Product Cost Trends in Automotive Electronics

Electronics represent an increasing portion of vehicle content as new functions and products are being introduced. As products mature, many factors contribute to the downward cost trend, including reduced component costs, standardization of requirements, increased volume, and design innovation. Offsetting some of these cost reductions are increased functionality, increased complexity, and uniqueness. These factors will be addressed generically as well as specifically through analysis of product examples. Future implications of these factors also will be discussed.