inemi Automotive Electronics Workshop Grenoble, France 9 September 2013
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1 Innovation for the Real World inemi Automotive Electronics Workshop Grenoble, France 9 September 2013 Galen Reeder, Delphi Corporation
2 The Evolution of Delphi 1930s: Crosley Radio and other small component suppliers purchased by General Motors 1988: Worldwide Automotive Components Group (ACG) created within General Motors 1999: Delphi Initial Public Offering: DPH on NYSE 1999: Delphi became an independent automotive supplier 2004: Delphi files for Chapter 11 protection 2009: Emergence from Chapter 11 reorganization 2011: Public Offering: DLPH on NYSE
3 Heritage of Innovation Since 1930s, a history of firsts has marked the Delphi tradition Matured from a supplier of steering wheels, ignition systems, fuel systems and audio products to a diverse supplier with hundreds of products serving global customers 3
4 Diverse Customer Base No single customer accounts for more than 19% of global sales 4
5 Global InnovationIn Close Collaboration with Our Customers Key Global Technical Centers Auburn Hills, MI Krakow, Poland Bascharage, Lux. Juarez, Mexico Shanghai, China Bangalore, India São Paulo, Brazil Over employees 32 Countries 19,000 Scientists & Engineers $1 billion annual investment in engineering and development 5
6 Core Innovations = Future Possibilities Core Automotive Markets Adjacent Markets Electrical/Electronic Architecture Electronics & Safety Residential/Commercial Heating and Cooling Powertrain Systems over 5000 patents Commercial Vehicles Thermal Systems Military/Aerospace Aftermarket 6
7 Automotive Electroncis The best seat in the house, isn t in the house anymore. Navigation Climate control Emissions control Rear Seat Entertainment Braking control Stability control Driver information displays Air bag deployment/suppression Parking Aid Blind Spot detection Adaptive braking/collision avoidance Phone integration Modern cars have more than 50 computers On-board computers make 25,000 decisions, when a car is started 7
8 Global Automotive Electronics MEGATRENDS People Megatrends Natural Growth People Live Longer Generations X & Y Increased Concern about Safety, Security and Privacy Health Care World Megatrends World Turmoil Globalization Higher Cost of Natural Resources Increasing Environmental Awareness/ Regulations Technological Megatrends Information Explosion Wireless World Smartphone market growth» 38% in 2012» 22% in 2013 MEGATRENDS Safe Traffic congestion in major metro areas around the world becomes worse; more accidents; longer commute; higher stress level Green Fast growing economies: more fuel for mobile platforms Demand for electrical energy and related conventional resources far exceeds current capabilities Connected Global demand for broadband access will continue to grow 8
9 Portfolio of Enhanced Safety Solutions Active Safety Systems Front, Rear and Side Detection Radar and Vision Sensing Sensor Fusion Driver State Alerts Fatigue/Drowsiness Distraction Connectivity versus Safety Safety Electronics Airbag Control Units Pressure, Acceleration, Combination, Rollover, and Pedestrian Sensors Occupant Classification Systems Full and Infant-only Suppression Seat Belt Reminder Battery Disconnects Battery Monitoring Device HMI (Human Machine Interface) Diagnostics Control Modules and Units Haptic Devices 9
10 Portfolio of Green Solutions Fuel Economy and Performance Technologies Cylinder Deactivation System Two-step Valve Train with Dual Independent Cam Phasers Brushless Fuel Pump Modules Recycle/remanufacture ECM/PCM Universal Reflash Tool Alternative Fuel Systems/Components Fuel System for Dimethyl Ether Evaporative Emissions Canisters Diesel Fuel Injection Systems and After-treatment Gasoline Direct Injection Next Generation Energy Efficient A/C HVAC Compressors HVAC Systems for Alternative Refrigerants Diagnostic Systems Electric HVAC Systems Hybrid and Electric Vehicle Technologies Power Conversion Products High Voltage Battery Pack System Ammonia, Planar Oxygen & Battery IVT Sensors Electronics Packaging Halogen-free Cable Aluminum Cable Miniaturization Navigation Ultra Light Radio 10
11 Portfolio of Connectivity Solutions Connected Vehicle In-vehicle Communications and Entertainment 3G/WiMax, WiFi, DSRC Vehicle Infrastructure Interface (VII) and Vehicle-to-Vehicle Interface Satellite Audio, Video and Data Systems Digital Receivers Advanced Reception Systems Navigation Systems Portable Device Interfaces Wireless Connectivity Security Systems Aftermarket Telematics Data Connectivity - USB Consumer Port HMI (Human Machine Interface) Diagnostics Control Modules and Units Haptic Devices Displays High-density, High-speed Interconnects 11
12 Challenges of Automotive Electronics Reduced Size/Reduced Weight Smaller, better, less expensive Longer Warranty periods/higher Reliability 5 year full maintenance warranties 5 year/100k mile drive-train protection expanding to 10 year/100k mile coverage Higher Temperature extremes Increasing density of vehicle packaging reduces air flow Increasing electronics content results in more heat generation Previous application temperatures of -40C to +85C expanding to -55C to +150C Electrification introducing opportunities with 300V to 600V systems Fast Changing Product requirements Safe» Promoting occupant safety through systems development Establishing market acceptance of safe/connected» Addressing government regulations and mandates at car buyer pricing Green» Providing the latest technology across all levels of electrification» Reducing mass with innovative green design while increasing content» Addressing emissions and legislative requirements Connected» Offering products that provide information, convenience and protection» Addressing global and regional connectivity trends on an increasing rate of change 12
13 Automotive Electronics Manufacturing Shift from High Volume/Low Mix to Medium Volume/High Mix Localization to take advantage of tax incentives reduces global economies of scale Product diversification increasing to allow for end model differentiation Capital must be more flexible over numerous product families to achieve RONA expectations Shorter Product Development Cycles Three to five year life cycles in past being replaced by annual refresh Connectivity products moving closer to consumer market Smart phone integration requires intensive engineering effort to validate without industry communication standards After market poses severe challenge with end of life components, rapid design cycles Product Software most significant component Rapid rate of change during final development stages and through series production Programming and verification of >20 GB adds complexity to traditional single piece manufacturing flows Corporate IT infrastructure must accommodate rapid data transfer» Airplanes are faster than network for massive electronic transfers Component Counts Products contain >3000 individual hardware elements Increasing component counts, but market demanding annual price reductions Process quality and test containment must improve to continue to maintain single digit ppm customer complaints 13
14 Automotive Electronics Manufacturing Process Challenges Higher expectations for Touch and Feel products Integration of cloth, leather, wood grain, piano black Achieving capability of machined components with plastic molding processes Customer specified force/distance feel for each button to achieve differentiation» <25 um tolerancing of plastic parts as molded» Addition of grease and other materials to finely adjust feel Optical quality components for lenses and other transparent parts High gloss painting presents quality challenges Gesture recognition will require new level of production test definitions Electrification adds new dimension to electronics Increasing density of vehicle packaging reduces air flow Previous application temperatures of -40C to +85C expanding to -55C to +150C Electrification introducing opportunities with 300V-600V systems Product handling made complex with size (0.6m x 0.3m x 0.2m) and weight (>16 kg) Energy dissipation requires water cooling integrated with electronic package DC/DC converter can contain more than 6 PCB assemblies» Board to board and board to lead frame interconnects pose significant mechanical packaging challenges 14
15 Automotive Electronics Manufacturing Process Challenges 76 GHz Radar testing Testing and calibration must occur in anechoic chamber with targets over range of sweep» Up to 150 m» Numerous targets of various profiles» Very long cycle times Capital is highly specialized and high cost Product test requirements prevent cost effective single piece manufacturing flow 15
16 Automotive Electronics Manufacturing Component Needs Low-cost, high temperature, high density, high voltage and high frequency circuit board materials 8 layers are becoming norm High voltage challenging traditional material dielectric strengths 3000 cycles, C, requires lower and stable CTE values 76 Ghz PCB materials today demand a price premium, will soon be main-stream High voltage capacitors (400V) Low-cost, thermally conductive materials Avoid secondary machining of die cast housings Effective electrically conductive adhesives Could be viable replacement for component attachment to improve life over solder attach Reliable room temperature curing adhesives for metal/metal and metal/plastic sealing Current material sets require dwell times at +100C Complex assemblies must be subjected to 2 or 3 curing cycles Existing material sets have short pot life and working times, not production friendly 16
17 Summary Automotive Electronics is convergence of Military complexity Aerospace reliability Consumer functionality Regulated by government timing Product areas overlapping Connectivity/www being used to improve real time safety and emissions Real need for next generation of components and material sets Exciting area for future 17
18 Questions 18
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