Unlocking Efficiencies Across the Automotive Industry and Infrastructure in Canada with AI – with Frantz Saintellemy of LeddarTech and Flavio Volpe of APMA Canada 

 

The Canadian automotive industry is leveraging AI and digital technologies to differentiate itself in the global market. According to government resources, Canada is one of the world’s top 12 producers of light vehicles, with five global OEMs assembling more than 1.4 million vehicles at Canadian plants each year. The significant production volume provides ample opportunity for implementing AI-driven software enhancements.

Canada’s expertise in AI, including machine learning, deep learning, neural networks, and computer vision, is attracting significant investments from global OEMs like GM and Ford and tech giants like Uber, NVIDIA, and Google.

To gain deeper insights into Canada’s automotive technology landscape, Emerj CEO and Head of Research, Daniel Faggella hosted a webinar with Canada-based automotive LeddarTech automotive software company President and CEO Frantz Saintellemy and President of the Automotive Parts Manufacturers’ Association titled “Investing in the Future of Automotive Tech in Canada“. 

The webinar featured expert panelists who discussed the current state and prospects of automotive technology in Canada, including AI applications, investment opportunities, and emerging trends. Both distinguished speakers are members of the Order of Canada. 

In the following analysis of their conversation, we examine the below two key insights:

• Differentiate with AI-Enhanced software: How the Canadian automotive industry stands out by using AI-driven software to enhance vehicle hardware, offering unique features like real-time safety and convenience without relying on hardware changes.
• Invest in digital automotive technologies: Focus on digital and software innovations in vehicles, as they offer greater potential for societal impact, including optimized transportation and enhanced safety.

Click here to access Part One and Part Two of the webinar.

Guest: Flavio Volpe, President of the APMA, Canada

Expertise: Strategy, Policy, Leadership

Brief Recognition: Flavio Volpe is a prominent figure in the Canadian automotive industry. He serves as the President of the Automotive Parts Manufacturers’ Association (APMA) in Toronto, Ontario. He is a recipient of the Order of Canada and also holds a Master’s degree in Business Administration from the Schulich School of Business at York University and a Bachelor’s degree in International Relations from the University of Toronto.

Guest: Frantz Saintellemy, CEO & President of LeddarTech

Expertise: Electronics, Manufacturing, Renewable Energy

Brief Recognition: Frantz Saintellemy currently serves as the President and Chief Executive Officer at LeddarTech Inc. Saintellemy holds a Masters of Business Administration from McGill HEC University, Bachelor’s degree in Electrical Engineering from Northeastern University, bachelor of Science from HEC Montreal. He is also a recipient of the Order of Canada. 

Differentiate with AI-Enhanced Software

Frantz begins the webinar by emphasizing the importance of being more than just another supplier in the automotive industry by offering disruptive innovations that unlock new possibilities for car manufacturers. He explains that while electrification and connectivity are expected in modern vehicles, they don’t necessarily generate profit for manufacturers or excite consumers on their own.

Frantz goes on to argue that the real value lies in enhancing existing hardware through software and AI to provide additional functionality. The value drivers involved include the following: 

“And this is what we make [at] LeddarTech comes into play. Our software really takes existing hardware, augments its capabilities and functionalities to support the driver and their driving functions, such as basic safety, basic awareness. The car is fully aware with our software, 24/7, in any scenario, with 360 degree coverage. On top of that, can we add convenience functionalities or features that can be called upon in software?

For example, you’re stuck in traffic, and there’s nothing to be done about it. Can this pilot take over and navigate through the traffic? Our technology can enable that.”

-Frantz Saintellemy,  CEO & President of LeddarTech

Frantz further explains the significance of Arm, a company that designs the core architecture behind most microprocessors and microcontrollers used in a wide range of electronic devices. Arm’s technology powers the core functionalities of smartphones, smart devices in homes (like speakers, computers, and fridges), and much more. There’s an 80% chance that any smart device with a digital interface is using Arm’s architecture.

Frantz notes that Arm is essential for advanced technologies like generative AI (e.g., ChatGPT, Bard) because its architecture underpins chips from Nvidia, Qualcomm, and AMD. Arm also dominates the automotive sector with a 70% market share, making its technology integral to smart cars.

He highlights that Arm’s technology is typically integrated into vehicle chips late in the development cycle, which takes five to seven years. However, such a lengthy timeline is now impractical due to the fast pace of digital and AI advancements, making it crucial for car manufacturers to accelerate their development processes.

Frantz continues to explain that the traditional, lengthy vehicle development cycles are no longer sustainable, and a better approach is needed. He highlights that advancements in cloud computing now allow car manufacturers to recreate real-world driving environments virtually. 

These advancements enable them to design, build, test, and validate vehicles and their functionalities online, significantly reducing the disconnect between design and production.

In this new process, what’s developed in the cloud can directly match the chip that will be produced and integrated into the vehicle. This capability allows car manufacturers to start development much earlier and shorten the development cycle from 5–7 years to just 1–2 years. This shift is groundbreaking, as it changes how vehicles are developed and tested.

Invest in Digital Automotive Technologies

In turn, Flavio explains how, throughout the global automotive industry, partnering with governments is essential, as every country supports its automotive sector, whether through strategic planning, investments, or partnerships. He highlights the shift from valuing physical materials like metals and plastics in vehicles to recognizing the importance of the digital components—the “nervous system” of the car—that drive its functionality and societal impact:

“Ten or 20 years from now – regardless of the volume of the vehicles that are on the road – the way that they will move from the way that they speak to each other, and they speak to the infrastructure, the way that transportation is timed; the fact that fewer, if maybe none of us will actually be steering in in situations, urban areas during rush hour, highways, on cross country trips,” Flavio remarks, summarizing the benefits from AI-enhanced features. 

“I think there’s so many ways you can shape societal benefit efficiencies with these technologies,” he continues. 

Flavio goes on to explain that while the tangible aspects, such as the design and materials of automotive vehicles, have become standardized commodities, the real value now lies in the digital capabilities that can transform society. He envisions a future where vehicles are integral to smart cities, with technologies that can optimize transportation, reduce congestion, and even assist in medical emergencies through connected autonomous systems.

Flavio also points out that while the barriers to entering the hardware side of the automotive industry are high, the opportunities in the software and digital side are vast. He believes that the future of the automotive industry lies in the ability of vehicles to interact with each other and with infrastructure, offering societal benefits like saving time and improving safety. He is quick to suggest that this is where the real innovation and potential lie, making it an exciting area for the next generation to explore and develop.

Finally, Frantz emphasizes the progress Canada has made in the automotive industry thanks to the APMA’s Project Arrow initiative. Launched four years ago, the initiative provided a unified vision for Canada’s role in automotive innovation, including electrification, autonomy, and connectivity.

He notes that before this project, Canada’s automotive position needed to be clarified. Now, the project has boosted Canada’s profile, spurring political and industry action, even though it may not directly generate revenue.