Government Regulations and Innovative Software Solutions Propel Growth Of Automotive Electronic Control Units, Says Frost & Sullivan

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SAN ANTONIO, TX USA 07/31/2001
    SAN JOSE, Calif., Sept. 10 As the government strives to
make North American cars safer and more environmentally friendly, installation
of electronic control units (ECUs) should rise.  Newly mandated warning
systems for under-inflated tires will be operated by ECUs, as will onboard
diagnostic systems that will help car owners monitor emission levels.
    According to new analysis by Frost & Sullivan
(http://www.transportation.frost.com ), North American Automotive Original Equipment
(OE) Electronic Control Unit Market, the total market rose from $7.32 billion
in 1999 to $7.70 billion in 2007.  Although the average unit price will
decline slightly over the forecast period, installed units will see an
increase in sales.
    "The most important challenge for car electronics manufacturers is how to
remain profitable as automakers demand price reductions," says Frost &
Sullivan analyst Joerg Dittmer.  "Fierce competition in the automotive
industry is forcing manufacturers to reduce vehicle prices, and in turn,
demanding lower costs from component suppliers."
    ECU suppliers must develop innovative strategies to remain competitive in
this environment.  Implementing supply chain improvements and increasing the
value of ECUs could be key components to a successful strategy.
    Meanwhile, new opportunities are rapidly emerging for ECU software
engineering.  "ECUs are becoming increasingly software intensive," says
Dittmer.  Software engineering for ECUs could potentially develop into a
stand-alone segment.
    Frost & Sullivan presents the 2001 Marketing Engineering Awards to
companies that have worked diligently to make a positive contribution to the
Electronic Control Unit industry.  These market specific awards are presented
to: Delphi Automotive Systems Corporation; Lear Corporation; Motorola, Inc.;
Siemens Automotive Corporation; and TRW, Inc.
    Frost & Sullivan is a global leader in international strategic market
consulting and training.  This ongoing research is part of the Automotive
Original Equipment Subscription, which also includes market analyses on North
American Automotive Sensor Market and North American OEM Chemical Sensor
Market.  Frost & Sullivan also offers custom consulting to a variety of
national and international companies.  Executive summaries and interviews are
available to the press.

  North American Automotive Original Equipment (OE) Electronic Control Unit
                                   Markets
                               Report: 7990-18

     Contact:
     Cynthia Madrigal
     P: 210.348.1032
     F: 210.348.1003
     E: cmadrigal@frost.com
     http://www.frost.com

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