BOSTON, USA: Automotive remote keyless entry (RKE) systems will be upstaged in the future by Passive Go (PG)—where the driver needs a key to open the car door, but not to start the car—and Passive Entry Go (PEG) systems—where the car key remains in the driver’s pocket for both car entry and car ignition.
However, without breakthroughs in cost-reduction and consumer awareness, neither system will be deployed in large volumes, according to the Strategy Analytics report, “Vehicle Entry and Go: Passive Systems Set to Challenge RKE.”
PEG systems may not be deployed beyond an 11M unit niche by 2016. With cost reductions and consumer awareness, PEG could grow to 19M units, valued at $867M.
The more cost-effective PG systems could sell 26M units by 2016.
While passive systems offer drivers convenience, they are costly to develop. They require custom development, with more components, for each model and are complex to install. Also, consumers are mainly unfamiliar with keyless operation.
“Vendors have been developing more integrated solutions to resolve cost issues, enhanced reliability and usability, and increased functionality of passive systems in order to make such purchases worthwhile,” says Kevin Mak, author of the report and Industry Analyst of the Strategy Analytics Automotive Electronics Service.
“The PG system essentially raises the convenience of the conventional RKE system, without the high costs associated with a full PEG system. If successful, vendors may realize a market by 2016 for which there will be equal deployment of PG and RKE systems.”
Future key systems will also offer additional information, such as vehicle temperature, as evidenced by the long-range, two-way communication devices pioneered by General Motors and Volvo.
Showing posts with label automotive electronic components. Show all posts
Showing posts with label automotive electronic components. Show all posts
Thursday, August 20, 2009
Friday, July 31, 2009
OMRON to spin off automotive electronic components business
TOKYO, JAPAN: Following a resolution at a board of directors meeting, OMRON Corp. announced its intention to spin off its automotive electronic components business into a new company, to be established in April 2010, through a corporate split.
Details will be announced following approval at the board of directors meeting scheduled for the second half of January 2010.
1. Background and Purpose
OMRON has designated the period from February 2009 through March 2011 as a “revival stage” in which sweeping profit structure reform will be implemented throughout the entire Group.
As part of this profit structure reform, OMRON will reorganize its business domains over the medium-term, focusing on its three control-based businesses (industrial automation, electronic components and automotive electronic components). The spin off of the automotive electronic components business is intended to improve profitability by allowing independent management of this unique business.
OMRON entered the automotive electronic components business in 1983. In 2003, after Omron instituted an internal company system, this division was reorganized as the Automotive Electronic Components (AEC) Company. OMRON worked to strengthen the burgeoning business, and sales increased rapidly on a global basis alongside the expansion of the automobile market.
The automobile industry is now feeling the effects of the global recession that began in the United States last year. With little hope of recovery in the short term and the future remaining unclear, alliances between automakers have accelerated, creating a spillover effect on suppliers of automotive systems and components.
AEC sees the changes currently taking place within the global automobile industry as an opportunity to transform itself into a company that can respond quickly and boldly to change.
In recent years, there has been a shift in what consumers require from their vehicles, resulting in the increasing adoption of automotive electronics. As an independent company, AEC will build on OMRON's core competence, sensing and control technology, and further strengthen the electronics technology and auto know-how and technology that it has cultivated to date.
AEC will focus these strengths on electronic control systems used in automotive bodies and work to respond to increasingly sophisticated and complex customer needs. At the same time, it will take a proactive and agile approach in considering partnerships and collaboration with other companies in order to respond to customer needs as quickly as possible.
In consideration of the above, OMRON determined that independent management capable of understanding and responding to movements in the automobile industry was needed to further strengthen AEC.
2. Outline of Split
1) Timeline
Schedule finalized: Second half of January 2010 (planned)
Plans approved at BOD meeting: Second half of January 2010 (planned)
Split date (effective date): April 1, 2010 (planned)
OMRON has not yet determined which assets will be transferred to the new company or their value; however, as they are not expected to exceed one-fifth of OMRON’s total assets, OMRON will not seek shareholder approval for the split in accordance with Article 805 of the Corporate Law of Japan.
2) Method
This is a simple corporate split in which OMRON is the transferring company and the new company is the assuming company.
3) Share allocation
Upon the corporate split, the new company will issue shares of common stock and allocate all of those shares to OMRON, making it a wholly owned subsidiary of OMRON.
4) Other
OMRON plans to announce information regarding the treatment of new stock acquisition rights and corporate bonds issued as a result of the corporate split, the increase or decrease of capital as a result of the split, rights and obligations to be assumed by the new company, and outlook for the fulfillment of obligations after plans for the split are approved at the board of directors meeting scheduled for the second half of January 2010.
Details will be announced following approval at the board of directors meeting scheduled for the second half of January 2010.
1. Background and Purpose
OMRON has designated the period from February 2009 through March 2011 as a “revival stage” in which sweeping profit structure reform will be implemented throughout the entire Group.
As part of this profit structure reform, OMRON will reorganize its business domains over the medium-term, focusing on its three control-based businesses (industrial automation, electronic components and automotive electronic components). The spin off of the automotive electronic components business is intended to improve profitability by allowing independent management of this unique business.
OMRON entered the automotive electronic components business in 1983. In 2003, after Omron instituted an internal company system, this division was reorganized as the Automotive Electronic Components (AEC) Company. OMRON worked to strengthen the burgeoning business, and sales increased rapidly on a global basis alongside the expansion of the automobile market.
The automobile industry is now feeling the effects of the global recession that began in the United States last year. With little hope of recovery in the short term and the future remaining unclear, alliances between automakers have accelerated, creating a spillover effect on suppliers of automotive systems and components.
AEC sees the changes currently taking place within the global automobile industry as an opportunity to transform itself into a company that can respond quickly and boldly to change.
In recent years, there has been a shift in what consumers require from their vehicles, resulting in the increasing adoption of automotive electronics. As an independent company, AEC will build on OMRON's core competence, sensing and control technology, and further strengthen the electronics technology and auto know-how and technology that it has cultivated to date.
AEC will focus these strengths on electronic control systems used in automotive bodies and work to respond to increasingly sophisticated and complex customer needs. At the same time, it will take a proactive and agile approach in considering partnerships and collaboration with other companies in order to respond to customer needs as quickly as possible.
In consideration of the above, OMRON determined that independent management capable of understanding and responding to movements in the automobile industry was needed to further strengthen AEC.
2. Outline of Split
1) Timeline
Schedule finalized: Second half of January 2010 (planned)
Plans approved at BOD meeting: Second half of January 2010 (planned)
Split date (effective date): April 1, 2010 (planned)
OMRON has not yet determined which assets will be transferred to the new company or their value; however, as they are not expected to exceed one-fifth of OMRON’s total assets, OMRON will not seek shareholder approval for the split in accordance with Article 805 of the Corporate Law of Japan.
2) Method
This is a simple corporate split in which OMRON is the transferring company and the new company is the assuming company.
3) Share allocation
Upon the corporate split, the new company will issue shares of common stock and allocate all of those shares to OMRON, making it a wholly owned subsidiary of OMRON.
4) Other
OMRON plans to announce information regarding the treatment of new stock acquisition rights and corporate bonds issued as a result of the corporate split, the increase or decrease of capital as a result of the split, rights and obligations to be assumed by the new company, and outlook for the fulfillment of obligations after plans for the split are approved at the board of directors meeting scheduled for the second half of January 2010.
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