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Dysfunctional dashboards: Auto suppliers competing to clean up the cockpit

SAN FRANCISCO - Peer at the instrument panel on your new car and you see sleek digital gauges and multicolored screens. But behind the dashboard, here's what US auto supplier Visteon Corp found: a mess. As automotive cockpits become crammed with ever more digital features such as navigation and entertainment systems, the electronics holding it all together have become a rat's nest of components made by different parts makers. Now the race is on to clean up the clutter. Visteon is among a slew of suppliers aiming to make dashboard innards simpler, cheaper and lighter as the industry accelerates toward a so-called virtual cockpit - an all-digital dashboard that will help usher in the era of self-driving cars. What's at stake is a piece of the $37 billion cockpit electronics market, estimated by research firm IHS Market to nearly double to $62 billion by 2022. Accounting firm PwC estimates that electronics could account for up to 20 percent of a car's value in the next two years, up from 13 percent in 2015. Meanwhile, the number of suppliers for those components is likely to dwindle as automakers look to work with fewer companies capable of doing more, according to Mark Boyadjis, principal automotive analyst at IHS Markit. "The complexity of engineering 10 different systems from 10 different suppliers is no longer something an automaker wants to do," Boyadjis said. He estimates manufacturers eventually will work with two to three cockpit suppliers for each model, down from six to 10 today. DIGITAL MAKEOVER One of Visteon's solutions is a computer module dubbed "SmartCore." This cockpit domain controller operates a vehicle's instrument cluster, infotainment system and other features, all on the same tiny piece of silicon. So far this year, the Detroit-based company has landed two big contracts for undisclosed sums. One, announced in April, is with China's second-largest automaker, Dongfeng Motor Corp. The other is with Mercedes-Benz, Reuters has learned. Mercedes did not respond to requests for comment. Another unnamed European automaker plans to use the system in 2018, according to Visteon. Visteon is going all-in on cockpit electronics, having shed its remaining automotive climate and interiors businesses in 2016. The bet so far is paying off. The company secured $1.5 billion in new business in the first quarter, helped by growth in China. Visteon's stock price is up more than 50 percent over the past year.

Daimler rebuffs Geely offer to buy stake

HONG KONG/BEIJING - Daimler AG has turned down an offer from China's Geely to take a stake of up to 5 percent via a discounted share placement, as the German automaker has long been reluctant to see existing shareholdings diluted, sources with knowledge of the talks said. A stake of that size would be worth $4.5 billion at current market prices. Although Daimler declined the offer, it told Geely it was welcome to buy shares in the open market, the sources added. Carmakers in China have embarked on a flurry of dealmaking, as they scramble to boost production of electric and plug-in hybrid vehicles ahead of tough new quotas to be imposed by Beijing, which wants to reduce urban smog and lower the country's reliance on oil. People with knowledge of Geely's thinking said the company was keen to access Daimler's electric car battery technology and wanted to establish an electric car joint venture in Wuhan, the capital of Hubei province. Geely, which also owns Swedish car maker Volvo, is still hopeful it can secure a deal in some form over the coming weeks, they added. The two automakers met in Beijing in recent weeks at Geely's behest. There, the Chinese firm, formally known as Zhejiang Geely Holding Group, offered to take a stake of between 3 percent and 5 percent if Daimler would issue new shares at a discount, the sources said. It was not immediately clear what kind of discount for the shares Geely had in mind or whether Geely was interested in buying the shares on the open market. A spokesman for Geely declined to comment. A spokesman for Daimler said the company was "very happy with our shareholder structure at present", but added that it would welcome new investors with a long-term interest in the company. Shares in Daimler were up 1 percent in early Wednesday trade, in line with the broader market.DAIMLER ALREADY TIED TO BAIC, BYD Geely, which has a market value of some $32 billion, is the leading domestic brand in China with a 5 percent market share, according to an analysis by Nomura Securities. A stake of 5 percent would establish it as Daimler's third-largest shareholder behind the Kuwait Investment Authority and BlackRock, who hold 6.8 percent and 6 percent respectively, according to Reuters data.

Mercedes-Benz starts internship program for refugees

Mercedes-Benz has started a new internship program for refugees in Germany, which offers participants work training and German language lessons over the course of fourteen weeks. Its aim is to help refugees and asylum seekers integrate into the German workforce, but not necessarily at the automaker. The "bridge intern" program is a joint effort between Daimler and the German government's Federal Employment Agency. It starts each day on the early shift at 6:00 a.m. with three and a half hours of work in areas like axle production and logistics. That's followed by another three and a half hours of language courses where they learn to converse in German in 10-person groups, which includes help with writing letters for job applications and other critical employment skills. Germany has been flooded recently with refugees and asylum seekers. Many of them have been coming in from the war zone in Syria. However the program also welcomes refugees from other Central Asian and African countries, including Afghanistan, Eritrea, Gambia, Nigeria, and Pakistan. The program is open to participants between the ages of 20 and 51. "The best way for people to integrate is at the workplace," said Michael Brecht, chairman of Daimler's General Works Council. "Doing things together creates understanding for one another. That is why we are delighted that many colleagues have expressed a willingness to mentor the 'bridge interns'." In the statement below, Brecht stresses that the internship participants "are not in competition with temporary agency workers or our core workforce. This program does not put anybody at a disadvantage." The first six weeks of the program are financed by the Federal Employment Agency, but after that, Daimler foots the bull for another eight weeks, paying the interns the standard minimum wage. The first such program has already started at the Unterurkheim plant in Stuttgart, and is set to be followed by other similar programs at additional locations. 40 refugees start 'bridge internships' at Daimler Stuttgart, Nov 09, 2015 - Participants from Afghanistan, Eritrea, Gambia, Nigeria, Pakistan and Syria - Fourteen-week internship in cooperation with the German Federal Employment Agency - Daimler qualifies refugees for the German labor market - Internships for several hundred more refugees are planned at other company locations Forty refugees and asylum seekers have started a so-called 'bridge internship' at Daimler.