Frost & Sullivan: Spate of Software Related Vehicle Recalls and the Future of Automotive Electronics

LONDON, February 11 - With all eyes now peeled on Toyota for three major vehicle recalls and
the potential of yet another recall holding the world's attention, much more
is at stake than financial consequences or the momentary loss of consumer
confidence. As Vehicle Manufacturers (VMs) awaken to the dangers of
increasing electronics content, the development and deployment of key
automotive technologies like Advanced Driver Assistance Systems (ADAS) and
the future of legislations mandating electronic technologies aimed at
improving overall safety, is at play.

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On the heels of Toyota recalling nearly half a million flagship 2010
Prius and other hybrid vehicles over braking problems comes Ford's
announcement that it will update brake-related software on its 2010 Ford
Fusion Hybrid and Mercury Milan Hybrid and questions are now arising about
the safety of 2009 - 2010 Toyota Corollas and 2005 - 2009 Chevrolet Cobalts.

Insatiable demand for fuel efficiency and better driving dynamics,
together with VMs' focus on making cars safe, fun, comfortable and luxurious,
have greatly increased electronics and software content in cars. "While
electronics has increased efficiency and passenger comfort, it has also
exposed the consumers to higher risk of accidents and VMs to painful recalls
costing millions of dollars. It has also caused an inordinate blow to trust
that countless consumers have bestowed on the car maker," says Krishnasami
Rajagopalan, Frost & Sullivan's Global Program Manager - Chassis, Safety &
Driver Assistance Systems Group, in a new article entitled: Software Issues
in Toyota Motor Corporation, Ford Motor Company and Chevrolet Vehicles -
Different Facets of Problems Posed by Electronic in Cars.

The process of increasing electronic content was always perceived as safe
and this aspect of electronics gave impetus for both carmakers and
governments to amply depend on them. However, recent recalls from Toyota and
Ford were both related to software in the vehicles' anti-lock brake system
(ABS); a system that is widely mandated worldwide, including in Europe and
the United States, for its safety benefits. "Despite the fact that the issue
is related to hybrid car regenerative breaking alone, it is anticipated to
have wider repercussions on the use of electronics in general, especially
those of safety systems," adds Frost & Sullivan Research Analyst Aswinkumar
P.

It now remains to be seen whether the recent recalls will lead to
stricter enforcement, review and testing of vehicle electronics. At stake are
the future design and deployment of these systems as well as inevitable price
increases for consumers as well as potential liability issues for suppliers.
Importantly, it remains to be seen whether any weakening of consumer
confidence in vehicle electronics will lead to slowdown of
"electronification" of the automobile itself. "The consequences of the
recalls will have repercussions not only for VMs, but also for electronic
system suppliers and regulators who have been slow to act on consumer
complaints about vehicle electronics. Until this problem is sorted out
amicably and trust restored, consumers are likely to sit apprehensively in
their cars surrounded by electronics they no longer trust," concludes
Rajagopalan.

If you are interested more information on this article or to speak with
its authors, please e-mail Monika Kwiecinska, Corporate Communications, at
monika.kwiecinska@frost.com, with your full name, company name, title,
telephone number, company e-mail address, company website, city, state and
country.

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    Contact:
    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160
    E: monika.kwiecinska@frost.com

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Monika Kwiecinska of Frost & Sullivan Corporate Communications - Europe, +48-22-390-4127, fax, +48-22-390-4160, monika.kwiecinska at frost.com