Electronic components in cars are getting smaller and faster and will soon have an even bigger impact on drivers, says General Motors research and development executive Larry Burns.
He told a convergence conference - an annual meeting of carmakers and electronic companies in Detroit - that the industry was on the verge of creating a completely new car.
"Your four-wheel automobile that gets you to and from work in a lot of ways has become like a computer on wheels," said Burns.
"With convergence, the car of the future will be more and more computer-controlled. It will be talking with its environment - and someday the cars will be talking to each other."
He said electronic systems will be able to see bumps in the road, hazardous conditions, and disabled vehicles "as if there is a sixth sense in the car".
"Not only will you know your location, but other automobiles will know where you are, and that, in turn, could increase road safety."
The demand for high-tech electronic systems from both carmakers and consumers is growing rapidly and pushing forward development.
Technology from cellphone cameras has crossed over into the car industry, although cameras used to detect pedestrians and highway obstacles are much more sophisticated.
Siemens Corporate Research CEO Paul Camuti said the automotive industry had to start looking at changes to traditional business models to keep up with the growth of electronics in vehicles.
The research chief for the German electronics giant said the power of automotive electronics was being ratcheted up exponentially as the hardware becomes smaller and lighter.
"Moore's Law still applies," he said. The reference is to the observation made in 1965 by Gordon Moore, co-founder of computer chip company Intel, that the number of transistors per square inch on integrated circuits had doubled every year since the integrated circuit was invented.
The pace has since slowed down to a doubling every 18 months. This is the current definition of Moore's Law.
Camuti said one place for carmakers to look at change was in the interior of a vehicle.
"The interior architecture of any vehicle is very difficult to change," he said. "Perhaps the time has come to make it more flexible so it can respond to the evolving technology.
"In addition, carmakers also might want to consider changing the way they sell the electronic packages by offering upgrades.
"Right now about the only way you can get the latest electronics into your car is to buy a new vehicle, which is hardly a satisfactory solution.
"Such a change, however, will require a complete overhaul of the way cars are equipped, marketed, and even priced."
Siemens has developed an adaptive cruise control system that can alert the driver when there is insufficient distance between vehicles, even when visibility is extremely poor.
The technology uses light-detecting sensors and powerful evaluation electronics and will be available in some markets from 2008.
The system can also detect rain, fog, snow, and spray, which makes it especially effective in bad weather.
Systems that help motorists park in tight corners are also expected to be widely available as electronics become more sophisticated.
Hella said its system would require the driver to use only the brake and accelerator while it guides the vehicle into a parking space by measuring the available space and steering angles. The company says the system works as quickly and efficiently as an experienced driver.
Research shows that electronically driven intelligent systems such as stability control can help cut by half the rate of fatalities on America's roads.
"Safety technologies are constantly evolving and will create a fleet of smarter cars that can greatly reduce crashes and help prevent injuries on highways around the globe," said Dean McConnell, director of safety and driver assistance for Continental Automotive Systems North America.
High-tech cars smarter and safer
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