Navigation For All

Every new car on the planet, from the most expensive luxury car to the lowliest of econo-boxes, will have a navigation system onboard within 10 years, says the North American CEO of electronics supplier Continental AG.

Less certain is the breakdown between embedded navigation systems installed at the factory and those brought into the vehicle by the driver or passenger.

Sales of personal navigation devices from brands such as Garmin and TomTom are vastly outpacing the more expensive embedded systems that have been appearing on a growing number of vehicles over the past decade.

Today, Continental estimates some 90% of navigation systems in vehicles are of the personal, portable variety, leaving the remaining 10% for systems embedded in the car.

But that split is destined to change dramatically over the next several years, says Samir Salman, North American CEO of Continental's Automotive Div.

“My guess is it probably will be biased toward embedded systems,” Salman says of future navigation devices.

That's because auto makers will expect navigation systems to integrate more completely with powertrain, chassis and safety systems as the industry migrates to the model of the “connected car.”

For instance, a vehicle will consume less fuel if an intelligent navigation system can route drivers around traffic jams. An embedded navigation system also can integrate with forward-facing sensors to detect an object around a curve the driver can't see yet, allowing the braking system to pre-load for an emergency stop.

A fairly sophisticated (and inexpensive) personal navigation device may be a wonderful tool to get directions, but it cannot interact with a vehicle in the same way, he says.

Auto makers want to achieve certain functionality with regard to powertrain, chassis and safety systems in the future, and embedded navigation systems are the key enabler, Salman says.

“The role of navigation will change tremendously from being a device for going from Point A to B to becoming a device ready for many functions.

“The trend is immense. We probably do not foresee yet the change this will cause,” Salman says at a recent media roundtable.

“We will sit here in two to three years wondering, ‘Why didn't we think of this?’ and ‘Why didn't we think of that?’ when we were sitting here in 2010.”

However, for this market shift to occur, the price of embedded navigation systems will have to come down, while offering more functionality.

Personal devices can be had for less than $100, and prices are bound to continue falling as a growing number of smart phones, such as the Apple iPhone, offer navigation capability. Many consumers now can download free navigation applications to their mobile phones.

Bluetooth recognition of these devices allows a driver to access turn-by-turn directions over the vehicle's audio system, but only if the cell phone has the proper application and is paired with the vehicle. However, the map information would not be displayed inside the car and only could be viewed on a mobile phone screen.

At this point, Bluetooth technology is used primarily to assist a driver with hands-free phone calls and music streaming. Meanwhile, embedded systems remain pricey add-ons that are becoming common in luxury cars but still hard to find in high-volume inexpensive vehicles.

In the middle of the market, the Honda Accord offers navigation on four out of five trim levels while the Chevrolet Malibu and Impala sedans make it available only through the OnStar communications system.

In some cases, the price of an embedded navigation system is elusive, because it is folded into a broader option package.

For instance, a '10 Acura TSX with V-6 stickers for $38,760 and includes a technology package that integrates navigation with voice recognition and rear-view camera. It also includes the AcuraLink communication system with real-time traffic and weather updates.

Nissan Motor Co. Ltd. soon will launch the all-new '11 Infiniti M56 luxury flagship sedan with a navigation system as standard equipment.

The Ward's staff recently tested a '10 Ford F-150 4-wheel-drive SVT Raptor with a $46,020 price tag, including $2,430 for Sony Navigation Radio and an extra $450 for the rear-view camera. The Sony audio system includes digital signal processing, surround sound, 12 speakers and 390 watts of continuous power.

But Ford Motor Co. also has a less-expensive navigation option with its popular Sync in-car communications system, which recognizes smart phones and MP3 players and allows them to be controlled with verbal commands. Sync is priced at $395 and is available on every vehicle in the Ford lineup. It is standard across the Lincoln portfolio.

Kieran O'Sullivan, executive vice president of Continental's Infotainment & Connectivity business unit, says he expects both embedded and hand-held navigation systems to co-exist as auto makers choose their preferred technology path.

“Ford is obviously on the device side” with the Sync system, O'Sullivan says. “Mercedes-Benz and BMW are on the embedded side, and then there's OnStar as well. Working with the auto manufacturers is very important, because it depends on how they want to present it.”

The challenge facing automotive suppliers is how to make money in the navigation market, particularly with the arrival of inexpensive hand-held devices, which carry with them the expectation that such information will be available to consumers for free.

Salman compares the emerging navigation market to that for electronic stability control, which was a luxury feature more than a decade ago. Within two years, the anti-skid technology will be standard on all new vehicles in the U.S.

Salman wonders if a similar regulatory fate is in store for navigation systems.

“It's a matter of volume. It will be a no-brainer,” he says. “Each car will have a navigation system, and there will be no need to bring it from the outside to the inside.”

ABI Research of London forecasts global navigation satellite system shipments will reach more than 500 million this year and continue growing to 1.1 billion in 2014.