Automotive Engineering - March 2021 - 26

Engineering

COVER STORY

FORD'S
FUTURE

AV systems supply - make vs. buy
While the public's enthusiasm for most modes of ride sharing and
public transit was shaken in the wake of COVID, Ford's efforts with
Argo AI and Ford AV LLC are progressing toward safe and practical
SAE Level 4 autonomy as a business model for moving people and
goods. But the company is growing its capabilities in SAE Level 2 and
the enhanced L2 automated systems popularly dubbed " Level 2+, "
Thai-Tang explained. Over-the-air updates for the CoPilot 360 suite
and other key vehicle features on the way are " first steps " aimed at
adding functionality over the life of vehicle ownership.
In the commercial vehicle sector, " it's not so much about replacing
the driver but increasing productivity, " Thai-Tang said. He noted that
Ford conducted an AV benchmarking project with John Deere that
provided " really powerful " learnings regarding the value of vehicle
automation in the CV space. And Ford's experience in systems insourcing (i.e., cockpits and seats), enables it to reflect on the optimal
make-buy decisions as AV technology matures.
" It typically plays out in cycles, " Thai-Tang noted. " Initially, the
turnkey suppliers that can deliver a full L2 automated driving system
will be very successful. There are examples of companies doing that.
But after that first generation, the larger OEMs will want to control
their own brand experience, and gain efficiencies as they deploy that
technology across multiple programs. And, not have to pay the upfront engineering cost to those Tier-1 suppliers.
" You'll hear the OEMs say, 'We don't want you to be a full systems
supplier; we only want to buy cameras or radar or processors from
26 March 2021

you and we'll do the integration so we can get the reuse and scale benefits, " he said. " We're at that point
now where we're seeing the larger OEMs bringing that
work in house - just buying the components and doing integration themselves. Smaller OEMs, however,
who don't have the budget will continue to buy turnkey solutions. We saw this sort of trend happen with
interior cockpits. "
At Ford, decisions of " make vs. buy " are determined
by what is truly customer-facing and brand-differentiating. " And if so, we should do it ourselves, " Thai-Tang
asserted. " In many cases we have greater know-how
and efficiency than the supply base. " But he added
that the landscape is changing.
" When I started my career in vehicle dynamics,
steering was a differentiator. But now, I can't remember the last time I drove a vehicle that made me think,
'Wow, this steering is terrible!' They're all really good
today, so steering is not really a brand differentiator
for most customers anymore. Only expert drivers can
detect the subtlety of on-center precision or how linear the yaw response is.
" So, should I still be investing in steering systems inhouse and hiring vehicle dynamicists, or should I be
hiring software engineers to work on connectivity and
large-screen clusters - which are the new battleground
in brand differentiation and customer experience? "
AUTOMOTIVE ENGINEERING

KEITH TOLMAN/VIS

" It's going to be
very important
to accelerate the
incentives for us
to localize battery
production in the
U.S., but also the
technology shift to
solid-state batteries. "

Automotive Engineering - March 2021

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