eCall is Possible - Nearly Free-Of-Charge - Continental Presents New eCall Business Models

ULM, Germany – December 3, 2008: At the car2x conference in Ulm, the leading automotive supplier Continental presented its view on eCall and how it is investigating new business models that could help lower implementation costs and accelerate the time-to-market of eCall systems across Europe. eCall is an electronic emergency call that is activated for example when airbags are activated during an accident. The electronics then send information about the location and precise time of the accident to the nearest emergency operations center via the mobile communications network.

The European Commission’s eCall initiative, which states that all new vehicles in Europe should be equipped with an automatic emergency call system by 2010, has more or less stalled at the moment and is in jeopardy of missing its deadline, as the industry has yet to define transmission protocols and the associated eCall standards .

“Continental has been very public about its belief that eCall can help save lives. To move the initiative forward in Europe, we are currently investigating how new, intelligent business models could enable us to add these new safety systems into cars while significantly reducing the costs involved to both automakers and consumers,” stated Lutz Breyer, responsible for the eCall developments within Continental’s Connectivity business unit.

In addition to working with the industry on transmission standards, Continental is also working closely with its automotive customers and potential partners to identify new services that could utilize existing technology contained within the system.

It is estimated that eCall systems could save approximately 2,500 lives per year in Europe. Continental currently supplies similar systems to various car makers other parts of the world By integrating its intelligent electronics into the car, Continental is able to provide drivers and passengers with a “wireless-life line” to emergency assistance during the critical seconds after an accident. Also when an accident scene is approached by a vehicle, an eCall for help can be triggered manually, transmitting the same amount of data allowing exact localization and thus relieving emergency call centers of another burden. "Knowing and explaining the exact location in a crisis situation isn't an easy task for a driver or passenger. But it is a relatively easy task for the electronics" explained Lutz Breyer. Studies have proven that motorists want eCall. For example, 62% of the participants in a 2006 Eurobarometer study indicated that they would like to have this kind of technology in their next car.

Looking beyond emergency services
The strategic approach of Continental’s new eCall business models is focused on making technical components available for other data services beyond emergency calling. The eCall service always needs a GPS module to determine the location of a car accident, the GSM telephone connection and a connection to the vehicle's data bus. Although this infrastructure is available over the entire life of the vehicle, the eCall concept uses it only in emergencies.

By contrast, Continental expert Breyer proposes using synergies intelligently. He advocates incorporating the eCall module as part of "Pay-As-You-Drive" services, which would, for example, be available to car insurance companies or car leasing firms, like those currently in use in the UK and Italy. The providers of these services calculate the costs for a particular vehicle’s policy and leasing rates based on actual distances driven and user profiles. Services such as tracking and tracing are also currently available using further expensive technology, but could conceivably be offered nearly free of charge in the future. Insurance companies would be able to track and locate stolen vehicles based on GPS information, for example.

The third major area where the eCall module could bring additional services is the vehicle manufacturers’ telematics services. They could use the data connection to the vehicle not only for updating software or outputting service information, but the automobile manufacturer would also be able to use the eCall module as an innovative way to offer more convenience features. For example, on a hot day a driver would have the ability to contact a call center to switch on the A/C system before leaving the office. Or while on vacation, motorists could check whether they actually did lock the car in the airport parking lot.

“As soon as technology offers an additional benefit, people will integrate it themselves even if eCall has not been fully installed,” argues Lutz Breyer from Continental. “And when the infrastructure is available in the near future, the first vehicles will already have been outfitted for it.” These types of services could not only accelerate the implementation of the eCall system, they could also distribute and thus greatly reduce the costs. "It's conceivable that the end user would save even more," says Breyer. “With these kinds of business models, eCall could be implemented nearly free-of-charge.”

Continental is a leader when it comes to embedded telematics systems and introduced its first emergency calling system in 1996 with the Ford Motor Company in the US. In the European market, Continental debuted its eCall capabilities at CeBIT 2005.

With targeted annual sales of €25 billion for 2008, the Continental Corporation is one of the top automotive suppliers worldwide. As a supplier of brake systems, systems and components for the powertrain and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers, the corporation contributes towards enhanced driving safety and protection of the global climate. Continental is also a competent partner in networked automobile communication. Today, the corporation employs approximately 146,500 at nearly 200 locations in 36 countries.

Supplying both, OEMs and the Aftermarket worldwide, the Interior Division of Continental AG develops and produces electronic systems which allow the information in a vehicle to be controlled and communicated according to the requirements of the driver and the driving situation. The Division achieves annual sales of more then € 6 billion (based on 2006 figures) with a workforce of more than 33,000 employees currently. The range of products includes instruments clusters and multifunctional displays, control units, electronic car entry systems, tire information systems, climate control systems, radios, multimedia and navigation systems, telematic solutions as well as cockpit modules and systems. The Interior Division develops vehicle electronics enabling car-to-car and car-to-infrastructure communication, Internet access and the seamless integration of mobile devices (car-to-device). The focus on systems integration offers customers less complexity and ensures efficient and cost-effective solutions for the management of information in passenger cars as well as commercial and special vehicles.