IBM Enters the Automotive Electronics Market

08/16/96

Electronic Buyers News reported that IBM has joined with Mercedes-Benz to design an integrated electronics control system for Mercedes cars. IBM will put design centers in Stuttgart and Boeblingen, Germany, to work with the automaker to develop a bus-line architecture within the car to enhance the way processors and electronic control units, communication systems, climate control, vehicle navigation systems, diagnostics, and security systems work together.

Electronic Business News commented that it thought IBM would use the opportunity to use its Series 400 PowerPC microcontroller devices for as many automotive control systems as possible. It would be the first major market entry for the IBM chips and would put IBM in competition with its PowerPC partner, Motorola, which already has a strong position in the automotive market with its PowerPC and other microcontrollers.

Mercedes has maintained its freedom to choose the electronic vendors it wants, however, so IBM may not be able put as many of its chips and subsystems in the new cars as it would like. The position of design integrator does assure IBM of playing a major role in the architecture and subsystems planned for the auto.

Mercedes is seeking open interface standards for the new automotive bus line and connecting subsystems, which would lead to competitive suppliers, even if IBM managed to get much of its components and equipment designed into initial models. Mercedes views the open architecture standards as a way to mix and match subsystems easily and economically, from model to model.

Sources said IBM's computer network expertise helped it capture the Mercedes joint project. Big Blue argued that an integrated car electronics system was not much different than designing and controlling a complex computer network.

The joint deal was announced by Mercedes-Benz last week. The company said that the deal had been forged in a meeting of company chieftans at the Olympic Games in Atlanta.

Paul Dever -- The Auto Channel