INOVAR-AUTO AND INNOVATION MANAGEMENT
How to get the expected results on time
Ricardo Simões de Abreu
Global VP Engine Systems and components
Product Development
MAHLE Metal Leve S.A.
© MAHLE
Inovar-Auto and Innovation Management
Research and Development Centers
Stuttgart
Detroit (Farmington Hills)
Northampton
Tokyo (Okegawa)
1998
Shanghai
Rugby
2002
2004
Tokyo (Kawagoe)
2004
São Paulo (Jundiaí)
2006
2001
2008
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Jundiaí Tech Center
The Technological Center in Jundiaí , result of an investment of R$ 87
millions, is the largest center for engine components development
in all Latin America.
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Inovar-Auto and Innovation Management
Common points from countries recognized as innovative

Innovation is triggered by necessity (legislations) or opportunity to improve competitiveness
(market demands).

Innovation is the part of an appropriated environment. The innovation culture is part of the
society.

The academy aims to bring products to the market and not only generates new knowledge.

The government support is mandatory to leverage innovation.

Innovation today must be quick, but it can not be done in a hurry. It must be planned well in
advance and executed with discipline.

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The risks and long term returns to assure future developments must be part of the strategy.
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Inovar-Auto and Innovation Management
Innovation is the part of an appropriated environment
The innovation culture is part of the society

Governmental Biofuel Programs
–


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Biodiesel Test Program B5 & B20
Partnerships
–
Friction reduction thru oil lube developments
–
Oil oxidation in flex fuel engines
Technical Committees
–
Energy Efficiency Committee
–
Renewable Fuels for Diesel Engines
–
Engine Powertrain standards
–
Turbocharger standards
–
Emission in Passengers Cars and Diesel Engines
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Inovar-Auto and Innovation Management
The academy aims to bring products to the market and not
only generates new knowledge
Consortium about
tribology to future
flex fueled engines
Consortium about
lubrication in
internal combustion
engines
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Inovar-Auto and Innovation Management
The government support is mandatory to leverage
innovation
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Inovar-Auto and Innovation Management
Inovar-Auto Objectives

Increase the regional content measured by
the acquisition volume of parts

Ensure R&D investments (innovation)

Create basis to automotive engineering with
self life and capability, not just to apply or


Increase the spending on Engineering and
look for existing technologies, but creating
Basic Industrial Technology
new technologies, generating value and
Increase the vehicles energetic efficiency:
intellectual property.
vehicle labeling (INMETRO) and CO2
emissions reduction
COMPETITIVE ADVANTAGE BY ACHIEVING MORE
THAN THE BASIC LEVEL
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Inovar-Auto and Innovation Management
IPI Incentives (+2p.p IPI) – Fuel Efficiency
Previous
INOVAR - AUTO
Since Dec 2011, cars with less
than 65% of parts produced in
Mercosur and Mexico are charged
30 p.p. additional IPI (between
37% and 55%)
Exemption of the 30 p.p. for cars that use more
regional produced parts and have minimum 8
out of 12 manufacturing steps made locally (ex:
stamping, welding, chassis assy.). Increasing to 10
in 2017
No incentives for fuel efficiency.
Starting 2017 till 2020, estimated national fleet
average must show 12% reduction. The individual
targets depend on vehicle weight and today
efficiency level.
BONUS INCENTIVES - If improvement in fuel
economy is 15% an additional 1 p.p. IPI is
deduced. For 18% reduction another 1 p.p. IPI is
reduced.
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Inovar-Auto and Innovation Management
Available and Future Technologies
0% CO2
-10% CO2
-20% CO2
Combination of
technologies is possible!
Downsizing
(single turbo)
GDI
General
optimization
GDI + EGR*
(hom)*
(lean)
(Friction & Cooling)
Fully Variable
Valvetrain
VVT/VVL*
EPS
*
StartStop
CO2 reduction potential
Inovar-Auto
*)
-1% IPI
-2% IPI
Available
Available
in Brazil
outside Brazil
VVT: Variable Valve Timing
VVL: Variable Valve Lift
GDI (hom): homogeneous Gasoline Direct Injection
EGR: Exhaust Gas Recirculation
EPS: Electric Power Steering (direct contribution to
powertrain efficiency due to omission of hydraulic pump)
Source: The Boston Consulting Group
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Inovar-Auto and Innovation Management
Available and Future Technologies
0% CO2
-10% CO2
-20% CO2
Lowest cost with available
technologies
Downsizing (single turbo)
GDI
+Ethanol
(hom)*
General
optimization
(Friction & Cooling)
StartStop?!
Ca. 65% downsizing cost
Fully Variable
Valvetrain
Ethanol as technology booster…
VVT/VVL*
•EPS
Higher efficiency,
lower cost  more km per MJ
Start•*Neutral well-to-wheel
CO2 balance
Stop
• Renewable
Inovar-Auto
*)
CO22reduction
reductionpotential
potential
CO
Available
Ethanol
Available
in Brazil
application
outside Brazil
GDI (hom): homogeneous Gasoline Direct Injection
Source: The Boston Consulting Group + FEV&RWTH Aachen
-1% IPI
-2% IPI
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Inovar-Auto and Innovation Management
IPI Incentives (one p.p. IPI from 2013 to 2017)
R&D (Innovation)
I.
Basic research comprising activities to develop knowledge for new phenomena understanding,
aiming development of products, processes or innovative systems;
II.
Applied research, comprising activities to develop knowledge, aiming improvement or
development of products, processes and systems;
III.
Experimental development, comprising activities based on existing knowledge, aiming
confirmation or demonstration of technical or functional viability of new products,
processes, systems and services or, a clear improvement of already produced or
established ones;
IV. Technical support services, namely the ones considered essential to the implementation and
maintenance of the facilities or equipments exclusively dedicated to the execution of the
research projects, development or technological innovation, as well as related human resources
development, directly related to the activities cited in previous items I, II and III.
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3rd Phase
Innovation today must be quick, but it can not be done in a hurry
Ideation
Tech Incubation
2nd Phase
University
Processes
Product
Tech Incubation
Product
Ideation
1st Phase
Product
Adaptation
VA/VE
Adaptation
Process
Processes
Processes
Processes
Application
0
1
2
3
4
5
6
7
8
Execution Time (years)
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1st Phase examples: Specific technologies adaptation
Pendulous Oil pump
1º Ring

On demand oil flow to increase fuel economy Piston

Abrasive wear and dirt insensitiveness
2º Ring

Many possible adjustments
Oil ring

Whole life high volumetric efficiency (>92%)

Silent operation

Fuel consumption reduction of 1 - 3%
Pin
Connecting
rod
Bearings
PCU optimization: up to 2% Fuel economy
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Inovar-Auto and Innovation Management
2nd Phase example: Polymeric bearing

START STOP

Fuel consumption reduction of up to 3,5%
Stop-start conditions will increase wear on
main bearings

Wear Evaluation
After 100,000 stop-start cycles
Front main bearings must absorb combustion
loads and extremely high belt loads often
acting in opposite directions

Depending on the belt load vector, wear can be
seen on lower shell or upper shell
Al bimetal
Al bimetal + polymer
After 100,000 start/stop cycles the wear of the Polymeric
bearings is 10 times lower
Effect of Belt Load on Front Main
Bearing
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Inovar-Auto and Innovation Management
3rd Phase examples: Advanced technologies
Nanotechnology:
With nanometric layers,
its is possible to build a
superior performance
coating in durability
combined with low
friction
Polymers: High resistance to
fatigue with wear resistance and
friction reduction
Ceramic: Protection
technology for corrosion
and wear and low friction
through new technologies
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Inovar-Auto and Innovation Management
Innovation must be planned well in advance and executed
with discipline
Keep FOCUS
Do the right THINGS
Do the things RIGHT
Reduce TIME-TO-MARKET
Customer
DG 0
Approval
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DG 1
Concept
Develop.
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DG 2
Concept
Validation
DG 3
Industrialization
Process
DG 4
Post
Launch
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Inovar-Auto and Innovation Management
The risks and long term returns must be accepted
Sales
5
New
Products
Launched
Start up
R&D Projects
37
New projects in
R&D
Idea Allocation
106
New ideas
76% of the new products
launched in the last 3
years sold to least one
commercial application
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Inovar-Auto and Innovation Management
Assure future developments must be part of the strategy
Increase of patent
numbers in USA
Patent cases filed
Patents granted
China intends to increase
the number of patents to
1,5 mio/year until 2020.
Internals
Externals
Total
Patents applied in Brazil (PCT):
2011 = 31.000
2012 = 37.000
PCT (Patent Committee Treaty)
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Inovar-Auto and Innovation Management
Conclusion
Compared to international experience,
Inovar-Auto is first step in the right direction.
Long term targets and rules are necessary to
trigger innovation.
Brazilian experience with bio fuels must be part
of the strategy to boost competitive advantage.
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Thank you!
[email protected]
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