Best of LinkedIn: Next-Gen Vehicle Intelligence CW 51 - 02

00:00:00: Brought to you by Thomas Allgeier and Frennis, this edition highlights key LinkedIn posts on next-gen vehicle intelligence in weeks fifty-one to two.

00:00:08: Frennis supports automotive enterprises and consultancies with market and competitive intelligence decoding disruptive technologies, customer needs, regulatory change, and competitive moves.

00:00:18: so product teams and strategy leaders don't just react but shape the future of mobility.

00:00:23: Welcome to the deep dive.

00:00:25: Our source stack for this session curated from, you know, two pretty intense weeks on LinkedIn.

00:00:30: It tells a really clear story.

00:00:32: It does.

00:00:33: The conversation around vehicles has moved sharply away from theoretical slogans and toward very tangible architectural shifts.

00:00:41: Exactly.

00:00:41: We're moving beyond just software defined and into AI defined.

00:00:44: The experts we follow were focused on execution, on scale, and on all the complex trade-offs you need to make to turn these ambitious roadmaps into real products.

00:00:53: Absolutely.

00:00:54: So for you, the listener, we're unpacking the top next-gen vehicle intelligence insights.

00:00:57: We'll cover the architectural foundation.

00:00:59: the critical validation needed for that intelligence, and then the global market realities that are really defining success.

00:01:06: Okay, so let's start with that big architectural shift.

00:01:08: The core theme seems to be this evolution from SDV, the software-defined vehicle, to the AI-DV, the AI-defined vehicle.

00:01:17: Yeah, and H. Manguino, he summarizes beautifully.

00:01:19: He said that SDV solved.

00:01:21: how often can we update.

00:01:22: Okay.

00:01:23: But the ADV has to solve the trust equation.

00:01:26: What are we allowed to learn?

00:01:28: It's a fundamental change in philosophy.

00:01:30: And

00:01:30: that's where it gets really interesting.

00:01:31: Magesh Sampath broke down the three eras for us.

00:01:35: First, you had the hardware-defined vehicle.

00:01:37: Right, static.

00:01:38: Totally static.

00:01:38: Second, the SDV, which is a live, you know, it's updatable via OTA.

00:01:43: And now the AIV, it's not just

00:01:44: programmed.

00:01:45: It's trained.

00:01:45: It's trained, exactly.

00:01:47: And Matt Demacino expanded on that.

00:01:48: He noted the core shift.

00:01:50: And AV moves beyond millions of lines of if-then code to... an intelligence foundation.

00:01:57: It's

00:01:58: a real-time learning.

00:01:59: Real-time learning replaces static programming.

00:02:01: And the critical reality is that this intelligence needs to live at the edge.

00:02:06: It can't just be in the cloud.

00:02:07: And

00:02:07: that shift, that requires a new physical backbone.

00:02:12: Which brings us to zonal architecture.

00:02:14: It has to.

00:02:15: Rajesh Sundaram explained why that legacy ECU-centric thinking just couldn't scale.

00:02:21: What was the main reason?

00:02:22: It was optimized for safety.

00:02:24: and determinism, but not for software velocity or OTA.

00:02:28: It just wasn't billed for that world.

00:02:30: Right.

00:02:31: And Rivendermudu then illustrated the solution, replacing all those distributed ECUs with zonal controllers and domain controllers.

00:02:38: Which enables centralized computing and crucially simplifies the wiring.

00:02:42: Kevin Cargar provided some really sharp strategic context on this move, didn't he?

00:02:47: He

00:02:47: did.

00:02:47: He pointed out that Chinese OEMs are treating zonal architecture as a competitive weapon.

00:02:52: How so?

00:02:53: Their priority is speed and bar dim reduction build materials, so they're making it their default SDV backbone right from the start.

00:02:59: A

00:02:59: totally clean slate.

00:03:00: Exactly.

00:03:01: While European OEMs like BMW, they're showing strong proof points, you know, around a thirty percent wiring reduction.

00:03:07: Which is great.

00:03:08: It is, but they carry the heaviest legacy burden.

00:03:11: So this structural approach, it directly influences their competitive positioning.

00:03:16: We are also seeing consolidation on the foundational software layer.

00:03:20: We are.

00:03:20: Sean Sahi highlighted the QNX and Vector Alloy Core partnership at CES, which offers a pre-integrated, safety-ready platform.

00:03:29: And that fundamentally changes the OEM's focus.

00:03:31: Right.

00:03:32: They can stop worrying about integrating the basic plumbing.

00:03:35: and start focusing on brand differentiation, on the services they can build on top of that trusted foundation.

00:03:41: And that foundation is increasingly open source.

00:03:44: Martin Schleicher reported that the Eclipse S-Core Coalition, which is driven by the VDA, is now over thirty companies strong.

00:03:51: The goal being to accelerate development and cut down on redundant engineering.

00:03:55: And Dr.

00:03:56: Fatih Tekin actually quantified that goal.

00:03:58: He's talking up to a forty percent reduction in maintenance effort and thirty percent faster time to market.

00:04:03: Those

00:04:03: are not small numbers.

00:04:04: That's about survival.

00:04:05: Absolutely.

00:04:06: Okay.

00:04:06: Let's pivot a bit to the operational side because more intelligence, it also means more risk.

00:04:12: Stefan Lagrasol noted that with SDV's expanded connectivity, the attack surface has just exploded.

00:04:18: It really has.

00:04:20: And the required response has to move beyond basic encryption.

00:04:24: Ronan Smolley argued that simple SAOC, that secure on-board communication, has a critical blind spot.

00:04:30: Which is the authenticated attacker.

00:04:32: Exactly.

00:04:33: I think we need to unpack that for a second.

00:04:34: What does that mean?

00:04:35: Well, it means if one single ECU is compromised, it can start sending perfectly valid, you know, cryptographically signed messages across the network.

00:04:44: And the rest of the car thinks it's legitimate.

00:04:46: The system has no reason not to trust it.

00:04:48: It's a huge vulnerability.

00:04:49: That's

00:04:49: why vehicles need intrusion detection and prevention systems, or IDPS.

00:04:54: Ronan Smoldy stressed that IDPS detects intent and anomaly.

00:04:57: It's asking, is this message normal?

00:05:00: Like, why is the engine being told to shut off at a hundred kilometers per hour?

00:05:03: Precisely.

00:05:04: And this capability is essential for UNR-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-on-.

00:05:29: You can't test everything in the real world, it's impossible.

00:05:32: Which is where digital twins come in.

00:05:34: Saravana Pandian Animal Eye stated they are an essential prerequisite for rapid SDV development.

00:05:39: Because they bridge hardware timelines with agile software needs.

00:05:43: He specifically mentioned their role in simulating battery management systems BMS for EVs.

00:05:49: Yeah,

00:05:49: and also de-risking OTA updates by testing firmware on virtual fleets first.

00:05:54: It's a huge safety net.

00:05:56: But

00:05:56: the challenge extends to physical components too.

00:05:58: Sony Andrews Jobu Das cited a recent AAA study.

00:06:02: This was a sobering

00:06:03: one.

00:06:03: It was.

00:06:04: It found that nearly ninety percent of ADS malfunctions are linked to incorrect sensor placement or just poor calibration after a repair.

00:06:11: It emphasizes that even a few millimeters of misalignment can cause false warnings.

00:06:16: The AI can be perfect, but the physical input has to be too.

00:06:20: Speaking of Addis, the race to level three is defined by constraints.

00:06:24: That's according to H. Manguino.

00:06:25: He says Germany leads L three retail reality with systems like Mercedes drive pilot.

00:06:31: but not through flashy AI.

00:06:33: No, by mastering constraint engineering, specifically by defining very clear ODDs and speedcaps.

00:06:39: It's about being robust, not just advanced.

00:06:42: And this is corroborated by that massive strategic deal that Osger and Arettin Puskal reported.

00:06:47: Toyota's

00:06:48: global ADAS order with Bosch.

00:06:50: Yeah.

00:06:50: It focuses on predictability, scalability, and hitting the stringent, five-star Euro-NC Teppo, twenty-twenty-six requirements.

00:06:57: Again, it's about prioritizing robustness over just having the biggest AI model.

00:07:02: Okay, let's shift to the market realities, the TCO equation.

00:07:05: Right,

00:07:05: the total cost of ownership.

00:07:06: Emin Asgharov really challenged the notion that SDVs are cheaper to produce.

00:07:10: He

00:07:10: did.

00:07:11: He noted that any savings from reduced wiring

00:07:13: are, um,

00:07:15: quietly eaten by the cost of high-performance

00:07:17: compute,

00:07:17: massive software teams, and all the co-.

00:07:20: So the Bubham cost might go down, but the R&D and systems cost goes way up.

00:07:25: Exactly.

00:07:26: However, he did confirm that STVs do reduce lifecycle costs.

00:07:30: You know, with early fault detection, OTA fixes.

00:07:33: It cuts down on recalls.

00:07:34: Right.

00:07:34: But the key question is, who pays?

00:07:38: He argues consumers don't want to pay for car plus subscriptions.

00:07:42: But commercial fleets?

00:07:44: Commercial fleets are consistently profitable customers.

00:07:46: Because they care about uptime.

00:07:48: TCO and predictive maintenance.

00:07:51: For them, it's a clear business case.

00:07:53: Michael Ender Gomez had a pretty blunt assessment from CES questioning if SDV is actually paying the bills.

00:07:59: Yeah, he suggested it often becomes an intellectual vanity project where nobody is rewarded for stopping when it stops making economic sense.

00:08:06: That's

00:08:06: a tough but probably necessary perspective.

00:08:09: It emphasizes the importance of core service models.

00:08:11: It does.

00:08:12: As some Mustafa detailed that sustainable after-sales growth relies on building trust, transparency.

00:08:18: using things like digital vehicle inspections.

00:08:20: Right, and optimizing operations using KPIs like churn rate and arrow average repair order.

00:08:24: And looking at the global landscape, Scott Newton suggests autonomous vehicles might just mark the end of wide scale private vehicle ownership.

00:08:33: A huge shift.

00:08:34: moving the business model from selling steel to selling services.

00:08:38: That future is clearly being accelerated by global competition.

00:08:42: Steve Greenfield noted the existential threat to legacy players.

00:08:46: He specifically highlighted Chinese companies producing sixty percent of all EVs worldwide.

00:08:51: And they're often spectrally designed to undercut European labor and manufacturing.

00:08:55: And the market is responding.

00:08:57: Pedro Pacheco pointed out that European customers are beginning to demand access to Chinese designed vehicles, like the AUDI E-Five Sportback,

00:09:05: which forces Western OEMs to integrate Chinese heart and brains just to deliver a competitive software platform.

00:09:12: It's a really powerful example of market pressure forcing tech integration, isn't it?

00:09:16: It really is.

00:09:17: So this deep dive reveals an industry in a selection process, as Stefan Bratzel put it.

00:09:22: Innovation has to be backed by disciplined execution now.

00:09:25: The defining characteristics of success in twenty-twenty-six will be system speed, architectural simplification, and mastering that complex integration of AI, safety, and supply chains.

00:09:36: If you enjoyed this deep dive, new deep dives drop every two weeks.

00:09:40: Also check out our other editions on electrification and battery technology, future mobility and market evolution, and commercial fleet insights.

00:09:47: Thank you for joining us.

00:09:48: We'll leave you with this thought inspired by Guang Yang.

00:09:51: If the AI-defined vehicle successfully shifts the focus from the driver to the passenger and ultimately signals the decline of private ownership, how do OEMs define customer lifetime value when the customer is only subscribing to mobility services?

00:10:04: Until next time, be well-informed.

00:10:06: Remember to subscribe.