**London**: The automotive sector is shifting towards software-defined vehicles (SDVs), necessitating new supplier collaborations and innovative product architectures. Key insights from Valeo’s Derek de Bono highlight the industry’s need for co-development partnerships and an approach that decouples hardware and software to ensure vehicles evolve post-manufacture.
The automotive industry is undergoing a significant transformation with the rise of software-defined vehicles (SDVs), prompting a reevaluation of supplier relationships and the approach to procurement. This shift not only requires advanced technological adaptations but also demands a fundamental change in operational mindset among original equipment manufacturers (OEMs).
The transition to SDVs presents a unique challenge for established automakers, who must strike a balance between maintaining legacy technologies and innovating new product architectures. Start-ups in the automotive sector, in contrast, have the advantage of a “clean slate” to develop their offerings. As highlighted by Derek de Bono, Head of SDV at Valeo, the automotive industry must pivot towards creating vehicles that can continually evolve post-manufacture, rather than delivering static products. He stressed that “the industry has always dreamed of a car that could evolve with the customer, but hardware needs to provide a solid enough foundation for that dream to come true.”
The move to SDVs is predicated on the establishment of robust ecosystems that foster collaboration amongst a range of stakeholders. De Bono remarked that no single company can navigate the intricacies of SDV development alone. He stated, “An ecosystem of partners is necessary, each bringing their own expertise on a range of subjects—from AUTOSAR to system-on-chips and in-vehicle infotainment.” This collaborative approach is essential as automakers cede some control over their traditional processes to leverage the specific capabilities of their partners.
These partnerships will fundamentally alter the dynamics of product development and ownership. With a diverse range of partners contributing to SDV projects, the established roles of responsibility for OEMs and suppliers will evolve. De Bono noted that “everyone will be invested in ensuring a vehicle goes to market in time and meets the same quality standards a brand’s customers expect.” Hence, the concept of co-development and co-ownership is gaining traction within the sector, with companies like Valeo not only providing hardware but also integrating software solutions tailored to the needs of OEM partners.
The complexity involved in SDV technology necessitates a decoupling of hardware and software to unlock maximum value. De Bono pointed out that product lifecycles for SDVs must be distinctly different to accommodate the ongoing evolution of both hardware and software. He elaborated, stating, “If the industry wants to ensure the safety and stability of a vehicle for 15-20 years, there needs to be a new understanding about how the changing (software) and unchanging (hardware) elements come together.”
Valeo’s strategic initiatives, encapsulated in their ‘Valeo anSWer’ portfolio, illustrate their broad competencies within the SDV ecosystem. This approach positions Valeo to partner effectively with automotive leaders like Renault, supporting significant industry goals, including the development of mainstream SDV platforms. In collaboration with Google and Qualcomm, Valeo is supplying essential computing and electronic components necessary for the evolution of SDVs.
As with all innovations, financial sustainability is a critical factor influencing the adoption and development of SDVs. De Bono noted that while initial costs for SDV architectures can be significant, automation and over-the-air updates will lead to more efficient systems over time. He exemplified this with a vision of the future, where the beneficial “pay to unlock” models will provide manufacturers the incentive to invest in the hardware necessary for adaptable functionalities.
Looking ahead, de Bono forecasted that the first wave of products embodying this SDV philosophy could emerge within a span of 18-24 months. Such advancements not only anticipate a new landscape of competitive advantage for manufacturers but also underscore the importance of cultivating resilient supplier relationships that can adapt and thrive in an increasingly complex automotive ecosystem. Through collaboration, adaptability, and an emphasis on value creation, the automotive sector appears poised to embrace a future defined by both technological innovation and strategic partnership.
Source: Noah Wire Services
