Range extenders can extend the driving range for an electric vehicle ...

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Lennart Josefson, director of the Swedish Hybrid Centre. Page 20
Range extenders can extend the driving range for
an electric vehicle while providing a redundancy in
propulsion and also possibly a lower weight.

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contents
contents
IANGV - Creating a transport revolution .................................................................................... 08
Landi Renzo taking alternative fuel systems to the U.S. ............................................................. 12
Omnitek - Filter technology powering NGV market ..................................................................... 16
Buehler - Driving confidently into U.S. market ............................................................................ 18
SHVC - Switching on hybrid technology .................................................................................... 20
Ford sets new standards for engine efficiency with EcoBoost ................................................... 21
Haldor Topsøe - Reducing the costs of catalysis ....................................................................... 22
Aristo - Managing the costs of catalytic systems ........................................................................ 24
Emitec - Reducing space and emissions ................................................................................... 28
Frauenthal - Reducing diesel emissions .................................................................................... 32
Rhodia - Keeping it clean ........................................................................................................... 34
Sustainable motoring the BMW way ......................................................................................... 36
Novelis - Aluminum is the skin of the new BMWs ..................................................................... 42
DRAEXLMAIER - Tailoring the BMW Z4 interior ........................................................................ 44
Geico - Focus on greening the paintshop .................................................................................. 46
Luvata - Keeping joints sealed ................................................................................................. 48
Veeco - Innovative metrology equipment measures up ............................................................. 50
AutoSar - Taking ECUs into the future ...................................................................................... 52
Pelagicore - Auto Linux gathers speed ..................................................................................... 56
Pulse-AR - Specialist company formed to implement AUTOSAR ............................................... 58
Nokia dialing up the automotive industry .................................................................................. 60
AMS - Analog continues to drive critical functions .................................................................... 62
Parrot - connecting customers to their cars ............................................................................. 64
Valmet - Leading the way in going green ................................................................................. 66
IMAP - Exploring the changing landscape of the automotive industry ....................................... 68
INSEAD - A seismic shift in the car industry .............................................................................. 70
AuDaCon - Making sense of the flow of automotive data and information ................................. 72
Tunisia - gateway to Africa, Europe and the Middle East ........................................................... 74
“Visions in Polymers” at K 2010 ............................................................................................... 78
Mahindra makes its mark at Indian Auto Expo .......................................................................... 80
TAPA 2010 - Thailand taking center position as ASEAN auto parts hub ................................... 82
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intro
Industry motors ahead
Looking back over the past 24 months or so, it is astonishing
to see how quickly the auto industry has turned prototypes
and “blue sky” thinking into hard metal (or plastic) on
the roads.
While academics, politicians, environmentalists and lawmakers
were still attending conferences and having discussions about
curbing vehicle emissions, promoting electric vehicles and improving
fuel consumption, the industry simply got on with
it. BMW has a fleet of over 600 electric Minis on
the road, while Nissan, General Motors, Audi,
Toyota, Ford, Volkswagen and Hyundai are
among the other OEMs with all-electric
cars hot on the heels of the Minis.
Editor, Ed Richardson
Then there are the new brands -
Tesla has its roadster, Norway has its
Think City, and in South Africa there is the
Joule – some of the first new brands to be
launched as the industry enters a new era of
propulsion. They have the potential to spark farranging
changes in the way passenger cars are sold
and serviced. All-new technology creates an opportunity for dealer
and distribution business models which disrupt the present order.
In South Africa (as elsewhere), supermarkets now sell Chinesemade
scooters, motorcycles and scooters instead of the traditional
motorcycle dealers. That’s because the low cost of the Chinese
bikes has turned them into disposable commodities. Electric
vehicles will not (for now) be commodities, but neither will they
be maintained and repaired in traditional workshops. OEMs have
clearly seen the danger, and are leveraging their brands and net-
works with their own vehicles. AI
At present, the electric car is designed for city transport, and
hybrids seem to hold the key to more efficient motoring over long
distances and in town. Innovation in this field is extraordinary, as
we see the integration of what a few years ago were nice-to-have
accessories into the operating system of the car. The vehicle management
system of BMW’s new hybrid system, for example, uses
a built-in GPS to calculate when to run on all-battery power, and
when to start the engine. You can read about it in this
edition, and we can be sure that others will have
similar systems as designers think laterally and
software allows different systems to talk to
each other. Initiatives like Autosar and the
use of Linux through the GENIVI consortium
are fuelling this trend. As are
partnerships across continents, between
component manufacturers and
OEMs, and competing OEMs themselves.
China again has the potential
to disrupt the status quo through its
plans to be a world leader in hybrid
technology.
Hybrids bring their own challenges,
not the least of which is an engine which
seldom reaches optimum operating temperature.
This has repercussions for both
the lubrication of the engine, as well as the
designers of the catalytic exhaust systems which
have traditionally been designed to run hot.
Which brings us to the question of what fuel the engine will
use. Here again advances are being made at high speed. We have
companies turning algae into fuel, running engines on methane
from waste dumps, converting used cooking oil into diesel … the
list goes on.
What is perhaps most exciting is that all this research and development
has been going on while the global auto industry has
been navigating itself through one of the worst downturns in history.
Which is good news for a global economy built on the mobility
of the individual.
AUTOMOTIVE INDUSTRIES and Rutgers, The State University of New Jersey, have put
together a digital library of back issues of AI from the early 1900’s (high res and low res) of
approximately 230,000 images of the print publication. This archive, which documents the
birth of the auto industry to the present, is available to AI subscribers.
Go to AI’s homepage www.ai.com.ai and click on the “AI Library” link or visit
www.ai-online.com/100YearLibrary
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innovation
Among the issues on the agenda for the conference, which
will be held in Rome from June 8 to June 10, is the increase in
OEM vehicle and engine manufacturer participation. More than
200 vehicles and natural gas powered models are now available
worldwide, with one new model emerging each week on average.
More than seventy oral presentations, plus a number of poster
presentations, will feature on the two and a half day program
covering issues such as biomethane (renewable natural gas),
standards harmonization, integration of CNG cylinders into OEM
platforms, marketing initiatives, emerging technologies, plus
national and regional market reviews.
“Until now, natural gas has been ‘the quiet achiever’. It has
proven itself as a transport fuel on a sizeable scale
Natural Gas Vehicles –
creating a transport
revolution By: Jon Knox
“Creating a Transport Revolution” is the theme for the twelfth biennial conference of the
International Association for Natural Gas Vehicles (IANGV).
“
The automotive and
transport sector is currently
undergoing unprecedented
and exciting change
worldwide. Environmental,
economic and energy factors
have resulted in a global
quest for alternatives to diesel
and petrol to fuel our vehicles.
with more than 11 million vehicles in over 81 countries
throughout the world,” says Brett Jarman, executive director
of IANGV. “Fuel alternative vehicles are currently undergoing a
revolution – in some countries earning market share that positions
natural gas alongside petrol and diesel as a ‘mainstream’ fuel.”
The IANGV is keenly aware that for the NGV industry to be
commercially viable there needs to be a high level of participation
by OEMs. At its first exhibition held in Sydney in 1988, no OEMs
showcased any products – today, industry exhibitions attract all
types of vehicles from cars and three wheelers to heavy trucks and
buses that run on natural gas.
“Environmental, economic and energy factors have resulted in a
global quest for alternatives to diesel and petrol to fuel our vehicles,”
explains Jarman. “While the alternatives are many, few can equal
the promise shown by natural gas – it’s clean, safe, reliable,
versatile, affordable, readily available and even renewable.”
Jarman recently took over the management of the
association from the founding secretary-general, Garth
Harris. Automotive Industries (AI) asked him what he sees
in the future of the association.
Jarman: Dynamic, progressive and growing in size and stature
– a reflection of the industry. Right now, the industry is like a runaway
train. Even the global economic circumstances of last year couldn’t
stop it – with NGV numbers growing by more than 10%.
AI: Are NGVs getting the support they need from the
worldwide political leaders and policy makers?
Jarman: It’s a mixed bag. In some cases the support is
outstanding, in others the support is well intentioned but not
necessarily effective, and in others still, it’s non-existent.
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While the alternatives
are many, few can equal
the promise shown by
natural gas – it’s clean,
safe, reliable, versatile,
affordable, readily available
and even renewable.
”
Brett Jarman, executive director
of IANGV. LEFT: Fuelling a Mercedes
B Class NGT (Natural Gas Technology)
with biomethane.
One of the main challenges is getting policy makers to
understand that NGVs are a ‘here and now’ solution to a number
of issues – greenhouse gas and air pollution reductions, enhanced
energy security, foreign exchange savings and more.
AI: How are NGVs doing relative to other alternative fuel
vehicles such as ethanol vehicles, hybrid vehicles, and
hydrogen fuel cells?
Jarman: If I had a scorecard, I would say that natural gas is
doing better than other alternatives simply because of the vast
range of applications it is proving itself in. Included among the 11
million NGVs on the road are motorcycles, three wheelers, forklifts,
cars, trucks, buses, tractors, airport tugs, ice re-surfacers, refuse
trucks, drayage trucks, rail locomotives, and even 150 ton ‘road
trains’ in Australia.
We can add to that number the growing number of
ferries, fishing boats, cargo ships and other marine vessels.

Fast gas – gas-powered Volkswagen Scirocco.
No other alternative fuel, and not even petrol for that matter, can
claim the same level of diversity as natural gas.
AI: OEMs are advertising electric vehicles, hybrids, and
fuel flexible vehicles but we don’t hear too much about their
NGVs. Why not?
Jarman: I hear from OEMs almost every day and they are very
serious about selling their NGVs. However, if you were to mass
market NGVs in an immature market without adequate refueling
available, you would find that most of your marketing dollars go to
waste. You would also frustrate the market by trying to sell them
something they can’t use. Where NGVs are concerned, you’ll find
the advertising tends to radiate from, and be proportionate to,
fuelling station availability.
AI: Have NGVs become part of the ‘normal’ natural gas
markets to take their rightful place along with industrial,
commercial and residential sectors of the industry?
Jarman: Individually, NGVs don’t consume a lot relative to
some commercial or industry sectors, but collectively the potential
consumption is enormous. Apart from a few small exceptions,
NGVs are not yet part of most ‘normal’ gas markets but are rapidly
becoming so. One outstanding exception is India, where NGVs are
well known and widely accepted.
AI: Liquefied natural gas (LNG) seems to be becoming more
popular. Do you see an expanded market for L-NGVs and, if so,
where is it most likely to take place, in what types of vehicles?
Jarman: North America, Australia, Russia and Korea are
probably the most tested markets and their numbers will climb
dramatically in the next two years. There are also promising signs
coming from other parts of Europe, particularly the UK, Spain,
Sweden, and the Netherlands. Thailand is also leading the way in
South-East Asia. In all cases it’s for heavy vehicles. The 150 ton ‘road
trains’ are proving that LNG is up to the toughest of challenges.
AI: Many people are promoting biomethane as a renewable
fuel to compare to such alternatives as ethanol. How do you
see biomethane moving into the NGV market?
Brute force demonstrates the power of natural gas.
One of the world’s first natural gas fuelled cement agitators in
Australia’ (The line about filling up with gas wouldn’t work as
it’s not common terminology in Australia.)
Jarman: It’s a perfectly natural fit – it puts waste or organic
material to good use and often allows NGVs to be used outside
of traditional pipeline or virtual pipeline networks. The biggest
challenge is diverting political attention away from biomethane for
power generation and towards transport use. From a renewable
point of view, electricity can easily be generated from wind or solar
whereas transport can’t – except through electric vehicles which
has fairly limited applications.
Reserving biomethane for transport use guarantees an
efficient low carbon (and in some cases carbon neutral) fuel
that can be used for a huge range of applications. Garbage
trucks that are fuelled by their cargo or dairy fleets fuelled
by farm based bio-digesters are perfect examples of ‘closing
the loop’ on environmental hazards. Given that any NGV, and
thus any internal combustion engine vehicle could run on
biomethane, the opportunities are limitless. AI
Automotive Industries 10

innovation
Landi Renzo taking
alternative fuel systems
to the U.S. By: Jon Knox and Jeff Seisler
The U.S. market is to benefit from the experience
and knowledge of a leading manufacturer of
LPG and CNG alternative automotive fuel
systems and components, Landi Renzo.
In January 2010, the Italian firm
registered its U.S. subsidiary – Landi
Renzo USA Corporation. It already has
subsidiaries in Europe, Asia and South
America. “In the U.S. there is huge
potential for the use of eco-friendly
fuels, particularly natural gas, in the
transportation segment. Landi Renzo will
be playing a key role in the development
of this sector and will take advantage of the
many business opportunities it offers,” says
Claudio Carnevale, CEO of Landi Renzo.
Landi Renzo says it controls more than 30% of
the market for LPG and CNG alternative automotive
fuel systems and components. The company was established
in 1954 and during the last five years has registered a compound
annual growth rate of more than 30%. It has become a global player
through subsidiaries in ten countries covering all continents. The
company currently provides components or complete systems to
some of the largest OEMs around the world including Toyota, GM
Group, Fiat Group, Renault, PSA, BMW, Mini, Suzuki, Tata and
Mahindra&Mahindra. It also provided components to a number
of Chinese car makers including Chery, Geely and JinbeiAshok
Leyland and Brilliance Jinbei Automobile Company.
The Landi Renzo Quality System is in line with the most stringent
automotive requirements and is 2001 ISO/TS 16949 certified. After
an extensive certification process, more than 300 of the company’s
workshops in Italy are now ISO 9001 certified. “Landi Renzo has
already collaborated with some of the top car manufacturers on an
international level. The complexity of electronics in modern vehicles
results in the need for a stable and ongoing collaboration in order
to design and build systems that can be perfectly integrated
with the electronics and mechanics of current vehicles,” says the
company. “Collaborations with these manufacturers are focused
on addressing specific markets. Considering current development
programs, CNG and LPG bi-fuel vehicles will increase dramatically
in the future.”
In line with this policy, Landi Renzo created a division dedicated
exclusively to products for car manufacturers. The company
continues to invest in the division and one of its successful
collaborations was with the FIAT Group (FIAT, Lancia, Alfa Romeo).
A range of vehicles launched in 2009 was developed in strong
collaboration between Landi Renzo and FIAT teams. The result
was a portfolio of bi-fuel vehicles sellable on the FIAT network
under FIAT warranty procedures.
Automotive Industries (AI) spoke to Claudio Carnevale,
CEO of Landi Renzo S.p.A., and asked him how Landi Renzo
manages to continue to adapt its technology to fit with the
changes in vehicle technology and emissions standards.
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ABOVE: Claudio Carnevale, CEO of Landi Renzo
S.p.A and Stefano Landi, CEO, managing director
and director, Landi Renzo S.p.A.
“
We ensure that we are constantly
aware of the innovations introduced
to car models and even anticipate the
possible demands of our customers.
We continue to be the first choice of
major car producers thanks to this
technological responsiveness.
”
LEFT: Claudio Carnevale, CEO of
Landi Renzo S.p.A.

Landi Renzo S.p.A headquarters in Cavriago di Reggio Emilia, Italy, were built to architecturally represent the company’s
advanced technologies.
Carnevale: We have been reliable partners of major OEMs
and we have offered some of the best aftermarket applications.
This has been possible because of our commitment to R&D. We
ensure that we are constantly aware of the innovations introduced
to car models and even anticipate the possible demands of
our customers. We continue to be the first choice of major car
producers thanks to this technological responsiveness.
AI: Has the need to comply with regulations for on-board
diagnostic (OBD) systems been a major challenge and cost
for Landi Renzo?
Carnevale: We are able to manage co-design projects with
major car makers. In general, we work on job and cost sharing
with customers on OBD subjects in order to optimize the technical
results and development cost.
AI: OEMs are increasingly bringing NGV models to the
market which also impacts the retrofit business. What do
you see as the future of the NGV retrofit business? Do you
anticipate forming strategic relationships with OEMs or will
you focus on the retrofit markets more exclusively?
Carnevale: We already have many partnerships with OEMs
on CNG systems. In many countries, aftermarket remains a very
important business option. Our strategic choice is to not favor
one or the other market, but to be aware of all the available
opportunities and any possible market developments. Obviously
the retrofit market will enjoy technological benefits from the OEMs’
know-how.
AI: Do you see natural gas and LPGs having a similar future?
Carnevale: Today, LPG is a very popular option in Europe
and in some Asian markets. Natural gas accounts for almost the
whole South American market and is very successful in southwest
Asia. The search for a progressive independence from oil
sources will help CNG in the medium to long term.
AI: What are the current trends in the alternative fuels
market and what do you think future trends in this segment
will be? Where are your largest markets for conversion of
NGV and LPG?
Carnevale: We’re establishing our presence in both CNG
and LPG markets. CNG is a clean option that doesn’t need to
go through a transformation process to be used as transportation
fuel. It is a medium to long term solution for countries that have
CNG as a natural resource. LPG is a fast, reliable and affordable
option which also dramatically reduces CO2 emissions.
AI: The Landi Renzo Group is moving into the highly
competitive U.S. automotive sector for alternative fuel
technology applications. What message would you like to
convey to the North American automotive industry regarding
this important strategic move?
Carnevale: Being the worldwide number one in our business
has been possible thanks to over 50 years of experience in
aftermarket conversions. We are suppliers of LPG and CNG
systems to the major global automakers and we invest heavily
in research and development. Our strength is that we know how
to respond to customers’ needs. We believe that the American
players will appreciate these skills. AI
“
CNG is a clean option that doesn’t need to go through a transformation process to be used as
transportation fuel. It is a medium to long term solution for countries that have CNG as a natural resource.
Claudio Carnevale, CEO of Landi Renzo S.p.A.
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”

innovation
New filter technology will help power the greater use of
natural gas to fuel vehicles.
The high-pressure natural gas filter developed by Omnitek
Engineering has been certified by the United Nations Economic
Commission for Europe – the UN-ECE-110R. This certification is
expected to help the company expand its market internationally,
with a number of light and heavy vehicle manufacturers opting for
the filter. Already, Indian OEM, Tata Motors is fitting the compressed
natural gas filter as an original equipment part.
“The filter is a critical component of a compressed natural gas
system, providing protection from solid particulate matter and oil
aerosols which can damage fuel injections, carburetors and regulators.
In addition to Tata, numerous OEM customers report superior
performance from Omnitek’s multi-layer filter element over
competing brands and we look forward to expanding
“
We can now
cover every engine
from one cylinder
to 16 cylinders.
”
Werner Funk, president and
chief executive officer of Omnitek
Engineering Corporation.
our customer base with this international certification,”
says Werner Funk, president and chief executive officer of
Omnitek Engineering Corporation.
The company says that across the world, there are 11 million
light and heavy duty vehicles that run on compressed natural gas
or CNG, with one million being added to this number annually.
According to Omnitek, many developing nations with readily
available natural gas from indigenous sources are shifting to
CNG. Omnitek has developed a system to convert any existing
diesel engine to a clean-burning natural gas engine at a fraction
of the cost of a new engine. Omnitek estimates that ten million
diesel engines around the world can be converted using the
Omnitek Diesel-to-Natural Gas Conversion System while still
offering ROI.
Converting
diesel engines to
natural gas By: Jon Knox
Automotive Industries asked Funk what his general
criteria are for taking on the repowering of an engine?
Funk: We go through a checklist which includes: driving range;
space for CNG tanks; power needed (CNG may have five to ten
percent lower power than diesel); condition of the engine; and can
the engine be converted. After it is checked we either convert the
engine or sell the customer a new natural gas engine. We are picky
since there are so many diesel engines out there looking to be
converted to natural gas.
AI: Do you do many re-powering jobs on relatively new
diesel engines? If so, how will you deal with the latest diesel
engine developments such as on-board-diagnostics or the
addition of emissions control systems such as selective
catalytic reduction (SCR) systems?
Funk: Most engines are over five years old.
Customers wait out the warranty period when
they own the vehicle. Our system is OE
quality and we offer our own on-boarddiagnostics.
Our system communicates
over the CANbus and can control all
CAN functions such as automatic
transmission, electronic dashboard,
cruise control, etc. We would
remove the SCR system since this
Nox controlling technology is not
needed with natural gas and threeway
catalytic converter.
AI: Which countries are the
principal growth markets for
NGVs and for Omnitek?
Funk: The largest amount of vehicles
we have converted are located in Southeast
Asia. Now it looks like our business will
shift to South America and Eastern Europe. We
are also seeing great progress in the USA where
we have started several projects in recent months.
AI: Do customers receive government incentives for
the conversion to CNG in any of the countries?
Funk: Most of the natural gas conversions in the USA are
supported by government incentives in one form or another. In
other countries incentives take many forms – usually as low or no
interest loans and fuel subsidies.
AI: Many of the strongest growth markets are also highly
price sensitive. How is this affecting the degree to which
Omnitek can do a relatively complicated and expensive
engine conversion (repowering)?
Funk: We perform conversions in Myanmar, Thailand, Peru,
USA and Europe so price is not always the most important factor.
I think reliability and fuel savings are much more important.
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If a customer looks at the lowest initial cost solution only – without
considering reliability, service support and low fuel use – he is
missing the big picture. We make the customer understand that
it is not the initial conversion cost that is important, but the return
on investment (ROI). Most often, our customers can recover the
conversion cost in less than 1.5 years and sometimes in less than
ten months, especially in countries where the natural gas cost is
60 to 70% less than diesel.
AI: What are your latest products to be launched in the
market for gas vehicles?
Funk: Last year we introduced our diesel-to-natural gas
conversion system for V8 and V16 engines. We can now cover
every engine from one cylinder to 16 cylinders, including trucks,
buses, irrigation pumps, generators and boats. We also introduced
a low-pressure system, which can be used to convert diesel
power generators and allows the engine to be connected straight
to a low-pressure gas line with no high-pressure CNG storage
tanks needed. When converting a generator to natural gas, the
conversion cost can be recovered in four to six months.
The newest products are service items. Last year, we added a
special 12mm long-life natural gas spark plug to our lineup of longlife
14mm natural gas spark plugs we have been selling for many
years now. Another new product is a unique CNG motor oil.
AI: How do you assess the growth of natural gas vehicles
in your country? Do you think it is the right time for NGVs in
the United States?
Funk: I think the time is right for natural gas passenger vehicles,
especially if home-refueling is also offered. In the USA we have a
great infrastructure where natural gas is supplied to almost every
home. As far as Omnitek’s business is concerned, we still have a
lot of work to do to convince the United States EPA (Environmental
Protection Agency) that old diesel engines converted to natural
gas can be low-polluting engines with high reliability. We have
demonstrated that we can achieve EURO 6 and US EPA 2010
On-Road standards.
AI: What should be the next step of technology applied
to gas-powered engines in order to assure its massive
use at worldwide level? And what should happen with the
emissions control technologies?
Funk: For the natural gas passenger car population to increase
quickly and substantially, more fueling infrastructure and gas price
stability is needed. A high crude oil price will also help, but only if
the price of natural gas always maintains a significant advantage.
I think there are not enough OE suppliers offering a diverse product
mix of new natural gas engines to really have a substantial
impact on the heavy-duty natural gas vehicle population over the
next three or four years. Also, we cannot convert diesel engines to
natural gas quick enough to really have a big impact on the number
of vehicles on the roads.
As emission levels are getting lower and lower, new and expensive
technologies have to be employed to reach these levels. Two
Omnitek-equipped engines have recently achieved US-2010 and
EURO 6 emission levels without the use of EGR. This is about the
lowest emission level possible with today’s technology. To go even
cleaner, advanced and possibly not-yet-invented technologies are
needed. Some of these technologies may include cam-less valve
train technology, ceramic engine parts, after-treatment systems,
ultra-lean burn technology and laser ignition, just to name a few. AI
Automotive Industries 17
Emission standards around the world.

innovation
Driving confidently
into U.S. market By:
While many auto companies put the brakes on their activities
in the U.S. market when the downturn put the skids on new
vehicle sales, Buehler Motor, Inc. (BMI) has continued to rev
up its presence in the market.
The company recently relocated and expanded its United
States headquarters in Morrisville, North Carolina, to a new
14 000-square-foot North American Technical Center (NATC). “It’s
not an exaggeration to say that this center is one of the most
“
It’s not an exaggeration to
say that this center is one of
the most modern and efficient
in North America. It allows us
to meet our North American
customers’ growing demands
for technically advanced and
environmentally responsible
motor products.
”
Bob Riedford, president and general
manager of Buehler Motor, Inc.
modern and efficient in North America. It allows us to meet our
North American customers’ growing demands for technically
advanced and environmentally responsible motor products,”
says Bob Riedford, president and general manager of BMI. The
NATC has achieved the highest rating for environmentally-friendly
information technology compliance. According to Riedford, it will
also serve as the U.S. hub for Buehler Motor’s customer service
commitment and its newly established national partner network.
“With significantly expanded engineering, prototyping and
testing capabilities, BMI is already delivering drive solutions for
its customers’ next-generation green products,” says Riedford.
“Beyond the products designed and developed for its customers,
BMI is also establishing its own internal green manufacturing
and operating processes as part of its goal to become one of
the world’s most environmentally responsible motor component
manufacturers.”
BMI’s parent company is German firm, Buehler Motor, which
delivered more than 22 million mechatronic drive units worldwide
in 2008. The drives are manufactured for a number of industries
including the automotive, aviation, building and office equipment,
and medical device markets. BMI is currently contracted to
supply an auxiliary water pump for General Motor’s
Chevrolet Volt Extended-Range Electric Vehicle
and CODA Automotive’s upcoming electric
five-passenger sedan.
Some of BMI’s automotive solutions
include those for drive trains that help
cut carbon dioxide emissions while
improving safety and driving comfort.
The company also manufactures shift
and clutch actuators for automated
manual and dual clutch transmissions,
motors for transmission oil pumps
in start/stop and hybrid systems,
electromechanical gear shift actuator
for automatic transmissions and transfer
case actuators.
An important part of BMI’s philosophy is
eco-consciousness. The company has worked
on green technologies including the design of drive
solutions for environmentally-friendly applications as well
as constant optimization of design, products, and processes to
protect the environment as a whole. For the automotive market,
its electric drives in oil pumps help maintain oil pressure in start/
stop automatic transmissions which have helped cut the carbon
footprint across the world. BMI’s electrical water pumps maintain
energy optimized thermal management in internal combustion
engines or cool the batteries of hybrid and electric cars. For over
ten years, an annual environmental life-cycle assessment has
documented its progress towards ever-improving, environmentally
conscious and resource preserving production. In line with this,
BMI is certified under the ISO 140001 for its environmental
management system.
18 to read full version of AI stories go to www.ai-online.com
Rob White

The company’s automotive clients include Audi, Continental,
General Motors, Getrag, Hella, Johnson Controls, Magna, Porsche
and Volkswagen. It has also worked as an OEM supplier for almost
every Tier One automaker in Europe, Japan and America. The
company recently contracted a major commercial engine supplier
to provide BLDC motors to drive fuel pump assemblies designed
to reduce emissions in off-highway commercial vehicles.
Automotive Industries (AI) asked Bob Riedford, president
of Buehler Motor, Inc., to talk about some of the new
automotive technologies BMI plans to launch in 2010.
Riedford: BMI is excited to be working with General Motors
and helping the Chevrolet Volt application reach the marketplace
in late 2010. Our newest generation BLDC water pumps will be
introduced on the Chevrolet Volt later this year. BMI has been
fortunate to draw significant OEM interest for our brushless pump
products, including CODA Automotive which recently awarded us
a contract on their upcoming electric vehicle platform.
AI: Why has BMI expanded its facilities in North America? Are
you upbeat about business prospects there, and if so, why?
Riedford: We are definitely upbeat and optimistic about our
business prospects in North America. Last year was a challenging
time for the entire automotive industry. However, BMI is operating
Buehler Motor 50W Auxiliary Water Pump for Chevy Volt
at a high level of efficiency and adapting to new market demands
which has helped the company endure the past year and position
itself for growth in 2010. Our expansion and opening of the new
North American Technical Center is a direct result of growing
demand for environmentally-friendly applications, especially in the
automotive sector.
AI: What are some of the challenges facing BMI in its
quest to increase its exposure to environmentally-friendly
technologies?
Riedford: The challenge for BMI, and all of us in the automotive
industry, is to maintain volume growth and demand for
environmentally-friendly vehicles. To meet these challenges,
Buehler is focused on partnering with our automotive OEM and
Tier One customers to ensure we are delivering technologies that
will ultimately result in better, more environmentally-friendly vehicles
that appeal to a greater number of consumers.
AI: What will drive the future growth of the company?
Riedford: Environmentally-friendly vehicles are more prevalent
today than ever. As a company, we see growth in hybrid/electric
vehicles as OEMs continue to develop technologies to meet
growing consumer demands. Within these vehicles, there are a
number of motion requirements for which BMI is well suited, such
“
Last year was a challenging time for the entire automotive industry. However, BMI is
operating at a high level of efficiency and adapting to new market demands which has
helped the company endure the past year and position itself for growth in 2010.
”
Bob Riedford, president and general manager of Buehler Motor, Inc.
as the low noise, high efficiency pump solutions introduced on the
Chevrolet Volt as well as high-efficiency, long life motor designs
for transmission and start/stop applications. In addition, we see
continued growth in CO2 reduction technologies for traditional
internal combustion engine designs.
AI: What is your strategy in fuelling growth in your
automotive division?
Riedford: BMI’s GreenTech automotive strategy is a
three-pronged approach to growth in the environmentallyfriendly
automotive sector. The first approach is utilizing
production methods centered on energy-conscious
manufacturing. The second is developing new products
using advanced simulation methods to maximize
efficiency and use of innovative material technologies.
The third is focusing on green applications such
as thermal management for electrical components
and maintaining fluid pressures in next-generation
transmissions for hybrid and electric vehicles.
AI: What are some of the other regions where you see
a good potential for growth in the automotive sector?
Riedford: BMI’s global footprint allows us to take
advantage of growth opportunities in multiple regions. In
the European automotive market, we see continued growth as
we support our OEM and Tier One customers’ developments
of environmentally-friendly vehicle technologies. We also see
tremendous growth opportunities in the Chinese automotive
market where BMI already has a presence with two manufacturing
locations, and we plan to increase sales and marketing activities
in the region. AI
Automotive Industries 19

innovation
Switching on
hybrid technology
By: Steve Barclay
Key challenges and opportunities facing
hybrid vehicles came under the
spotlight at a conference organized by
the Swedish Hybrid Vehicle Centre (SHC)
in Gothenburg late in 2009.
“There are two challenges hybrid vehicles
(and electric vehicles) will face. Firstly, the safety
of the energy storage, which must sustain normal
operations and impact loads. Secondly, there will be new
requirements for EVs in particular, with a demand for lower vehicle
weights (to accommodate batteries). We aim to address this issue in
collaboration with the Centre SAFER (Traffic and Vehicle Safety),” says
Lennart Josefson, director of the SHC.
The SHC was established in 2007 by the Swedish Energy Agency
at the Chalmers University of Technology campus. It is a joint initiative
of Chalmers, the Royal Institute of Technology and Lund University,
and Swedish automotive manufacturers such as AB Volvo, Scania
CV AB, Saab Automobile AB/GM Powertrain Sweden AB, Volvo
Car Corporation and BAE Systems Hägglunds AB.
SHC research is divided into three thematic areas: system
studies and tools, electrical machines and drives and energy
storage. This research includes the energy management of hybrid
vehicles according to routes traveled, as well as the development
of electric motors with integrated charging. SAFER research
includes traffic and vehicle safety in real environments.
The SHC and SAFER are working together to develop safe
lightweight vehicle architectures where electric motors are the primary
energy source. The SHC is also researching material combinations
that will improve the energy output and safety of batteries.
Automotive Industries (AI) asked Lennart Josefson, who
is also professor of Solid Mechanics at the Department of
Applied Mechanics at the Chalmers University of Technology,
to list some of the major battery design challenges.
Josefson: Finding electrolyte additives that can provide
safety while having good electron transport properties, finding
The Volvo Electric C30 is powered by batteries that
can be recharged via a regular household power
socket or special roadside charging stations.
Charging the battery fully takes about eight
hours. The car’s range is then up to 150 km
(94 miles). Top speed with a fully charged
battery pack is about 130 km/h (81 mph).
Acceleration from 0 to 60 mph takes less
than 11 seconds.
better electrode material combinations and
also better models for the cell behavior are the
biggest challenges.
AI: What charging solutions are being
developed?
Josefson: We are actively working with
verifying concepts that integrate charging with the
electric motor.
AI: How does route planning optimize energy use?
Josefson: With the route for a vehicle known (for example
bus lanes) it is possible to optimize charging and discharging of
the energy storage system as well as gear shifts and engine on/off
decisions. This optimization may lead to fuel savings
AI: What role do range extenders play in EVs?
Josefson: Range extenders can extend the driving range
for an electric vehicle while providing a redundancy in propulsion
and also possibly a lower weight (trading battery weight with the
weight of the range extender). This solution can be attractive as
using biofuels for the extender creates low CO2 emission levels.
The challenge is to produce a range extender at a low cost and
with good NVH properties. SHC is currently working on a proposal
for an EU-project on a multi-fuel range extender.
AI: What are some of the smart solutions for electric
motors that will be commercially available soon?
Josefson: We will see several solutions for charging and
discharging and interacting with the grid.
AI: What are some of the issues that are critically
important to the SHC?
Josefson: The performance of battery systems in real
loading situations. To combine demands on safety and
emissions, one needs to design lighter and smaller vehicles
using new material in the body structure and most likely also
utilizing innovative passive safety features or introducing more
active safety features. AI
20 to read full version of AI stories go to www.ai-online.com

innovation
Ford’s high-performance, fuel-saving four-cylinder EcoBoost
engine family is making its global debut early in 2010.
The EcoBoost 1.6-liter and 2.0-liter I-4 engines combine turbocharging
and direct-injection technology to deliver fuel consumption
and CO2 emissions reduced by up to 20% versus conventional,
larger-displacement gasoline engines with similar power output.
At the same time, the company says EcoBoost engines will deliver
the off-the-line power and performance characteristics familiar
to diesel enthusiasts.
The EcoBoost direct injection system optimizes
performance by delivering a fine mist of fuel
directly into each cylinder. Unlike port-fuel-injection
(PFI) engines that spray fuel in the intake
system, the direct injection system puts the
fuel “exactly where it needs to be for combustion”
says Ford. Fuel is sprayed into the
cylinders at pressures of up to 2,150 pounds
per square inch (PSI), which is about 35 times
greater than PFI injection.
“Ford engineers looked at every available
engine configuration, comparing power, price,
economy and emissions, determining the best way
to power vehicles in the future,” said Derrick Kuzak,
group vice president, Ford Global Product Development.
“EcoBoost is meaningful because it can
be applied across a wide variety of engine
types in a range of vehicles – and it’s affordable,”
he adds.
By 2013, more than 90% of Ford’s
North American lineup will be available with
EcoBoost technology, and nearly 80%
of Ford’s global nameplates will have
an EcoBoost option. “EcoBoost technology
gives us everything: a combination
of the performance buyers expect,
and the fuel economy improvements they
demand. This, until now, has only been
achievable with the latest-generation turbodiesel
powertrains,” adds Kuzak.
Going forward, Ford will shift its powertrain
allocations. Under the new system:
• A 3.5-liter EcoBoost V-6 will replace naturally aspirated V-8 engines
• A 2.0-liter EcoBoost I-4 will replace naturally aspirated V-6 engines
• A 1.6-liter EcoBoost I-4 will replace naturally aspirated large I-4 engines
“We will expand our EcoBoost engine offerings, adding highervolume,
fuel-efficient four-cylinder engines to the premium V-6
engine we currently offer in North America,” says Kuzak. For European
markets, the first available I-4 EcoBoost engines will be
1.6-liter units that launch in the new Ford C-MAX in late 2010. The
2.0-liter EcoBoost engine will be fitted to larger European Ford
products and will be launched in North America in 2010. Australia
Ford sets new standards
for engine efficiency
with EcoBoost By: Ed Richardson
will see the Ford Falcon arrive with an available 2.0-liter EcoBoost
I-4 in 2011.
“Customers in North America can expect to recoup their initial
investment in a 4-cylinder EcoBoost engine through fuel savings
in approximately 30 months. A diesel in North America will take an
average of seven and one-half years, while the cost of a hybrid will
take nearly 12 years to recoup – given equivalent miles driven per
year and fuel costs,” says Kuzak.
LEFT: Brett Hinds, Advanced Engine Design
and Development manager, led the team that
developed the all-new EcoBoost engine.
BELOW: Ford’s new EcoBoost V6
builds on the highly successful
Duratec 35. Originally designed for
boosted applications, the 3.5-liter
required only a few updates beyond
the addition of direct injection and
turbocharging resulting in increased
performance, improved fuel economy,
and lower CO2 emissions.
Ford introduced EcoBoost on the Lincoln MKS featuring
a 3.5-liter twin-turbocharged V-6. With an
estimated, class-leading 355 horsepower, the 2010
Lincoln MKS with EcoBoost is expected to deliver
best-in-class highway fuel economy of 25 mpg.
“Direct injection is a significant player in Ford’s
strategy to replace larger engines with smaller
EcoBoost engines, improving fuel economy by
up to 20% without sacrificing performance,” says
Brett Hinds, EcoBoost design manager.
Ford EcoBoost technology
The 3.5-liter EcoBoost engine added 125 new
patents and patent applications, building on Ford’s
current roster of 4,618 active U.S. patents.
When combined with turbocharging, Ford says
direct injection provides the best of both worlds:
the responsiveness of a larger-displacement engine with
fewer trips to the gas pump. Ford’s 3.5-liter EcoBoost V-6, delivers
upwards of 340-plus lb.-ft. of torque from 2,000 to 5,000 rpm versus
270 to 310 lb.-ft of torque for a conventional naturally aspirated
4.6-liter V-8 over the same speed range.
The V-6 gives customers an approximate 2 mpg improvement
and emits up to 15% fewer CO2 emissions to the environment.
Ford says the fuel economy benefit is consistent in the city as well
as on the highway – unlike hybrids, which are most efficient in
stop-and-go traffic. AI
Automotive Industries 21

innovation
Reducing the costs
of catalysisBy: Lenny Case
Catalytic system designers are faced with the dual challenge
of meeting ever stricter regulations and cutting costs
of the catalyst systems themselves.
One of the companies at the forefront of meeting
these challenges is Danish firm, Haldor Topsøe,
which has a multi-facetted product portfolio
spanning catalysts, proprietary equipment,
process design, engineering and service.
Michael Dennis Knudsen, general
manager Haldor Topsøe.
Automotive Industries spoke to
Michael Dennis Knudsen, general
manager of Haldor Topsøe A/S
and asked him how legislation was
influencing the company’s advances in
catalytic solutions.
Knudsen: Automotive vehicle manufacturers are facing
increasing requirements to reduce emissions. The U.S.
2010 regulations and the Euro 6 legislations already place
significant demands on the industry. Legislation
will continue to focus on reduction of CO2
emissions and secondary emissions like
NO2, N2O, etc. The industry will demand
a reduction of PGM content in the catalysts
and packaging of catalysts in
the after treatment system. Integrating
SCR functionality in the DPF is a
challenging requirement from many
OEMs.
AI: What are Haldor Topsøe’s
OEM capabilities and describe the
advantages of its homogeneous
SCR catalysts?
Knudsen: Haldor Topsøe is a
relatively new player in the automotive
industry as we first entered it on an
industrial scale with the introduction of
Euro 4 for heavy duty vehicles. We have
built up facilities for validation of catalysts and
systems enabling us to offer application engineering to
“
For diesel particulate filters, we have developed a catalytic
coating which is platinum free and also has the ability to reduce
the NO2 emissions, the noxious compound of NOx.
”
22 to read full version of AI stories go to www.ai-online.com

our customers. When we entered the vanadium based SCR
market for heavy duty vehicles in Europe, we decided to base
our catalyst technology on the SCR catalyst technology we
already had for stationary applications. One of the advantages
of our homogenous SCR catalyst is its high porosity. Besides
making it very resistant to poisons and deactivation in general,
it enables us to offer the catalyst at low cell density (with a lower
pressure drop), and still achieve a similar conversion rate to
other catalysts with higher cell density.
AI: What are some of the advances your company has
made in diesel oxidation catalysts and catalytic coating?
Knudsen: The diesel oxidation catalyst is a relatively mature
catalyst technology, but the challenge is to find the right mix of
PGMs for a given application. For diesel particilate filters, we
have developed a catalytic coating which is platinum free and
also has the ability to reduce the NO2 emissions, the noxious
compound of NOx. Integrating SCR functionality in the DPF is
also an area where we are achieving continued improvements.
AI: Tell us about Topsøe’s new diesel emission control
system that uses HEAT SCR.
Knudsen: The Topsøe HEAT SCR system is a cost effective
system with less use of PGMs in the catalysts. It aims to adhere
to Euro 6 legislation without the need for EGR. Besides enabling
continued use of Euro 4 and 5 engine technology, it will have the
lowest CO2 footprint among the different systems suggested
for Euro 6. A key component in the system is a very active and
selective ammonia slip catalyst.
AI: What work has Haldor Topsøe done in converting
methanol to hydrogen?
Knudsen: Our Methanol-to-Shift technology has been
developed to meet the increased demand for extra hydrogen from
refineries and other users. It is based on a dual function catalyst
which enables simultaneous hydrogen production from both CO
shift conversion and methanol cracking. The methanol feed stock
is commercial grade methanol.
AI: What is the company’s vision for future fuels for the
automotive industry?
Knudsen: Haldor Topsøe is very much devoted to R&D
within the energy sector and environmental industry. We are
proud that our catalytic competencies enable us to play an
active role in areas related to solving future energy supply
challenges and improving the air quality in our environment.
We are currently working on a wide range of technologies for
production of alternative fuels, and we focus on technologies
we believe in. Even though we listen to the public debate, it
generally will not affect our focus on the hunt for alternative
fuels. The development of alternative fuels is very much an
ongoing process. AI
Automotive Industries 23

innovation
Managing the costs of
catalytic systems By: Lenny Case
With growing environmental concerns and
government mandates to cut emissions,
the need for high quality catalysts and
catalyst systems is greater than ever.
Founded in 1990, Aristo Intelligent
Catalyst Technology has developed a
reputation for providing high quality and
value in the design and manufacture
of technologically advanced catalysts
and catalyst systems for the global
emissions market. Aristo offers
INTELLIGENT CATALYST products for
diesel, gasoline, off-highway, stationary,
recreational and marine applications, as
well as large industrial stationary power
installations. Aristo says it strives to “push
the envelope” for catalytic emissions solutions,
utilizing the synergies found in cutting edge research
and design practices, the most advanced process
technology systems and dedication to providing its customers
with the highest quality product and service available.
As precious metal prices continue to escalate, the need for
advanced science in washcoat designs which enable more
efficient use of precious metals has never been more important.
Aristo says it is ready to meet these needs through the use of the
most advanced materials in innovative washcoats applied with
precision coating processes. This unique manufacturing system
couples the precision catalyst coating process of MISO with
BON-X – a proprietary technology to deliver highly engineered,
individually traceable INTELLIGENT CATALYST products.
Aristo’s MISO process offers one of the most sophisticated
product quality control systems in the industry. The process
coating technology minimizes part handling through automation
and robotics, leading to the most consistent and predictable
loadings, according to the company. It says that the net results
of its investment in these advanced technologies are the “highest
24 to read full version of AI stories go to www.ai-online.com
ABOVE: Aristo’s systems are automated
and provide full traceability.
LEFT: Doug Kowalski, technology
director of Aristo Intelligent
Catalyst Technology.
quality coatings and defect-free finished
products available in the world today,
with precious metal costs kept at an
absolute minimum”. Aristo’s formulation and
manufacturing processes enable the coating
of a wide variety of substrates – ceramic, metallic,
silica carbide, ceramic and metallic foams, high and low
cell densities, standard, thin and ultra thin walls and even diesel
particulate filters.
“Today, Aristo’s newest technologies are targeted for OEM gasoline
and diesel applications. By coupling innovative design concepts
with state-of-the-art process capabilities, Aristo produces
catalyst solutions that meet the most stringent emissions requirements
and customer specifications globally,” says Doug Kowalski,
technology director of Aristo Intelligent Catalyst Technology.
Aristo has three modern laboratory facilities to ensure comprehensive
product and manufacturing integrity. In conjunction with new
product design, analytical methods are continually refined to ensure
performance is maintained at the highest levels. Another area that
Aristo considers critical is quality. The company has ISO 9001:2008
and ISO 14001:2004 certification for its design, development, and
manufacture of technologically advanced emissions control catalysts
for OEM, aftermarket and custom applications, and is currently underway
with TS 16949:2009 Registration.

Automotive Industries asked Kowalski what made the
Miso and Bon-X production processes so critical to the
catalyst industry.
Kowalski: Each catalyst is individually marked for identification
then checked against rigorous specifications. This allows us to
provide a complete manufacturing history and details on each
unit produced. Catalysts produced via the merger of MISO and
BON-X processes satisfy the need for technologically advanced
performance characteristics in the most challenging applications.
These advances, combined with the fact that Aristo has been
successfully manufacturing catalysts to control pollutant emissions
in a cost effective and timely manner for over 20 years, enable our
customers to be 100% confident that a superior product has been
shipped to specification – on time, every time.
AI: Please give us some history on these two processes
– how they evolved and developed.
Kowalski: Aristo’s processes were a collaboration of efforts
involving product scientists, process engineers, industry experts
and the desire to excel as a catalyst coatings company. With core
competencies in Research and Development, and through intensive
processing studies and catalytic performance assessments,
the team at Aristo was able to overcome many obstacles in the
pursuit of designing and building the next generation catalyst
manufacturing system. By combining steps to improve efficiency,
adding unique and permanent serial numbers to improve product
traceability and with marked improvements in product cosmetic
values, the efforts paid off - all done while taking precious metal
accountability to the next level.
AI: What innovations has Aristo had to make to keep up
with changing norms in the OEM market?
Kowalski: The OEM catalyst buyers have moved to a world
of material balance processing ushered by analytical verifications
down to piece-by-piece quality assurance. Gone are the days
ABOVE: High levels of automation ensure consistency and quality.
of random sampling. One hundred percent of Aristo’s MISO
products are marked, tracked, tested and inspected. If you want
unsurpassed product quality characteristics, then Aristo has the
process that delivers!
AI: What are some of the advances made in automotive
catalysts and catalytic systems recently?
Kowalski: Of most significance is thermal stability of washcoat
components and mixed oxide ratios tailored to specific applications.
Better application processes of washcoats, where you actually place
coatings on a single substrate, has been the heart of improved
technologies. From there, it’s prudent utilization of valuable precious
metals to achieve superior catalytic performance.
AI: What are some of the new emission control
technologies that have emerged recently?
Kowalski: The big push over the last few years has been
related to diesel regulatory requirements. Conventional diesel
oxidation catalysts (DOC) designs needed to essentially change
functional requirements due to the presence of additional catalysts
further down the exhaust system, and due to limits placed on NO2
generation. Post-DOC systems include particulate filters to control
black smoke (soot) and non-PGM catalysts used for NOx control,
both of which have emerged as winning technologies well after the
inception of DOC technology.
AI: Tell us a little about the technologies your clients, such
as CATCO, use in the manufacture of catalytic converters.
Kowalski: Airtek markets the leading brand across the
domestic U.S. aftermarket supply base under the brand name
CATCO. Aristo Intelligent Catalyst Technologies are certified to
EPA and CARB standards. In fact, CATCO was among the first
to market in California when OBD II requirements were launched
in January 2009. Aristo’s technologies are also certified for use
in emergency standby power generators, high flow performance
converters and even for recreational/off-road vehicles. AI
26 to read full version of AI stories go to www.ai-online.com

innovation
Emitec and its associates have developed SCRi - a compact
exhaust gas treatment system to cut emissions below particulate
matter and nitrogen oxide limits in direct-injection diesel and petrol
engines. The application of SCR technology and selective catalytic
reduction cuts NOx levels by over 90% and particulate emissions
by over 80%. These figures can be substantially increased through
the use of larger components. Emitec’s modular concept also
makes SCRi suitable for retrofitting.
Emitec says its pre-turbocharger catalysts for all types of
engines provide higher temperature levels than other catalysts
Reducing space
and emissions
By: Lenny Case
German company, Emitec Gesellschaft für Emissionstechnologie is a global leader in the metal substrate market for vehicle
exhaust gas catalysts and diesel particulate filters. Its turbulent catalysts and particulate filters are highly efficient,
require little space and are ideally suited to meet future emission limits.
“
Driven by an ever increasing
demand for lower emissions,
we see the Selective
Catalytic Reaction (SCR)
systems for diesel engines
as one of the most
challenging developments in
Europe and the U.S.
”
Claus Bruestle, president of North
American operations at Emitec Inc.
SCR with integrated particulate reduction and
hydrolysis functionality.
and improve the HC/CO light-off behavior of the overall system.
Despite their small size, they are able to reduce carbon monoxide
emissions by up to 50%. Cost savings are considerable as these
catalysts cut the amount of precious metals in the downstream
oxidation catalyst.
For diesel engines and future petrol engines, the PM-METALIT
soot filter has huge potential. In contrast to wall-flow filters, a PM-
METALIT filters particulates using partial-flow deep-bed technology
and does not block if properly installed. It therefore ensures
efficient and unrestricted engine operation under any operating
conditions.
Automotive Industries spoke to Claus
Bruestle, president of North American
operations at Emitec, and asked him
about the latest developments in
emission control solutions.
Bruestle: Driven by an ever
increasing demand for lower emissions,
we see the Selective Catalytic Reaction
(SCR) systems for diesel engines as one
of the most challenging developments
in Europe and the U.S. EPA regulations
for 2010 require NOx levels of 0.2 g/hp/h,
thus forcing the engine and aftertreatment
industry into the adoption of complex
aqueous urea storage and injection systems,
electronic controls and reliable NOx conversion
within the catalytic converters.
At the same time, high exhaust gas recirculation (EGR)
systems are developed as complimentary solutions or, in some
cases, sole solutions in order to maximize fuel economy and
minimize engine emissions. On the engine side, huge efforts are
being undertaken to increase injection pressures to 3000 bar
and above to reduce raw emissions and offer the best starting
conditions for fuel economy and the NOx and PM trade off.
Particulate count regulation in Europe, which is expected to take
place in 2013, will create even more challenges for aftertreatment
technologies.
AI: What are some of Emitec’s catalytic solutions for OEM
gasoline and diesel applications?
Bruestle: Our perforated foil technology (PE) is very suitable
for gasoline engines. This design allows cross flow inside the
catalytic converter from one channel to the other.
With the spread of downsized direct injection turbocharged
gasoline engines, the diesel and gasoline exhaust gas aftertreatment
requirements will become very similar. The particulate emissions
28 to read full version of AI stories go to www.ai-online.com

of these engines will require attention for which the Emitec
partial flow PM-Metalit filtration is highly effective. We are
able to optimize catalytic converter applications to allow high
flexibility in cross section shapes, triangular, theta, oval and
even egg shapes in order to effectively utilize package space in
modern vehicles.
For diesel engines, Emitec developed the SCRi system.
The successful development of a diesel oxidation using LS foil
technology allows for the downsizing of the DOC by about 20 to
30% compared to a straight channel device. Corrugated shovels
in the foils create local turbulence conditions enhancing mass
transfer. Cold start and heat up requirements for diesel engines
are supported by Emitec’s electrically heated catalytic converter
which is a unique design feasible with the basic metal concept of
our products.
AI: What is Emitec’s vision of the future of optimized
emission control?
Bruestle: The electrification of the automobile, heavy duty
truck and machinery is progressing fast. Emitec’s electrically
heated catalytic converter can be intelligently incorporated into
this infrastructure providing potential CO2 reduction.
The trends in engine technologies offer the aftertreatment
industry big opportunities for communization in technologies and
component design. This will help to control cost to the OEM and
to the end consumer.
Optimized system solutions are accomplished by a systems
approach. This has led Emitec to offer the development of
complete SCR systems for our OEM customers. This strategy is
supported by considerable investments in our engineering and
test infrastructures.
Maintaining design flexibility to accommodate an application’s
special needs without compromising base technology and
manufacturing capabilities is certainly one of Emitec’s basic
strengths and helps to minimize the cost of concept and design.
AI: Tell us about some of the solutions you are working
on in conjunction with OEMs.
Bruestle: We are in confidential agreements with our OEM
customers, but we are currently working on our most challenging
area aftertreatment fields for locomotives and power generation. For
these applications, mechanical robustness, reliability and long term
Diesel Particulate Filter
‘PM-METALIT’.
durability are key factors. Twenty
thousand hours of undisturbed
operation on a locomotive engine
is standard. For these engines,
metal substrates for DOC, particulate
reduction and SCR functionality are highly
attractive due to the robustness and low back
pressure properties of our proprietary designs. Another benefit
of the mechanical robustness of Emitec’s metal substrates is the
opportunity to install the complete aftertreatment on these
engines before the turbine of the turbocharger. This new
method of aftertreatment placing reduces the backpressure to
the engine which results in better CO2 emissions and torque
behavior.
Yet another new development is our thermal energy
generator (TEG), which converts exhaust heat into electrical
energy. These systems, being co-developed by BMW and
Emitec, allow for the further improvement of fuel economy
and reduction in CO2 emissions.
AI: What are some of the challenges facing Emitec in new
vehicle technologies such as hybrid technologies?
Bruestle: Mild hybrids are very conventional regarding the
aftertreatment system, and quick light-up after cold start is essential.
As electric energy is generated during brake energy recovery, new
approaches for warm up strategies with an electrically heated
catalyst are possible. On full hybrids, the range extender engine
is a challenge as it needs to run at power instantaneously. Lowest
thermal mass with our PE foil technology and additional electrical
catalyst heating will offer viable solutions for immediate catalytic
converter function.
AI: Tell us about the new catalyst designed specifically
for diesel engines.
Bruestle: Longitudinal structures (LS) offer the most efficient
and cost effective solutions for the diesel oxidation catalyst. We
have also developed specific foil materials to accommodate the
diesel temperature requirements, further optimizing durability and
costs for the OEMs.
Combining this technology with Emitec’s integrated SCR
system, SCRi, will deliver highest design flexibility, smallest
package requirements, and the lowest weight. AI
30 to read full version of AI stories go to www.ai-online.com

innovation
Reducing diesel emissions
By: Lenny Case
Diesel emissions in the US may be reduced further through the introduction of a reducing
agent to increase the efficiency of conventional catalysts.
One of the leaders in the development of the technology, is
CERAM, part of the Frauenthal group. Frauenthal Holding is an
Austria-based group of industrial companies with manufacturing
facilities in six European countries and sales and representative
offices in the United States, China and South Korea. Three different
divisions operate under the group including industrial honeycombs,
automotive components and wholesale plumbing supplies.
The group’s principle activities include manufacturing ceramic
honeycombs, leaf springs, suspension arms, stabilizers, braking
system air reservoirs, U-Bolts and diesel catalysts.
“ We have developed a
new stabilized type of
catalyst for use in
extremely tough
conditions.
”
Karl Führer, managing director of
the Porzellanfabrik Frauenthal
The automotive components division is made up
of Styria Federn, Linnemann-Schnetzer, CERAM and Pol-
Necks. Each is a market leader in its specific sector: Styria Federn
manufactures springs and stabilizers, Linnemann-Schnetzer is a
specialist in air reservoirs used for brake systems and Pol-Necks is
the European leader in the manufacture of U-bolts to fix springs to
auto bodies.
Founded in 1921, CERAM is involved in the area of automotive
emission control and specializes in honeycomb ceramics, SCRcatalysts
for nitrogen oxide reduction and ammonia slip catalysts.
It is also the leading producer of Selective Catalytic Reduction
(SCR) catalysts for stationary applications such as thermal power
stations, waste incinerators and other large combustion plants.
In 2005, the SCR diesel catalyst, developed for commercial
vehicles, successfully entered into series production. Diesel
catalysts yield a reduction of up to 90% of nitric oxide exhaust
gases in today’s diesel engines. This year, the company is
optimistic about the release of its SCR catalysts for mobile diesel
exhaust after-treatment in the U.S. This SCR system requires
an additional reducing agent such as a 32.5% urea solution
marketed under the trade name AdBlue. “The advantage of
SCR systems for automotive applications lies in the
reduction of fuel consumption of up to 7%, and
it is possible to efficiently optimize diesel
engines,” says the company.
Frauenthal Holding is committed to
maximizing the growth potential of
its holdings by creating synergies
and pursuing the strategic acquisition
of new businesses. In 2007,
the automotive product division of
Porzellanfabrik Frauenthal GmbH
became CERAM Catalysts GmbH;
and a separate production plant for
the specialized products was built
including new offices and R&D labs.
However, in 2008 it was consolidated
and brought back under the roof of
Porzellanfabrik Frauenthal GmbH due to
the unexpected developments in the automotive
manufacturing industry.
Automotive Industries (AI) spoke to Karl
Führer, managing director of the Porzellanfabrik
Frauenthal GmbH, and asked him about the five million
Euro expansion the company is undertaking.
Führer: We needed to increase production capacity due to the
booming market and a considerable amount had to be invested in
our new metal processing center. The center manufactures die plates
– the key shaping tools for extrusion. We also needed to increase our
capacity for “canning” the SCR catalysts. All these processes also
needed support through research and development resources.
AI: Tell us about the catalyst technology that gave rise to
the Frauenthal diesel catalyst.
32 to read full version of AI stories go to www.ai-online.com

CERAM´s homogeneous SCR catalysts used for reducing harmful nitrogen emissions are made of titanium oxide
(used in wall paint) and vanadium oxide (found in most foods).
Führer: The chemical composition of the SCR catalysts
was already well established as a means to reduce nitric
oxide in stationary and mobile catalysts. The real challenge
was the development of a new geometry – an increase in cell
density to accommodate a reasonable catalyst volume within
the limited space of the vehicle. Pioneering work was done
in manufacturing the new tools which have allowed us to
accomplish this.
AI: What opportunities do you expect for your company’s
SCR catalysts in the U.S. market?
Führer: Off-road and non-road vehicles predominantly use
diesel engines because of their high performance, reliability and
durability. The new emission limits are already decided and SCR
offers the preferred emission control method due to its favorable
fuel savings.
AI: What are some of the new technologies your company
plans to launch in 2010?
Führer: We have developed a new stabilized type of catalyst for
use in extremely tough conditions. There is a lot of public discussion
about the possible loss of vanadium into the environment if catalysts
are installed into the mufflers of vehicles. We have comprehensive
projects underway to analyze the toxicological behavior of the
catalyst as a whole as well as the biological influence of the separate
ingredients. Our homogeneous, vanadium containing catalysts do
not damage aquatic organisms or cause cancer according to our
approved test series.
There are different types of automotive exhaust catalysts on the
market. Some are oxidation catalysts and some are SCR catalysts
and their compositions differ considerably. Homogeneous SCR
catalysts consist mainly of titanium oxides (80 wt. %) and contain
a maximum of 2% vanadium oxide loading. The vanadium is
evenly distributed over the very high surface of titanium oxide
in the form of isolated monomeric atoms through a very strong
interaction with titanium. AI
“There are different types of automotive exhaust catalysts on the market.
Some are oxidation catalysts and some are SCR catalysts and their
compositions differ considerably.”
Automotive Industries 33

innovation
As the number of hybrids on the roads is expected to increase,
so does the industry’s understanding of the complexities
involved. One of the challenges is controlling
exhaust-pipe emissions. Existing systems are designed to
run hot, but hybrid petrol or diesel engines seldom reach
normal operating temperature.
Automotive Industries (AI) asked Olivier Touret, director of
Rhodia’s Automotive Catalysis business, to share the company’s
view of future design of engines and emission systems.
Touret: We will see more and more injection and engine
improvements in the gasoline engine – as we saw in the past with
the diesel engine. The new set of regulations in Europe is putting
more pressure on the diesel engine. Euro 5 will make particulate
filters mandatory on every engine and Euro 6 will have to add NOx
treatment either for the engine or the emission control measures. That
will add to the cost of the engine, which is already expensive. The
way I foresee the future is the gasoline engine with emission control
Keeping
By: Nick Palmen
system replacing the smaller diesel engines for Euro 6, especially with
the new turbo-charged gasoline direct injection. In the medium range,
diesel has a bigger role to play, becoming cleaner and more efficient.
When you look at BMW and Volkswagen, they have incredibly efficient
engines using 3.3 liters per 100 km.
AI: How do you see the diesel market developing outside
of Europe?
Touret: I think we should take for granted that not everyone will
be moving to diesel. I don’t believe that the US market will move to
diesel for passenger cars in the short term. Aside from Europe, The
four big potential markets for diesel are China, India, Eastern Europe
and South America. People there have different perspective on fuel
economy and cost effectiveness, and for medium size, passenger
car diesel is seen as a very good option. In Korea 10 years ago, there
were no diesel engines for passenger cars, and now there are SUVs
with very efficient good engines, so probably there will be some diesel
penetration in the market. For markets like Japan and the US, we will
see hybrids with electric and gasoline injection engines, certainly as an
interim stage towards global energy independence. This is probably
also the case in China, which has plans to develop hybrid technology
using a combination of existing Chinese know-how and advanced
diesel injection systems from foreign suppliers.
AI: What challenges do the new developments in engine
and powertrain technology present to Rhodia?
Touret: We again differentiate between gasoline, diesel and
electric power. With gasoline today, we need to keep moving to
the point where we provide material helping to optimize the usage
of precious metals at similar performance in the exhaust emissions
controls. The key for us is what we have done for years now - to
provide the industry with the best-mixed oxides, the best alumina, the
best combination to help decrease the levels of precious metals to
bring the costs down. It is a challenge for the diesel segment. All the
pieces exist. Do you use an oxidation catalyst, diesel particulate filter
(DPF), or selective catalytic reduction (SCR)? Basically, the emission
control challenges lean on three main areas: Combustion and Injection
Systems, Air-Loop Control and Exhaust Aftertreatments. OEMs
are working in all three areas at the same time in order to optimize
their emission control. Adding more effort in the exhaust emissions
controls systems will simplify and relax the other parts, components
and appraoch, such as the Air-loop control and simplest Diesel
injection systems (for instance, using Common-Rail System at 2000
bars pressure and lower). At the end of the day, the emission control
system may cost close to the engine bock itself, but the totla cost of
the global emission control strategy can stay at similar level.
AI: What new products and technological solutions can
be expected from Rhodia?
Touret: We are introducing materials for oxidation catalysts,
and we have a new range of alumina for sulfur resitance and higher
34 to read full version of AI stories go to www.ai-online.com

it clean
Clean air – there are fresh challenges for catalyst
designers to ensure youngsters like her will be able
to breathe safely in traffic into the future.
thermal stability (STABILYS): based on acidic alumina/zirconia or
alumina/silica, these materials provide stability together with minimum
sulfation possibility. For the DPF regneration and management, we
are launching a new range of fuel-borne catalyst, (EOLYS PowerFlex)
which provides two advantages. The first is the efficiency of the
diesel particulate filter regeneration with lower ash content, and the
second is cleaning the fuel injection system with a detergent added
to the Eolys PowerFlex. When you use high percentages of biodiesel,
you have issues with stability of the fuel and injector fouling. EOLYS
PowerFlex acts like a detergent: organic molecules stabilize
the fuel and help clean the injection system with every
stroke to ensure that the engine stays clean for its
lifetime under high biodiesel blending. On the
NOx control, we have developed two more
systems: technologies are competing NOx
trap, NOx SCR catalysis with Ammonia
injection urea, the question of the relative
split between the two technologies
is still open, and Rhodia is offering
materials for both technologies. For
NOx-SCR material, we are working
together with MEL on a project to
promote Non-Zeolitic Acidic Zirconia
materials that are very efficient and
thermal stable catalysts.
AI: Are you ready for the Euro 6
emission regulations?
Touret: For the STABILYS oxidation
catalyst and the alumina family, we are already
in production. EOLYS PowerFlex will be in use
from January 2010 so we will be in production in time
for Euro 6. For the ACILYS family and NOx-SCR, we are at the
qualification stage for the Euro6 fiscal incentives (2012). And
finally, for the NOx-trap materials, we are already in production
from 2008 for the US-EPA Tier2-Bin5.
AI: How do you help the OEMs in their efforts to reduce
CO2 emissions in Europe and US?
Touret: For the emission-control system there is no big difference
between US and Europe. Obviously, in the US, we work more on the
gasoline side, adding small or medium hybridization. We are trying
to decrease the weight of the vehicle, and give it better dynamics.
In Europe, we have a bigger role to play because there are more
diesels. Optimized combustion process can dramatically improve the
fuel efficiency by 20% with adverse higher NOx engine-out emissions:
we really believe that the combination of high efficiency engines, high
conversion-based SCR catalyst and DPF is the best way to decrease
dramatically the CO2 emission at the vehicle level. When you have
this combination, it is better to add the NOx-SCR Catalyst closer
to the engine manifold as possible in order to optimize the SCR
Catalyst light-off and limit the exhauts thermal management at cold
start level. Then, the challenge is that the DPF is far from the engine,
under low NOx level and cold position. With Eolys Powerflex – the
latest generation catalyst specifically designed for diesel engines - it
is much easier to regenerate the DPF even in a cold position, also
preventing the NOx-SCR thermal ageing during the un-controled
DPF regeneration of alternative approaches.
AI: What are the main technological challenges for you?
Touret: For the gasoline hybrid, the level of hybridization
will depend on cost competitivness. It could be
significant. We are talking about few million
vehicles in Europe alone. It will be another
challenge for us on the emission control because
when you have a hybrid car, you still have engine, and
that engine needs a catalyst with stop/go function. For the
diesel hybrid, we still have the particulate filter, which is difficult to
manage because of the stop/go nature of hybrid engine use, and we
will still have to treat the NOx.
For the new turbo-charged Gasoline Direct Injection technologies,
NOx reduction will be a challenge as well as the gasoline particulates
number and size that may come into force at Euro6 and Euro7
standards level.
AI: How do you plan to reinforce your leadership in the
field of materials for automotive catalysis?
Touret: I think we are very well positioned with EOLYS
PowerFlex with DPF regeneration and fuel injection cleaning for
the diesel sector.
In addition, our mixed oxides materials can be adapted and
customized to meet final applications requirements and help OEMs
in their current and future challenges: thermal stability, acidic or basic
properties, sulfur resistance, controlled porosity… that will keep
Rhodia as its leader position on mixed oxides. AI
Automotive Industries 35
“ For markets like Japan and
the US, we will see hybrids
with electric and gasoline
injection engines, certainly as
an interim stage towards
global energy independence.”
Olivier Touret, director of Rhodia’s
Automotive Catalysis business.

innovation
One of the highlights at the 2010 Geneva Show was the
world debut of the new BMW 5 Series Sedan.
The 2010 Geneva Motor Show also provided the setting for
the European debut of the BMW Concept ActiveE. Based on the
BMW 1 Series Coupé, this concept car comes with all-electric
drive and innovative electric storage technology optimising both
the range the car is able to cover as well as its supreme standard
of functionality. The BMW Concept ActiveE thus combines
emission-free motoring with four seats and luggage capacity of
approximately 200 litres.
Automotive Industries (AI) asked Klaus Draeger, Member of
the Board of Management of BMW, Research and Development
what the customer could expect from the new 5 Series sedan.
Draeger: The BMW 5 Series is the perfect balance between
design and technology. The design is beautiful but there is no
compromise with the technology. The outside appearance is a
typical BMW – sporty, elegant, and athletic. On the technical side, we
have increased interior size with more space for the customer, new
suspension which makes the BMW 5 Series more agile and provides
better comfort. The car has more features which have only been
available in the past for upper class vehicles like the 7 Series. At the
same time we were able to reduce fuel consumption of all the models.
In comparison to the old 5 Series V8, the engine of the new 535i
has the same horse power but better performance due to increased
Leading the pack
in Geneva - BMW’s
Klaus Draeger By:
Nick Palmen in Geneva
torque, lower CO2 emission and 1.3 liters less fuel consumption per
100 km. The perfect example is the BMW 520d that we presented this
morning, where we have a BMW 5 Series with consumption of only 5
liters of diesel per 100 kilometres. For a vehicle with a performance of
185 horse power this is an excellent value.
AI: What innovations can be seen in the model?
Draeger: We have a couple of interesting items on the
chassis side, there is Adaptive Drive and Integral Active Steering
which is something new for the 5 Series. Damping control is
available, which gives the possibility to have different suspension
settings for the vehicle. Then we have a variety of new engines
with the most famous 535i straight six-cylinder twin power turbo
with variable valve train, with extremely good emissions on one
side, and a perfect response and acceleration on the other.
With BMW Connected Drive we have internet in the vehicle with
advanced office functionalities. In addition, the interior is superbly
handcrafted, giving high position to the driver.
AI: How do you manage the weight issue in the new 5
Series and how do you meet the challenges due to the
new regulations?
Draeger: Weight is always an issue. We had to deal with a
couple of new regulations in terms of crash testing and pedestrian
safety. These measures account for almost 70 Kg. We have
aluminium doors and aluminium components in the front structure
Dr Klaus Draeger, Member of the Board of Management of BMW, Development speaking at the new 5 Series launch.
36 to read full version of AI stories go to www.ai-online.com

and other light weight measures, which enabled us to limit the
increase of weight due to the regulations. I think our engineers
have done a marvellous job.
AI: Has your Hybrid strategy changed in the light of the
recent events?
Draeger: No. We clearly stated what we are going to do with
the X6 AcitveHybrid - a full hybrid based on the two-mode gear
box – and with the other system for the BMW 7 series hybrid
which does not drive electrically. What we see is that we get a
relatively good reduction of fuel consumption on the 7 Series of
roughly 15% versus 20% on the X6. The question is how much
do we still need in terms of technical efforts in order to close the
gap between the two. With the concept for the BMW 5 Series we
are coming to a very intelligent solution which is like a component
kit set, combining 8 speed gearbox with electric motor, so there is
no more two-mode gearbox. We believe that we have in place the
strategy for the future.
AI: What can we expect from the next generation of BMW
ActiveHybrid technology?
Draeger: What we had on show in Geneva was the eightspeed
gearbox with in-line electric motor with fuel consumption
reduction in the range of 15-20%. The final tests have not been
done yet so we cannot talk about it in detail.
AI: Which future models will benefit from the new
technology?
Draeger: The BMW 5 Series! No further decisions have been
made at this point in time but as I said it is a sort of component
box that can be added to other vehicles as well when it would
make sense.
AI: There is also the European debut of BMW Concept
ActiveE. Can you tell us about your battery co-operation
with Robert Bosch and Samsung?
Draeger: We have to go back to the story of the electric vehicle.
The first stage was to understand the customer, what the customer
really needs and how he operates an electric vehicle. Therefore we
decided to take a simple already-proven technology, not enter with a
new one. Taking a lithium-ion cells, electric motor and electric control
unit and implementing them into the MINI. That is how we learned how
the customers really behave, how they drive, what distances they are
travelling, when and where they recharge. Interestingly enough they
are using the vehicle in the same way as they use a MINI Cooper or
BMW Series with a conventional combustion engine. The range of
about 150 Km is sufficient for urban commuting. We learnt that the
two areas that the customers are interested in charging the vehicle
are at home and at work (possibly at a charging station). There are
areas where the car will stay for a couple of hours (shopping centres,
etc.) and be partially charged.
The second stage is the BMW ActiveE where we are combining
the technology developed in co-operation with SB LiMotive (Bosch
and Samsung) with new car electronics and new electric motors.
The third stage is the BMW Megacity vehicle which we will see
before 2015 with a lot of technology that we are testing right now.
AI: How does your electric storage technology help to
optimize the range and functionality of the car?
Draeger: I think it is very much about having the latest cell
technology. There always will be competition on cells but we believe
we have chosen the best cell manufacturer in SB LiMotive.
AI: What prompted the facelift of BMW X5 as well as the
BMW 3 Series Coupé and BMW 3 Series Convertible?
Draeger: We usually do a facelift three to four years after the
launch of a vehicle. The new changes give a slight optical update and
at the same time we bring the models up to date with the existing
technology. The major changes are on the engine side. The X5 gets
the new six-cylinder twin power turbo and the eight-speed gearbox.
AI: How is the current market situation affecting BMW
and what measures do you have in place to combat the
downturn?
Draeger: Nobody really knows what is going to happen in
2010. We feel that we have a very good model portfolio for 2010
with BMW X1 Series, 5 Series GT, the BMW 7 Series, which is very
successful by the way, and of course the new BMW 5 Series. We
will not have the 5 Series for the first few months as the old model
is sold out and the new one is coming to the market, but we are
cautiously optimistic about 2010.
AI: What is BMW’s strategy in China and the USA and do
you expect any changes in the next 12 months?
Draeger: We have to look at the global picture. Number one
- Europe is a very strong market for us with no exchange risks and
pretty good volumes. Number two is the U.S. economy. In Asia,
China is the strongest market when it comes to vehicles like the
5 Series long wheel base version, the 7 Series, and of course the
Rolls-Royce. Let’s not forget the big markets of Russia, India and
Brazil which are very interesting for us.
AI: In Geneva, you announced that BMW and MINI would
extend the brands with new models and variants into the
small car segment.
Draeger: Part of our strategy is to have synergies in R & D,
Production, and Purchasing between the different models. We
have very intelligent model architecture for the 5 Series, 5 Series
GT, 7 Series and of course the 6 Series. The second architecture
that we have in place is one for the 1 Series and 3 Series where we
have a lot of commonalities. And we will have an architecture for
front drive and all wheel drive and this architecture is the basis for
the next MINI generation and some new BMW models. AI
38 to read full version of AI stories go to www.ai-online.com

Ian Robertson, Member of the Board of Management of
BMW, Sales and Marketing (left), and Gert Hildebrand,
Director of MINI Design at the Geneva Motor Show 2010.
Hybrid with brains
BMW has bolted its existing hybrid technology
– along with new systems - into
the BMW Concept 5 Series ActiveHybrid.
It is described as offering a “particularly good
rendition of the new BMW 5 Series Sedan in all
its dynamic, efficient and innovative qualities,
at the same time representing the ongoing
development of the BMW ActiveHybrid X6 and
the BMW ActiveHybrid 7 with their drivetrain
technology already in production”.
Powering the vehicle is a combination of
electric drive connected through an automatic
clutch to a straight-six gasoline engine with
TwinPower Turbo technology, and eightspeed
automatic transmission. It allows all-
electric motoring in city traffic. Drawing from
a high-voltage battery at the back of the
car, the electric motor develops maximum
output of 40 kW. Features include Brake
Energy Regeneration, which is already found
in BMW’s current production models. The
specially developed high-voltage battery is
fitted in a reinforced casing near the rear axle –
optimizing safety and weight distribution. The
battery also delivers electric power to the car’s
on-board network. All electrical functions,
such as the audio system, climate control or
navigation continue operating when running
on battery power.
Intelligent systems in the BMW Concept
BMW Plant Landshut, resource-saving cleaning of plastic
components by the “snowcleaning”-method.
40 to read full version of AI stories go to www.ai-online.com
5 Series: The new 5 Series.
5 Series ActiveHybrid enable the vehicle to
plan ahead using data provided by engine and
chassis management as well as the sensors
in the driver assistance systems on board
the car. Data from the navigation system is
factored into the calculations. Should the
system determine, for example, that a steep
downhill stretch lies ahead, the charge level of
the battery is allowed to drop in anticipation
of the boost from the braking energy going
down hill. Similarly, the system may switch to
all-electric drive along the final stretch of road.
This forward-looking function is able to extend
the cruising range on electric power by up to
30%, according to BMW. AI

innovation
Aluminum has become the metal of choice for car makers looking
for ways of reducing weight. Technological advances have
seen it move from the being found mainly under the bonnet to
the bonnet – and other side panels – themselves.
One of the leaders in aluminum technology, Novelis,
is the main supplier of aluminum sheet to the new
BMW 5 Series sedan.
Robert Georg Director of Sales & Marketing,
Automotive Novelis Advanced Rolled Products
Automotive Industries asked Robert Georg,
director of automotive sales and marketing for
Novelis what contribution the metal had made to
the model.
Georg: Novelis can look back over a long relationship with
BMW as a supplier of high quality aluminum sheet for BMW applications,
including the predecessor of the new 5 series. For the
new model, Novelis will be the leading supplier of aluminum sheet,
producing the material for the main aluminum components of the
car, which are the hood and the doors. Novelis also currently supplies
aluminum sheet for a range of other BMW models, including
the M3 Series, 7 Series, X6, X5 and Z4.
Aluminum is the skin
of the new BMWs
By: Nick Palmen
Novelis Fusion allows BMW to achieve a weight saving of over 20kg per car.
AI: What do you think prompted BMW to choose Novelis
Fusion technology for the door inners?
Georg: The performance package delivered by the new
Novelis Fusion AF 350 allows BMW to meet its requirements
for the design of the new 5 series doors with
lightweight aluminum. It is the unique combination
of core properties and surface characteristics provided
by the multi-alloy composition of Novelis Fusion
that makes this possible.
AI: How important was your previous work
with BMW and in particular your success with
the 5 Series Gran Tourismo and the 7 Series?
Georg: Oh for sure, the 5 series is now the third
model in a row that uses Novelis Fusion for the door
inners. That is a clear statement about the technical performance
of this alloy.
AI: What advantages does Novelis Fusion bring to BMW
in the 5 Series?
Georg: Novelis Fusion allows BMW to achieve a weight saving
of over 20kg per car. Whilst steel has conventionally been used for
door inners, it has the disadvantage of higher weight. With Novelis
Fusion, the engineers have been able to use aluminum for their
one-piece door inner design, with integral window frames. The
42 to read full version of AI stories go to www.ai-online.com

Ready to be formed
into tomorrow’s classleading
BMW.
door geometry is close to a steel design and Novelis Fusion has
meant fewer compromises than would have been necessary with
conventional aluminum sheet products.
AI: Do you see a trend of growing use of aluminum sheet
in the Automotive Industry?
Georg: Absolutely. A key theme in the ongoing discussion
about the future of individual transport is how to balance transport
needs with environmental protection, CO2 emission reduction and
energy saving. Because of this, weight reduction is automatically
included as part of future vehicle concepts. Remember that three
of the four driving resistances that influence the driving of a vehicle
are mass- related.
Aluminum offers a huge weight advantage compared to other
materials. Add to that the material performance needed for the various
applications in a modern car concept; and a proven production
and assembly process that is similar to the existing processes at the
OEM sites. All in all, aluminum sounds like the best choice.
AI: What are the main characteristics that OEMs are
looking for in lightweight materials at present?
Georg: On the technical side, a balance between formability
and strength is the main characteristic for the majority of applications.
Corrosion resistance in service and the general quality impression
for the end user is a must. Furthermore, the ability to assemble
the material or the component into a sub-system and then into the
whole system of a modern BMW is increasingly more of an issue.
Of course, the commercial aspect is also a key driver in the automotive
industry generally. The selected technical solutions must
also be able to compete commercially with other materials/solutions.
The total performance, based on technical and commercial
inputs, must lead to the best solution. Otherwise it will not survive
under market conditions.
AI: What performance benefits do you offer in terms of
design and functionality that are not achievable with conventional
aluminum?
Georg: Very good question. Novelis Fusion has a unique combination
of core properties and surface characteristics due to its multialloy
composition. This means that we can offer the best compromise
between two different alloys and that helps to counterbalance weaker
properties and accentuate desired characteristics. The challenge that
our team faces is to develop these alloy combinations for specific applications/
requirements. In many cases this means designing for applications
in which conventional aluminum solutions are not feasible.
One example of this is the strength-dominated parts such as
B pillars. In this application, conventional aluminum products have
a clear disadvantage versus high strength steel, if you look at the
basic yield strength figures. With new developments, however, we
are able to reduce that gap and offer comparable solutions that
are a real technical alternative with high weight-saving potential.
Another example is, of course, the one-part door inners for the
BMW, the design of which was not previously feasible with conventional
aluminum solutions.
Aluminum in Efficient Dynamics
BMW started looking to aluminum to improve efficiencies in
1940, when the company introduced a further international
highlight in one of the main areas of Efficient Dynamics:
lightweight construction.
The BMW 328 Kamm Racing Coupé had a tubular
spaceframe made of an extra-light electron alloy and
weighed just 32 kg or 71 lb. Together with the outer
skin made of aluminum and the six-cylinder power unit,
unladen weight was a low 760 kg or 1,676 lb.
BMW took up this concept again after the war, following
the same philosophy in 1961 in the BMW 700 RS, again
featuring an elaborate tubular spaceframe combined with
light aluminum outer skin. In road trim this small racer
weighed a mere 630 kg or 1,389 lb.
In 1991 BMW took up the concept of the electric car once
again, demonstrating the current state of the art in the BMW
E1. Made consistently in lightweight construction, the body
was a combination of extrusion-pressed aluminum profiles
with the outer skin made of plastic and aluminum.
In 1995 the next generation of the BMW 5 Series entered
the market as the forerunner in intelligent lightweight
construction. This was indeed the world’s first large-scale
production car to feature a chassis and suspension made
completely of light alloy and reducing the weight of the
entire vehicle by approximately 30%. The all-aluminium
power units were also 30 kg or 66 lb lighter than before,
helping to reduce unladen weight of the BMW 523i, for
example, from 1,525 kg/3,362 lb to 1,495 kg/3,296 lb.
AI AI
Automotive Industries 43

innovation
“The latest version of the BMW Z4 does more than reference style
elements from the legendary Z8. The interior of the roadster is also
distinctive, thanks to the BMW virtues. These include an extremely
high-quality appearance with surfaces that are soft and pleasant to
the touch, developed primarily by the interior specialists at Dräxlmaier,”
says the company.
It has a dedicated research and development team based in a
technology center at the company’s Vilsbiburg headquarters. The
centre unites the design, modeling, and prototyping as well as the
tool and die departments under one roof. In the design of the Z4,
the team has preserved the design elements of the Z8 (for which
Dräxlmaier also supplied interior components and design support).
“Seamless cooperation with manufacturers is one of the overall
strengths of Dräxlmaier. The development team for the system
partner coordinated not only all internal BMW departments that
took part in implementing the interior concept, but there was also
an interdisciplinary work group with other suppliers that provided
components for the interior,” says the company.
Dräxlmaier contributed the instrument panel and center console,
as well as the door panels and the partition wall for the tail area for
the new edition of the Z4. “A stated goal in the interior design was a
distinct increase in perceived value,” says the company. Dräxlmaier
incorporated a number of lamination processes. This technology was
acquired through the purchase in 1998 of a majority stake in former
Daimler-Benz subsidiary HIB Holzindustrie Bruchsal. The company
specialises in high-quality trim made from laser-cut wood, chrome,
and even stone.
“The result is a premium design concept made up of extremely
high-quality surfaces and intelligently integrated storage solutions,”
says Dräxlmaier. These include a storage area below the center
armrest and practical map pockets with innovative covers in the
Privately owned by the German Dräxlmaier family, the Dräxlmaier
company started life supplying the Goggomobil
Hans Glas, a Bavarian sewing manufacturer ventured
into motor scooters and went on to manufacture the
Goggomobil in the late 1950’s. Hans Glas, the owner of
the company, outsourced the supply of components to a
number of suppliers, including close friend and merchant
Fritz Dräxlmaier, who founded Fritz Dräxlmaier, Geisenhausen
in 1958. In May 1958 Dräxlmaier received his first order to
deliver 50,000 wire harnesses for three different models of
Tailoring
the BMW Z4
interior By: Nick Palmen
BMW’s new Z4 interior is designed to feel like a “custom-tailored suit, particularly for
the driver,” according to Dräxlmaier designers.
Dräxlmaier on the road
doors. All versions of the Z4 are fitted with an instrument panel which
“has a soft, comfortable surface made of foamed PVC film”. The
sides of the center console, the center armrest and door armrests,
and the side panels have a decorative sewn trim made of artificial
leather. There is an exclusive leather variant available for those with
higher standards.
The Dräxlmaier Group also supplies components for the electrical
system of the new BMW roadster. These include the complete engine
wiring harness - “manufactured for the first time with an extremely high
degree of automation” - and a wide variety of cable ducts. They are
delivered just-in-sequence to the BMW production plant in Munich. AI
The BMW Z4 Roadster, with its “custom-tailored suit”
of an interior.
the Goggomobil (a sedan, a coupe, and a limousine).
The first 100 were to be delivered about one month after the
order was placed, and production started. Soon after this order,
Dräxlmaier was contracted to provide interior components for the
Goggomobil, including door trim panels, dashboard trim panels,
rear window shelves, and upholstery.
Hans Glas sold his company to Bayerische Motoren Werke
(BMW) in 1966, and Dräxlmaier became one of BMW’s suppliers.
The company has continued to expand into new markets to meet
the needs of its customers. AI
44 to read full version of AI stories go to www.ai-online.com

innovation
Paintshops are among the main contributors to emissions
and pollution in the factory environment – but all that is
changing, according to Italian automotive coating plant
specialist Geico.
The company says paint-shops consume around 70% of
electrical energy and 80% of heat energy necessary for vehicle
production. Painting a vehicle body produces about 235 kg of
CO2, but this estimate only takes into account the measurable
electric, heating and refrigeration consumption. In addition, the
energy consumption of a paintshop of 300,000 jobs/year is about
250 GWh. This is the same amount needed to power a city of
50,000 inhabitants.
The solutions which have been developed to date range from tried
and trusted technologies to innovative renewable energy sources,
says Geico. All solutions are developed with an integrated approach
which acknowledges not only the pure painting process needs,
but also analyzes the paintshop as a global integrated system. All
heat sources and heat wells are used to mutually promote energy
recovery, thus reducing consumption and environmental impact.
Together, these technologies allow Geico to install paintshops with
a 30% reduction in environmental impact when compared with the
Inauguration of Pardis Innovation Center
Focus on greening
the paintshop By: Jon Knox
existing facilities, and with a 10% contribution of renewable sources.
In October 2009, Geico opened the doors of the Pardis
Innovation Center. This center houses Geico’s new prototypes
such as J-Jump, J-Flex, Amir booth, the new liquid booth Caleidos,
J-Dry booth and Ergo Roll. The innovation center seeks to develop
innovative and concrete technological solutions for the automotive
paintshop. A great challenge for the automotive industry is to find
paintshop solutions that cut costs, lower energy usage and are
more eco-friendly, all whilst maintaining superior quality.
“The name of the new center comes from Geico’s internal division,
Pardis. Its main activity is the development of technological solutions
which meet sustainability requests, protection of the environment,
and energy efficiency in automotive coating plants. The name is
emblematic and once more highlights Geico’s mission in realizing
paintshops with a zero impact on the environment,” says Luigi Lazzari,
Geico’s vice president of Innovation.
Many of these innovative solutions are currently installed in paintshops
around the world, including some in India, China, Brazil and
Africa – showing Geico’s capabilities to develop and fit new technologies
in dramatically different environmental and industrial scenarios.
The Pardis Innovation Center will help Geico towards its goal of
De-Dust compact: Geico’s new blow-off & feather duster.
becoming the leader in technological advancements. “The Pardis
innovation centre will allow Geico to achieve its goal of reaching zeroenvironmental
impact paintshops on Energy Independence Day,
June 16, 2020. All we need are undoubting belief and dedication to
Geico,” says Ali Reza Arabnia, president and CEO of Geico S.p.A.
Automotive Industries spoke to Ali Reza Arabnia,
president and CEO of Geico S.p.A. and asked him how he
expects the Pardis Innovation Center to help the company
keep its technological lead?
46 to read full version of AI stories go to www.ai-online.com

J-Flex handling system. Amir: Geico’s new aluminium booth.
Arabnia: For the last four years, Geico’s working policy
on technological innovation has been based entirely on
defining our internal and external customers’ expectations
and transforming them into concrete and workable solutions.
The Pardis Innovation Center has been established to assist
our internal and external engineering groups in developing
projects to pursue these solutions.
AI: What are some of the innovative technologies that
have come out of Geico recently?
Arabnia: There are a lot. We cannot talk about all of them
as a number were developed with our customers’ and partners’
involvement and they are quite confidential. But some examples I
can speak of include various energy saving solutions with retrofit
possibilities: a programmable rotating dipping system called J-Flex;
the compact aluminum booth called Amir; the compact blow-off
called De-Dust, and the newly developed wet and dry scrubbers
called Caleidos and J-Dry.
AI: What are some of the prototypes and new technologies
on display at the Pardis Innovation Centre?
Arabnia: J-Jump, J-Flex, Amir booth, J-Roll and others.
AI: What are some of the reactions you have received
from customers that have visited your Innovation Center?
Arabnia: They are simply amazed and particularly impressed
by the fact that the centre was developed in an unfavorable
economic climate.
AI: Geico has been pursuing the 2020 deadline for launching
a completely green paintshop – will this target be met?
Arabnia: We are certainly working with outmost determination
to meet this objective. We have already completed 20% of the
project with existing technologies. With all that’s happening in the
world of ecology, energy saving, nanotechnology and electronics,
we believe we’ll have many more tools available to meet our final
goal of having a self-sufficient and green paintshop on Energy
Independence Day on June 16, 2020. AI
Automotive Industries 47
J-Jump handling system.
GEICO traces its history to the Italian branch of Carrier-Drysys which was established in 1905,
and quickly became the largest multinational company specializing in original coating plants
for the vehicle industry. In 1976, Giuseppe Neri, an expert in system engineering for the vehicle
coating process and managing director of Drysys Equipment Italiana of Carrier-Drysys Group,
initiated a management buy-out operation and established Geico as a new company.

innovation
In response to the demands created by new materials
and combinations of materials operating at extremely high
temperatures, companies like the 2.8 billion Euro Londonbased
metal engineering company Luvata are developing new
ranges of products.
The Luvata products include strips, wires, spot welding
electrodes, connectors, wire wound components, tubes
and e-cooling profiles for heat exchangers. The company
manufactures these components in both copper and copper
alloys. “We look at other materials like aluminum to be able to
fully support the total automotive sector and utilize our skills,
applications and engineering expertise,” says Jerker Adeberg,
executive vice president of Luvata.
As a recent example, a Japanese OEM
approached Luvata to find a means to
increase productivity through improved
manufacturing efficiencies. Luvata
Keeping joints
sealed By:
Steve Barclay
Ever tougher emission regulations and rising gas prices are among the factors putting
pressure on the many joints that keep modern vehicles on the road.
Casting copper in a
Luvata factory.
developed spot welding electrodes
and alloys that consistently deliver
high weld standards throughout the life
of the electrode – minimizing downtime,
reject welds, and waste. Luvata welding
products are marketed under the brand names of
Nitrode, Z-Trode, A-Trode, Cupal, and Nitrode Composite.
These products are used by leading car manufacturers around
the globe.
Automotive Industries (AI) asked Adeberg to briefly run
through the company’s product portfolio:
Adeberg: In addition to welding electrodes, Luvata is the
leading supplier, with regards to both quality and production
volume, of copper and brass strips for engine cooling. Our strip
products are used globally both on OEM and AM and sold to
about 80 countries.
AI: How much of your business comes from engine
cooling?
Adeberg: About 25 to 30% of the sales of our Rolled
AI: What about your heat transfer solutions?
Adeberg: We produce materials and develop solutions both
to the traditional soft soldering heat exchanger market and to
the brazing market, called CuproBraze – North America being
the highest volume market. Our materials are used in radiators,
heaters, charge air coolers, oil coolers and more.
We have been able to develop new cost saving concepts for
the soft soldering process. CuproBraze materials go mainly to the
premium type of heavy duty segments where durability, corrosion
resistance, reparability, high temperature and pressure resistance
are valued. Those segments include HD trucks, mining applications,
locomotives, generator sets, construction equipment etc. One of
our recent developments are copper Multiport tubes which
create new opportunities, for instance in oil coolers
and in mobile air conditioning, taking into account
the odor retarding antimicrobial properties of
copper alloys.
AI: Are you looking at expanding your
engine cooling markets in emerging
economies?
Adeberg: The roads can be bad,
climate can be cold or hot with humidity
and presence of salts, sulfuric pollutants
and sand erosion, and the maintenance
practice of coolant is not that elaborated.
These kinds of tough conditions favor
copper alloys, especially CuproBraze,
over aluminum. CuproBraze has gained
a wide acceptance for instance in Russia,
where salting of roads to melt ice exposes
automotive heat exchangers for corrosion
attacks and the limited availability of spare parts
in remote areas can lead to expensive heavy duty
vehicles standing still unless damaged parts can be repaired
on site. India is also developing great interest in CuproBraze.
AI: What are some of the new technologies Luvata is
working on?
Adeberg: The development of environmental regulations
for vehicles results in up to 50% higher heat loads to the cooling
systems and the charge air cooler’s inlet temperatures are
approaching 300°C. Our CuproBraze materials withstand
generally higher temperatures and pressures than alternatives. Our
new anticorrosion concept raises the level of exhaust gas resistance
and our copper alloy based solutions are useful in heat exchanger
applications, where stainless steel is used today. That would mean
smaller and lighter units with high thermal performance. The vehicle
industry is gradually moving towards renewable energy sources.
CuproBraze technology is fully compliant.
Products Division come from the engine cooling segment. AI
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innovation
Automotive engineers have come to understand that smooth
and shiny surfaces do more than look good – they have a direct
impact on the reliability of components subjected to friction.
Dr Donald Cohen of Michigan Metrology LLC, has found that
the surface texture correlated directly to friction at component
interfaces and their propensity for wear. He has been using
Veeco’s Wyko surface profilers extensively to gain insight into
the function of critical automotive engine parts, such as cylinder
bores, crank shafts, pistons, and various transmission and braking
elements. Cohen has utilized this technology to assist brake
manufacturers in reducing noise and vibration resulting
from the interaction between the brake rotors and
friction pads.
In response to the recognition by manufacturers
of the importance of surface texture
in efficiency and cost savings, U.S. –
Mark R. Munch, Ph.D.,
executive vice president,
Metrology and Instrumentation,
Veeco Instruments Inc.
based Veeco Instruments has launched
its NPFLEX 3D metrology system. The
system is designed to handle larger, more
complex parts and open the door to the informative
world of 3D metrology.
Veeco Instruments is a leading provider of
metrology equipment solutions for scientific research
and industrial markets, including the automotive industry. In late
2009, the company released its NPFLEX 3D metrology system for
characterizing surfaces previously difficult to measure due to size
or part orientation. The NPFLEX system combines the industryleading
performance of Veeco’s non-contact, white light optical
profilers with a unique open-access design to enable rapid, threedimensional
data acquisition and analysis on a wide range of large
samples for precision machining applications.
The NPFLEX system utilizes a breakthrough gantry design to
provide over 300 degrees of access for large samples. The option of
a swiveling optical head permits routine investigation of highly curved
shapes and beveled edges. The system’s white light interferometric
technology provides greater accuracy, repeatability and more data
density than is possible with contact instrumentation.
Other standard features include long working distance objectives,
a proprietary objective crash-mitigation system, automation and
field-stitching software, and patent-pending, ultra-uniform dual-LED
illumination. The NPFLEX system provides rapid characterization
with over 1000 critical parameters including radius of curvature, lead
angle, bearing ratio, wear, corrosion, and other key factors.
Innovative metrology
equipment measures up
By: Ron Charles
A fundamental element of Veeco’s solutions is its comprehensive
Vision analytical software package. With over 200 tools to quantify
and visualize surface data, the Vision software provides a vast
range of data processing capabilities, including interactive 2D and
3D displays to visualize surfaces and data analysis for roughness,
histogram, microwaviness, and homogeneity. It also features
advanced data filtering and masking techniques. Optional stitching
software can be used to automatically join multiple datasets,
maintaining high lateral resolution over large areas.
Automotive Industries (AI) caught up with Mark R.
Munch, Ph.D., executive vice president, Metrology
and Instrumentation, Veeco Instruments, and
asked him about the company’s solutions
for engine and automotive component
manufacturers.
Munch: Veeco has been working
with manufacturers in the auto industry
for a number of years now. We provide
3D metrology solutions for the characterization
of surfaces related to all
aspects of the automobile. Our instruments
are used in the analysis of engine
bores, break pads, sensors, paint
coatings and cloth seats. Veeco’s optical
interferometers have investigated most of
the surface topographies that could have
significance in quality, performance, appearance
and efficiency.
The majority of research using our instruments
has been in understanding friction and wear of materials
– addressing tribology issues that directly apply to automobile
performance. Veeco is utilizing this experience and moving into
production QA/QC environments to address manufacturing needs
for more efficient products and cost effective production.
AI: Does metrology have a direct link to automotive
manufacturers’ efficiency and cost saving?
Munch: Yes. 3D surface metrology with white light optical
interferometers plays a big role. Nearly every moving part or load
surface in an automobile benefits from 3D surface metrology with
regards to efficiency and performance. It can be used for brake
pad surface investigation for greater inclination to wear, in the
setting of valve seats within the head to ensure no leakage points
and degraded combustion, and also in the “stick-slip” issue at
camshaft and tappet interfaces. These are spots where roughness
becomes important because of the number of surfaces in action
with each other. Surface texturing impacts on lubrication and the
compatibility of surfaces with one another.
As for cost savings, the simplest example of this is a production floor
manager’s ability to measure the tool markings on his/her machined
parts and accurately gauge when to retool. The cost savings in limiting
scrap and only retooling when necessary are tremendous. One can
50 to read full version of AI stories go to www.ai-online.com

monitor the quality of machining in a very quick and statistically valid
way with the 3D optical metrology system.
AI: What makes 3D optical profiling different from other
metrology techniques?
Munch: Firstly, it is a non-contact technique providing
accessibility, accurate nanometer level results and a complete picture
of the surface topography. We are able to access areas on complex
parts that cannot be reached with contact techniques like CMM.
Optical interferometry is not limited by probe size or position either.
Not to be confused with optical comparators, optical interferometers
offer accurate quantitative values for roughness, texturing and wear
along with the conventional 2D measurements. Most contact 2D
techniques are slow for the amount of data they produce. However,
they certainly have their established place on the production floor.
We see optical interferometry as a complimentary tool providing a
faster, very specific analysis to the metrology repertoire.
AI: How does white light optical profiling, and in particular
the NPFLEX system, address the critical metrology needs
of automotive component manufacturers?
ABOVE: Veeco’s NPFLEX system utilizes a unique swiveling
optical head and long working distance objectives to
analyze areas that are difficult to access, such as engine
bores, gear teeth, and turbine blades (shown here).
LEFT: The NPFLEX system addresses the market’s need for
an open-architecture metrology tool that has the capability
to fully investigate large samples. Here, the NPFLEX
system analyzes an engine block deck surface and cylinder
crosshatch texture to verify machining specifications.
Munch: Historically, optical interferometry has been restricted
to the surface analysis of small parts which placed great limitations
on the automotive and aerospace industries. The NPFLEX system
provides the solution with an open worktable and adjustable optical
head that is flexible for most form factor parts. Creating room for
larger components has opened the flood gate of ideas on how and
where to use optical interferometry in a machining environment.
AI: What are some of the products/technologies Veeco is
working on for the auto industry?
Munch: The NPFLEX 3D metrology system is the foundation
from which other products will develop with targeted applications
for the automotive industry.
Veeco is constantly investigating the needs of precision
machining customers to find opportunities where its technical
developments will intersect with industry needs.
Veeco is listening to diverse voices within the automotive industry
– from the small auto shop to global automobile manufacturers.
All are looking for clear, concise solutions that will make them
more appealing to their customers. Over the next year, Veeco will
respond to these requests as it rolls out a series of solutions. AI
51 to read full version of AI stories go to www.ai-online.com

innovation
Today, nearly half of a vehicle’s development cost comes
from on-board electronics. AUTOSAR’s Release 4.0,
launched in December 2009, facilitates the faster design
and development of vehicle electronics.
The core partners of the AUTOSAR (AUTomotive Open System
Architecture) Development Partnership signed a development
agreement in late 2009 which ushers in Phase III of the partnership,
lasting from 2010 to 2012. This coincides with a wider acceptance
of the AUTOSAR standard across the globe as automotive
designers race to develop new electronic content for vehicles.
The AUTOSAR Development Partnership was founded in
2003/2004 by the BMW Group, Bosch, Continental, DaimlerChrysler,
Ford, GM, PSA, Siemens VDO, Toyota and Volkswagen in an effort
to establish an open standard for automotive E/E architecture. The
standard will serve as a basic infrastructure for the management
of functions within both future applications and standard software
modules. The AUTOSAR partnership has expanded
“
The new release provides
all the features that ECUs
of the next generation
of cars will need.
”
Simon Fürst, spokesperson of the
AUTOSAR Development Partnership.
to include a large number of OEM manufacturers and
Tier One automotive suppliers, and to date, more than 160
companies worldwide have joined the AUTOSAR partnership.
“AUTOSAR Release 4.0 provides many new features for the
developers enabling them to realize even more complex and
higher integrated functionality on a single ECU,” says Simon Fürst,
spokesperson of the AUTOSAR Development Partnership.
Fürst explains that because the basic architecture of Release
4.0 is a logical development of the well established architecture of
Release 3.0, AUTOSAR-based applications will easily migrate to
the new release while benefitting from new concepts like memory
partitioning and enhancements on the communication stack which
includes support for the FlexRay ISO Transport Protocol.
In addition, the descriptions have been massively extended
enabling an even smoother headway in the XML based
AUTOSAR methodology.
“We expect that ECU development based in Release 4.0 will
start in 2010 with the availability of basic software implementations
and updates of AUTOSAR tooling,” says Fürst.
Taking ECUs
into the future
By Lenny Case
One of the challenges the AUTOSAR partnership is facing
is the backward compatibility of Release 4.0. The investments
automotive designers have made Release 3.0 reusable. AUTOSAR
is currently developing compatibility statements on the different
levels of the standard. According to Fürst, Release 4.0 promises to
improve methodology and templates and mark the transition from
Phase II to Phase III.
“The harmonization of ECU configuration parameters,
enhancements on measurements and calibration, the rework of
the ECU Resource Template and further alignment with the Field
Bus Exchange Format (FIBEX) standard play a key role in the
improvements,” said Fürst in October 2009 at the International
Congress ‘Electronic Systems for Vehicles’, hosted by the
Association of German Engineers.
Release 4.0 contains a large set of application interfaces
standardized by AUTOSAR for all five vehicle domains – body and
comfort, powertrain, chassis, occupant and pedestrian
safety, as well as human machine interface (HMI)
and telematics.
For the new standard, AUTOSAR chose
the approach to validate it before its release.
As Release 4.0 is a partial extension of the
existing architecture, the results of the
validation will already be incorporated.
Automotive Industries caught up
with Simon Fürst, spokesperson of
AUTOSAR (AUTomotive Open System
ARchitecture) and asked how the
standard has managed to increase its
popularity from Europe across the globe.
Fürst: More and more companies worldwide
recognize that AUTOSAR is the key technology
regarding infrastructure software for automotive systems.
For example, all major ECU suppliers have AUTOSAR on their
roadmap and most of them already offer products based on Release
3.0/3.1. Since the advantages of AUTOSAR are so convincing, we
will see many car model launches with AUTOSAR ECUs on board in
the near future. The AUTOSAR standard enables OEMs and suppliers
to reduce development time and offers the possibility of savings.
AI: What are some of the fundamental differences
between R3.0 and R4.0? And how will this help push the
popularity of the AUTOSAR platform globally?
Fürst: As Release 4.0 is a partial extension of the existing
architecture, the results of the validation have already been
incorporated. In addition, the existing releases will be maintained.
Release 4.0 contains a remarkable number of new and unique
features. The new concepts introduced in AUTOSAR Release 4.0
are adding technical and functional improvements and extensions
to the areas of functional safety, architecture, communication
stack and templates. The new release provides all the features
that ECUs of the next generation of cars will need.
52 to read full version of AI stories go to www.ai-online.com

The new BMW 7 Series saw the global debut of ECUs with AUTOSAR (AUTomotive Open System ARchitecture) in
series production.
AI: How will the standardized application interfaces of
R4.0 help software designers in terms of time-to-market?
Fürst: Efforts have been focused on interface specification of
well established applications in order to emphasize software reuse
and exchange, which is considered one of the main requirements
of AUTOSAR. These standardized interfaces allow software
designers and implementers to expand and further simplify the
re-use of application software independent of a specific hardware
or ECU.
AI: Tell us about the validation process of Release 4.0 and
how it is different from R3.0.
Fürst: As the high quality of Release 4.0 should be
guaranteed from the very beginning, AUTOSAR conducted an
intense validation process. In previous releases, the specifications
out of one development were validated on hardware platforms,
but the results of the validation of Release 4.0 have mainly been
incorporated into the standard before its release. For the first time,
the Development Partnership has also realized the validation of
methodology and templates, confirming their high quality. The
validation of methodology is based on the new release, whereas
the validation of templates is partly based on Release 3.0 due to
tool availability.
AI: Will R 4.0 be completely backwards compatible? If so,
what were the challenges AUTOSAR faced in providing this
compatibility?
Fürst: Release 4.0 is the baseline for all further developments
in AUTOSAR Phase III, which will be driven by market needs and
new technologies. New or extended features will be introduced
selectively during the next few years and will always have to
follow the rules of backwards compatibility. This will ensure that
application software being developed for previous releases can
easily be reused.
AI: With AUTOSAR currently in Phase III, give us your
predictions of the role of automotive electronics in the
market and how they will change the face of the industry.
Fürst: Today, the key factor for the development of the
automobile is the progress and improvement of standardized
electronic systems and electronic networks. In Phase III we will
focus on maintaining the existing releases and on enhancing
existing functionality selectively. Also the market situation will
influence the trends and technology specified by AUTOSAR.
The migration plans of the AUTOSAR core partners and
members are proof that AUTOSAR will become the standard for
E/E systems in the automotive domain. AI
“
Today the key factor for the development of the automobile is the progress
and improvement of standardized electronic systems and electronic networks.
”
- Simon Fürst, spokesperson of the AUTOSAR Development Partnership.
54 to read full version of AI stories go to www.ai-online.com

innovation
Auto Linux gathers speed
By: Lenny Case
Obstacles in the way of using Linux as an in-vehicle operating
system are being cleared through industry partnerships.
Several vehicle manufacturers and suppliers founded the GENIVI
consortium in March 2009 to develop a standardized automotive
infotainment reference platform [IN-Vehicle Infotainment (IVI)]. The
platform is based on the open operating system Linux, which, apart
from its robustness, permits access to the many different consumer
electronics applications. The aim of this work are shorter development
times, faster product launches and lower development costs for IVIbased
equipment and software. Among the founding members of
GENIVI are BMW, PSA Peugeot Citroën, General Motors, Delphi,
Visteon, Magneti Marelli, Intel and Wind River.
One of the leaders in the field is Swedish automotive electronics
research and development enterprise, Pelagicore. It has developed
a Linux-based infotainment software framework for music, video
and telephony. This is integrated into a single system with COQOS
– an operating system developed by OpenSynergy that is able
to integrate Linux-based infotainment applications with the typical
vehicle functions on the same hardware platform. By combining
resources, OpenSynergy and Pelagicore say they “offer a complete
framework to the automotive industry where only the vehicle
manufacturer’s user interface needs to be assembled.”
Pelagicore’s co-founder, Mikael Söderberg, is chairman of the
Reference System Working Group in the GENIVI alliance due to
Pelagicore’s experience in In-Vehicle Infotainment Reference Design
and expertise in hardware and software (e.g. Linux) development.
Road blocks
While the work of GENIVI ensures the successful development
of the infotainment system for the vehicle, it does not guarantee
their integration into the total vehicle system. The integration into
the automobile demands the systems to meet the automotive
requirements, such as AUTOSAR compatibility.
Other barriers of GENIVI application integration in the vehicle
is the requirement of infotainment systems to start considerably
faster than is currently possible with Linux. For example, the rear
view camera must be available a few seconds from starting.
The integration into the vehicle network, such as CAN, or the
integration of function domains, where their applications require
real-time properties, also represent challenges which cannot easily
be realized with Linux.
OpenSynergy has developed a solution using its core product
COQOS. This software platform contains the µOS, a very small
but real time capable microkernel-based operating system,
running directly on the hardware. Functions of the system required
immediately after the start, that must meet real-time requirements
during operation, or that need to remain separated from the Linux
kernel for other reasons, run directly on the µOS. As hypervisor,
the µOS permits the execution of a Linux kernel, including all
applications, virtualized above the µOS. The entire architecture
“ OpenSynergy and Pelagicore offer a complete framework to the
automotive industry where only the vehicle manufacturer’s user interface
needs to be assembled. Mikael Söderberg (co-founder and CTO of Pelagicore)
”
specified by GENIVI can therefore run above the µOS and in
parallel to time-critical applications.
Virtualization technology enables the partition of different
software systems so that they can be merged into a single CPU
without affecting each other. COQOS is therefore the key for the
integration of infotainment systems in AUTOSAR environments.
AUTOSAR is the interface standard for functions in the automotive
industry, which ensures that they can be reused in the long term
and in a sustained manner.
The COQOS platform is the first of its kind that combines
AUTOSAR with the advantages of virtualization. For example, one
or several securely separated AUTOSAR partitions can run beside,
and safely separated, from a virtualized Linux infotainment system.
COQOS is therefore able to turn the new automotive-capable
Intel Atom processor into the first X86-compatible AUTOSAR
environment through its support for the new X86 architecture.
56 to read full version of AI stories go to www.ai-online.com

OpenSynergy, through its membership in the GENIVI Alliance,
ensures that the interfaces on the reference platform meet the
automotive requirements. Pelagicore is the first company to integrate
the GENIVI compliant infotainment framework with COQOS into one
head unit, with further third-party supplier software to be added.
Pelagicore originates from the company Mocean that is active in
the audio/video processing market segment, developing solutions
for MP-3/CD/DVD/Blu-Ray players, amplifiers and displays.
Pelagicore is one of the first companies to offer a GENIVI compliant
GENIVI Alliance
The GENIVI (pronounced gen-ee-vee) Alliance was officially
launched in March, 2009. It is described as a “non-profit
industry alliance committed to driving the broad adoption of
an In-Vehicle Infotainment (IVI) reference platform. GENIVI will
accomplish this by aligning requirements, delivering reference
implementations, offering certification programs and fostering
a vibrant open source IVI community.”
The launch of the association is said to herald “a new
era of cooperation among automakers, suppliers and
technology providers in the interest of streamlining the
development and support of In-Vehicle Infotainment or IVI
products and services.”
Its objective is to reduce development cycles, speed
www.opensynergy.com
Make Linux satisfy automotive requirements on performance and reliability.
“ COQOS is able to turn the new automotive-capable Intel Atom processor into the first
X86-compatible AUTOSAR environment through its support for the new X86 architecture. ”
distribution of In-Vehicle Infotainment-Software.
Together with Pelagicore, the GENIVI partners intend to
further develop this shared platform to enable its architecture
to be scaled across infotainment devices of different sizes
in a robust manner. This flexibility opens the market for
smaller software providers and offers greater flexibility to the
manufacturers, permitting them to focus on various topics.
up time-to-market, and contain costs for companies
developing IVI equipment and software.
IVI is a rapidly growing and evolving field that encompasses
automotive infotainment products and services including
music, news, Internet and multimedia, navigation and
location, and telephony. Automobile manufacturers and their
suppliers must develop, test, deploy and support these IVI
products and services across multiple automobile models
and generations, which is becoming increasingly complex
and expensive as the rate of innovation and number of
applications continues to expand exponentially.
GENIVI is leading the way forward by developing
a reusable, open source IVI platform, according to the alliance.
Automotive Industries 57
AI
AI

innovation
pulse-AR, formed in September 2009,
provides support and expertise for customers
in the adoption of the AUTomotive
Open System ARchitecture (AUTOSAR)
standard. “The AUTOSAR standard is a
wonderful means to bring about synergy
between the automotive players. It enables
new business models for cooperation by
speaking the same language,” says Pascal
Gula, CEO of pulse-AR.
“From a purely technical point of view,
AUTOSAR introduces new concepts in
software design that will modernize the
embedded software development approach,
Specialist company
formed to implement
AUTOSAR By: Lenny Case
The introduction of standardized automotive software architecture is picking up speed with
the formation of a dedicated support and development company.
release is planned for the second quarter
of 2010.
The consulting services offered by
pulse-AR include helping customers build
an AUTOSAR compliant process, defining
a migration path from non-AUTOSAR
to AUTOSAR process and bringing solutions
to specific AUTOSAR implementation
issues. Its engineering services include
providing tool engineering to complete
an existing tool-chain through the Artop /
Eclipse Framework and providing software
engineering to develop software based on
customers’ specifications.
“Our expertise enables us to offer traditional
system/software development services, with a
model-based software engineering approach.”
as was the case in the aeronautic industry
with the ARINC653 standard.”
pulse-AR has a relationship with a number
of other highly informed companies
such as ArcCore and RealTime-at-Work
(RTaW). It is also in discussions to form
a strategic partnership with CEA List, a
French government-funded technological
research organization and prominent player
in the European Research Area.
pulse-AR offers services such as consultancy,
development tools and software,
and training on both AUTOSAR
and ISO 26262. Future products include
a system design tool focused on variant
handling and safety with R4.0, based on
the Artop / Eclipse Framework. The first
Automotive Industries asked Pascal
Gula, CEO of pulse-AR, why it was important
to start a company solely aimed
at propagating the AUTOSAR standard.
Gula: AUTOSAR really represents an incredible
opportunity to move a step forward to
reach excellence in quality, reusability, flexibility
and safety for complex embedded software
development. It will ease the development of
distributed functions like hybrid vehicles, and
open new perspectives in terms of business
models between the automotive players. Our
expertise enables us to offer traditional system/
software development services, with a modelbased
software engineering approach.
AI: Why are you planning to open offices
in Berlin and China later this year,
58 to read full version of AI stories go to www.ai-online.com
and will you be opening offices in any
other locations?
Gula: Considering my background and
my contacts, Paris was an obvious choice
to begin. However, once the business was
established, we decided to expand rapidly
into other territories. Germany, with an office
in Berlin, represents one of the biggest
markets for embedded software development,
especially in the automotive industry.
It hosts some of the most prestigious and
significant OEMs such as BMW, Daimler,
Audi, VW as well as Tier Ones like Bosch,
Continental and ZF. In China, we have an
office in Beijing. Economic growth in the
country is steady and the government is
helping local OEMs and suppliers to reach
a level of international competitiveness. AU-
TOSAR has therefore been a clear choice
to aid in reaching this goal.
AI: Tell us more about the first product
you plan to launch in the second
quarter of this year.
Gula: Our first planned product will be
a system design tool for AUTOSAR compliant
systems. It will be divided into a core
part, with standard functionalities like diagram
editor and development editor. Additional
modules will be included that are
dedicated to variant handling and safety.
Both concepts are available through
AUTOSAR R4.0 and are of importance for
both OEMs (to offer flexibility in a vehicle’s
platform development) and Tier Ones (to
be able to meet different OEMs’ specific
requirements).
Moreover, we will have a flexible business
model which follows the evolution of
the market. Eventually, we plan to build a
global solution with a bundle composed of
Papyrus from the CEA (a UML modeler including
real-time profile like SysML, MARTE
or EAST-ADL2) and the solution of ArcCore
(product suites for BSW configuration and
integration) together with our tools. AI

innovation
Nokia dialing up the
automotive industry
By: Lenny Case
Nokia, a global leader in mobile telecommunications and
one of the world’s leading manufacturers of mobile devices,
is working in collaboration with key auto companies in order
to provide new services and create fresh experiences
for drivers and passengers on the move.
The new opportunities include enhancing basic communication
needs and bringing new products and services to the consumers.
Nokia wants to assist in building the next generation of automobile
experiences. The company will bring several enablers to the table,
including software and hardware products and platforms. It also
has a global presence and understanding of all key markets related
to mobile services and products.
Last year, Nokia joined the GENIVI Alliance which was
established in March 2009 in order to create an open source
development platform for in-vehicle infotainment or IVI. Timo Ali-
Vehmas, vice president of Compatibility & Industry Collaboration at
Nokia explains: “People now have their mobile devices with them
wherever they are. They want to be able to make calls, listen to
music and find their way around anytime and anywhere. All this
can be done with services such as OVI from Nokia.”
“Seamless integration of mobile devices with car infotainment
systems is an increasingly important part of satisfying customer
needs. Nokia is excited to be helping to shape the future of invehicle
infotainment specifications. The company will contribute
its extensive experience in standardization and creating open
specifications. Working with GENIVI will result in quicker time-tomarket
and reduced costs for car infotainment related product
development,” says Ali-Vehmas.
GENIVI’s founding members are the BMW Group, Delphi, GM,
Intel, MagnetiMarelli, PSA Peugeot Citroën, Visteon and Wind River.
With companies like Nokia coming on board, the alliance members
are able to extend the ecosystem beyond the traditional limits of
vertical businesses. For Nokia, joining the GENIVI alliance was a
strategic move to expand its automotive offerings. At this year’s
CES 2010, hosted by the Consumer Electronics Association in Las
Vegas, Visteon showcased a prototype of an in-car infotainment
center developed by Nokia.
Automotive Industries asked Ali-Vehmas to describe the
company’s automotive identity and vision for the future.
Ali-Vehmas: Nokia offers access to an ecosystem of services
ABOVE: OVI maps from Nokia – keeping drivers going in
the right direction.
through Nokia devices, OVI and NAVTEQ content. These are
available anywhere, anytime and offer a great user experience in the
automotive environment. Nokia’s automotive personality can best be
described with words like human, freedom, safety and sustainability.
This is very consistent with the way we conduct our business. Our
vision is to get all consumers connected, wherever they are.
60 to read full version of AI stories go to www.ai-online.com

Renee James (top right) - senior vice
president & general manager, Software &
Services Group, Intel and (left) Kai Öistämö
- EVP, Devices, Nokia at the MeeGo launch in
Barcelona, Spain.
AI: Why is the automotive industry
important to Nokia?
Ali-Vehmas: Consumers are spending
a significant amount of time in their cars and
they want constant access to services such
as phone calls, music or navigation. With a
Nokia phone and OVI services, a consumer
can access all of these. Nokia aims to offer the
best possible user experience in all environments
whether at home, work or in a car. It is very important
that consumers can fully enjoy their personal services in a safe
and exciting environment. Safety is essential – drivers should only
have to focus on driving and should have access to hands-free
systems for their entertainment or navigation needs.
AI: Tell us about the role Nokia plays in the GENIVI Alliance.
Ali-Vehmas: Nokia is aiming to be an active and trusted
member of the consortium. Since the collaboration is a dialogue,
Nokia is keen to understand the needs of all GENIVI members. We
consider the open collaboration between automobile, information
and telecommunication industries as a tremendous opportunity to
build meaningful new services and products which enable new
ways of communication. Relevant standards and application
platforms are also crucial elements.
Nokia is a member of a large number of open standardization
initiatives and forums globally, and is very interested in building
and facilitating open collaboration and utilization of all innovations
for the faster adoption of new services and products. In the future,
the roles of traditional standardization organizations, voluntary
alliances and open source software communities will converge in
a similar way to technologies.
It is no longer possible to develop separate vertical solutions
for each application but rather horizontal technologies, software
platforms and standards. These will be used to enhance innovation
for faster and more predictable service adoption. The recent
announcements related to MeeGo – a merger between Nokia’s
Maemo and Intel’s Moblin open source initiatives – might be of
particular interest to GENIVI. Much of the work that has occurred
in GENIVI to date is based on Moblin, so transitioning to MeeGo
would be a natural move with the added benefit of supporting both
Intel Atom and ARM architectures from a single distribution. As
well as economies of scale, GENIVI will gain
from the continuous innovations that Nokia
and Intel will bring to MeeGo.
There is significant amount of technologies
already available for the in-vehicle infotainment area.
Nokia’s interest is to be a key contributor in this space as
well. One interesting area is called Terminal Mode. Together with
the CE4A (Consumer Electronics for Automotive, www.ce4a.org)
consortium, Nokia has defined a profile for how a mobile device
connects to the in-vehicle infotainment system of a car. This
method is based on standard components such as UPnP, USB
and Bluetooth. We hope to see Terminal Mode become part of
future GENIVI releases.
AI: Please tell us a bit more about MeeGo.
Ali-Vehmas: Nokia and Intel are creating an open Linuxbased
platform which will run on multiple hardware architectures
across a wide range of computing devices, including pocketable
mobile computers, netbooks, tablets, mediaphones, connected
TVs and in-vehicle infotainment systems. It merges the best of
Moblin with the best of Maemo and will offer Qt for application
development. Qt makes it possible for developers to write their
application once and then deploy it easily across other platforms,
including Symbian, without rewriting the source code. You can find
more information about MeeGo and Qt via http://www.meego.
com and http://qt.nokia.com.
AI: What are some of the OVI solutions for the future
‘open-source’ infotainment platform?
Ali-Vehmas: Customers must be able to continue using
their favorite services in any location – at home, at work, in the
car, on their computer or on their mobile. That means that for
consumers that already use OVI services, such as our free OVI
Maps service or OVI Music service, there are new opportunities
available to continue using these services in the car. Services
include exchange of destinations, points of interest, combining
drive and walk navigation, listening to music and more. AI
Automotive Industries 61
Timo Ali-Vehmas,
vice president, Compatibility & Industry
Collaboration, Nokia.

innovation
Development continues in the field of analog technology,
which still outperforms digital in certain areas.
austriamicrosystems is a world leader in designing
and manufacturing high performance analog integrated
circuits or ICs. Its products are used
in sensors and sensor interfaces in the automotive,
power management, medical,
communications and industrial sectors.
In December 2009, the company
Analog continues to
drive critical functions By: Steve Barclay
Bernd Gessner, general
manager automotive,
austriamicrosystems AG
launched two new in-vehicle-network
ICs - the AS8520 and AS8530.
The AS8520 is dedicated to LIN
slaves that are found in car doors, car roof
modules, seat modules or similar applications.
The company says that application specific
features also make the AS8520 an ideal companion
IC for LIN networked window lift and sun roof actuators. The
AS8530 is a stripped down version of the AS8520 and supports
LIN sensor or actuator slaves. austriamicrosystems also recently
introduced its AS1716, a sensor designed for interfacing to Piezo
Electronic capacitive sensors.
Automotive Industries (AI) asked Gessner to talk about
the company’s products and its main focus areas.
Gessner: austriamicrosystems leverages its expertise in low
power consumption, high accuracy and high-voltage know-how
together with more than 25 years of experience in the industry. It
provides best-in-class integrated circuits (ICs) for automotive markets
worldwide. The company splits its activities into two main groups;
sensors and sensor interfaces. This includes its large portfolio of
magnetic encoders and ASICs, as well as the in-vehicle networking
group. This group deals with battery management solutions and
system basis chips (SBCs) that contain power management circuits
as well as LIN, CAN and FlexRay bus drivers.
Generally, austriamicrosystems has an excellent IP base for
safety-critical inductive and magnetic solutions. Its sensor interfaces
comply with the most stringent safety and quality requirements.
Applications include, for example, ESP and position measurement
for steering wheels, accelerator pedals and gearbox.
In the ASIC business, austriamicrosystems is recognized as a
specialist in challenging safety critical applications. The company
has experience in pre-crash warning systems, ESP, ABS
and accelerator pedal applications. In the area of
power battery management, and BUS systems,
it provides solutions for current and
future applications using its flexible and
scalable approach.
austriamicrosystems also focuses
on solutions for electric and hybrid
cars alongside its pioneer solutions
for conventional cars where it offers
high-side and low-side battery
management solutions for lead-acid
cars. In the area of in-vehicle network,
austriamicrosystems offers a
portfolio of application specific SBCs
with different interfaces and FlexRay
products, which offer the highest network
stability on the market.
AI: What makes your automotive
high performance analog semiconductors
best in class?
Gessner: austriamicrosystems offers
more than 27 years of experience in developing
high performance analog solutions, and continues to
invest significantly in research and development to offer cuttingedge
products and technologies.
austriamicrosystems’ success factors in the automotive industry
include its pool of talented engineers, effective customer interaction
and its own manufacturing facilities. The company’s 200mm (8”)
wafer fab in Austria is qualified for the most stringent automotive
requirements and provides best in class quality standards.
AI: What are some of the automotive applications for
your magnetic encoders?
Gessner: A magnetic rotary encoder is a complete system on
chip and together with a simple magnet, a highly accurate, noncontact
sensing system. It has the benefit of low wear and tear,
high reliability and lack of sensitivity to factors such as temperature
or magnetic stray fields. They are also cost effective.
Magnetic encoders can be used in virtually every application
where angles or distances need to be measured. Currently,
austriamicrosystems’ automotive magnetic rotary encoders are
strongly represented in module applications such as gearboxes,
steering and brushless DC solutions.
Steering is a safety critical application. To fulfill the toughest
automotive requirements, redundancy is a must. For these critical
62 to read full version of AI stories go to www.ai-online.com

applications austriamicrosystems offers stacked-die solutions
which include two independent sensors, isolated from each other
in one small package.
BLDC applications require a high-speed interface for real
time measurements. Each of the company’s target applications
requires different key features for programming and diagnostics.
With its wide portfolio of rotary encoders it is able to provide the
right solution to its end customers.
Customers rely on austriamicrosystems’ encoder solutions
because of their robustness, their insensitivity to external influences
and their accurate performance.
AI: How have austriamicrosystems’ rotary encoders
impacted its automotive clients?
Gessner: Rotary encoders by austriamicrosystems are
designed to replace dust sensitive optical encoders, expensive
resolvers and unreliable potentiometers. The encoders
have helped clients by enabling non-contact measurement
without moving parts in the chip and with no further required
components. The rotary encoders provide the highest reliability
at low costs.
For safety critical applications like steering or gas pedal
redundancy, rotary encoders are a must-have. austriamicrosystems
is able to provide a redundant, stacked-die solution. This failsafe,
built-in redundancy magnetic angular encoder includes two
sensors in one package, fully electrical and isolated from each
other. The dual die, as well as the single die solution, are fully
qualified to AEC-Q100 with an operating ambient temperature
range from -40°C up to 150°C.
AI: Tell us about the importance of battery management
related to current and future applications in car
and developments by austriamicrosystems to fit those
requirements.
ABOVE: The austriamicrosystems head office.
LEFT TOP: Testing a microchip
LEFT BOTTOM: Wafer production at austriamicrosystems
Gessner: For years we have seen comprehensive OEM
programs and governmental sponsorships aiming at vehicle
electrification for CO2 reduction. Today we see two major directions
in developments. The first is electrification of conventional internal
combustion engine type vehicles for efficiency increase.
The second direction is towards full hybridization or full
electric vehicles. This second direction is quite uncertain due to
limitations in the current electrical energy storage technologies.
austriamicrosystems is prepared to address both directions with
its existing products and with its future product developments.
Li-Ion battery management is at the limit in terms of electronic
solutions in performance and price. austriamicrosystems started
developments of less expensive, and more effective next generation
battery management ICs for Li-Ion batteries and ultra capacitors
to provide better performance in state of charge, state of health,
state of function acquisition, cell balancing and battery diagnosis.
AI: What are the benefits of your FlexRay products
compared to the competition and how do you see the
development of FlexRay in the future?
Gessner: austriamicrosystems has set a new standard for
FlexRay network reliability by increasing the immunity level of its
FlexRay transceiver products.
It has also developed the Bit-Reshaper embedded in the
AS8224 FlexRay Active Star Device. This enables network
topologies with extended cable lengths and an increased number
of ECUs (electronic control units) connected to the FlexRay bus.
austriamicrosystems works on FlexRay solutions offering
benefits for the complete system layout and system stability. It is
also fully compliant to the FlexRay standard.
Although FlexRay is established, it is still a very young technology,
but austriamicrosystems believes that it will eventually be just as
common as CAN and LIN are today. AI
Automotive Industries 63

innovation
High-flying Connectivity
By: James Hilton
Smartphone sales are on a spectacular rise as users customize
their phones with apps that best match their lifestyles.
Smartphones currently stand for 22% of worldwide mobile
phone sales and should climb to 30% by 2013. Now, apps
are on their ways to our cars’ multimedia systems too.
That is what visitors have discovered at Parrot’s booths during
CES. There, Parrot, a reference supplier in connectivity solutions
for the automotive world, was demonstrating an impressive
implementation of the Android platform on its flagship module
FC6100. With this new solution, Parrot opens the way to a wealth
of apps in automotive systems thanks to this open-source platform.
Automotive Industries (AI) spoke to executive OEM Director Eric
Riyahi at the Parrot CES booth.
AI: How do you envision the future of automotive
connectivity?
Riyahi: Automotive connectivity is currently focused on handsfree
telephony and multimedia connectivity with portable devices
such as USB flash drives and media players such as the iPod. The
growing trend in mobile phone use is represented by smartphones,
with the integration of telephony, internet access and multimedia
devices in one single device. Automotive connectivity should
keep the pace with mobile devices and enable drivers to enjoy a
Smartphone-like feature embedded in their vehicles.
AI: How do you justify your focus on embedding
smartphone features in the car?
Riyahi: Smartphones are the fastest growing segment in the
mobile phone market, with a projected 30% worldwide market
share in 2013. This trend is especially strong in North America
and Europe, both markets where automotive connectivity is
widespread. Moreover, carriers have been fuelling this growth
by subsidizing smartphones in order to maximize their ARPU
through data services and multimedia applications, both features
smartphones are designed for. These services and applications
are also well adapted to the automotive world, with location-based
services, mapping information and off-board navigation.
AI: How will you implement this new type of
connectivity?
Riyahi: The main characteristics of smartphones are: internet
access, messaging, multimedia playback and the ability to install
applications in the field. Parrot aims at offering these very features
in its upcoming connectivity solutions, via the FC6100 module. In
addition to existing Bluetooth and USB use cases, internet access
is provided through 3G+ (via Bluetooth through the user’s phone,
with a USB 3G+ dongle or with an embedded GSM module).
The Parrot FC6100 can be embedded in the car and opens the
automotive connectivity market to a wider panel of Tier 1 suppliers,
considering the potential for integration into the in-vehicle display
“ Automotive connectivity should keep the pace with
mobile devices and enable drivers to enjoy a Smartphonelike
feature embedded in their vehicles.
”
64 to read full version of AI stories go to www.ai-online.com
ABOVE: Example of an
FC6100-powered solution’s
user interface

and center stack, especially if you consider the LCD controller
capabilities of this module.
AI: Which software platform do you regard as most
appropriate for implementing a smartphone-like automotive
connectivity solution?
Riyahi: Android is the rising platform in the smartphone
world. It combines the flexibility and low costs of an open OS
with the wealth of Java applications coming from the fast growing
developer’s community. With the combination of this platform
and mobile internet access, Parrot will provide Tier1/OEMs with a
groundbreaking advancement in automotive connectivity.
AI: Can you physically demonstrate this new solution?
Riyahi: We are currently demonstrating the FC6100 on this
The FC6100 lets drivers access a wealth of Internet services.
The FC6100 manages a wide array of technologies.
CES booth. It has met with great interest from the automotive
community. Your readers are invited to discover it during the
upcoming Beijing Auto Show (Auto China) from April 23rd 2010
(Hall 8A, Booth 22)
AI: How will you implement this solution with your
customers?
Riyahi: Parrot will follow its current strategy as a reference
technology supplier, working with leading Tier-1 suppliers who
wish to gain a competitive advantage., The FC6100 solution
can be implemented standalone or integrated in a radio,
display, or center stack. For more information, your readers
can visit www.parrotoem.com
Automotive Industries 65
AI

innovation
Leading the way
in going green
Finnish company Valmet Automotive is soldering
together a number of key partnerships to fasttrack
the rollout of electric vehicles.
Valmet Automotive is a forerunner in engineering
and manufacturing electric vehicles.
Already last year the company started the
series production of one of the world’s
first urban electric vehicles, the THINK
City, as well as the luxury Golf Car Garia.
Valmet Automotive is also the engineering
and manufacturing partner of
the world’s first premium plug-in hybrid
electric vehicle Fisker Karma.
The Karma uses Q-DRIVE plug-in
hybrid technology, developed exclusively
for Fisker Automotive in partnership
with Quantum Technologies. Production
is scheduled to begin in late 2010. A fullycharged
Karma will not burn fuel for the first
50 miles (80 km) of driving. After the battery
SOC reaches a certain level, the gasoline engine
turns a generator to provide power to the car’s two
electric motors. This balance of electric and gas range
makes it possible for Karma drivers to achieve an average
fuel economy of 100 mpg (2.4L/100km) per year. The
CO2 emissions are only 83g/km.
Valmet Automotive’s other exciting projects include the
production of Garia luxury golf cars in partnership with the Danish
firm, Garia A/S. The series production of the Garia golf car began
at the end of 2009. The car is manufactured at Valmet Automotive
on a new separate body and assembly line.
Valmet Automotive also inked an agreement with Norwegian
firm, THINK Global AS in August 2009 to manufacture the THINK
City electric city car. Under the agreement, Valmet Automotive
is responsible for the manufacturing engineering, production
By: Steve Barclay
and participates in the further product
development of the THINK City.
“The partnership with THINK Global AS
supports our know-how in the manufacturing and development
of electric cars,” says Ilpo Korhonen, president of Valmet
Automotive. “We are the engineering and manufacturing partner
of three different electric vehicles: the THINK City electric car, the
Fisker Karma premium plug-in hybrid and the Garia golf car. The
expertise gained from these projects furthers the development of
our electric vehicle business alongside conventional vehicles.”
Valmet Automotive was founded in 1968 as a joint venture
between Saab-Scania and Valmet. Today it is owned by the Metso
Corporation. Metso is a global supplier of sustainable technology
66 to read full version of AI stories go to www.ai-online.com
Valmet Automotive’s electric
concept vehicle “Eva”.

and services for mining, construction, energy, metal recycling
and the pulp and paper industries. The Valmet Automotive plant
production line in Uusikaupunki, Finland has produced more
than one million cars for Porsche AG, Saab, PSA, General
Motors and Avtovaz during its 40-year history. Valmet has also
manufactured over 220 000 Boxster and Cayman models for
Porsche since 1997.
Valmet Automotive has also developed its own concept
electric vehicle, which will be showcased at the 2010 Geneva
Motor Show. The company cooperated with energy company
Fortum to develop an electric concept car and related recharging
technology. “We have now designed and built a concept for a 2+2
electric city car with a range of up to 95 miles (approximately 160
kilometers) per charge. The idea was to create new solutions as
a part of our service offering. By bringing together the experts
in the sector, we can develop service packages for
OEM customers, packages that range from
electric vehicle design and manufacturing
to recharging systems,” said Korhonen.
“Our main target is to create new
innovations to benefit our current
and future customers. There are no
decisions to start production of the
car at Valmet Automotive”.
Automotive Industries (AI)
asked Korhonen why the company
was developing its own
electric concept vehicle.
Korhonen: There is no time to
waste to reduce the CO2 emissions
caused by traffic. As a forerunner in
engineering and manufacturing electric
vehicles, Valmet Automotive can develop
new innovative solutions. There is a large
network of Finnish companies and research
institutes that have a lot to give to this project. In
Finland, there is also a vast charging infrastructure and
the charging systems are well developed.
AI: What does it mean for Valmet Automotive to be
the engineering and manufacturing partner for the much
awaited Fisker Karma?
Korhonen: The agreement is very significant for us, and
because the agreement spans several years, it also bodes well for
our employees in the years to come. Fisker Automotive’s decision
to start manufacturing the more affordable version of its plug-in
hybrid vehicle in the USA reinforces the brand and the further
cooperation of the companies.
AI: Tell us about the successful implementation of
Valmet’s renewed strategy and services.
Korhonen: Valmet Automotive’s offering of engineering
and manufacturing services has received very good
feedback. The current change in the automotive industry is
an opportunity for new players who need engineering and
manufacturing services as well as business support services
from an experienced partner.
Valmet Automotive’s 40-year experience in various automotive
projects is an excellent base to provide conventional OEM’s with
tailor-made services. Our service offering will be diversified which
contributes towards the growth of our business. We have already
achieved our goal of increasing engineering services to over ten
percent of the sales last year.
AI: How would you describe Valmet Automotive’s growing
project management skills and engineering capabilities?
Korhonen: The majority of our customers are not only
interested in exploiting the engineering and manufacturing
capabilities of Valmet Automotive, but in delegating the
orchestration of a complex scope of activities within a
large network of partners.
Thus, our main responsibility is to shorten and support all
interfaces between customers, system suppliers, service providers
and in-house experts in order to achieve all project deadlines. This
is the reason why we have focused specifically on expanding
our project management resources and enlarged our team of
engineering experts in selected technological areas.
AI: Tell us about Valmet’s extended global footprint in
countries like Germany, China, South Korea, Japan and
the US.
Korhonen: As a European-based automotive company, having
an office in Germany is vital. Developing long-term partnerships
with our current customers such as Fisker Automotive in the US,
and building relationships with targeted customers in Asia, are the
main reasons for our presence abroad. AI
Automotive Industries 67
“
Valmet Automotive’s
40-year experience in
various automotive
projects is an excellent
base to provide OEM’s
with tailor-made
services.
”
Ilpo Korhonen, president of
Valmet Automotive.

innovation
Exploring the changing landscape
of the automotive industry
By: Steve Barclay
Expect more mergers and acquisitions in the Indian and Chinese markets as global auto production
shifts to the East, predicts IMAP, a global mergers and acquisitions advisory. The region has emerged as
the automotive growth market of the future due to growing populations, increased per capita spending
and improving infrastructure, says the company.
IMAP was formed in the early ’70s
and has more than 50 offices in nearly
30 countries throughout North and South
America, Eastern and Western Europe, and
Asia. In 2008, the organization’s advisors
completed 252 transactions worth US$13
billion. IMAP advisors provide strategic
merger, acquisition, divestiture and related
corporate finance services.
In October 2009, IMAP announced the
findings of its Automotive and Components
Global Report. This report provides details
on M&A activity in the automotive industry,
growth projections for 2010 and beyond, and
a commentary on the shift in leadership from
the U.S. to the Asia Pacific region. Within the
last year, 44 completed transactions have
been announced in the automotive industry,
accounting for nearly US$2.9-billion in total
transaction value. IMAP advisors alone
closed six of these transactions.
“The level of M&A activity in the
automotive sector has been driven in
large part by the consolidation of excess
capacity due to the global recession and
the growth of emerging markets,” says
Scott Eisenberg, partner with IMAP’s
office in Detroit, Michigan. IMAP says that
it has seen a shift in leadership and M&A
activity in the automotive industry from the
U.S. to the Asia Pacific region, which is
quickly emerging as the next automobile
production hub.
IMAP’s report indicates a majority of
the automobile component production
activities are concentrated in Japan, China,
India and Thailand, due to the availability
of cheap raw materials and increasing
“
Logistical cost can be an expensive element of
an automobile’s total cost, especially at the low end
of the market. It makes sense to have suppliers and
producers located in close proximity to each other
for overall coordination and economic efficiency.
”
Karl Fesenmeyer, chairman of IMAP.
68 to read full version of AI stories go to www.ai-online.com
demand for automotive products from the
domestic market.
Automotive Industries (AI) asked
Karl Fesenmeyer, chairman of IMAP, to
expand on the company’s predictions
for the Chinese and Indian automotive
markets.
Fesenmeyer: This is where the unit
sales growth is occurring. If you want to
sell more cars, you need to be in these
markets. China and India both have
large populations moving into higher
income brackets that are pushing up the
demand for new and used automobiles.
Both countries have invested heavily in
infrastructure to support the automotive
industry and they are leading the
development of new low cost units. This
is opening up purchasing opportunities

“
The level of M&A activity in the
automotive sector has been driven in
large part by the consolidation of excess
capacity due to the global recession and
the growth of emerging markets.
”
to more consumers due to reduced
purchase price thresholds.
The techniques (in addition to lower labor
rates) that generate these cost advantages
are not only helping to expand unit sales,
but are also generating advantages that
can be exported into developed and more
mature markets. This is what will drive the
export function for China and India.
AI: What are some of the challenges
facing the automotive industry in these
countries?
Fesenmeyer: China needs to maintain
strong economic growth to continue
increasing jobs, which will then lead to
the expansion of its domestic automotive
ownership. India also has a strong emerging
middle class that wants more mobility.
Many wish to trade up from two-wheeled
vehicles to automobiles. India’s financial
sector has developed a variety of funding
programs for automotive purchasers, but
continued success is dependent upon
sustained economic growth and supportive
taxation programs.
Infrastructure issues are also a big
concern. China’s developed road system
has led to automotive traffic clogging the
larger cities and pollution is becoming a
primary concern.
India needs better roads throughout its
geography and a public/private funding
mechanism that encourages traffic on the
roads they build. India’s domestic markets
and its growing export business have
placed a strain on qualified workers.
AI: Why is there increased M&A
activity in these regions? Will we
see more companies from the West
entering into alliances with Asian
companies in the auto sector?
Fesenmeyer: This is where the growth
is taking shape. Logistical cost can be an
expensive element of an automobile’s
total cost, especially at the low end of the
market. It makes sense to have suppliers and
producers located in close proximity to each
other for overall coordination and economic
efficiency. Collaboration between suppliers
and manufacturers is vital to generate the
innovation necessary for cost reductions
required in these developing markets.
Some of this can be accomplished
with alliance strategies, while M&A will be
important for those that need to move
rapidly. M&A provides the most rapid
solution for exiting from undesirable
situations and entering into more favorable
opportunities. To adapt to the changes
underway in the automotive industry —in
order to compete in this sector —M&A has
to be a fundamental component to any
business strategy.
AI: Tell us about the growth prospects
in Eastern Europe? What are some
of the advantages of doing business
there for automotive companies?
Fesenmeyer: Cost and location are
the two major advantages for Eastern
European automotive operations. Demand
has been negatively impacted due to
the financial crisis, but the relative cost
advantages between Eastern Europe and
Western Europe have actually increased.
Raw material costs are escalating due to
the increasing domestic demands in China
and India. Costs have to come down in
order for European manufacturers to remain
globally competitive. Eastern European
countries have moved to address other
competitive problems such as qualified
workers and logistical bottlenecks. They
have also adopted tax and tariff strategies
to encourage more investment by foreign
producers.
AI: What are some of the challenges
facing automotive companies in
Eastern Europe?
Fesenmeyer: Stability of government
is critical before investing in an automotive
Automotive Industries 69
Scott Eisenberg, partner
with IMAP’s office in
Detroit, Michigan.
plant. The global financial crisis has placed
an even greater strain on governments
in this emerging region, resulting in
reduced confidence of foreign investors
to predict future political landscapes and
operating environments. While leaders
of governments have turned over pretty
rapidly in Eastern European countries
over the last two years, it does not appear
to have undermined the long-term desire
of the populations to support private
investment, which is encouraging to
foreign direct investment (FDI).
AI: What do you think will fuel
the growth in the market for hybrid
vehicles? How big will the growth in
this sector be and how can automotive
companies take advantage of this
potential?
Fesenmeyer: I think government
subsidies will be the primary driver in this
segment in the near future. Even with the
reshaping of the industry that is underway,
the production and operating costs are still
much higher for hybrid vehicles than the
costs are for the legacy models that they
are intended to replace.
Tax policies may stimulate consumption
more in the hybrid direction. In my opinion,
it will take breakthroughs in battery
technologies and localized strategies for
supporting fuel replenishment to make this
happen rapidly.
Because our markets are now so globally
intertwined, it is not easy to accomplish
such fundamental reshaping of an industry
without a strategy to absorb the value destruction
that will occur for those countries
that adopt modern environmental policies.
It will likely be accomplished through
dedicated efforts to stimulate ingenuity at
smaller scale levels rather than rapid government-mandated
movements, which will
probably be more costly than citizens are
willing to support. AI

innovation
A seismic shift in the
car industry: The management
challenge and responsibility
By: Christoph Loch and Fabian Sting
The car industry is facing one of its most dramatic shifts
in the last 50 years. The pressures associated with fuel
consumption have intensified and now coincide with the
emergence of the environmental protection issue and the
rise of alternative technologies in the form of hybrid and
fully electric engines. Predictions indicate that growth in
the industry will originate exclusively from Asia,
not the USA and Europe.
“ Winning will require decisive
moves in new directions.
Time is of the essence,
particularly because it takes
two to four years to bring new
models to the market.
”
Christoph Loch, professor at
INSEAD, Technology and
Operations Management.
Western companies will have to address the
tastes and needs of Asian consumers. Even the
invincible knight, Toyota, has felt the pain of reduced demand
in its largest markets. Where it once had the lead in hybrid
technologies, it has been slow to expand and is now vulnerable
to being overtaken.
This is a time of great peril and great opportunity. Porsche
– swallowed up by Volkswagen – has already disappeared as
a standalone manufacturer; Saab was on the verge of closure,
and the American car companies are retreating in global markets.
Those who do not act quickly to address the triple industry shift
will be left behind and may be permanently replaced by emerging
Asian players.
Winning will require decisive moves in new directions. Time
is of the essence, particularly because it takes two to four years
to bring new models to the market. For example, Toyota has
revised its strategy to become a leader in “sustainable
mobility”. Its innovative fuel technologies
converge with an environmental commitment
that extends to product life-cycle footprints
and all operations. BMW’s “efficient dynamics”
strategy still focuses on driving
pleasure in premium cars, but emphasizes
the fact that every drop of fuel
must also be saved. Top management
needs to show leadership and
align companies along new paradigms;
however, this does not imply
that top managers can act like generals
and order their companies to
follow. Uncertainty is simply too high.
The uncertainties derive from many
questions: Will hybrids take a large
market share or not? (This question
is open only in the medium term as their
inherent disadvantages compared to fully
electric engines will be highlighted when the next
breakthrough in battery technology happens). Might hydrogen
finally begin to deliver on its promise? Or will high-efficiency
diesels achieve another leap and push electric engines back
another few years? How fast will the Asian markets grow,
and how effective will local competitors be? No one knows,
and market tastes will evolve. The only thing we know for
certain is that the markets will be very different in China,
India, and central Asia.
70 to read full version of AI stories go to www.ai-online.com

“ The problems are clear and can be articulated by top management,
but the solutions reside in different parts of the organization, and middle
and frontline management must be invited to propose them.
”
Christoph Loch and Fabian Sting, professors at INSEAD, Technology and Operations Management.
In the face of such uncertainty, no one can simply decide what
strategy to take. This would entail a hit-or-miss approach, or
require such long term analysis that one would risk falling behind.
A “command and control” of a fixed direction simply will not work.
Companies should therefore undertake strategic experiments.
Large players will not be able to avoid parallel trials, for example,
having a fuel cell and a hybrid and a high efficiency diesel; launching
cars for the global market and experimental locally designed cars
in Asian markets. This is illustrated by the experiments that Honda
is showcasing in order to appeal to new users of cars.
Pursuing such parallel technologies, models and market
approaches will be expensive and should be done with deliberation
– trials should not necessarily target short-term “success” but rather
be used to learn about the market. In addition, companies will have
to experiment in an iterative fashion; for example, by launching a
hybrid and seeing how it does, or launching a low cost car in India
and learning about its weaknesses and strengths. Again, this is an
expensive business, but when the market is moving so fast with
many new consumers – indeed many of them have never owned
a car before – you can’t rely on old market research. You have to
“probe and learn”.
This context requires a different leadership style from classic
top-down management because the top team alone cannot steer
this amount of experimentation, and it cannot know enough about
opportunities for innovation and market requirements. Hence
the situation requires using the entire organization as a problemsolving
resource.
The problems are clear and can be articulated by top
management, but the solutions reside in different parts of the
organization, and middle and frontline management must be
invited to propose them. Top management can put a portfolio
together that fits with resource constraints, has the breadth to
ensure appropriate exploration, and brings together initiatives that
are complementary rather than conflicting.
All this requires that the troops are briefed on the strategic
challenges and the logic of the strategy initiatives chosen. For
example, R&D may propose prototyping certain promising
technologies; local sales companies, the development of models
with certain key features; and manufacturing, the use of local sites,
platforms and suppliers. Again, in a time of strategic turmoil, the
value of such a portfolio of initiatives lies not in maximizing the
traditional (short-term) financial return, but learning about which
technologies will win, where the growth will come from, and what
the needs in the various markets will be.
When we studied manufacturing organizations across several
industries in Germany to see how strategy was executed in
companies that maintained global manufacturing competitiveness
in a high-wage country, we found that 50% of strategic initiatives
were generated bottom-up by middle and frontline management,
rather than top-down. This could even go as far as questioning
board-level goals based on exceptional bottom-up ideas and
concerns. Admittedly, this was the exception rather than the rule,
but the possibility exists.
For example, in one organization the goal of the Business Unit
was changed from a cost focus to a focus on reducing customer
reaction time, based on input from middle management. The logic
of the change rested on customer value and the fact that the
response time reduction achieved by process improvements led
to lower costs in the long run. Conversely, we found that overly
tight “alignment” along a fixed strategy hampered the innovation
and changeability of the organizations.
So the leadership lesson in times of turmoil is this: A fixed
strategy imposed from the top, no matter how brilliant, simply will
not work because (a) it will probably be wrong when the markets
as well as technologies are as uncertain as they are now, and (b)
potential solutions to problems are distributed across the entire
organization. Managers must become orchestrators rather than
bosses, although this does not mean they can be weak – out of
diverse ideas they have to select and craft a direction.
Western car companies have both the technology and the
manufacturing capabilities needed; yet the challenge ahead
lies in generating a sufficient number of creative options from
within the organization, experimenting to learn, and making the
right selections to channel creativity. The composition of the
auto industry in ten years will be decided by the quality of top
management today. AI
Christoph Loch and Fabian Sting are professors at INSEAD, Technology and Operations Management. INSEAD
is one of the world’s leading and largest graduate business schools, with three campuses in Europe (France), in
Asia (Singapore) and in the Middle East (Abu Dhabi), a research centre in Israel and an office in New York.
Automotive Industries 71

innovation
“ The AuDaCon benchmark analysis
is the best way to determine successful
as well as difficult times. ”
Ralf Pelkmann, director: Data Development of AuDaCon AG
An example of “useful” information is that which is used to plot
the position of a company within the market-place. “Parameters
like procurement costs, depreciation, follow-up costs, fuel
consumption, service schedules and costs for maintenance
and repair (in brief SMR costs) are not all comparable with
competitors,” explains Ralf Pelkmann, director of Data Development
of AuDaCon. “There is therefore no definitive view of
one’s market position.”
AuDaCon AG is a European-wide operating information specialist
for the automotive industry. Raw data and information is
processed and analyzed by AuDaCon AG to meet the information
needs of every sector of the automobile and spare parts
industry, service companies, fleets, insurers, credit grantors
and lessors.
The benchmark analysis is the best way to determine success
as well as difficult times according to Pelkmann, and expanding
market acceptance and maintaining sales figures require a continuous
and precise view of the competitive environment. AuDaCon
generates benchmark reports through comparing its customer’s
performance against those of its competitors in the market-place.
Report parameters can be set individually by the clients to suit their
particular needs at the time. The detailed analysis using information
supplied directly from the client’s systems displays individual
spare parts, including appropriate pricing and OEM work-position
Making sense of
automotive data
By: James Hilton
Raw unrefined data is much like crude oil – it has the potential to drive the business forward,
but needs to be processed before it becomes useful.
72 to read full version of AI stories go to www.ai-online.com

the flow of
and information
numbers. AuDaCon AG numbers one of the high-profile European
vehicle manufacturers among its clients for this service.
As assurance to its clients, data privacy is of great importance
for AuDaCon AG. “SMR data remains exclusively within our company,”
stresses Pelkmann, ensuring that benchmark specifications
will not fall into unauthorized hands.
Cost of Ownership
Another of AuDaCon’s systems is a Cost of Ownership (COO)
analytical tool, which monitors the cost factors involved in the life
cycle of an automobile. AuDaCon COO offers fleet operators,
leasing companies, manufacturers, or anyone who permanently
maintains and operates multiple vehicles, the capability to incorporate
all vehicle-related costs from the time of purchase to disposal
of the vehicle into their calculations. Using sophisticated software,
service intervals and labor times for service and maintenance are
factored in, as well as pricing for spare parts, lubricants, tires and
a large number of additional factors.
AuDaCon COO offers a variety of options and features, such
as the ability to individually set calculation factors like mileage and
duration. The basis for the cost-of-ownership calculations are the
comprehensive technical vehicle data structures provided by Au-
DaCon using data from a number of countries. The data source for
the new system is the comprehensive AuDaCon database, which
is available in independent versions for both cars and commercial
vehicles.
All data and information entered into the system corresponds to
the original manufacturer specifications and is available in several
different languages. Each report is supplied with comprehensive
summaries. For further information +49 (0) 7934 99 2990. AI
Automotive Industries 73

innovation
Tunisia: gateway to Africa,
Europe and the Middle East By:
Tunisia is proving an attractive automotive investment
destination with its geographical proximity to Europe, Africa
and the Middle East.
The country is the first South Mediterranean country to join the
European Union Free Trade Area, giving Tunisia free access to the EU
markets. Investments in the country increased by 2.3% to 2.4 billion
Tunisian Dinars (US$1.73 billion) in the first eleven months of 2009
compared to 1.8 billion TND (US$1.31 billion) the previous year.
The investments were mainly made in high-tech sectors such as the
electronics, electrical and mechanical industries. Tunisia has also fared
well in the Davos World Economic Forum’s latest report on
“
Tunisia is at the heart
of the Euro-Mediterranean
logistic chain, near the
main cities of Europe
and on the doorstep
of a market of 500
million consumers.
”
Mongia Khemiri, general director, The
Foreign Investment Promotion Agency
of Tunisia (FIPA-Tunisia)
global competitiveness for 2009-2010 which ranked Tunisia 40th
out of a total of 133 developed and emerging countries.
The automotive industry has also taken advantage of Tunisia’s
attractive investment climate. Automotive components
manufacturer, Johnson Controls, has a manufacturing base in
Bir el Bey that produces interior electronic business units (displays)
and body business units (immobilizers) for companies
such as Renault, Citroen, General Motors, Opel and Nissan.
The company has a partnership with Tunisian firm, the MZABI
Group. Other companies have joined hands with local companies
in Tunisia, like tire major Pirelli which now has a 15% stake
in the Tunisian Tire Industries Company or STIP. Pirelli now has
access to, not only the Tunisian tire market, but also to the
North and East African markets.
Gruner, which manufactures relays, solenoids and contactors
for the automotive, energy, construction and semiconductor industries,
chose Tunisia over Morocco, Portugal and Turkey because
of its stable political and economic climate as well as its
geographical location.
U.S. company, CASCO, has based one of its nine international
plants in Menzel Bourguiba, Tunisia. The company is a global automotive
Tier One supplier of electronics and electromechanical
products. It is one of the market leaders in multimedia products
for automotive consumer interface – USB ports, SD card readers,
auxiliary jacks. It prides itself on being a “global
company with local experts.”
Tunisians enjoy a high standard of education
which makes it easy for foreign companies
in the country to hire skilled workers.
Around 60 000 young Tunisians graduate
from tertiary institutions every year. There
were around 370 000 students enrolled
in Tunisian universities in 2009.
In 1995, the Tunisian Ministry of
Development and International Cooperation
set up the Foreign Investment
Promotion Agency (FIPA-Tunisia) to
facilitate foreign direct investment into
the country. FIPA-Tunisia provides foreign
investors with all the support they require.
The agency has offices abroad offering information,
advice and assistance to investors.
Automotive Industries (AI) asked Mongia
Khemiri, general director of The Foreign Investment
Promotion Agency of Tunisia (FIPA-Tunisia) what made the
country a preferred destination as an automotive manufacturing
hub?
Khemiri: Tunisia has been working for over 20 years on the
development of an automotive equipment industry based on an
international subcontracting approach which aims at attracting
world equipment manufacturers. Today, Tunisia is a manufacturing
hub for dozens of foreign owned first and second-tier automotive
component manufacturers supplying parts to most of the
major American, French, German, Japanese and Swedish vehicle
manufacturers. An overall opinion of foreign investors operating in
the sector attributes Tunisia’s success to three factors – stability,
proximity and quality.
74 to read full version of AI stories go to www.ai-online.com
James Hilton

AI: What is FIPA-Tunisia doing in order to hard-sell Tunisia’s
competitive advantages to Tier One and Two component
suppliers?
Khemiri: Targeted initiatives include sector-oriented selling
points, increase of door-to-door contacts, opening new FIPA offices
abroad (in addition to ones in Brussels, Cologne, London, Madrid,
Milan and Paris), and investing in staff training (joint programs with
European and Asian institutions to help master basic promotional
techniques). FIPA has been certified ISO9001 since 2003.
AI: What makes Tunisia popular as a base for manufacturing
production?
Khemiri: Tunisia is blessed with sound economic and social
stability reflected in a number of indicators. Tunisia attracts
the largest number of European companies than any country
from the south shore of the Mediterranean, as reported in the
Ernest & Young survey ‘National Industrial Strategy by 2016’.
By maintaining its low cost, high quality alternative together
with an effective convergence of know how and justin-time
production, Tunisia is securing its position
as an ideal place to develop businesses that
produce higher value export products.
In addition, Tunisia is well known for its
pleasant living conditions, a significant
selling point when selling the economy
as a suitable place for investments in
the Mediterranean region. The 2010
International Living Magazine ranks
Tunisia, for the second consecutive
year, the top Arab country in matters
of quality of life.
AI: What are the strategic location
advantages Tunisia enjoys in
terms of transportation, logistics
and distribution?
Khemiri: Tunisia is at the heart of the
Euro-Mediterranean logistics chain near the main
cities of Europe and on the doorstep of a market of
500 million consumers. Less than an hour’s flight from Europe,
Tunisia has eight international airports and seven commercial
ports which meet the standards of security and rapidity. A logistics
platform network is planned in the near future and will extend over
the whole country.
The World Bank’s 2010 report, ‘Connecting to Compete 2010’,
ranked Tunisia as the most efficient logistics country in North Africa
and the fifth most efficient logistics country among the lower
middle-income countries according to the Logistics Performance
Index (LPI). Tunisia is particularly well positioned in matters of timeliness
by securing the 58th position out of 155 countries.
Automotive Industries also asked Abdelkrim Dhouaifi,
director Automotive/ICT Advanced Technologies at FIPA-
Tunisia what some of the university and industry collaborative
opportunities for strategic automotive R&D are?
Dhouaifi: Tunisia regards the mastery of knowledge and technology
as a crucial factor in economic and social development.
Consequently, the country is constantly consolidating investment
in knowledge by allocating eight percent of GDP to education and
1.25% to R&D.
AI: What are some of the government legislation and taxation
incentives for foreign auto investors?
Dhouaifi: The Investment Incentives Code (IIC) governs
both foreign and national investment, affirming the freedom to
invest in most sectors except mining, energy, local trade and
finance which are governed by specific legislations. The major
investment incentives include total exemption from income
tax for ten years for export revenues and for five or ten years
for projects located in regional development zones; grants for
investment bonuses equal to eight, 15 or 25% (capped up to
1MTND); state subsidies of employer’s contributions five years
or more and varying from total to partial assumption (100 to
20%), and state subsidies for infrastructure spending for projects
in areas of regional development (25, 50 or 75%) of the
total cost.
Tunisia also puts considerable emphasis on vocational training.
The government may meet up to 50% of training costs incurred by
companies and supports continuous skills development programs
through a vocational training tax refund.
AI: What are some of the automotive joint ventures and
strategic alliances that you would deem success stories in
your country?
Dhouaifi: Some of the automotive successful joint-ventures
include Pirelli–STIP and Johnson Controls – MZABI Group (mentioned
in the introduction); Plastika France provide technical support
to GIF in filter manufacturing; Volvo and SETCAR have a technical
and commercial partnership for bus assembling; The Les Industries
Mécaniques Maghrébines (IMM) assembles pickups under the
ISUZU brand using GM engines; the Japanese company, NHK, is
the technical partner of COTREL, producing laminated springs for
trucks; and the French company, RECORD, is a technical and financial
partner of SIA in manufacturing shock absorbers.
AI: What are some of the latest automotive investments
in Tunisia?
Dhouaifi: Some of the signs of dynamism in the automotive
industry in Tunisia is the latest flow of new and add-on investments
by existing international companies. In 2008 and 2009, new projects
helped turn car cable manufacturing in Tunisia into an attractive
niche, including investments from the Japanese firms Sumitomo
and Yazaki; the construction of a second plant by German
group, Draxlmaier; and Kromberg & Schubert’s presence in Beja.
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“
Tunisia regards the
mastery of knowledge and
technology as a crucial
factor in economic and
social development.
”
Abdelkrim Dhouaifi, director Automotive/ICT
Advanced Technologies, the
Foreign Investment Promotion Agency
of Tunisia (FIPA-Tunisia).
AI

innovation
“Visions in Polymers”
at K 2010 By
A special presentation entitled “Visions in Polymers” will be
the highlight of the 18th K 2010 International Trade Fair for
Plastics and Rubber.
Now in its 50th year, the 18th K 2010 Trade
Fair for Plastics and Rubber will take place
from October 27 to November 3, 2010 in
Petra Cullman,
director of K 2010
Düsseldorf, Germany. “Visions in Polymers”
is being organized by the German plastics
industry and spearheaded by the PlasticsEurope
Deutschland e.V. association and Messe Düsseldorf. It
will tackle questions such as what our everyday life will look
like in 20 years, what contribution plastics can make in solving
James Hilton
challenges, and which potential applications (that appear visionary
today) may be introduced in two decades.
According to Werner M. Dornscheidt, president
and CEO of Messe Düsseldorf, the international
plastics and rubber industries are confident that
an economic revival is on the cards. “Plastic
processors have reported increased business
as have machine manufacturers and raw
materials producers. Many businesses have
been stepping up their innovation efforts,
reviewing long-established practices, and
expanding their technology base in order
to emerge from this difficult situation more
highly equipped to compete in the global
markets,” says Dornscheidt.
Automotive Industries (AI) spoke to
Petra Cullman, director of K 2010, and asked
her what new products will be on display for
the automotive industry at K 2010.
Cullmann: For all industries, productivity and competitiveness
can only be increased if they are based on innovation. Exhibitors at K
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2010 will be presenting an impressive selection of new developments
– new and improved products which signify maximum benefit for users
in their daily business. It’s all about performance enhancements in
machinery, improvements in product quality, materials with enhanced
performance, new process combinations and new approaches to
substituting traditional materials. For the automotive industry, the
focus will be on plastics for lightweight structures (including foams),
functionalized plastics components and surfaces, fiber composites
and their processing and hybrids. There will also be loads of innovative
rubber materials presented at K 2010.
AI: What do you attribute the growth in the use of
plastics to?
Cullmann: In 1970, cars featured about 5% plastic materials.
Today, this is up to 15% and experts predict a substantial increase
in the years to come. A major goal will be to make a substantial
dent in fuel consumption and emissions. Austrian scientists have
discovered that around 88% of the total energy associated with a
car over its entire life cycle is used to create motion. In contrast,
the production of a car and the manufacture of the materials
required employ only about six percent respectively. Plastics play
an important role by reducing weight and slashing petrol intake and
CO2 emissions during the dominant phase in a vehicle’s life cycle.
AI: Why should global automakers and Tier One and Two
component supply chain manufacturers visit K 2010?
Cullmann: The K International Trade Fair has become the
key information platform for developers, designers and production
experts from numerous branches of industry. Exhibitors in turn
have geared themselves up for this clientele. Almost half of all
companies taking part in K are targeting their offerings directly at
industrial users of semi-finished products and technical parts made
from plastic and rubber. First among them is the auto industry.
AI: What are some of the new technologies that K 2010
will be showcasing?
Cullmann: A number of important trends can be named
such as the continued expansion of the properties of
polymers and rubber materials for use “under the bonnet” as
well as in environments where they are exposed to air, motor
oil and high temperatures. Another trend is the simplification
of processing techniques, improved adaptation to the
different applications, integrated manufacturing processes
and optimization of sub processes.
AI: What is the symbiotic relationship between the
plastics and rubber industry and the automotive sector.
Cullmann: One of the key challenges of the automotive
industry is to build lighter and more energy-efficient cars in order
to save fuel and ease the burden of emissions on the atmosphere.
More plastics and rubber need to go into the automotive mix. How
this can be done will be presented at K 2010 in Düsseldorf. AI
Automotive Industries 79

innovation
Making one of the boldest statements at the Indian Auto
Expo earlier this year was the 64-year-old Mahindra &
Mahindra group.
“We are the only Indian automobile company to straddle the entire
road transport ecosystem,” says Dr. Pawan Goenka, president,
Automotive Sector, Mahindra & Mahindra Ltd and president of the
Society of Indian Automotive Manufacturers (SIAM).
The US$ 6.3 billion company came out firing on all cylinders at the
auto show with a display of its entire vehicle portfolio, including three
concept vehicles and 14 under-production vehicles. These included
eco-friendly vehicles such as the Alfa Hydrogen Passenger – a threewheeled
vehicle which runs entirely on compressed hydrogen gas.
The company also displayed a wide range of advanced powertrain
solutions and different platforms of drivable full hybrid vehicles,
Micro hybrid (electronic start/stop) vehicles, bio-fuel vehicles, an
electric passenger vehicle, a hydrogen combustion engine vehicle
and many recyclable materials and reusable technologies. “Our
A premium ‘Scorpio Coffee Table Book’ was released at
the Mahindra Pavilion during the Indian Auto Expo by the
Scorpio’s first customer, Ajay Devgan. He stands together
with Anand Mahindra, vice chairman and managing director,
Mahindra Group, and Dr. Pawan Goenka, president,
Mahindra makes its mark
at Indian Auto Expo
By: James Hilton
Automotive Sector, Mahindra & Mahindra. AI
eco-friendly vehicles are proof of our commitment to a cleaner environment,
fuel efficiency, and emphasis on customer satisfaction.
Mahindra’s range of drivable SUV hybrids and biofuel vehicles are
well suited for the dense traffic conditions and driving habits of our
customers,” says Anand Mahindra, vice chairman and managing
director of Mahindra & Mahindra.
In July 2008, Mahindra entered the two-wheeler segment.
The Mahindra Rodeo, the Mahindra Duro and the Mahindra
Flyte, and a concept bike from Engines Engineering, were all on
display at the Expo. On exhibit in the heavy-duty utility section
was India’s first indigenous compact truck, the GIO, and the
company’s new mini-truck, Maxximo. The Maxximo boasts
the world’s first advanced common rail diesel engine in the
mini truck segment. The company also highlighted the battery
operated concept version of the mini-truck.
“The Auto Expo is the perfect platform to showcase Mahindra’s
commitment to technological advancements and innovative
“ The Auto Expo is the perfect platform to showcase
Mahindra’s commitment to technological advancements
and innovative automotive solutions that are showcased
in our gamut of vehicles from two wheelers to
commercial vehicles.
”
Rajesh Jejurikar, Chief of Operations, Automotive Sector,
Mahindra & Mahindra, Pawan Goenka, President, Automotive
Sector, Mahindra & Mahindra, Anand Mahindra, Vice-Chairman
& Managing Director, Mahindra & Mahindra and Rajan Wadhera,
Chief of Engineering & Development, Mahindra & Mahindra at
the launch of the Maxximo at the 10th Auto Expo.
automotive solutions that are showcased in our gamut of vehicles
from two wheelers to commercial vehicles,” says Goenka.
“At Mahindra & Mahindra, we constantly strive to elevate our
product line-up and customers to the next level of technology.” The
vehicles taking pride of place at the Mahindra stall included the iconic
and leading sports utility vehicle, the Scorpio, in a new limited edition,
and the XYLO. Launched in January 2009, the XYLO is perhaps the
most complete car with luxury comforts to enter the Indian market
The entire range of commercial vehicles from the Mahindra
Navistar stable was unveiled at the Expo for the first time.
Another joint venture, Mahindra Navistar Automotives Ltd, was
represented at the Auto Expo with its array of commercial vehicles
– including the 25 and 21 ton trucks, the 25 and 40 ton tippers, a
49 ton tractor and a 32-seater bus.
The Auto Expo was organized by SIAM, the Automotive
Component Manufacturers of India (ACMA) and the Confederation
of Indian Industry (CII).
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innovation
As the eighth largest automotive production base in the
world, the Association of Southeast Asian Nations (ASEAN)
has the potential to be one of the biggest auto parts and
accessories sourcing hubs.
ASEAN – consisting of Brunei, Cambodia, Indonesia, Lao PDR,
Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam
- has a population of about 526 million and a combined GDP of
US$1.27-trillion. The region has an annual growth rate of more
than five percent. The Car parc is in the region of 26 million which
indicates a car penetration rate of about 25 per 1000.
To promote the region, Thailand’s Department of Export
Promotion (DEP) is hosting an ASEAN Pavilion at
the biennial Thailand Auto Parts & Accessories
(TAPA) 2010 exhibition. For the first time, the
Achana Limpaitoon, vice president of
the Thai Auto-Parts Manufacturers
Association (TAPMA).
DEP is offering complimentary booth to 10 ASE-
AN countries, 5 booths each, a total of 450 SQM.
are provided for all 10 ASEAN countries. Until now,
there are 5 countries scheduled to attend the exhibition,
including 6 booths from Malaysia, 7 booths from Singapore,
3 booths from Vietnam and 5 booths from The Philippines.
With a highly infrastructure and located close to Asia’s biggest
markets, Thailand is positioning itself as a natural regional logistics
hub. Geographically, Bangkok is closer to the heart of Asia
than any other Asian city aside from Shanghai and Taipei. As a
group, ASEAN -member countries are positioning themselves to
provide a wide range of components and assemblies to OEMs.
Large OEMs such as Toyota and Honda have recognized the importance
of ASEAN and have a strong supply chain management
presence in the region. Thailand is already the largest production
base in ASEAN and the country has naturally become the nerve
center of the supply chain for most automotive companies.
Automotive production
in Thailand by year:
2006 = 1,188,044
2007 = 1,287,346
2008 = 1,393,742
Thailand taking
center position as ASEAN
auto parts hub
In recent years, has earned an impressive reputation as the ideal
platform for both local and international companies to showcase their
auto parts, accessories, products and services. To ensure the continuous
success of TAPA 2010, the Department of Export Promotion
(DEP), Ministry of Commerce, and the Royal Thai Government embarked
on a nine-city road show from September to November 2009
to promote the exhibition. The road shows were held in Kuala Lumpur,
Manila, Hanoi, Jakarta, Chongqing and Shanghai, Singapore, Dhaka
and New Delhi. The road shows were attended by about 300 delegates
and officials from DEP, Thai Auto-Parts Manufacturers Association
(TAPMA) and consulting firm, Frost & Sullivan, were
present to brief about overall automotive industry, The
Role of Thailand in supporting automotive and auto
parts business, as well as the cooperation in automotive
industry, auto parts and accessories
to the attendees on TAPA 2010.
Industry players present at the road
shows included Key Safety Systems, Bosch,
Magna Intier China, Valeo Asia, Delphi,
Shanghai Automotive Parts Circulation Trade
Association, Shanghai Federation of Industry
and Commerce Autoparts and Accessories
Chamber of Commerce, Geely Auto,Federal-
Mogul Corp, Cherry Auto, Tata Motors, Denso
India, Hino Motors, Hero Honda, Mitsui, Takata,
Perodua Vendors Club, Proton Vendors Club, APM
Auto Electrics, Armstrong, Delloyd Ventures, Tracoma,
PT Selamat Sempurna, ADR Group, PT Astra Nissan Diesel
Indonesia and GIAMM (Indonesia Motor Vehicle and Motorcycle
Equipment Industry Association).
Vice president of the Thai Autoparts Manufacturers Association
(TAPMA), Achana Limpaitoon, said ASEAN would have an even
stronger role to play when it became a Free Trade Area (FTA) this
year. “The lifting of trade barriers will help ASEAN to be market
competitive against major players such as China”. ASEAN’s automotive
players had the competitive edge to produce quality parts
at attractive prices, she added.
According to Limpaitoon, Thailand is keen to work closely with
other ASEAN countries to promote and develop the region as an
auto parts and accessories sourcing hub.
“Thailand has the strongest original equipment and manufacturing
(OEM) and replacement equipment manufacturing (REM) capability in
Asia, with more than US$6-billion in annual export value,” she said.
TAPA 2010 is an excellent platform to enhance cooperation in
the automotive industry as well as to strengthen the market potential
within ASEAN. TAPA is expected to bring together more than
300 exhibitors across the ASEAN area at the Bangkok International
Trade and Exhibition Center in Bangna, Bangkok. More than 16 000
visitors from ASEAN, Africa, India, Bangladesh, China, Japan, the
Middle East, Europe, Latin America and the United States are
expected to attend the event. AI
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