Congress Conversations supplement - S7

FROM MOBILE MACHINES TO
DIGITAL DEVICES
The evolution of cars from transportation machines into
digital devices connected to the cloud - and that use
machine learning and artificial intelligence - will have
far-reaching ramifications for automakers, suppliers and
customers.
" We already are facing a tremendous transformation
in the industry, " said Dirk Walliser,
senior vice president of corporate research
and development at ZF. " And what thrills
me most is the idea that we will have software
and functions in five and 10 years that
nobody has thought about before. "
Said Michael Wintergerst, executive vice
president and head of vehicle and cloud platform
at Volkswagen AG: " We will abstract
the software value-add from the hardware
value-add, just as we've done with mobile
phones and computers. This will unlock new
potential for software, ecosystems and platforms. "
Currently, Volkswagen develops a new car platform about
every six years, and only new-car buyers benefit from new
technology. But periodic software functionality updates,
" uncoupled " from new-platform development cycles, will
enable all owners of " smart " vehicles to enjoy new technology
- not just new-car buyers, Wintergerst said.
" This will create completely new digital businesses that
will bring a lot of new opportunities for the overall market, "
he said.
This continual feedback loop also will lead to more innovative
car features, said Christoph Hartung, chairman of the
board of management at ETAS GmbH.
" And what thrills me
most is the idea that
we will have software
and functions in five
and 10 years that
nobody has thought
about before. "
Dirk Walliser, ZF
" Managing and learning from this data creates
a completely different paradigm for
developing new functions, " Hartung said. " In
the past, we developed functions according
to a specified spec. But today, we are
deliberately developing algorithms to find a
specific solution ... and we are constantly
enriching the functions. This really transforms
the industry and how we deliver value
for our customers. "
These next-generation vehicles also will
affect suppliers, said Elena Antaya, vice
president of corporate purchasing at Toyoda Gosei North
America. Artificial intelligence could even help predict
raw-material shortages, she said.
" In some cases, " Antaya said, " it will require us to partner
with outside companies that aren't involved currently in
the automotive industry. "
WITH CONSUMERS
DESPITE CHALLENGES, EVs CONTINUE TO
GAIN TRACTION
To achieve widespread consumer acceptance of electrified
vehicles, manufacturers face many challenges - such as
insufficient charging infrastructure, the high cost of vehicles
and batteries, and range anxiety consumers have
about EVs.
Nonetheless, Steve Carlisle, executive vice president and
North America president of General Motors, said consumers
are coming around.
" Consumers are telling us that if it's a really cool vehicle
with excellent styling and it does everything they want in
terms of range, charging, technology, convenience and
price, the propensity to adopt is increasing in leaps and
bounds, " he said.
David Dauch, CEO of American Axle & Manufacturing
Holdings, agrees, noting that EV technology today represents
a remarkable pivot compared to 15 or 20 years
ago. " It sure feels like if we're not already there, " Dauch
said, " we're getting close to that inflection point. "
But battery costs and the overall costs of ownership must
better compete with the costs of gasoline-powered vehicles,
he said. " And that's around $100 per kilowatt, and
we're not there yet. "
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Congress Conversations supplement

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