ESL E-Learning for Business Consultants ‘INNOVATION IN THE AUTO INDUSTRY’ Muraishi Joanna
Here is the overview of this e-learning module: Module title Innovation in the Automotive Industry Module topics 1. Describing the auto industry and the evolution of the automobile 2. Learning vocabulary related to ‘Innovation in the Auto Industry’ 3. Describing the future of the automobile and the auto industry Module goal The goal of this module is to discuss the up-to-now and the future of innovation in their industry. Read the following questions out loud and take 1 minute to think of possible answers to them: 1. In what ways have cars developed since your family (father, grandfather, etc.) can recall? 2. What new developments can be seen in the auto industry (local & overseas) at the moment? 3. Will advances in technology propel innovation in the auto industry in the future? 2
Task A-1a: Let us look at the evolution of the passenger car (in the past 100 years). Task: match the text with the picture & fill in the gaps with appropriatevocabulary: These days cars are more of an … , not a vehicle. Luxury cars are … , … , and … people own them. Car owners 1. A. … drive their cars whenever they like. They … driving … on highways, and going for a … with family or friends, just to have ... . A century ago, cars were … and … individuals had them because they B. 2. were …. . Car owners were the elite and they had personal … drive them. A car was a … symbol , not a mode of … . A few decades ago, cars became … and so … people could buy them. The car owners … drove the car C. 3. themselves, as by then, … could apply for a … license. A new trend 3 emerged: some had more than 1 car.
Task B-1a: The Strengths of Automotive Industry Task: Use the SWOT chart to assess the strengths and opportunities of the auto industry: Strengths -qualified & skilled engineers and workforce -experienced business units & high standards -high priced products: profits for manufacturer -high operational efficiency and timely output -existing distribution network: dedicated dealers Weaknesses -intense competition -high production cost -delicate supply chain Opportunities -expanded product line -emerging markets (export) -frequent launching of new models by automakers -new acquisitions possible -new technology allows for new services , products -growing need to outsource and automate Threats -alternative transportation (private & public) -environment-conscious society -economic recession -increase in labor costs -reduced need for cars due to urban development - future tax increase may influence consumers 4
Task C: ‘Innovation in the automobile industry’ R&D philosophy has swung from the “ivory tower” to “all hands to the pump”. Now, industrial research managers are pursuing a balanced portfolio but emphasizing innovation. Today is an exciting time to be a part of the auto industry, even though the demands on the business have never been greater. Customer expectations of vehicle quality, reliability, safety, and utility are at an all-time high. At the same time, worldwide overcapacity has put pressure on the industry to maintain, and even reduce, vehicle price. In the United States, for example, the average monthly vehicle payment as a percentage of average household income has dropped from 12.5% in 1980 to about 7.5% today—a 40% decrease. Environmental concerns, including tailpipe emissions, carbon dioxide production, and recycling, remain critical elements on the manufacturer’s agenda. Another challenge gaining increased attention is the rising price of petroleum, as has been very recently observed in the United States. Urban congestion is a growing issue around the world, potentially limiting the use of cars in many large cities. Alliances & Partnerships We are witnessing major structural changes in the auto-making business, too. Globalization of the industry is being realized through business alliances and industry-academic-government partnerships that have realigned the world’s vehicle manufacturers into six major groups. This process is currently sorting itself out. Once it is concluded, only a few companies will survive independently because they occupy a unique market niche or possess a special competence. With these developments, the industry is undergoing major change, in both its products and business structure. The rapid rate at which auto manufacturers like GM have formed new alliances and new business entities demonstrates that the world’s largest auto makers can be fast and innovative. For instance, since early 1998 GM has broadened its OEM (original equipment manufacturer) alliances by increasing its existing equity positions in Isuzu and Suzuki, acquiring minority equity stakes in Fuji Heavy Industries (Subaru) and Fiat, and completing its acquisition of Saab. GM also formed non-equity technical alliances with Toyota and Honda. In addition, e-GM and COVISINT rely on strategic alliances. Speed and innovation are key requirements of doing business today. 5
Top Innovations since 2014 On December 23, 2014, Google announced its first fully functional driverless car, ready for testing on public roads. The company have also created a self-driving system with sensors and computers that can be fitted to SUVs like Lexus. This is not only a breakthrough in terms of solving traffic congestion but sensing technology can also increase road safety. Countries such as the UK and US are working on laws to allow driverless cars. Intelligent Self-driving Cars Japanese automaker Toyota has committed to investing USD 50 million over to the joint research centers at Stanford University and the Massachusetts Institute of Technology for developing "intelligent" self-driving cars. The two research centers will focus on using technology to make driving safer by inventing ways for cars to recognize their surroundings and make decisions that avert potential accidents. "We will initially focus on the acceleration of intelligent vehicle technology, with the immediate goal of helping eliminate traffic casualties and the ultimate goal of helping improve quality of life through enhanced mobility and robotics,” Toyota Senior Managing Officer Kiyotaka Ise said in a statement. Toyota has tapped Gill Pratt, former Program Manager at the Defense Advanced Research Projects Agency (DARPA) of the Pentagon and leader of its recent Robotics Challenge, to direct the effort. "This bold collaboration will address extremely complex mobility challenges using ground breaking artificial intelligence research," Pratt said. The researchers aim at developing intelligent vehicle technologies that can better "recognize objects around the vehicle in diverse environments, provide elevated judgement of surrounding conditions, and safely collaborate with vehicle occupants, other vehicles, and pedestrians," he added. Electrical engineering and computer science Professor Daniela Rus will lead research at MIT while Fei-Fei Li, director of the Stanford Artificial Intelligence Laboratory, will head up the effort there. "Our team will work to help intelligent vehicles recognize objects in the road, predict behaviors of things and people, and make safe and smart decisions under diverse conditions," Li said. 6
V2V Communications The US National Highway Traffic Safety Administration announced that it will begin taking steps to enable vehicle-to-vehicle (V2V) communication technology for light vehicles. This technology would allow vehicles to "talk" to each other and ultimately avoid many crashes by exchanging basic safety data, such as speed and position, ten times per second, to improve safety. It uses 'ad hoc network', where every car is free to associate with any other car available in the network and share equal status. V2V, which is also known as VANET (vehicular ad hoc network), is a variation of MANET (mobile ad hoc network). Many auto manufacturers including BMW, Audi, Honda, General Motors, Volvo and Daimler are developing this technology to improve safety, overcome blind spots and avoid accidents. Pre-Collision Technology Top carmakers such as Ford and Hyundai have developed a pre-collision assist and pedestrian detection technology. Besides helping the driver detect blind spots, this technology also alerts the driver when he/she is not paying attention on the road. And if the driver falls asleep and does not respond to the warning, then the system applies the brakes on its own. The driver assist system has two types of sensors. One is millimeter-wave radar located inside the front grille, and the other is a monocular camera mounted on the upper, inside part of the windshield. Its collision mitigation braking system delivers an audio and visual warning when there is a risk of a head-on collision. If the driver fails to react, the car will automatically begin breaking itself to prevent or reduce the severity of a crash. This technology debuted in 2015 with Ford Mondeo in Europe. Automated Manual Transmission The first affordable mass segment gearless hatchback, Suzuki’s Celerio, comes with AMT (automate manual transmission) sourced from Magneti Marelli, component arm of Fiat. AMT is an electro-hydraulic mechanism for automating manual transmission, which derives from Formula 1. It has a hydraulic system and an electronic system. The electronic transmission control unit helps in engaging and disengaging the clutch and gear through an electronic actuator. It also has a sports mode, which enables drivers to move to the manual shifting of gear. 7
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