Affordable Cars: Technologies for the Automotive Markets of the Future

Sophisticated technology at an affordable price

Frankfurt, September 10, 2007 -- The Automotive Systems division of the automotive industry supplier, Continental AG, is increasing its exposure in the world's emerging automotive markets. These include China and India in particular, but also Brazil and Russia. Continental Automotive Systems is developing special brakes, control units and telematics components specifically for vehicles in these rapidly expanding markets. "This is particularly challenging because these markets are extremely cost-sensitive. The competitive prices must not in any way compromise safety or long-term quality“, emphasized Dr. Karl-Thomas Neumann, chairman of the board of directors of Continental Automotive Systems and member of the management board of Continental AG. “Therefore our engineers are developing solutions that are optimized for specific local demands and also reduce production costs.�?

Growth market for affordable cars: 70 percent growth over the next ten years
In the next decade, the automotive industry will focus on so-called “affordable�? cars – especially in the growth markets of Asia. In India and China in particular, the production of cars with a retail price of less than €10,000 will increase from the current figure of around 6.5 million to approximately eleven million by 2017. This is a 70 percent increase. Considerable increases are also predicted for Eastern Europe and South America. “To cope with this demand, we have to focus on solutions for the market�?, emphasized Dr. Neumann. “People want safe yet affordable cars.�? Continental Automotive Systems has developed strategies and products that are suited to these demands. “Our solution is to go directly into these markets and to translate our extensive expertise in vehicle technology into components and systems that are tailored to the local market.�?

The procedure for the development of new products in the emerging markets is fundamen¬tally different to that in Europe, the USA or Japan.

Whereas in the old-established automotive markets, Continental Automotive Systems aims to produce technical innovations and create products with a unique selling proposition, the reverse is true for the development process in the emerging markets. The challenge here is to develop products to meet new and alternative demands as this is the only way to be competitive in the market. Continental Automotive Systems must find appropriate systems to match the component characteristics required by the target market and adapt the development process accordingly in order to achieve the cost objectives specified by the market.

Brakes – smaller and lighter ABS, brake actuation modules and brake calipers
Smaller, lighter – but also cheaper. These were the challenges that had to be met in developing a new ABS for the newly industrializing markets. But that's not all; the new system should be at least as good as the existing ABS MK-70. Smaller vehicles and therefore less installation space made the reduction in size necessary, but at the same time, the lower engine output and lower overall vehicle weight in these markets also allowed a downsizing of the ABS unit, leading in turn to a reduction in material costs. The MK-70 was used as the basis for the new MK-100, which is only about half the size. The new ABS has an installation size of 737 cm³ instead of 1,435 cm³ and its weight has also decreased from 1,631 grams to less than 1,190 grams. The production (planned for 2010) and procurement of materials will take place in the country of manufacture.
The brake actuation mechanism of ABA (Asian Base Actuation) also incorporates a number of detailed suggestions for reducing costs. The vacuum cylinder can be constructed using a thinner material and a thinner membrane. A steel dual master cylinder piston instead of the aluminum version also keeps costs down. The whole master cylinder housing is constructed with thinner but equally durable material.
The Emerging Markets Caliper (EMC) was developed on the basis of the FS IV brake caliper. Customers in Asia have different requirements so there is potential to reduce costs; some brake issues which have to be rectified at great expense for the European market are not issues in Asia due to the different vehicle attributes. The decisive factor is their function, and in this respect the new EMC brake calipers passed every test.

Modular electronics and engine control units in accordance with the Euro 4 standard
With the Body Control Module (BCM), Continental Automotive Systems is embarking on a platform strategy that is very cost-effective, yet offers the greatest possible flexibility. The central control electronics system is not adapted individually for each type of vehicle, but is available in modules. The basic module comprises simple functions such as the control of the low and high beam headlights, central locking, front window lifts, windshield wipers and rear window defroster. The automotive manufacturer can then offer an optional package which includes functions such as radio remote control. The most luxurious module concept comprises many convenience functions, including daytime driving lights and cruise control. An advantage of this is that the housing and hardware can be manufactured uniformly in large quantities and the sophisticated software does not have to be adapted to each individual model.

Continental Automotive Systems has ambitious objectives for its S2000 engine control unit (ECU). The control electronics system should be cheaper than competitor products, yet still comply fully with the Euro 4 emissions standard.

For passenger protection, Continental Automotive Systems offers cost-optimized airbag control units which meet the highest safety standards. Various connectors can be fitted to the plastic housing so that the electronics can be easily adapted to the vehicle.

Generation V5 radiator fans: fewer variants, but variable
Continental Automotive Systems uses a standard basic motor with the generation V5 radiator fan. There is a high proportion of shared components in an attempt to reduce the number of variants and thus make production more efficient. The development work is reduced because the customer application is restricted to the connection to the onboard power supply. The modular structure of the motor makes it suitable for use with different power levels and the local procurement of large plastic parts keeps the logistics costs to a minimum.

Cost-optimized Bluetooth solutions
The demand for Bluetooth hands-free sets for cellphones will also increase rapidly over the next few years. Continental Automotive Systems is introducing the new BT Handsfree Car Kit for Asia, which provides the basic essential functions. In addition to the high-quality noise cancellation and echo suppression technology, it offers convenient functions such as voice control for 20 phone numbers and radio muting.

The Continental Corporation is a leading automotive supplier of brake systems, chassis components, vehicle electronics, tires and technical elastomers. In 2006 the corporation realized sales of EUR14.9 billion. At present it has a worldwide workforce of around 89,000.

As a worldwide leading technology and systems partner to the automotive industry, the Automotive Systems Division of Continental AG integrates extensive know-how and uncompromising quality in the fields of active and passive driving safety, embedded telematics and hands-free communication systems, powertrain and comfort. In 2006 the Division achieved sales of approx. Euro 6 billion with a workforce of more than 30,000. Continental Automotive Systems develops and produces electronic and hydraulic brake, stability and chassis control systems, electronic air suspension systems, sensors, engine management and transmission control systems, hybrid drives, cooling fan modules, body and security electronics and also is the industry leader of embedded telematics and communication systems in vehicles.

Source: Continental

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