A key to our success has been our outstanding performance in China, the world’s largest automotive market. Our full-year domestic sales in China are expected to grow double-digits compared with the previous year. We continue to outpace overall industry growth in China, and we are winning new business with global vehicle manufacturers as well as domestic Chinese For the second quarter of 2017, despite a slowdown in vehicle production in China in the quarter, Visteon sales in China increased 38 percent over the second quarter last year, excluding the effects of currency. This is due to the high number of new product launches, 47 in total, over the past six quarters. Our sales in China in the near term are driven more by new product launches, which has more than offset the impact of the weak production environment in the second quarter and is expected to do the same for the rest of the year. We continue to win significant new business in China, with 900 million dollars in lifetime business won year-to-date. SUVs are the fastest-growing vehicle segment in China, recording 20 percent year-over-year production growth in the first half of 2017 and making up about 41 percent of total production. We’re pleased that 55 percent of Visteon’s total new business in China came from the SUV segment. Our new business in China was also very well balanced across international and domestic OEMs, with international joint ventures accounting for 63 percent and domestic manufacturers at 37 percent of the total. Vehicle production in China for the second half of 2017 is expected to slow down based on IHS projections. Nonetheless, we’re confident that our full-year sales in China will grow at double-digit rate due to the new product launches that I mentioned earlier.
Looking at our product portfolio, we are unique in the sense that we have the widest breadth of products that are required for the automotive cockpit. These include instrument clusters, head-up displays, cockpit domain controllers, infotainment systems and connectivity, among others.
Enabling technologies such as augmented reality and driver monitoring will play a key role as the industry transitions toward autonomous driving. We are also planning to launch our DriveCoreTM solution in support of autonomous vehicles at CES 2018 in Las Vegas; I will talk more on this in later slides.
We are a top-two industry player in these display-oriented products. Overall, as I've mentioned earlier, we are in the top five in terms of global suppliers for all of these products.
Similarly, we have an extensive engineering footprint, which encompasses both hardware and software engineering. Today more than half of our global engineers are software engineers. It’s important to note that about 70 percent of our engineering resources are in growth-oriented or emerging markets. We have nine engineering centers of competence that support our new and existing products and our global customer base. And as a software-focused company, we generate about 134,000 lines of software code per week.
ECU Consolidations gets reality TREND: As already seen as trend from 2016 ECU consolidation for cockpit and autonomous driving turns into reality Many customers from Visteon request a cockpit computer, which is the concept of our SmartCore. In addition same consolidation gets placed for autonomous driving computers for level 3 heading to level 4. There is no doubt in the automotive community that centralization of ADAS is the way to go and for more OEMs programs are planned towards 2021. How does Visteon approach this trend: - Need for computing power: Work on scalable concepts for Cockpit Computer and Autonomous Driving Computer is under development. - Extend and further invest into the SmartCore and enlarge towards a “SmartCore” next generation platform. Include e.g. augmented reality, driver monitoring, Android and enlarged display concept in Visteons next generation development. Planned to be demonstrated at CES 2018. - Make SmartCore easily configurable and adaptable for our customers by SmartCore “Runtime” middlelayer, configuration tooling and heart beat analysis, which can be used by our customers and partners. Planned to be demonstrated at next CES. Future concept beyond 2020: - Evolve a common concept to bring SmartCore (cockpit) and DriveCore (autonomous driving) even together in one unit in a scalable and safe concept. Let me explain in more details our plans … <next slide>
LVDS – 3Gbits, with smaller amplitude for display Higher speed – LPDDRM 1.6 to 2.1GHz PCB Fab – analysis tool for impact of variation on PCB trace widths
Siemens Analyst Meeting
August 29, 2018
Global Engineering Operations
An Automotive Technology
Company on the Move
• A top-five Tier 1 connected car
• Largest supplier focused exclusively
on cockpit electronics
• Leading the transition of digital
cockpits to autonomous driving
2 * ABI research (2016)
Leading supplier of cockpit electronics and autonomous driving
systems to carmakers across the world
$3.15B annual sales 10,000 employees 18 countries
19 manufacturing locations 18 technical centers
Total shareholder returns of ~105% from 2015 – Q2 2018;
Significantly outperforming peer group and S&P 500
Note: Total shareholder returns per Bloomberg from beginning of 2015 through June 30, 2018
Industry-Leading Cockpit Electronics Product Portfolio
Rapidly growing in infotainment and domain controller solutions
Source: Rankings from 2016 ABI Research and IHS Markit.
Infotainment Displays Self-drivingConnectivityCockpit
Visteon Market Position
Top 5 Connected car
Tier 1 supplier
Center stack displays
Global Engineering Footprint
Over 50% in
70% of Resources in
Lines of Code
Global Centers of
Growing Customer Engagements with New Offerings
Delivering next generation operating systems for cockpit and autonomous driving
• Drives ECU consolidation and reduces cost to automakers
• First Tier 1 to deliver solution launched in early 2018
• Four automaker customers adopting this technology
Autonomous Driving ComputerCockpit Domain Controller
• Centralized failsafe, secured and scalable computation
• Open for algorithm developers
• Easy integration in vehicle
New Products Require Improved Tools
Industry trends driving aggressive needs for hardware development
DriveCore™ – Multiple sensor inputs (cameras, Lidar, Radar,
Ultrasonic) via LVDS requires significant usage of high-speed
SmartCore™ -- Increased functions drive high-density PCB
layout and precision at PCB fab
Shift-left Simulations for EMC, trace widths, signal integrity
Multiple teams in various global locations must work concurrently
and re-use design immediately.
A design comparisons tool increases opportunity for re-use.
Early hardware required for software development.
Need HW functioning in 12 weeks, no time for redesigns or non-
Schematic auto-connect, Simulations and design reviews live
D E S I G N F L O W
Simulations Used to Meet Speed & Precision
NEW BOARD BOARD RELEASE
Component Selection &
Circuit Simulation & Circuit
Controlled Impedance &
BOM Creation PCB DFM
Xpedition PCB Systems Flow
Power Integrity, SITA,
High Speed Analysis
Challenges for Development Tools
Many tools exist in pieces; need to improve and integrate for quick-use
• Better auto-design review tools – concurrently running during schematic creation, identifying
more issues, and linking to defect tracking tool
• Automated design comparison to enable global re-use and alignment
• Quick-use circuit and layout library to enable speed and re-use
• Better integration of simulations for signal integrity, PCB fab variation, and EMC performance
• Seamless flow of hardware, mechanical and software development tools from requirements
capture to simulations, software design, hardware design, mechanical design, design reviews,
test case alignment, and defect tracking.