innovation & trends in the automotive industry2

Innovation in the Innovation in the Automotive IndustryAutomotive Industryin View of Global Trends in View of Global Trends

by

Raphael MoisaRaphael Moisa

[email protected]

+972-50-7727315

Presentation AgendaPresentation Agenda

Raphael Moisa [email protected]

Alternative Fuel Technology

The Electronics Revolution

OEM ↔ Supplier Relationship

Added Value of Israeli Firms

TREND IN WORLD CAR POPULATION

0

100000000

200000000

300000000

400000000

500000000

600000000

700000000

800000000

900000000

YEAR

World Car Population

1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

CARS IN REST OF WORLD

CARS IN U.S.

World Car PopulationWorld Car PopulationDeveloping World - 300% Increase Between 1995 & 2020Developing World - 300% Increase Between 1995 & 2020

Greater Demand & Less Resources

Accelerated Greenhouse Emissions

Environment & Energy Trends = Negative Economic Impacts


World Petroleum ReservesWorld Petroleum Reserves


-700

-600

-500

-400

-300

-200

-100

0

100

200

Billion Barrels

Total RemainingTotal Recovered

UnitedStates

Canada

Mexico,Central America,& South America

WesternEurope

MiddleEast

EasternEurope,FormerU.S.S.R.,China

OtherEasternHemisphere

Total Oil Recovered Since 1859 & Total Remaining as of 1990Total Oil Recovered Since 1859 & Total Remaining as of 1990

Greenhouse EmissionsGreenhouse Emissions& Global Warming& Global Warming


IndustrialProcesses

10.9%

Fuel Combustion5.5%

Miscellaneous10.9%

Transportation 76.6%

Source of U.S. CO2 Emissions1997

Global Carbon Emissions1820 to 2020

0

2000

4000

6000

8000

10000

12000

202019801940190018601820

ProjectionHistory

Alternative Energy Resources Alternative Energy Resources & Fuel Technology& Fuel Technology


• Bio FuelBio Fuel• Solar EnergySolar Energy• Hybrid Power SystemsHybrid Power Systems• Battery Electric CarsBattery Electric Cars• Hydrogen TechnologyHydrogen Technology

Type of Bio FuelsType of Bio Fuels


FEEDSTOCKSCORNSUGAR BEETSSWITCH GRASS & WOOD

CHIPS(NEXT GENERATION FUELS)

SUGAR CANESOYBEANSCROP RESIDUES (NEXT GENERATION FUELS)

WHEAT & BARLEYRAPESEED, JATROPHA OIL & PALM OIL (BIO-DIESEL)

OTHER NON-CONVENTIONAL SOURCES (E.G., ALGAE, FARM & MUNICIPAL WASTES)

NEXT GENERATION BIO-

FUELSBIO-DIESELBIO-ETHANOL

Alternative Energy Resources Alternative Energy Resources & Fuel Technology& Fuel Technology


• Bio FuelBio Fuel• Solar EnergySolar Energy• Hybrid Power SystemsHybrid Power Systems• Battery Electric CarsBattery Electric Cars• Hydrogen TechnologyHydrogen Technology




The Electronics Revolution

OEM ↔ Supplier Relationship


The Electronics RevolutionThe Electronics Revolution


Automotiveembedded mobile computing,e.g.: Pervasive computing IBM

Home Mobile Auto Office

PC companion by Mircosoft

Computer peripherals Office automation ...

4

Networking ofvehicle withenvironment:Telematics applications

Route guiding Information/ Entertainment Emergency call system Dynamic traffic control Fleet management ...

3

Networking and integration of electronics e.g.: CAN-BUS Systems for

powertrain and convenience electronics

Optical BUS-System for convenience electronics

CPU for entire vehicle (Auto-PC)

…

2

Substitution of mechani-cal/hydraulic components by electro-mechanical and electronic components

Integration into module/ system environment

1

Surge in electronicsinnovations in the car

The electronics revolution in the automotive industry takes place on four levelsThe electronics revolution in the automotive industry takes place on four levels

Gradually switch to MEMS Gradually switch to MEMS (Micro Electrical Mechanical System)(Micro Electrical Mechanical System)


MEMSMEMSMicro Electrical Mechanical SystemMicro Electrical Mechanical System








4



1





3





…

2

Drive by Wire Components Drive by Wire Components and Modulesand Modules


Acceleration Pedal for Electronic Throttle Control SystemsAcceleration Pedal for Electronic Throttle Control Systems







4



3





…

2



1



Telematics Service AreasTelematics Service Areas


• Vehicle ManagementVehicle Management• Driver ManagementDriver Management• Road toll managementRoad toll management• Vehicle & driver securityVehicle & driver security• Information/entertainmentInformation/entertainment• Fleet managementFleet management







4



3





…

2



1





My mobile office is always with me

Summary – Electronics Summary – Electronics Revolution in the Automotive Revolution in the Automotive IndustryIndustry


1970 1980 1990 2000

ACC Stop&GoBFDALCKSG42 voltageInternet PortalGPRS, UMTSTelematicsOnline ServicesBlueToothCar OfficeLocal Hazard WarningIntegrated Safety SystemSteer/Brake-By-WireI-DriveLane Keeping Assist.PersonalizationSoftware UpdateForce Feedback Pedal…Electronic Injections

Check ControlSpeed ControlCentral Locking…

Navigation SystemCD-ChangerACC Adaptive Cruise

ControlAirbagsDSC Dynamic Stability

ControlAdaptive Gear ControlXenon LightBMW AssistRDS/TMCSpeech RecognitionEmergency Call…

Electronic Gear ControlElectronic Air ConditionASC Anti Slip ControlABSTelephoneSeat Heating ControlAutom. Mirror Dimming…

sour

ce: B

MW




The Electronics revolution

OEM ↔ Supplier relationship


Evolution of Automakers’ Evolution of Automakers’ rolerole


1900-1940 1940-1970 1970-2002 2020

Automaker’s direct involvement in vehicle manufacturing processAutomaker’s direct involvement in vehicle manufacturing process

100% 60% 30% 0%

Maximum of vertical and horizontal integration

Development of specialized parts divisions and third-party parts suppliers

Lean manufacturing

Just-in-time

Modular design

Complete outsourcing of manufacturingprocesses

Traditional automaker

Vehicle brand owner

Tier-1 suppliers take an Tier-1 suppliers take an increasing share of risk from the increasing share of risk from the OEM’sOEM’s


OEM

Tier-2Suppliers

Tier-1Suppliers

Past

R&D Purchasing Assembly

Ongoing trend System integration Testing Car assembly Supplier management

Component manufacturing

Systems supply R&D on systems Module assembly Purchasing/sub-supplier management

Component manufacturing

costpressure

risksharing

costpressure

Source: Roland Berger & Partners-Automotive supplier trend study

Auto Industry’s New Auto Industry’s New ParadigmParadigm


Automakers

Suppliers

Understand consumers’needs and

desires

Develop products consumers want, in the right quantities

and with a complementing

experience

Maintain relationships

with yourcustomers

Lead and manage entire supply chain and procurement

processes

Offer system integrator

capabilities to produce

complete vehicle

Provide flexible production capacities

to accommodate demand fluctuation and diverse client

needs




The Electronics revolution

OEM ↔ Supplier relationship


What is the Added Value Of Israeli What is the Added Value Of Israeli Firms to the Automotive Industry?Firms to the Automotive Industry?


>3,000 leading edge technology companies Life Sciences Homeland Security Alternative Energy Water Technology Agro-Technology Encryption & Data Security Telecom Software Optics Internet Nanotechnology

Leading Edge TechnologyLeading Edge Technology


International Centers for R&DInternational Centers for R&D


About 60 foreign R&D centers are located in Israel

AND MORE…

Culture of InnovationCulture of Innovation


Innovation

Most engineers and scientists per capita Most scientific papers per capita Second in innovation Third highest number of US patents per capita Third in the world in quality of basic research (2nd in physics, 3rd in

molecular biology, 4th in chemistry and 5th in biology and biochemistry)

* Source: 2004 IMD World Competitiveness Yearbook, Israel Central Bureau of Statistics

Infrastructure for Innovation Infrastructure for Innovation CultureCulture


• Highly Educated Population• R&D Facilities• Culture of Innovation• Educational & Research Institutions• Capital (VC, FDI, Chief Scientist)• Free-trade agreements

Israeli Export to Automotive Israeli Export to Automotive Industry - Facts & FiguresIndustry - Facts & Figures


350 Israeli automotive related companies 150 Exporting companies Sector export turnover – 700 M $ U.S.

Main Markets: Western Europe, USA.

Automotive Industry sectorsAutomotive Industry sectors


• Aftermarket Manufacturers

• Suppliers to OEM and Supplier Tiers

• Driver Assistance and Security Systems

• Production Support and Services

• Vehicle Assembly, Body building and Trailers

The Israel Export & International Cooperation Institute

www.export.gov.ilwww.export.gov.il

http://www.export.gov.il/_Articles/Article.asp?CategoryID=365&ArticleID=395

The Israeli innovationThe Israeli innovation


“ Israel is a small country with a tiny

population, and yet it has many significant

high-tech success stories. ”

Sven Lingjaerarde – Co-Founder & General PartnerVision Capital – September 2003


Thank youThank you

innovation & trends in the automotive industry2

Documents