Visteon Rides On SmartCore

In the global automotive industry the next 10 years is going to have more change than the last 50 years. If you look at the last century the industry has essentially not changed much, technology has evolved very slowly. If you analyse introduction of a new technology over the last 50 years you will find that a new technology takes about 15 years to be introduced until it hits about 90 percent of the new vehicles produced. It takes another 15 years for it to be present in 90 percent of the field vehicles; so 30 years before a technology is universally used.
Today, the pace of innovation is speeding up tremendously. Where it used to be 15 years, it is now five to six years (two cycles). The pace of adoption in the field is also speeding up because of multiple pressures. The pressures come from three areas: The competitive side as the market is nearing the saturation point; the second is the consumer pull, the consumer knows what to expect in  a technology-oriented experience; and the third is the regulatory pressure, the heightened awareness of environment, safety etc. These three pressures are completely changing the industry.
Focus On Electronics
Visteon has switched its focus, from being a multi-business Tier-1 supplier, on to six product lines – instrument clusters, central information display, infotainment, audio, telematics and the head-up display. These product lines cover virtually everything that the modern cars need in the cockpit.
The cost of electronics in building a car is getting to a point where the OEMs are not able to pass the cost on to the consumers. Today, on an average, 30 percent of the total cost of making a car goes into electronics. It is expected that in the next five to ten years this will cross 50 percent. We are experiencing an average sales price increase in five out of the six products.
Normally, in electronics, the selling price goes down but we are facing an increase because there is more content going in, richer displays, more software, more capabilities, more memory etc. This is a cost to the OEM as they are not able to pass it on to the consumer. To tackle this there is a technology; underlying silicon capabilities have grown to a point where we can actually integrate some of these six products and reduce the cost. This is SmartCore and we are leaders in this space for now. I am certain of more competition coming in.
Multi-Core Era
This is more a semi-conductor revolution because semi-conductors have gone towards the multi-core approach. So the industry has stopped giving us higher clock rates. But in return we got more cores i.e. more CPUs on a single chip –hence the multi-core era. It is no longer cost effective to make a single core processor.
None of the six products on their own need a 3GHz processor of 4cores which is what we get from the industry today. Three years from now we will get 8 cores, then 16 cores and so on. We were the first to recognise it, jumped on the bandwagon and called our solution for it the SmartCore.
With a German OEM we will launch the first integrated cluster in infotainment. This has really caught the imagination of Indian OEMs. We want to be known as the number one technology leader in the cockpit electronics area globally.

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