The transformation of industry and impact on suppliers

Transcription

1 The transformation of industry and impact on suppliers Frank Schlehuber Senior Advisor Aftermarket CLEPA Warranty Conference2018 Frankfurt, Sept 18/19 th, 2018

2 Agenda Megatrends and drivers for change Transformation of the value chain Connectivity Technologies State of Play at EU-Level CAV and Impact on Liability 20/09/2018 1

3 20/09/2018 2

4 20/09/2018 3

5 Automotive Supply Industry Megatrends Electrification Automated Driving Connectivity / Digitization Industry 4.0 Advanced materials 4

6 Agenda Megatrends and drivers for change Transformation of the value chain Connectivity Technologies State of Play at EU-Level CAV and Impact on Liability 20/09/2018 5

7 Capability of cars Options from OEM Perspective Deloitte Study, May 2017 Hardware platform provider IT players disrupt the value chain To the full extent Connectivity is the differentiator and OEM set the standards and offer a wide mobility portfolio Data and mobility manager Suppliers and outsiders set the rules The fallen giant Balance of power Mobility has become a commodity and OEM brand attractiveness has diminished. New players offer affordable mobility solutions Below technical possibilities New high-tech players did not succeed in entering the market. Techn. development slowed down and many innovations were not rolled out. OEM dominate the automotive world Stagnant car maker 20/09/2018 6

8 Electrification as Driver for Change Example Powertrain Solution Bosch Solution ZF OEM Shift to electric vehicles transforms the value chain TIER1 20/09/2018 7

9 Technology as Driver for Change Example Autonomous Driving 20/09/2018 8

10 Industry Trends AREAS OF CHANGE TRENDS DRIVING CHANGE KEY TRENDS BEFORE 2025 VEHICLE TECHNOLOGY Connectivity Softwarization Electric vehicles (EV) Autonomous vehicles Mobility services & new ownership models OWNERSHIP MODELS Intermediary power DISTRIBUTION CHANNELS Independent wholesale consolidation Online platforms Value chain integration 3D printing Short term (0-5 years) Medium term (5-10 years) Long term (+10 years) 20/09/2018 9

11 Agenda Megatrends and drivers for change Transformation of the value chain Connectivity Technologies State of Play at EU-Level CAV and Impact on Liability 20/09/

12 Backend Vehicle Interfaces Event Data Recorder Data Logger OEM ecall V2X V2V OEM Business/Concierge Services OEM Over The Air updates (OTA) ecall (112) PSAP Real Traffic Information (RTI) data Security Related Traffic Information (SRTI) E/E - Architecture Android Auto OBD External Devices/ Smart Phones OBD - Dongle NEVADA Service Provider Neutral Server Ethernet Diagnostic Tester Service Provider Laptop/PC 20/09/

13 Connectivity Technologies Retrofitted Black box Retrofitted Dongle on the OBD Port Service provider Insurance Roadside assistance TIER 1,2,3 Creates own data with sensors and requires only electric power Fleet. Uses available data on the diagnostic port Insurance SME Extended Vehicle Solution (ExVe) Direct Access ExVe = Vehicle + OEM Backend Server Neutral Server Service provider Roadside assistance TIER 1,2,3 Direct bi-directional communication with a vehicle via a secure vehicle interface (SVI). Available data depend on OEM Insurance SME Real-time access to all data Full access to vehicle resources (e.g. display, data processing,..) via an On-board Telematics Platform (OTP) B2B Agreements Requires design changes by OEM! 20/09/

14 Access to Data Data Categories based on VDA Political Position Paper Category 1 Category 2 Category 3a Category 3b Category 4 Data for improved traffic safety Data for crossbrand services Data for brand specific services Data for component analysis and product improvement Personal Data Fire department, Police, 112 Product Dealer, Subsidiaries Dealer, Subsidiaries Product Customer The customer will be informed of data usage and OEMs will provide the customer with decision options which the customer can reverse at any time, unless the function is required by law

15 Agenda Megatrends and drivers for change Transformation of the value chain Connectivity Technologies State of Play at EU-Level CAV and Impact on Liability 20/09/

16 Activities at EU - Level Previous calls for How to make in-vehicle data available C-ITS action plan from 2008 (DG-MOVE) ecall type-approval (DG-GROW) According to (EU) 2015/758 the Commission shall assess the need of requirements for an interoperable, standardised, secure and open-access platform. If appropriate, and no later than 9 June 2017, the Commission shall adopt a legislative initiative based on those requirements. External study conducted by TRL: Carry out legal, technical, cost-benefit, and subsequent analyses based on proposals developed by WG6 on the access to in-vehicle data and resources. Digital Single Market (DG-CNECT) 20/09/

17 TRL Report (August 2017) Identified Possible Scenarios Scenario 0 Scenario 1 Scenario 2 Scenario 3 No action at EU level. Extended Vehicle/Neutral Server Concept is expected to become the predominant technical solution beside proprietary On-board Application platforms. Scenario 0 with supporting measures at EU level to accompany market development and mitigate risks of market distortion. Short term (1-2 yrs): Shared Server in preference to ExVe/NS concept maintaining vehicle security but provides with intervention at EU level higher alignment to deliver fair competition. Long term (up to 5 yrs): On-board-Application platform as interoperable system with full access to real-time data and vehicle HMI for all market participants. Legislation strongly recommended. 20/09/

18 3 rd Mobility Package May 17 th, 2018 Main Messages on Access to In-vehicle Data and resources 1/2 Acknowledges the huge potential of new data based services and products with potential to disrupt existing business models EC approach is a balance between fair competition, the possibility for consumers to have access to different services, safety, cybersecurity and full compliance with the legislation on competition and on the protection of personal data such as user consent for data sharing. OEM have a privileged position regarding access to in-vehicle data and resources. Extended vehicle concept might itself not be sufficient to ensure fair and undistorted competition between service providers. 20/09/

19 3 rd Mobility Package May 17 th, 2018 Main Messages on Access to In-vehicle Data and resources 2/2 Recalls that in the new type approval regulation the legislation on fair access to repair and maintenance information (RMI) was modernised and includes now the support of wireless networks for RMI activities. Commission will continue monitoring the situation and will consider further options for an enabling framework for vehicle data sharing to enable fair competition in the provision of services in the digital single market, while ensuring compliance with the legislation on the protection of personal data. 20/09/

20 Access to Data CLEPA Approach Position of Stakeholders EU Commission Supports the 5 guiding principles (data provision, fair and undistorted competition, data privacy and data protection, tamper proof of access, data economy). Intention to monitor the market, undecided regarding necessity of a regulation. FIGIEFA, EGEA, AFCAR, FIA, Direct Access only CLEPA Assuming a positive PoC, Extended Vehicle as an interim solution possible ACEA Extended Vehicle as the only solution, no legislation CLEPA target: Investigate possibilities and acceptance of an Extended Vehicle solution Getting the EU Commission back into an acting mode 20/09/

21 Agenda Megatrends and drivers for change Transformation of the value chain Connectivity Technologies State of Play at EU-Level CAV and Impact on Liability 20/09/

22 The Future Challenge PLD - A directive from the automotive stone age Regulation 85/374/EEC was issued in 1985 when vehicles were build mainly with individual operating mechanical components The PLD regulates how to cover liabilities from products = movable products including electricity How do we treat: software, connectivity, services as part of products? The PLD defines the producer to be the manufacturer of finished goods, raw material, component part or any person putting the name, trademark or other distinguishing feature on the product How do we define producer, when services make a product work? 20/09/

23 Activities on EU Level GEAR 2030 Final Report of High Level Group Considerations The behaviour of a vehicle can be influenced by driver or automated vehicle/system Liabilities are more complicated to assign Data recording should be part of vehicle type approval Minimum set of data needed and a mechanism to regulate data access Conclusions: The Product Liability Directive (PLD) and MID are sufficient, at least for systems expected by 2020 Insurers can take legal action against a vehicle manufacturer in case of malfunction Liability regimes in Member States are different divergent view on harmonisation PLD and MID might need to be revised with development of future technologies EU-Commission will monitor 20/09/

24 CAV Possible Impact on Liability Technology driven impacts Less human impact will decrease total liability potential by 90% Liability cases might lead to higher cost per case Liability will shift from driver to manufacturer -> supplier Increasing difficulty to assign liability to a single component or system (complex systems with dependent components and services) Root cause analysis depends on precise vehicle data which are today proprietary with the OEM Higher dependency on OEM safety & security concepts and algorithms From supplier perspective the PLD needs an update! 20/09/

25 Assignment of Product Liability Technical evaluation of a component in a CAV Traditional root cause analysis: Component meeting its technical specifications Technical specifications sufficiently cover the use of the component Wrong handling by the user or wrong service and maintenance In a CAV the correct functioning of a component might depend additionally on: Data provided by other components or external and internal data providers Software algorithms and system architectures Cyber attack proof systems Available connectivity (telecoms,..) Services (maps, GPS data, landmarks, ) Updated maps and positioning devices 20/09/

26 The PLD in Automotive Industry Common practise for handling of liability cases vehicle manufacturers Consumers and/or insurers claim liabilities primarily to vehicle manufacturers component suppliers Vehicle manufacturers pass liability risks to component suppliers Assignment of liabilities to suppliers depend on negotiations between suppliers and vehicle manufacturers, but: Suppliers depend economically on vehicle manufacturers Suppliers depend on information from vehicle manufacturers Suppliers consider technical, economical and strategical aspects 20/09/

27 The Product Liability Directive Outdated Definitions Open Questions What constitutes a product? How to define a producer? What amounts to a defect? What covers a service? What exemptions to producers liabilities need to be defined? Unavoidable events New approach versus strict liability Extension to other market operators Clarification needed to create public confidence and consumer acceptance 20/09/

28 Request from Supplier Perspective A new Product Liability Legislation Updated definitions covering state of the art engineered products including all dependent services for proper functioning Regulation for passing and assigning liability from finished goods manufacturer to suppliers (i.e. minimum set of supporting data) Effective monitoring of functions in a CAV via an Event Data Recorder to clearly assign responsibilities based on data (EU-Type Approval Legislation): Who was driving? Status of all relevant parameters and additional functions and services? Possible indication of a cyber security issue? Harmonized liability regimes in all EU Member States regarding road and traffic laws, civil laws or strict liability regimes. EU monitoring of all accidents? 20/09/

29 Thanks for your attention Frank Schlehuber Senior Advisor Aftermarket 20/09/2018