Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
ww
w.r
ica
rdo
.co
m
©R
icard
o p
lc 2
00
9
Federal Reserve Automotive Symposium
June 4, 2009
2©
Ric
ard
o p
lc 2
00
9R
D.0
8/#
###
##.#
Agenda
–2:0
0 W
elc
om
e &
Ove
rvie
wD
ave S
hem
mans, C
EO
Ric
ard
o p
lc
Dean H
arlow
, P
resid
ent, N
ort
h A
merica
–2:1
0 S
trate
gic
Consultin
gA
ndy C
hie
n, P
resid
ent, S
trate
gic
Consultin
g
–2:2
5 F
uel E
conom
y O
verv
iew
–T
ota
l V
ehic
le F
uel E
conom
y S
andy S
tojk
ovski, D
irecto
r
–V
ehic
le E
lectr
ific
ation
–E
thanol B
ooste
d D
irect In
jection
Engin
e (
EB
DI)
Rod B
eazle
y, D
irecto
r
–2:5
5 Q
uestions
–F
acili
ty T
ou
rT
hre
e facili
ty tou
r g
roups
ww
w.r
ica
rdo
.co
m
©R
icard
o p
lc 2
00
9
Welcome
Dave Shemmans
CEO
Ricardo plc
ww
w.r
ica
rdo
.co
m
©R
icard
o p
lc 2
00
9
Ricardo Overview
Dean Harlow
President
Ricardo, Inc.
5©
Ric
ard
o p
lc 2
00
9R
D.0
8/#
###
##.#
Ricardo is an Eco-innovation Technology Company Offering:
-Product Engineering/R&D
-Software
-Management Consulting
Governmental Agencies
Oil Companies
and Utilities
Financial Firms
Clean Energy
DefenseSector
Suppliers
and Afterm
arket
On/Off Highway
Automotive
UK
Mo
DT
AC
OM
Global Client Base
Partial List
6©
Ric
ard
o p
lc 2
00
9R
D.0
8/#
###
##.#
Ricardo is on the leading edge of new technologies……
The Ricardo Advantage
Clean
Energy
Vehicle
Engineering
Driveline
Systems
Advanced
Technology
Controls and
Electronics
Ricardo Product Areas
Diesel and
Gasoline Engines
Hybrid
Systems
to h
ere
…
Rapid Prototypes
Advanced Hybrid Systems and
Battery Technology
Efficient Power
……adapting to real world needs…….
5.7L HEMI®Engine
BugattiVeyronTransmission
……and looking towards the future.
Vehicle To Grid
Unmanned Vehicles
RICARDO
RICARDO
7©
Ric
ard
o p
lc 2
00
9R
D.0
8/#
###
##.#
Automotive Has Collapsed Overnight, But Still
ProfitablePrior FY Order
Intake
Order Intake to Date
July ’07 -June ’08
July ’08 –April ‘09
Marg
ins &
Mix
=$ Profitability Maintained
Volu
me
Costs
8©
Ric
ard
o p
lc 2
00
9R
D.0
8/#
###
##.#
�M
ilita
ry f
ue
l re
ductio
n
ag
en
da
–#
2 p
rio
rity
fo
r g
roun
d
fle
et
�S
tate
le
gis
lation
-R
en
ew
ab
le P
ort
folio
S
tan
da
rds
�E
ffic
ien
cy
issue
s e
xplo
din
g
in a
dja
ce
nt
mark
ets
�A
uto
s s
till
90
%+
ga
s–
Do
wn
siz
ing
, D
I, turb
o‘s
, V
VT
, D
CT
‘s�
Fu
el p
rice s
pik
es
�C
AF
E s
tan
dard
s -
35
% F
E
imp
rove
me
nt
requir
ed
�A
cce
lera
tes g
row
th o
f a
lte
rna
tive
pro
pu
lsio
n–
Ve
hic
le E
lectr
ific
atio
n -
hyb
rid
ve
rsio
n o
f eve
ry
mo
de
l–
$2
B a
dva
nce
d b
atte
ry
pa
ck m
ark
et b
y 2
01
1�
Ve
hic
le to G
rid
�O
ff-H
wy
reg
ula
tion
s
�$
40
B in D
OE
fu
ndin
g�
Oil
Ind
ep
end
ence
–
1M
PH
EV
’sb
y 2
01
5�
Fu
el d
ive
rsity
–B
io-f
ue
ls lik
e e
than
ol –
EB
DI
�C
lea
n E
ne
rgy
-w
ind
& s
ola
r
Key Business Drivers are Strong
Strategy Go W
here the Money Is
Global Climate Change
CAFE/CO2 Regulations
Government Stimulus
Sourc
e:
Ricardo is in the Sweet SpotNew
ww
w.r
ica
rdo
.co
m
©R
icard
o p
lc 2
00
9
Emerging Strategic Issues That Will Help
Shape the North American Auto Industry
Andy Chien
President and Managing Director –RSC North America
10
©R
icard
o p
lc 2
00
9R
D.0
8/#
###
##.#
On top of the macro-economic slowdown, the auto industry
faces additional disruptors that will reshape the industry
Economic Volatility
Sector "Ecosystem" Damage
Product Mix Uncertainty
Disruptive Technologies
�N
early
unpre
cedente
dvo
latilit
y in
exc
hange r
ate
s, fa
cto
r in
puts
(ste
el,
copper,
pre
cio
us m
eta
ls)
and e
nerg
y im
pacting b
oth
costs
and r
eve
nues
�A
uto
motive
valu
e c
hain
(supply
chain
, dis
trib
ution)
seve
rely
dis
rupte
d b
y dow
ntu
rn a
nd r
estr
icte
d c
apita
l flow
s;
may
constr
ain
recove
ry
�R
apid
ly s
hift
ing c
onsum
er
pre
fere
nces a
nd e
volv
ing federa
l and
sta
te leve
l re
gula
tions leadin
g to
his
toric leve
ls o
f pro
duct uncert
ain
ty
�G
reen (
CO
2, ta
ilpip
e e
mis
sio
ns),
and
energ
y security
legis
lation
drivi
ng a
ccele
rate
d a
doption o
f dis
ruptive
technolo
gie
s
Future
State
Industr
y challe
nges
11
©R
icard
o p
lc 2
00
9R
D.0
8/#
###
##.#
Emerging
Issues
Automakers need to be form
ulate a response to these future
issues C
ritical Supplier
Viability
�O
pe
rational im
pro
vem
ent support
to a
ssis
t critical
supplie
rs w
ith a
part
icula
r fo
cus o
n "
chokepoin
t"
supplie
rs w
ith fe
w v
iable
altern
atives d
ue to t
echn
olo
gy
or
pro
duct
capabili
ties
Portfolio Optimization
�P
ort
folio
and technolo
gy
div
ers
ific
ation s
trate
gie
s t
o
reduce r
isk a
ssocia
ted w
ith u
ncert
ain
energ
y p
rices,
consum
er
pre
fere
nces, changin
g r
egula
tory
environm
ent
Scalable Energy
Optimized Vehicle PD
Process/Practices
�R
ein
venting the P
roduct D
evelo
pm
ent
(PD
) p
rocess to
facili
tate
the d
evelo
pm
ent and p
roduction o
f energ
y optim
ized v
ehic
les
Em
erg
ing is
sues
Product Development
Cycle Time Reduction
�D
ram
atic p
roduct
cyc
le tim
e r
eductions to b
ett
er
matc
h
develo
pm
ent tim
es w
ith f
utu
re m
ark
et vola
tilit
y
12
©R
icard
o p
lc 2
00
9R
D.0
8/#
###
##.#
A fundamental disconnect exists between development and
market cycle times, adding additional risk to the enorm
ous
cost of new vehicle development
Current Automotive Development is a High
Investment, Long Lead Activity
Shifts in Market Drivers Can Occur in Far
Less Time
�A
vera
ge p
rogra
m c
ost
–M
Y U
pdate
(~
5%
of conte
nt)
: <
$10M
–M
id-C
ycle
Enhancem
ent/M
inor
Upgra
de
(~20%
): $
100M
to $
150M
–M
ajo
r U
pgra
de (
~50%
): $
150M
to $
250M
–N
ew
Vehic
le (
~90%
): $
500M
to $
1B
�A
vera
ge D
eve
lopm
ent tim
e
–M
odel Y
ear
Update
: 9 to 1
2 m
onth
s
–M
id-C
ycle
Enhancem
ent/M
inor
Upgra
de:
12 to 1
8 m
onth
s
–M
ajo
r U
pgra
de: 18 to 2
4 m
onth
s
–N
ew
Vehic
le: 36 to 6
0 m
onth
s
Sourc
e: W
arr
anty
Week,
Auto
loan
Daily
, Japan T
imes,
EIA
, R
icard
o A
naly
sis
Issue D
eep D
ive: P
D c
ycle
tim
e c
om
pre
ssio
n
Direct cost of poorly
deve
loped v
ehic
les a
re
enorm
ous: $24B
in industr
y w
arr
anty
costs
, 10.8
M
vehic
les r
ecalle
d in 2
008
During the 5
4 m
onth
Gen III P
rius
deve
lopm
ent cyc
le, oil
prices/b
arr
el w
ent fr
om
$40 to $
140, and b
ack to $
36
!
020406080100
120
140
Gen III PriusProgram
AvgOil Price ($/Barrel)
2001 to 2
010 (
month
ly)
Average Crude Oil Price/Barrel (2001 –present)
13
©R
icard
o p
lc 2
00
9R
D.0
8/#
###
##.#
As automakers regroup and seek competitive advantage,
cycle time reduction needs to be aggressively addressed
Resource front loading:
Bu
ild the
blu
ep
rin
t an
d
exe
cu
te to
it
Requirements
Optimization:
Elim
ina
te
wa
ste
fro
m o
ver/
unde
r spe
cific
ation
Simulation vsTrial &
Error Experimentation:
Acce
lera
te c
ycle
s o
f le
arn
ing
Commonality:
Re
use
vs
con
tinua
l R
e-in
ven
tion
Evolutionary
Development:
Sin
gle
s/
Doub
les v
s.
Hom
e
Run
s/G
rand
Sla
ms
Technology Portfolio
Development:
Bo
oksh
elf
pro
du
ctio
n r
ea
dy
techno
logy
Earlier Supplier
Integration:
Pre
-se
lectio
n a
nd
ea
rly
co
-de
velo
pm
en
t
New Product Development ("V-Model") Cycle Time Reduction Levers
Issue D
eep D
ive: P
D c
ycle
tim
e r
eductio
n le
vers
ww
w.r
ica
rdo
.co
m
©R
icard
o p
lc 2
00
9
Total Vehicle Fuel Economy
Sandy Stojkovski
Director
ww
w.r
ica
rdo
.co
m
©R
icard
o p
lc 2
00
9
Vehicle Electrification
16
©R
icard
o p
lc 2
00
9R
D.0
8/#
###
##.#
Hybrid and Electric Vehicles are Completely
Electrifying the Vehicle
12V
Battery
DC/DC
Converter Automated
Manual
Transmission
Main
E-
Machine
Inverter
For Main
E-Machine
Battery
Engine
Starter /
Generator
Starter /
Generator
Inverter
Electric A/C
Compressor
High-Voltage
Junction and
Fuse Box
17
©R
icard
o p
lc 2
00
9R
D.0
8/#
###
##.#
Batteries are Key to the Electric Vehicle Solution
�C
om
ple
te,
outs
ourc
ed b
att
ery
pack d
esig
n a
nd inte
gra
tion
�S
eam
less e
xte
nsio
n o
f custo
mer’s b
att
ery
sys
tem
develo
pm
ent
�E
valu
ation in o
ur
Batt
ery
Sys
tem
Develo
pm
ent
Cente
r
Cells
Vehic
les
Packs
Module
s
18
©R
icard
o p
lc 2
00
9R
D.0
8/#
###
##.#
A new generation of electronic technology is
required to help meet these challenges
Cutting
Emissions/
Pollution
Reducing
Congestion
Improving Road
Safety
�Recent advances in Electronics technology
provides increased inform
ation
–G
PS
/ M
ap s
yste
ms for
navi
gation, Long a
nd
Short
range r
adar,
RD
S/T
MC
Tra
ffic
info
, T
ele
matics info
rmation…
�These systems can be used to improve
Environmental Perform
ance:
–R
eduction o
f F
uel C
onsum
ption, C
O2
em
issio
ns
and P
ollu
tant em
issio
ns v
ia b
etter
pow
ert
rain
contr
ol
–T
he m
ore
fle
xible
the futu
re p
ow
ert
rain
, th
e b
igger
the p
ote
ntial gain
..
�They can also provide inform
ation for improved
Safety…
–W
arn
ings for
Pro
xim
ity,
Lane D
epart
ure
, A
dve
rse
Conditio
ns,
Appro
achin
g H
azard
; In
puts
to
Sta
bili
ty C
ontr
ol /
Active
Chassis
pro
gra
ms
–P
ossib
le futu
re s
ourc
e o
f in
form
ation for
Safe
D
rivi
ng E
nfo
rcem
ent and A
uto
mate
d A
ccid
ent
Avo
idance
�Congestion can be reduced by better traffic
management & reducing accidents.
ww
w.r
ica
rdo
.co
m
©R
icard
o p
lc 2
00
9
Ethanol Boosted Direct Injection Engine
“EBDI”
Rod Beazley
Director
20
©R
icard
o p
lc 2
00
9R
D.0
8/#
###
##.#
Ricardo Ethanol Boosted Direct Injection
(EBDI®)
Research Engine
Environment
Reduce CO2Emissions
21
©R
icard
o p
lc 2
00
9R
D.0
8/#
###
##.#
Future Engine Challenges -Drivers of Change
Emissions Legislation
Tie
r 4
Re
trofit e
mis
sio
ns
20
10
C0
2le
gis
latio
n
FUEL
FUEL
FUEL
FUEL
Die
sel vs
ga
s c
ost d
iffe
ren
tial
Va
riab
ility
/ V
ola
tility
of
fue
l co
sts
Ava
ilab
ility
of
alte
rna
tive
fue
ls
Technology Advancement
Em
issio
ns d
rive
n a
fte
rtre
atm
en
t co
mple
xity
Ga
solin
e /
SI eff
icie
ncy
ad
van
cem
en
tW
ast
e h
ea
t re
cove
ry
Increasing Customer Demands
Co
st
redu
ctio
nR
edu
ced
co
st
of
ow
ne
rsh
ipIn
cre
asin
g e
ngin
e o
utp
ut
5
ww
w.r
ica
rdo
.co
m
©R
icard
o p
lc 2
00
9
DE
LIV
ER
ING
VA
LU
E T
HR
OU
GH
IN
NO
VA
TIO
N &
TE
CH
NO
LO
GY
Fuel econom
y im
pro
vem
ent
solu
tions
for
multip
le a
pplic
ations:
Passenger cars
Truck and medium duty vehicles
Off road applications: Agricultural and Construction
3.2
L S
park
Ignited e
ngin
e r
unnin
g o
n E
85 e
thanol w
ith p
erf
orm
ance o
f 6-7
L D
iese
l engin
e
Fully
fle
xib
le p
ow
ert
rain
optim
ized f
or
opera
tion o
n s
tandard
pum
p g
aso
line to E
85
0
100
200
300
400
500
600
700
800
900
1000
01000
2000
3000
4000
5000
6000
Engine Speed (rpm)
Torque (Nm)
EBDI E85 - Target
6,000lb Gas Engine
8,500lb Diesel Engine
6,000lb Diesel Engine
700 Nm available across 3,600 rpm range
Downsizing = “Doing More W
ith Less”
Ethanol Boosted Direct Injection (EBDI)®
EBDI=
EXTREME
Downsizing
Unprecedented Spark
Unprecedented Spark
Unprecedented Spark
Unprecedented Spark- ---Ignited Performance
Ignited Performance
Ignited Performance
Ignited Performance
A scaleable SI engine technology package
Vastly Reduced CO
Vastly Reduced CO
Vastly Reduced CO
Vastly Reduced CO2 222Emission
Emission
Emission
Emission
100
150
200
250
300
350
400
450
500
550
600
FTP75
US06
HFET
Test Cycle
CO2 emission (g/km)
Current Diesel
Current NA Gas
EBDI Gas
EBDI E85
Ric
ard
o C
onfide
ntial
25 F
ebru
ary
20
09
©R
icard
o p
lc 2
00
9
23
©R
icard
o p
lc 2
00
9R
D.0
8/#
###
##.#
EBDI®–Regulated Cycle CO2Reduction
�In
itia
l sim
ula
tion p
erf
orm
ed
on 8
,000 lb tru
ck s
ho
ws e
xcelle
nt re
sults for
the
E
BD
I®concept
�F
urt
he
r im
pro
ve
ment po
tential w
ith fin
al drive r
atio
adju
stm
ent
Gasoline
Diesel
Ratio
4.027
3.1
1.30
2.364
1.81
1.31
1.532
1.41
1.09
1.152
11.15
0.852
0.71
1.20
0.667
0.61
1.09
TransmissionsFTP 75
HWFET
US06
NA GAS
-60
40
140
240
340
440
540
640
740
840
940 550
1550
2550
3550
4550
Vehicle Speed
Engine Torque
US06
FTP75
HWFET
Diesel
-60
40
140
240
340
440
540
640
740
840
940 550
1550
2550
3550
4550
Engine Speed
Engine Torque
US06
FTP75
HWFET
EBDI 3.2L
-60
40
140
240
340
440
540
640
740
840
940 550
1550
2550
3550
4550
Engine Speed
Engine Torque
US06
FTP75
HWFET
100
150
200
250
300
350
400
450
500
550
600
FTP75
US06
HFET
Test Cycle
CO2 emission (g/km)
Current Diesel
Current NA Gas
EBDI Gas
EBDI E85
Engine Speed
24
©R
icard
o p
lc 2
00
9R
D.0
8/#
###
##.#
Thank You