Nowadays, car safety is advancing rapidly with growing importance, especially for the active safety, or say the primary safety. As one of the major players in the car safety industry, KSS draws a lot of attention from all over the world, and even more after it was bought by Joyson from China. Recently Gasgoo interviewed two top chiefs from KSS (Key Safety Systems), i.e., Jason Luo, the President and CEO, as well as Greg Heald, President of global Passive Safety Division and also responsible for Asia Pacific. From the interview, we could got the KSS’s concrete theory on car safety development, and the strategic plan in the future.
How could KSS build reliable safety systems for automotive cars?
In recent years, car safety meets several big glitch cases, or even astonishing scandals. The most influential one is Takata airbag rupture case, which has caused over 50 million cars recalled globally and is still expanding in 2016. Airbag with faulted control unit made by German Continental Group also lead to more than 5 million vehicles recalled all over the world. Compared with growing attention to mobility safety, how could carmakers and suppliers ensure the dependability of relative systems?
For KSS, days after 1999 bankruptcy crisis go smoothly with rapid growth. According to Jason Luo, global revenue of KSS reached $1.59 billion in 2015, with the goal of $1.7 billion for 2016, and over $2 billion for 2018. China market contributes KSS more than $500 million revenue in 2015, about 30% growth year-on-year, accounting over 30% for the whole income. As one successful player, the answer from KSS could be enlightening for the industry.
First, enterprises must know the market and customer need from the begining, since primary goal of serving customers could lay the basis of reliable product. “You (should) start with listening to the customer, thinking about what the customer exactly needs and where the market is going to go. ” Greg Heald said, “It’s why we moved into China, and focus on being in China, for the China market from a long term, developing local engineering talent, localizing raw materials, localizing capability in terms of manufacturing.” Thus, KSS emphasize “how to focus on exactly what the customer needs, how do you focus on making sure that you do it in the most efficient way as possible.”
From understanding the customers, KSS takes the first step to supply creditable product.
The second point is that, from designing, engineering to manufacturing, every step should be implemented with high level of inerrability. “Within the industry, quality is the most important thing, always.” Greg Heald said, so to ensure the safety of airbag, “The way is to make every part and every step flawless, perfect and with zero defects.”
Before manufacturing one product, KSS looks at all of the process that lead up to the manufacturing the parts, from all of the designing process, all of the development process, to all of the engineering process, including how to select suppliers and raw materials. Then the parts move into manufacturing process. KSS have numerous control procedure throughout the manufacturing process to ensure the each step started correctly and exactly. Heald noted that test conducted throughout the manufacturing process is important, too.
According to information gathered by Gasgoo, Takata has identified airbag exposure to the material of ammonium nitrate applied in the inflator, which is vulnerable under the condition of heat and moisture. So Takata now has the plan to replace ammonium nitrate with guanidine nitrate, the latter also used by TRW and Autoliv. Jason Luo and Greg Heald told Gasgoo that, “And KSS inflators, we use a different raw material than Takata, so we do not use the same type of gas generator, we don’t use amonion nitrate.”
When asked about the opportunity brought by the downfall of Takata, Jason Luo and Greg Heald admitted that KSS and other competitors obtained chance from the case, what’s more, it could be also a lesson for the peers. Heald mentioned that, “For sure the industry will be adjusted.” So the market share might change.
However, KSS pointed out that we should not fear from airbag itself due to recent issues, because airbag quality performance is relatively steady compared with other auto parts.“Speaking for our quality record, airbags production has a very long time, and the systems and the process is full developed, and the manufacturing is very mature. And if we look at the total population, excluding recent issues with one particular producer, the record and performance is really quite good around the world with airbag producers.” Said Heald.
Moreover, airbag is connected to many other equipment in the vehicle, while itself is a system more than just one fabric bag. Heald pointed out that, “(For some so-called airbag recall cases) it is an electronic problem. It’s a different market area. But at times when you see recalls in the industry, often times it is interesting, more than on product. It could have something to do with the system, the interaction between different parts of the vehicle.”
More acquisition/combination in the industry, more integration between active/passive systems
Active safety, including ADAS, is one of hot topics in the auto industry. KSS expressed optimistic prospect over active safety segment, due to it’s necessary for autonomous driving technology. Currently, KSS has already obtained some active safety projects from carmakers.
On the basis of the global business growing speed, KSS determined to increase investment, especially in some key technologies. Even some acquisitions had been included in the whole plan. Because of the current transaction stage, the chief declined to comment on detail information about future acquisition. But the case of buy Korean-based ImageNext could be an example. In Feb. 2016, just two months before taken by Joyson, KSS bought major stake of ImageNext, which is famous for its surround view monitoring tech. So the purchasing could help KSS to expand its active safety business.
Since active system is developing very rapidly, now suppliers are exploring some new segment for passive system, such as pedestrian protection, outer airbag and even wild animal protection. For example, Volvo used outer airbag from Autoliv to reduce the pedestrian’s hurt effect during the collision; while ZF-TRW is developing outer airbag which could protect the car in the T-boned occasion.
Based on Greg Heald’s data, passive safety contributes over 90% of the KSS total sales revenue globally. So on the one hand active safety will be the focus point with great potential, on the other hand, passive safety business would keep an important role in KSS’s plan. On pedestrian protection, Greg Heald told us that, “In fact we have several projects relative to pedestrian safety, in Europe and North America. We have been working on that for many years.”
In fact, there is no strict boundary between active and passive safety, in KSS’s view, nevertheless, the combination of the two should be the proper tendency for tomorrow’s car safety. Jason Luo insisted that the two types of safety concepts might change. Traditionally, passive safety takes effect after the accident has happened, to relieve the loss. But KSS links sensors from active safety to restraints system from passive safety, resulting into a new concept “instant safety”. Under KSS, active safety could be divided into three sub-concept. The first one is ADAS, with software, control system and algorithm as the major content. Then is the cameras and sensors inside or outside the car. The last one is just so-called “instant safety”.
According to Jason Luo, active safety could foresee the collision, winning more time for the passive safety systems’ preparation. For example, the airbag could deploy fully, while the panel can be open in advance, with bonnet raised; some car models could even deploy airbag to the ground to protect the car, or make the car departed from the collision route. He compared the extra time as, “Previously we call the responding time T0, which now minus 30 to 50, with the time in advance.”
Greg Heald also pointed out that, “With the fusion of active and passive safety, and more electronics, as well as more cameras in the vehicle, we will have better information about where is the occupants in the car, and better information about is there going to be an accident. Then the restraints system could do something. With new technology, we could judge whether there is going to be an accident within 30 milliseconds. With extra time, the safety system could do more work.”
“Cameras inside the car could tell the occupants status, sitting or laying (for autonomous cars). If the system learned the collision direction before it happened, then the pretension system could bring the people to a safer direction.” said Jason Luo. The inner cameras can also estimate whether the occupant is with disease or wound, then help the restraint system touch the human body in a proper position, while the force can be adjusted according to the body size. “A larger force for the adult, a smaller force for the children.” So the intelligent character of active safety bring obvious optimization for the passive safety.
Active safety is closely related to car intelligence, especially autonomous car, while passive safety could enjoy new chance brought by smart cars, too.
When asked about whether a different safety system design is needed for smart car and new energy cars, Greg Heald answered, “For sure the markets will continue to grow, and there will be many different new opportunities for our products.One simple example: if the driver is not driving the vehicle (autonomous car), you can turn your seats around, you can face each other, you can sleep. But the car may still have an accident.So how do you design your bag, your seat belts to protect you of sleeping? ” If the driver or occupant face toward a different direction, then the restraint system need to adjust the way to take effect for better protection.
Jason Luo said that, KSS had already finished battery protection technology for alternative fuel vehicles, ready to enter production. The solution could handle battery fire problem. When the system confirm the battery is overheated, it would cut the electricity and cover the battery with inflaming retarding material.
Introduction of the chief:
Jason Luo: Global President, CEO of KSS
Mr. Luo has been with the company since 1997.
Prior positions at KSS include President, Chief Operating Officer; President of Asia Division; VP of Global Engineering; Director of Global Engineering.
Mr. Luo serves as President, CEO, and board member of KSS since March 2007.
Mr. Luo has led the business transformation and global expansion of KSS since 2007 to ensure KSS can serve its global customers from its 34 global technical centers and manufacturing plants in North American, Europe and Asia.
Born in China, Mr. Luo has a deep knowledge and understanding of doing business in China, and achieved 10-fold revenue growth in China since 2007.
Greg Heald: President, Passive Safety Division & President Asia
Mr. Heald joined KSS in 1998.
Prior to this assignment, he served as President Asia and Sr. Vice President Global Procurement, and President & CEO Hamlin, Inc.
During his 17 year career with Key Safety Systems (formerly Breed Technologies) he has also served as President & CEO Hamlin, Inc., Sr. Vice President Global Procurement & Business Development, President & COO Global Airbag Business Unit, President & COO North America, President North American Airbag and Inflator Business Unit and Vice President Global Procurement.
About KSS:
Key Safety Systems (KSS) is a global leader in the system integration and performance of safety-critical components to the automotive and non-automotive markets serving the active safety, passive safety and specialty product sectors. Through highly specialized design, development, and manufacturing, KSS’ technology is featured in more than 300 vehicle models produced by over 60 well-diversified customers worldwide.
