The role of OBD in the 2015 connected car market

SMi’s Telematics for Usage-Based Insurance Conference

London – 19th February 2015 - PTOLEMUS intellectual property

The On-Board Diagnostics gives access to the status of various vehicle sub-systems

• The OBD is originally designed to reduce emissions by monitoring the performance of major engine components,

• Introduced in the early 1980’s, the amount of diagnostic information available has varied widely,

• Early versions of OBD were simply illuminating the malfunction light on the dashboard,

• Modern OBD implementations use a standardised communication port and a set of diagnostic trouble codes

• They can provide real-time data allowing to rapidly identify and remedy vehicle and engine malfunction

• The OBD port is a public access point that enables technicians to connect to the vehicle’s computer systems

Context

Source: PTOLEMUS 2

Source: PTOLEMUS

Standardising vehicle diagnostics has already taken 30 years

On-board diagnostic history

1969 Volkswagen introduces the first on-board computer system with scanning capability.

1975 Simple OBD implementations appear but no standardisation.

1980 GM implements a proprietary interface and protocol for testing the ECM on assembly lines. (ALDL). Implementation on all US cars in 1981 for factory use only.

1988 The Society of Automotive Engineers (SAE) recommends a standardised connector and set of diagnostic test signals.

1991 The California Air Resources Board requires that all new vehicles sold have basic OBD capability. The OBD-I connector and protocol are not standardised.

1996 The OBD-II specification is made mandatory for all cars sold in the United States. The DTCs and connector suggested by the SAE are adopted.

2003 First remote diagnostic solutions are launched in Europe by BMW and PSA

2004 The European Union makes EOBD mandatory for all diesel vehicles sold in the EU.

2013 Definition of World-Wide Harmonized On-Board Diagnostics requirements (WWH-OBD ISO 27145)

2010 HD OBD (Heavy Duty) specification is made mandatory for commercial vehicles over 6.3 tons sold in the US.

1997 First remote diagnostic solution in the US developed by GM on its OnStar product

2001 The European Union makes EOBD mandatory for all petrol vehicles sold in the EU. EOBD is equivalent to OBD-II standard

2011 Emergence of remote diagnostic solutions on aftermarket using OBD dongle & GSM technologies

2008 OBD implementation is required on light vehicle in China.

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OBD standards specify the type of diagnostic connector and the list of parameters to monitor on all light vehicles

• The OBD-II, implemented in the US, is based on a 16-pin connector defined by the SAE J1962

• The SAE J1962 connector is required to be within 2 feet (0.61 m) of the steering wheel under the dashboard

• The European implementation of EOBD is essentially the same as OBD-II, with the same 16-pin connector

• The list of standard parameters to be monitored is defined by the SAE 1979

• Diagnostic message structure is defined by the SAE J1979 standard

• All vehicle manufacturers have to use these standards worldwide

OBD standards

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Different OBD pinout combinations

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The OBD is not a single language but a combination of different protocols used to access the data

OBD protocols

Main protocols used worldwide

Battery power

Chassis ground

Signal groundBus+

Bus-

SAE J1850 PWM

Battery power

Chassis ground

Signal groundBus+

SAE J1850 VPW

Battery power

Chassis ground

Signal ground K-Line

L-Line

ISO9141 & KWP2000

Battery power

Chassis ground

Signal ground CAN high

CAN low

CAN

Source: PTOLEMUS

• Car manufacturers use different languages when their cars communicate with diagnostic tools to transmit data

• The 5 main standardised protocols are:

• Most of car manufacturers do not use a single protocol - Protocol used depends on vehicle model and year

SAE J1850 PWM

SAE J1850 VPW

ISO 9141 & KWP2000 CAN

SAE J1962 - EOBD standard

Language used on

most petrol Ford cars from 2001 up to 2003,

Rover & Land Rover

Language used on

most Chrysler &

Isuzu vehicles

Language used on

most other European & Asian cars from 2001

Language that should be used on all new cars from 2008.

Many OEMs use CAN

since 2003

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DTC format is standardised and is the same regardless the OBD protocol used

Source: PTOLEMUS

Diagnostic trouble code format

• A DTC is a 5 characters code used to identify a single vehicle default

- The first letter refers to the system being interrogated (powertrain, body, chassis, network),

- The next character is 0 for public codes or 1 for proprietary codes,

- The 3rd character is a number from 0 to 8 referring to the vehicle sub-system concerned (fuel & air, ignition, emission controls, speed & idle control, computer or transmission)

- The last 2 characters (numbers or letters) refer to the individual fault within each subsystem

• The SAE J1979 defines public codes relating to emissions defaults that must be used by all OEMs

• For other system defaults, OEMs may use specific codes that are not standardised

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The market opportunity

Source: PTOLEMUS

What can be done by using the vehicle OBD port?

OBD dongle

Crash reconstruction

Vehicle diagnostic

Usage-based insurance

Eco-drivingRoadside assistance bCall

Fleet management

Engine emission control Engine performance remapping

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0%

20%

40%

60%

80%

100%

2012 2013 2014 2015 2016

The market opportunity

Key factors

Within 2 years, OBD dongles will become the leading technology to provide telematic insurance

Source: PTOLEMUS UBI Global Study

OBD dongles

Black boxes

Share of UBI policies by technology worldwide (% of total market personal line policies)

Smartphones

Embedded devices

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• OBD dongles offer crucial advantages to insurers - Self installable (no installation costs or

appointment needed) - Seen by customers and can be part of the

marketing campaign (cf. Progressive's Snapshot, Allianz’s Allie)

- Can be used to retrieve vehicle data - Using Bluetooth, can be connected to

smartphones for driver feedback

• Used in the US since many years, they are about to be fully undertaken in Europe too - Major insurers have launched programmes

based on OBD dongles - B2C car monitoring mobile apps with dongle

are growing significantly - European roadside assistance companies are

also launching dongle-based offers

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Compatibility issues

Despite OBD port is mandatory on light vehicles in Europe, dongles are not compatible with all of them

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• While EOBD port format and location are standardised, it is not always accessible while driving

• Protocols implemented differ by vehicle models & years

• There is no OBD compatibility list established in Europe as all vehicles would have to be tested

• A service promise based on OBD dongles cannot be provided to all vehicles & customers

• The dongle size is the major compatibility issue

• Performing road tests is essential to validate the sourcing of a dongle

Source: PTOLEMUS

Plugging an OBD device may have an effect on the vehicle CAN network

• The OBD device creates an additional node to the Controller Area Network (CAN)

• Broadcasting data at a wrong baud rate can crash the CAN bus and disable the CAN traffic - Connection to all CAN node traffic is interrupted including the

cluster, safety systems, power-train, body, chassis systems, etc.

- The engine ECU establishes itself in “defensive” mode. Safety systems may be disabled

- The vehicle security data is also often “passed” along the CAN - The ignition key may not be recognised by the engine ECU

• Running an “all systems scan” on vehicle has a high probability to stall the engine - Some diagnostics require vehicle sensors to be at a certain minimum

or maximum range value

- Most service tools include instruction stating that the vehicle must be parked and ignition switch must be on to launch certain tests

- Superior devices include a scheduler to prevent these tests from being performed while the car is being driven

Security issues

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The vehicle warranty cannot be invalidated by OEMs because of the use of the OBD port

• We have discussed the legal issues surrounding the plugging of an OBD dongle with Osborne Clarke, our partner law firm specialised in technology

• OEMs are not able to claim warranty limitations for the use of the OBD port - The OBD port has been created specifically to allow independent

repairers to access vehicle information and obtain public DTCs

- The OBD port only provides measurement data – no access to source codes, copyright materials or intellectual properties

- The EU commission provides clear guidance saying that manufacturers cannot conditions their warranties on the vehicle being serviced within authorised workshops

• But there are two liabilities to avoid vehicle’s systems data traffic interferences - OEMs must develop systems recognising diagnostic shifts and

prioritise vehicle safety & running operations

- Dongle manufacturers must ensure that their devices behave in a safe way and will not disturb vehicle data traffic on public road

Legal issues

Source: PTOLEMUS 11

The OBD port must be opened to all 3rd parties but they must ensure that security requirements be fulfil

• All OEMs must implement EOBD standards on light vehicles and share public codes through the OBD port

• Plugging an OBD dongle into the port create an additional node to the CAN network and may interfere with it

• It can crash the OBD port or creates more serious issues as engine stalling or safety features malfunction

• On a legal view, the use OBD port has no effect on the vehicle warranty but insurers are ultimately liable

• Define precisely what data you require from the OBD and perform proper field tests to ensure security

Synthesis

Source: PTOLEMUS 12

Thank you!

Matthieu Noël, Senior Consultant mnoel@ptolemus.com +33 6 13 34 70 56

London – 19th February 2015 - PTOLEMUS intellectual property

SMi’s Telematics for Usage-Based Insurance Conference

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PTOLEMUS in a nutshell

An international management team

Brussels Frederic Bruneteau, Managing Director •MS. HEC Paris, MS. CEMS University of Cologne •Background: TomTom, Vodafone, Arthur D. Little, BNP Paribas •Specialties: LBS, telematics (eCall, UBI, etc.), mobile networks

Frederic Lassara, Senior Expert •MSc. Management, Marseille Business School, Bachelor of Laws, University of Aix-Marseille & IHEDN •Background: PSA Peugeot Citroën, Covisint, Datops •Specialties: Automotive, telematics

Chicago Valerie Shuman, Senior Expert • BA with highest honors from the University of Michigan •Background: Navteq, Ygomi, CVTA, SEI, Verety •Specialties: Connected vehicle services & content

London Hamburg Meinrad Zeller, Senior Expert •MS Mathematics & Computer Science, Univ. of Göttingen •Background: TomTom, Philips Automotive, Philips Semiconductors •Specialties: Automotive telematics & electronics

Milan Sergio Tusa, Associate Partner •MBA ISIDA Palermo & Law degree, Palermo •Background: Magneti Marelli, Cobra, Nokia, Tele Atlas, Philips •Specialties: Telematics, automotive, mapping

Alex Willard, Director, Global Technology Practice •BSc. Engineering & Naval Architecture and MSc. Systems Monitoring & Diagnosis, Southampton City University •Background: Lysanda, MSX International, Ford, Roush Tech. •Specialties: Fleet telematics, car monitoring tools

Boston Eric Pite, Associate Partner •M. Eng., Telecom ParisTech & MBA, London Business School •Background: TomTom, Motorola, Sendo, Sagem •Specialties: Consumer electronics, connected vehicle services

Thomas Hallauer, Research & Marketing Director • BA, International Business, Southbank University London •Background: Mobile Devices, FC Business Intelligence •Specialties: UBI, location-based services

Maria Grazia Verardi, Senior Expert •MSc. Physics, Bologna University •Background: Cobra Automotive, Delta Electronics, Ylum •Specialties: Telematics, automotive, R&D in ITS

Vienna Marijan Mumdziev, Senior Expert •PhD Computing, Univ. Vienna & MBA Univ. Minneapolis •Background: Deutsche Telekom, Nokia Siemens, Telekom Austria •Specialties: Mobile telecoms, UBI

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Legal and Administrative Office: 20121 Milan - Foro Buonaparte, 44

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Content & application providers

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Telematics solution providers

Insurers, aggregators & assistance providers

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PTOLEMUS in a nutshell

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Matthieu Noël, Senior Consultant mnoel@ptolemus.com +33 6 13 34 70 56