Transforming the In-Vehicle Electronic Experience w/ Mike Kenhard

The automotive industry is expected to face challenges in meeting the same aggressive launch program processes and technological leaps as the consumer space. This shift in consumer demand for fast, iterative development will impact the automotive industry as people become accustomed to rapid technological advancements. This could affect companies' ability to release new products every three years.

In the future, the vehicle experience will be viewed as a mobility experience, extending personal preferences such as infotainment and navigation. This will transform into an entertainment, business, and communications space, with autonomous vehicles driving this shift. The future of vehicles will focus on these purposes, with interior electronics significantly maximizing space. Autonomous vehicles will open up endless possibilities, and electrification will play a significant role. The future of vehicles will offer a space for socializing, chatting, and eating while charging, transforming how we interact with the road.

Historically, vehicle purchases were based on engine size. However, with electrification, the focus is now on the in-vehicle experience, with luxury solutions providing an exhilarating experience. Consumers are making buying choices based on the overall vehicle experience, with significant increases in screens, display sizes, and functionalities available today.

In this episode, Stephan Tarnutzer sits down with Mike Kenhard, CTO and VP of Engineering for Alps Alpine to discuss topics surrounding consumer electronics in mobility, the way software changes our view of mobility, AI use today and key mobility technology markets.

Previously Mike has held roles as General Manager of XL Fleet (a commercial vehicle electrification company), and significant roles in leading engineering consultancies including President of IAV North America and as Engineering Director for AVL. Mike has also spent time with DENSO in both the US and Europe and with Ford of Europe.

Alps Alpine conducts business across three segments: Components, Sensors and Communication, and Modules and Systems. Our products and services tend to the needs of customers in many different sectors, including automotive, consumer electronics, mobile devices and gaming markets. We also look to break ground and expand our horizons in new application domains, such as industrial equipment and the Internet of Things.

https://www.alpsalpine.com/e/

If you would like to be a guest on the show contact: namarketing@avl.com

Transcript

0:02

Welcome to the Reimagined Mobility Podcast series. I'm here with my Ken Art, CTO and VP of Engineering at Alps Alpine. Thanks, Mike, for joining us. You have a long history in the mobility space. We've worked together at one point for a shorter period of time. Great to have you on the show. Maybe to start out with, give a little bit of your background, Mike, your experience and expertise areas. And then what do you do and what is Alps Alpine doing then? Great. Well, firstly, thank you for the invitation. My name is Mike Conrad, and I am, as you said, the CTB, CEO of Engineering for Alps Alpine. My background is actually in the automotive space, so I am a mechanical engineer by training, but I've spend most of my time in and around automobiles, mainly on the powertrain side, but now with a focus on electronics. Alps Alpine is a global electronics company. We provide electronics solutions to a whole variety of business fields. So anything from consumer electronics to interior cabin entertainment systems. So that's what we do. Very interesting. Maybe we'll we'll start right there, right as we again explore here together over the next 20, 25 minutes, how we reimagine mobility. How is the consumer side different from the automotive side and how do you guys find commonality but also differentiation to address in this market as as you look forward over the next, let's say, five years or so? Yeah, I think historically these were two very different market sectors. But going forward, we see a merging of technologies and merging of processing. So and in in the past, the automotive timetable for launching new products was very clear, very defined. And there was an expectation that you have iterative development throughout that process. But in the consumer space, people have got used to these leaps in technology, the very fast and the timeline for delivery of that technology is also very fast. So I think going forward with the expectation is that the automotive industry is going to be challenged to meet the same type of aggressive launch program processes and leaps in technology that we see on the consumer side. Interesting. So then when we take that and we say, so what is Alps Alpine doing then to be able not just whatever, come out with a new product every three years? Right? If we take the normal automotive development cycle to two, three years, but comes out with let's go to the other extreme consumer electronics where I can buy a new phone with new features, functions, OS chips, whatever it is, every six months. How do you guys balance this? Is it re-use of a lot of things and incrementally increase, or is it you just constantly push and come up with new methods and processes to go faster? Or how do you guys do it? Yeah, I mean, we we operate in both the spaces. So when we work with our customers in those different areas, what's really important to us is that we're bringing new technology to that. So we we need to understand where they're going, where they're heading, what new technology they need, and have it ready at the timelines that work for them. So whether that's a three year automotive launch schedule or it's a one year to two year consumer product launch, we need to be ready for that. And that's part of how we operate in our business. Interesting. And then since you're saying we you guys bring the technology to the consumers or to your customers, right, Either an OEM or the consumer to consumer space in general. What is it then that we're going to see as we in the mobility space now back to reimagine the mobility space? What am I going to see in my corner in a car that I could buy? Maybe not my car in, let's say, five years, make that today? Maybe very few people are thinking about, I mean, example, right? Five, ten years ago, everybody talks about, by 2020 you're going to have gesture controls in your vehicle. I've seen very few that have it, but everybody was excited about what is it today that's not only kind of like pie in the sky or wishful thinking, but that you feel it's going to be a reality in new vehicles. We could buy, let's say, in five, five or ten years. Doesn't matter. But how do you see it in the future? Yeah, I, I think firstly we have to rethink what mobility is and it comes in the experience that you have when you take part. So traditionally you jump in your car, you may connect your phone, There's you're bringing your personal preferences, personal choice, whether it's infotainment, navigation, you bring that with you in on that journey. But but going forward, we have to look at the whole experience as a mobility experience, as an extension of your preferences. So whether you are taking public transport, whether you're jumping into a vehicle, that space in the future will become an entertainment space. It will become a business space, it will become a communications space. And that's very different to how we look at automobiles today. So, sure, you can you can have entertainment in your vehicle today. You can have you can take a call on your vehicle today. But really, it's a it's an add on to a vehicle, whereas in the future, that space will be designed and developed primarily around those purposes. And a big driver for this is all the autonomous vehicles. So and once you have that capability, that space opens up for endless possibilities that you can do in that space. And that's where we play. So we're on the automotive side. We're very big in interior electronics and how to make the best use of that space. And and it says, as I mentioned, autonomous is a big part of it, but also electrification. So if you have to spend time at a charging station, which will be part of our future, then what do you do during that time? What do you do during that space? Why not have a vehicle where everyone's sitting together, chatting, you know, continuing your eating whilst you charging? All of those things are our options for the future. So is it then when I jump for a moment to look at what China has done over the last couple of years? Right. A heavy focus on exactly what you just talked about, infotainment ride, lots of screens, lots of functions, lots of technology, not only from a from a drive train perspective, but just from a what? The consumer over there wants technology in a vehicle. Right. Is it is it damning in your vision that in five, ten years when the reality of autonomous vehicles are there, there's still the push similar to what we're seeing in China now and other OEMs are picking up with more and more displays in the vehicle. The software defined vehicle allows you to essentially customize what I like to do and when I have to wait for charging, for example, would you like to do what somebody else likes to do is still somewhat how we can envision doing this or other things today that you already know that will change that paradigm or hold that whole trajectory again, as we see it right now, in my opinion, at least somewhat pushed by the Chinese and by their success of their technology into the vehicle that I, I would say that a lot of the things that you're talking about are happening in North America today already. So and it and I think a big part of it is how do our customers differentiate their vehicles in the future. So and historically, when you purchased a vehicle, the engine size tag on the back of the vehicle was how you chose your vehicle. But if you roll the dice forward on electrification, you can have an amazing powertrain experience with an EV and everybody can do that. So how does Company A differentiate against company B? And, you know, maybe Powertrain isn't how they're going to differentiate. It's going to be that in-vehicle experience and you got to have the right nobility solution that's got to get you where you need to get and provide an exhilarating experience. But but ultimately, the consumers are going to be making buying choices based on the the whole vehicle experience. So we see that starting to happen today already. And the significant increase in the number of screens, the size of the displays, the functionalities that you have that's happening that's available today and that will just continue. I think the you know, the China market has been key to the progression of that, but it's really happening everywhere. All right. The point what when you when when I talk and talk about connectivity, I always go back to like the beginning of the 2000s when I got to start to get involved in telematics. Right. So the early on, from what we call today, connectivity and back then, I don't think we have 3G just yet, but we all talked about we need higher throughput, you know, all the stuff we can do. It's going to be amazing. If we just had 3G and 3G came and obviously we need more than 4G came we at all, if we just could. Now we're at 5G, right? Is there still more? Can we still do more if we had even more bandwidth, even less latency? And if so, what are somebody saying stats. I'm not aware of what else I would want in my car. I mean, I can already watch movies. I can already more or less hold business meetings even if video's not while I'm driving, of course, etc.. But what is what is the next generation of connectivity allowing us to do that? Today, Our listeners and myself don't necessarily have a line of sight to the I. Great question. So am it in terms of connectivity between the vehicle you you know, we've all been talking about connectivity from V to X and primarily on a safety and traffic efficiency point of view so that those technologies are are coming fast. But in addition to that, we have to think about the just the mass of data that's going to be available on the vehicle. And so here in the future, having 1015 high definition cameras is providing huge amounts of data to the processor on board, but also available for offshore processing is also going to drive the need for some some pretty significant communication and bandwidth increases. And some of that will be driven by consumer preference. So infotainment requirements streaming those sort of things. But but also about from an assurance point of view where if from if you think about it, if you've had an accident and all that data is available instantly to all parties, all of those things that will will drive that increase on the amount of data that's being used, the availability of that data that. So there's a lot to come there. Okay. I may be kind of adding to that data and to sensors. I mean, years ago when when Google first came out, right, and had their autonomous vehicles driving around, I always maintain it's a perfect match for Google because Google is all about data. Now. It's, you know, online or on your a smartphone or smart device. But now you have a vehicle that drives through all sorts of different areas, collects terabytes and terabytes of data, and Google taking this, turning this around and selling this data to who knows who. Right. Traffic routers, emergency vehicles, advertisers, blah, blah, blah, blah, blah. Can we see that as as a future as well in in what the traditional people or maybe even a company like yours is suddenly then collecting some of this state? And then my next question is using AI and how much is A.I. use today already? Yeah. So I guess firstly on the air I topic AI is going to be part of everything that we all do going forward and there's so much potential to leverage. I thought whether it's on the efficiency of development processes, software generation and you know, the mass of data that we talked about that you are having to take on board through all the sensing streams to with false processing solutions that that is becoming and will be a main part of what we do. But there are some challenges around AI that we need to consider. For example, algorithms that have developed through I have an IP challenges, who owns those. So we have to be careful as businesses, the core of what we do is generation of IP. And so that that is a big part of what we need to think about in the future. So then when you when you look at that moving sensor, right, going back to my email, there's always was fascinated when I first started thinking about it by the possibility of the state of this real world sensors that is not mounted on a pool or or sitting in a device, but literally moving and collecting data to sort of agree what what today already happens with crowdsourced traffic information and everything else. But now we're talking cameras and information. Are people movement and exact weather and temperature conditions and all that stuff. Are these already import stats that you guys are having products with that you offer to your consumers or that that you're working with? If you can share a little bit about that, I, I would say the majority of what we do is providing the technology that enables these things to happen. So as as an electronics manufacturer, we need to make sure we have the right communication modules and chips available. We have the right hardware technology that's going to interface with the new communication protocols that work. So we we're engaged and involved in that type of technology development to make sure we have the right product because ultimately we're a product company. And so we have to keep close to these technical direction trends to make sure our product lineup is going to match. So yes, we're involved. We were involved with our with our customers, with industry groups to yeah, and key suppliers to make sure that we know what those trends are and we can make sure our product ranges are going to be appropriate. And okay, let's go back again. We talked about a little bit about China and the tremendous advancements they have made in connectivity, infotainment, the in-vehicle to cabin experience. When you look at it from from your current perspective as CTO, when you look at the technology roadmap, which which country or countries, I'm not talking OEMs or whatever aren't trees, what do you think will lead in this space as it is? Will it continue to be China, that sort of EVs? Right now they're at the spotlight, right? Focus not. And even though I completely agree with you, other regions, Europe and and certainly U.S. have been playing in this space as well, maybe not as as a Labrador as externally in but which which region, if we take Europe, the U.S. and China for a moment or Asia? I just leave it with Asia, me or China and the rest of Asia. What do those four which ones do you see? What will lead us into the next generation of in-vehicle experience? Technologies reported in that field. So I think China is a really, really interesting market because they historically for automobiles, it's been a rapidly expanding market. And so when you are in in that environment, the the acceptance of new technology is is much greater, whereas in a a traditional established market in North America, people have expectations, familiarity and people will make buying choices based on, you know, I want the the wiper stalk to be on the same side so that we in our local markets, we deal with a different set of expectations. And so I think the real question for China is, does that growth rate continue? There are some pretty strong headwinds and we'll see how that plays out. But I think there is always a a culture for acceptance of new technology that exists in those markets that that is likely to maintain them in the forefront. Maybe the rate will change. But but conceptually, I think they'll still be they'll still be there. Yeah. Yeah. But the different culture I'd were were changes and all that stuff can be built upon faster. Me Yeah. Good point. Two more questions, Mike, for you. One, you've mentioned in your introduction you worked mainly in Powertrain before. You now move to Alps Alpine Compare for a moment the commonality between those two technology areas, but also the differences. And I think Powertrain is, is obviously a fascinating market and an industry that's it's sort of at my heart as well. But and what I see in in the powertrain is a convergence of technologies so that there are the electrification is and is fantastic and there's a lot to be done there. Hydrogen fuel cells don't have. But as I mentioned before, I see that in the in vehicle space there is so much more to come. And so for me, that's really what makes that that area so exciting. You know, it's an area where we have not seen that level of change in in decades. So for both for me and the industry that I'm in, I think it's a really exciting time. Okay. Well, excellent. Final question for you, Mike. What's the next car you're going to buy and why? Great question. I honestly don't know. I'm not that far off buying a new car and I'm still going through what I really love the idea of the DVD. I don't have an easy yet, and I think now is probably the right time. So probably in the okay and the why is it the environment? Is it the just a new technology? Because you and I both love technology as we just kind of explored here. Is it the different driving style because you served me again, you've been in Powertrain, so you've developed or were involved with gasoline engines and other types of the former main driving technology. What's the main reason for an easy or is it a combination of all of them here? I think primarily it's it's technical interest. I mean, as you I'm sure you've driven many vehicles and it's a different experience, but I I'd like to be able to say I've lived it and speak from experience. Yeah, that's great. Thank you so much for joining us and helping us to gather with you, reimagine mobility going forward. Thank you, Mike. Great. Thanks for your time. 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