Surface treat.

90
 Figure 34: Seat module's technologies and materials

Considering seat frames, the roadmap presents two main evolution trends: on a conventional
approach a progressive switch to lighter weight materials – high-strength steel, aluminium, and
fibre reinforced plastics; on an alternative approach, a shift to metal casting technologies –
aluminium, composites and hybrid metal-plastic materials. Considering fabrics, 3D technologies
have been pointed to have a decisive influence particularly when compared with more traditional
technologies such as industrial knitting and sowing.

5.2.5 Implications on the Portuguese automotive interior component companies

From the analysis of the group of companies working on automotive interior component sector in
Portugal (section 1.3), the implications of the expected evolution offered by the Technology
Roadmaps can be discussed at different levels.

The macro level

The average company size of the sample is reduced, considering the ability to get engaged in
research and development activities (Conceição et al. 2003). According to the same reference, a
company with sales volume of about 30 M € (the average found in the sample) is bound to spend
over two percent of its sales in development activities if it wishes to carry out the development of
an average complexity product. This should be confronted with the fact that the average
investment in research and development for the sector of auto components in Portugal has been
estimated less than 1.5 percent (Inteli 2003).

In addition, Portuguese companies’ human resources qualifications are still distant from the main
European counterparts (Figure 35):

91
 100%

90%

80%

70%

60% superior
9º-12º ano
50%
<9º ano
40%

30%

20%

10%

0%
Case study Portuguese Spain* Czech Republic*
company Automotive
Companies*

Figure 35: Human resources qualifications - national and international comparison (* - Inteli 2003)

Technologic capacity

Considering the technological diversity and flexibility of the Portuguese companies, the results of
the survey show a limited array of different material types processed (Figure 9), whereas the
Technology Roadmaps show quite the opposite, with a wide array of technology fields needed in
order to produce a complete module (Figures 32 to 34).

Considering the complexity of technologies, Figure 10 demonstrates a predominance of simple

processes and a low focus on integration of components, as well as a reduced emphasis on
appearance and sensorial aspects, which are paramount when considering automotive interior
components. It also demonstrates a limited use of complex production technologies involving the
simultaneous processing of different materials and one-shot processes, as substantiated once
again by the Technology Roadmaps (section 5.2).

Technological change

Comparing the expertise of companies based on the materials processed (Figure 8), it is
observable a lack of some strategic areas of expertise pointed by the Roadmaps (the key
technologies presented in section 5.2.4). These are alternative metals for structural applications,
such as aluminium with a limited presence, magnesium (which has not been referred at all) and
composite materials, which due to the reduced presence was grouped under the plastics
category. This is particularly relevant, considering the niche position that these companies could
adopt. The case study illustrates this point in an incisive way further in the discussion.

92
Summarising, Portuguese autointeriors companies spend insufficient resources in R&D activities,
have a low skilled work force, dominate a reduce number of technologies and lack key
competences that were identified by the Technology Roadmapping process as being fundamental
for the future evolution of autointerior components. On the other hand, Portuguese companies on
a whole, have important basic skills for supplying the autointeriors industry. Hence, efforts should
be made to inform them about the major evolutions in this industry and find opportunities to
innovate and address the industry’s needs. Efforts should also be made to incentive collaborative
work among companies, in order to distribute R&D expenditures and benefit from the collective
skills they possess.

The next section suggests policy recommendations and future work to address the challenges
faced by the Portuguese autointeriors industry.

Case study

The application of the Technology Roadmap to the seat considered has enabled to raise a
number of issues critical for further developments and improvements on that particular product,
as well as in the company’s organizations as a whole.

The roadmaps inform how the seats will evolve and what will change in the technologies and
materials to produce seats. The company can use this information to direct its investments and
prioritise the development of a more restricted area of technologies.

Further, it points the way to possible alternative seat designs for the production of seats, which
reflect market needs that are not being addressed at the moment.

Considering the company’s technological infrastructure, it was possible to identify a need for the
improvement of seat structures development, particularly on the design, dimensioning and
prototyping. It was also possible to recommend an evolution towards the weight reduction of the
existing structures. This can be done through incremental improvements in the stamping and
pressing machinery, and the increase introduction of high-strength steel elements .The foam and
trimming units were pointed as requiring considerable upgrading in equipment, particularly
concerning an increase automation of the process and changes in foam design.

In terms of the strategic positioning of the company the Roadmap suggested a stronger focus on
its market – motor-home vehicles niche, by redirecting its evolution in pursuit of the MPV vision
presented. Considering the company’s market positioning though, its technology base is not truly
one of a niche producer. The company considered produces niche quantities to niche markets but
by supplying high production volume solutions with high volume technologies. The switch to
production with niche technologies involves a considerable restructuring of the existing capacity.
It involves exploring alternative technologies that may be banned to greater dimension suppliers
due to their focus on high volume production and associated installed capacity. The reduced

93
dimension of the company, grants it additional operational flexibility that other bigger players do
not enjoy. Possible alternatives are suggested on the Roadmap under the “Alternative approach”
evolution path (see section 3.2.4), namely through a stronger focus on composite structural parts
production – diversification of metals (Al, Mg) using cast technologies, High stiffness nylon
blends, Fibre reinforced thermoplastics; alternative upholstery materials – membranes and cross
linked foams, 3D fabrics)

A distinct characteristic in this company relative to the majority of Portuguese component

companies is the fact that it has a product (or module) level competence. Regarding seats, this
company integrates every stage of manufacturing, from the conception and development, testing
and homologation until the implementation of the production process and commercialisation. It
develops in-house the main components associated to the product63, namely the structure, foam
and covers and has the capability to integrate the necessary systems and mechanisms.

5.3 Policy implications and future work

The motivation for this research originated on the needs identified in previous works for the
development of the Portuguese autointeriors industry (Veloso et al. 2000, Lobo et al. 2002,
Camacho 2003)

This sector has been gaining increasing importance in the context of the Portuguese automotive
component industry (Figure 6). However, the detachment of R&D activities in Portuguese
companies, as well as their human resources qualifications, has hampered their capacity to
innovate and become more competitive. Moreover, globalisation trends in the automotive industry
point towards an increasing competitiveness as it becomes easier for multinational companies to
invest in low labour cost countries in Asia and South America (see section 1.2.1).

The present work has enabled to identify key technologies for the future of automotive interiors. It
has also collected visions on how specific autointerior modules will be in the future. In this way,
two important results were achieved. On one hand it allowed to have a better understanding of
the automotive industry, the key drivers influencing the choice of technologies, materials and
product evolution. On the other hand it enabled the appropriation of a methodological tool for
prospective analysis.

However, considering the national context, it is not enough to point the ways in terms of trends in
technology and materials at a company level. Technology Foresight and, in particular,

63
although not necessarily those with greatest added value – it outsources adjustment mechanisms, the
armrest mechanism, and the pneumatic lumbar support

94
Technology Roadmapping in automotive interiors, should be considered in view of its specific role
within the Portuguese innovation systems. In order to appropriate the results of the study, the
Portuguese automotive component industry is faced with a set of challenges focused on learning
capacity that can trigger and sustain innovation activity towards the production of competitive,
value-added products. Companies should be aware of the importance of long-term planning, in
order to embody Foresight activities and benefit from them.

Technology Foresight should be seen as a continuous structured process of innovation by

identifying customers’ needs, prioritising research activities and influencing R&D investments. As
such, the results obtained on this study can be used as an input to future foresight studies in
Portugal as it has been happening in other EU countries (Phaal 2002, Fonseca 2003).

The nature of the present work addresses technological choice and Foresighting. However, it is
important to retain that other exogenous factors contribute for companies’ strategic reasoning, so
technology is only one of the variables to be considered. Foresight should be inclusive and be
developed with the participation of the relevant actors - government through public institutes with
the institutional and political support, academia and research centres as providers and supporters
of R&D activities and companies as the end users of the results. Interaction among these actors
can provide the adequate institutional drive for keeping the process going. The results obtained
constitute per se a framework for further research. According to EIRMA (1997), “a TRM is a living
document and is constantly evolving as circumstances change” and for this reason a constant
monitoring and updating should be preformed in future works.

The Roadmaps offer a description of possible evolution paths for the automotive interiors. These
can be used as an input for further evaluation of the trends influencing this industry.

In addition, the description of the main evolution paths opens up opportunities for future
collaborative research among Portuguese automotive component companies. Analysing the
Roadmaps obtained it is possible to notice that many questions remain unanswered. Answers
include considering specific local idiosyncrasies. Therefore, future other work may involve:

• Analysis of disruptive solutions addressing niche markets on an inter-company rationale

• Developing research projects on sourcing the best technology alternative for a specific
company

It is thus clear, that the contribution of this work goes beyond providing answers; the questions
raised may also be relevant drivers for innovation if properly assumed at a company level.

95
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Annex A – Interview Outline

1. Automotive interiors

9 Build a Roadmap of the Interiors for the next two car

generations
9 Map the main trends and evolutions on:
9 Product Design
9 Materials Used
9 Enabling Technologies
9 Focus on:
9 Door Module
9 Instrument Panel
9 Seat module
9 Interiors as an integrated product

Automotive Interiors Joao Meyer

2.1. Current Vision – Door Module

Door Module 2003

Exterior structural Steel, traditional metal processing, some parts in “high strength steel”, aluminium.
panel Consists of:
- Metal frame: pressed steel
- Impact protection: extruded or stamped profiles, tube bending,
Trend for use of aluminium particularly in the SUV segment

Key Technologies:

Hardware Carrier Steel, thermoplastic, aluminium or magnesium. Depending on degree of integration and market segment can
carry several kind of Hardware. This aggregate is usually called Door Cassette.

Key technologies:
Inner Trim Panel PP, ABS or wood agglomerate panel. Several parts:
- Vinyl or cloth-covered appliqués
- Armrests, radio speaker grilles, map pocket compartments, carpet and sound-reducing insulation.
- Often incorporate electronic and electrical distribution systems (switches and wire harnesses)

Key technologies:

Door as a whole Still a module with labour intensive assemblage. Shares functions with other modules (Seat, Instrument
panel) so a more holistic approach would benefit coordination.

Automotive Interiors Joao Meyer

101
 2.2. Drivers vs. Door
Drivers

Door Reduce Reduce Cost Customisatio Product

Environment Comfort Safety
Module Weight (cost/benefit) n/ Variability Architecture

Exterior
structural
panel
P
R
O
D
Hardware
U Carrier
C
T

A
R
Inner
E
A Trim
S Panel

Door as
a whole

¾Influence? Time scale? Enabling technologies? Tensions and conflicts?

Automotive Interiors Joao Meyer

3.1. Current Vision – Instrument Panel

Instrument 2003
Panel (soft)

Supporting Traditional Thermoplastic material (PP). Trend towards replacement of ABS PC/ABS and SMA.
structure Some times, it includes a metallic structure, for support, or even an hybrid component (Plastic injected in metallic part)

Key Technologies:

Foam PU foam, foamed Polyolefin.

Key technologies:

Skin Skins of different materials – Powder slush of PU or PVC; increasing use of TPO.
No consensus between the use or substitution of PVC

Key technologies:
Instrument “Hard Panels”: moulded-in-colour PP
Panel as a “Soft Panel”: as described above.
whole Growing importance of “soft touch” panels, relative to “hard panels”
Constituting parts subjected to rapid change with increasing use of telematics.
Strong focus on Skins.
Soft feel materials
Modular construction brought many advantage in terms of process optimisation (delivered fully tested ready for final
assembly).

Automotive Interiors Joao Meyer

102
 3.2. Drivers vs. Instrument Panel
Drivers

Instrument
Reduce Reduce Cost Customisatio Product
Panel Environment Comfort Safety
Weight (cost/benefit) n/ Variability Architecture
(soft)

Supporting
structure
P
R
O
D
U
C Foam
T

A
R
E
A
Skin
S

Instrument
Panel as a
whole

¾Influence? Time scale? Enabling technologies? Tensions and conflicts?

Automotive Interiors Joao Meyer

4.1. Current Vision – Seat Module

Seat Module 2003

Structure Steel, traditional metal processing, some parts in “high strength steel”, aluminium

Key Technologies: Composite structure? (Fibre reinforced polymer). Whole light weight metal structure.

Foams Injected moulded PU with varying densities, gradual elimination of metal clips

Key technologies: “In-situ” injection, multi-variable foam density.

Covers Natural Leather, Synthetic (PVC, PU), Webbed fabric (Nylon, Wool, Polyester, Natural Fibres...)

KEY Technologies: 3D tissues, Non-woven Fabrics.

Seat as a whole Seat produced in most of the cases as an independent module integrated, although not merged or diffused.
Flexibility in configurations; many options for comfort and thermal systems.

Automotive Interiors Joao Meyer

103
 4.2. Drivers vs. Seat
Drivers

Seat Reduce Reduce Cost Customisatio Product

Environment Comfort Safety
Module Weight (cost/benefit) n/ Variability Architecture

Structure

P
R
O
D
Foams
U
C
T

A
R Covers
E
A
S

Seat as
a whole

¾Influence? Time scale? Enabling technologies? Tensions and conflicts?

Automotive Interiors Joao Meyer

5. Vision for the next ___ years?

¾Two Car Generations

Vision

Module +5 years +10 years

Door
module

Instrument
Panel

Seat
module

The Interiors
as an
Integrated
Product

Automotive Interiors Joao Meyer

104