Hanser Automotive Magazine

Introduction

Software-defined vehicles must be rethought from the ground up – as a product and in terms of development processes. Andreas Hentschel, Editor-in-Chief of HANSER automotive, spoke with Dr. Matthias Traub, one of Vector Informatik's two Managing Directors, about these and other challenges in the automotive and supplier industry.

"I clearly perceive this spirit of departure."

The Rise of the Software-Defined Vehicle

Question: Vehicles have had software for decades, but we've only been talking about the 'software-defined vehicle' for four or five years. Why has the term become so established now?

Answer: Vehicle development has fundamentally changed. When I started in the automotive industry 25 years ago, the vehicle network architecture consisted of individual control units, each realizing a dedicated function. The shift began around 2014 when all OEMs adopted CASE (Connected, Automated, Shared, and Electrified) as a strategic goal. At that time, everyone had a smartphone and was familiar with software updates. This everyday experience also shaped expectations for the user experience in cars: vehicles, previously standalone systems, were now connected to the cloud, with the option to keep systems up-to-date. Technologically, this was a milestone: the software systems from the vehicle to the cloud had to be structured to enable updates at all. However, the real core of the software-defined vehicle, for me, lies in the change of the development process. It's not just about technology, but a fundamental rethinking along the entire value chain.

Rethinking Development Processes

Question: In what way is this a rethinking?

Answer: Previously, the focus was on the Start of Production (SOP): develop a function, deliver it, and it was finished. Today, software responsibility means being accountable throughout the entire lifecycle – for bug fixes, enhancements, even replacing entire functions, in the sense of the DevOps approach. This changes everything: processes, roles, responsibilities. It requires a new definition of responsibilities and interfaces. OEMs, who previously delegated much to suppliers, are now investing more strongly in their own software expertise.

The Software Platform Approach

Question: So, in terms of developing their own software?

Answer: It's particularly about the software platform. Let's compare it to the consumer electronics world: an Apple device, with iOS and cloud connectivity, has a stable, well-thought-out infrastructure on which new applications can be flexibly developed without developers constantly needing to delve into the depths of the operating system. The principle is simple but effective: restore a backup to a new iPhone, and everything works as usual. We need to achieve this principle in the automotive sector as well. A robust software base on which new functions can be flexibly integrated – without having to touch the entire system every time.

Vector's Strategic Positioning

Question: Does this shift affect Vector?

Answer: Yes, we feel it significantly – and it presents clear opportunities for us. The shift brings us into more direct exchange with OEMs and semiconductor manufacturers, enabling a new quality of collaboration. It's also important for us to continue closely supporting our Tier 1 customers, assisting them in their transformation, and offering solutions tailored to new requirements. This strengthens our strategic direction to evolve from a classic engineering and product provider to a software tech player. Our focus is on a comprehensive software ecosystem for developing software-defined systems – from tooling to the software platform.

Accelerating Development Cycles

Question: Vector's website states: 'Mobility is evolving faster than ever before, with more software and growing complexity. Who can still master this?' I'll gladly pass that question on.

Answer: The challenges lie in the changed way of developing. The classic automotive world was characterized by the V-model: process steps were completed sequentially, and responsibility was passed on. This led to complex coordination cascades. If an error occurred during integration on the right side of the V, one had to backtrack completely to fix it. This could take weeks. I recall lead times of up to 30 weeks. Today, it's different. Toolchains support developers much better. With Nightly Builds, new software versions can be integrated and tested daily. And through the DevOps principle, the developer takes responsibility for the entire chain, from the initial idea through implementation to integration. This generates enormous speed.

Drivers of Increased Speed

Question: What exactly leads to the higher speed?

Answer: The classic process with a specifier, developer, integrator, tester, and ECU responsible person in a long chain is being replaced. Teams are coming closer together, responsibilities are bundled, and decisions are made more efficiently. This has enormous potential – but also requires profound organizational changes. Responsibilities must be rethought, teams must be brought along, and know-how must be built. This is often underestimated: someone who was previously strongly anchored in specifications will not become a software developer overnight. It requires targeted further development, a new skillset – and often external expertise to truly achieve this transformation step.

Vector's Preparedness and Collaboration

Question: Does the change also create transformation pressure for Vector?

Answer: Clearly, and we meet this with openness. In the area of tools and parts of our software stack, Vector set the right course early on, so we now possess a modern, high-performance development environment. I well remember my first weeks at Vector: I looked over my colleagues' shoulders in development and saw how customer deliveries were generated from the stack like on an assembly line – it was impressive! My thought back then was: we must make this know-how accessible to our customers and partners in the form of concrete solutions. And we are doing that today. The real turning point for us, as just mentioned, lies in the new form of collaboration with our customers: collaborative setups that require new skills and, above all, a changed mindset that we must enable teams to adopt. This is precisely where I see a central task for us, but also for the entire industry. Collaboration holds enormous potential, also as an asset for European industry.

Leveraging Potential Through "Code First"

Question: How do you want to leverage this potential?

Answer: We are evolving from a product provider to a solution provider. We are moving away from the classic specification-driven thinking, as was common in OEM-supplier projects for a long time – first defining requirements together, then starting implementation. Today, we practice 'code first,' open our repositories, and enable customers to work directly with our development teams – to fix, extend, and iteratively develop further. This brings speed. And this is necessary to keep pace with the dynamics – for example, from China – or even to regain a technological lead.

Collaborative Development with Mercedes-Benz

Question: So, if I understand correctly, you are opening your development to your customers?

Answer: Exactly. A good example is our joint SDV project house with Mercedes-Benz. There, we work in mixed teams, drive topics forward together, and develop directly on shared repositories – hosted either at the customer's site or ours, depending on the project. What's important is that development happens collaboratively and in real-time. This is a fundamental paradigm shift: away from specifying, towards collaborative coding. I am convinced this will be the key to the necessary speed and innovation power in vehicle development.

The Strategic Role of Open Source

Question: What role does Open Source play here?

Answer: It is developing into a strategic foundation. In the area of embedded software, Eclipse SDV is currently the center of gravity. We actively contribute here. Open Source plays a significant role in many of our solutions. In our system design tool PREEvision, we use the integrated development environment (IDE) from Eclipse and are one of the main contributors. With the SiL-Kit, we offer an open-source solution in the simulation domain, and recently one of our teams released a 'Domain Specific Language' for AUTOSAR (arDSL). However, there is still work to be done in the area of Open Source, for example, regarding business models, long-term software maintenance, certification, and migration scenarios. We are tackling this resolutely – in close collaboration with our customers and partners. At Vector, we rely on a hybrid approach: we continue to offer our own solutions that can be combined with what is being created within the framework of Open Source and specifically Eclipse SDV.

Supporting OEMs with Custom Platforms

Question: And what does it mean for Vector if OEMs develop their own software platforms?

Answer: In this case, we support them with our development and simulation tools, such as PREEvision, SiL/HiL solutions, authoring tools for diagnostics, and/or solutions for measurement/calibration. Other OEMs, however, see the value in pre-integrated solutions and opt for close partnerships with technology leaders. Here, we are active as development partners for some OEMs.

Partner Selection Criteria

Question: On what criteria do you select partners for collaboration?

Answer: We are a tech company – and you can tell. When I talk to colleagues, you feel their technical depth and their enthusiasm for it. This passion is a central part of our culture. That's why we specifically look for partners who share this attitude – true value-aligned individuals. This creates a cultural fit that can achieve a lot.

Collaboration with QNX

Question: Do you have an example?

Answer: Yes, our collaboration with QNX for our Foundational Vehicle Software Platform. A joint team works closely together, with personal exchange every six weeks. Either colleagues from Canada come to us, or our employees travel there for one to two weeks. For our customers, the combination of complementary solutions creates clear added value: we already handle a large part of the integration work that was previously done in OEM projects, where Vector and QNX were integrated separately. Now, we do this preparatory work together, optimize our products for each other, and achieve significantly higher performance.

Industry Sentiment and Opportunities

Question: All this sounds very positive. Nevertheless, the mood in the German automotive industry is rather grim. Why – given the many opportunities you've mentioned?

Answer: I want to deliberately leave the answer open. Between 2018 and 2022, there was a real hype. Massive hiring occurred – with the expectation that, for example, ADAS systems would reach Level 4 in a few years. It has since become clear: that takes significantly longer. So, overcapacity was built up. In parallel, there's the trend we discussed earlier in the context of SDV: OEMs are increasingly taking more responsibility in the software domain. For suppliers, some competencies are less in demand – this led to noticeable adaptation pressure. But the positive aspect of a valley is: it goes uphill again. And I clearly perceive exactly this spirit of departure. New products are ready, OEMs have clear SOP plans for upcoming vehicle launches. There are many topics that need to be addressed. It is crucial that we do this together as a community – and specifically leverage European competencies. We have built a strong technological foundation over the last 25 years. Now it's about securing and expanding it – so that Europe continues to play a leading role as a technology location.

Key Drivers for Recovery

Question: What are the key drivers for getting out of the valley?

Answer: For the software-defined vehicle, we in Europe must leave behind the old burdens described earlier. Only then can we provide new functions faster, roll out updates promptly, and act more agilely overall. Another field of high relevance is autonomous driving. The recent announcement about European Level-4 shuttles shows: something is moving. And a lot of know-how and engineering effort will continue to be required. We also see great potential in our own portfolio – for example, in measurement and calibration tools for cameras and environmental sensors. Artificial Intelligence is also currently providing a strong innovation boost – especially regarding efficiency increases. AI will accelerate our organizations and development processes. An example is our simulation tool CANoe: if measurement data evaluation becomes AI-supported in the future, manual searching or creating evaluation scripts will be eliminated – it will run automatically in the background. This can significantly shorten the integration time for a vehicle product. All of these are concrete levers with which we can increase development dynamics and regain a leading role.

Obstacles and Challenges Ahead

Question: Where do you see obstacles and challenges on the way?

Answer: For me, the key is enabling the workforce in companies for the new topics. Through a clear technology roadmap and strategic planning, we can set the course early on: Where do we need new competencies? Where can we provide targeted further training? A second essential point concerns the entire value chain. The classic supplier model in the automotive industry is fundamentally changing. Each player must redefine for themselves what place they will occupy in the future, where opportunities lie, but also where limitations are. Some areas remain important, such as maintenance or legacy systems – but the main investments are no longer flowing there. Other fields, however, require new thinking, new roles, new partnerships – and this affects not just individual companies, but the entire industry.

Vector's Future Role

Question: Where do you see Vector in this chain?

Answer: After 35 years as an established medium-sized company, we are purposefully evolving into a software tech player with a focus on software-defined systems. This includes not only the software platform itself – often referred to as the operating system, but it's actually much more – but also the complete toolchain for developing and integrating applications. Our goal is a holistic software ecosystem that provides both the technological basis and the appropriate tools for efficient implementation. And this also means a much more direct contact with our customers. In the past, these were primarily vehicle manufacturers and suppliers – today, new perspectives are opening up. Many other industries are also moving towards software-defined systems. Medical technology is a good example. It also requires the same technological building blocks. The automotive industry is five to seven years ahead in many of these topics – and that's precisely what opens up new opportunities for us at Vector to effectively bring our know-how into adjacent markets.

"»We must move away from specifying, towards collaborative coding.« Dr. Matthias Traub, Managing Director Vector Informatik"