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Sales of driver assistance systems could exceed 1 billion euros as early as 2016, as cars become more sophisticated and offer new business opportunities, Bosch said.

This year the company will add 9,000 university graduates from around the world to its workforce of 281,000 staff.

By 2020 Bosch plans to double its sales in Asia, North and South America

Bosch said last year its automotive business continued to grow, particularly gasoline and diesel direct-injection systems, as well as display instruments and infotainment systems.

The upcoming rollout, which will deploy the technologies by March 31, 2016, is part of Denso's drive to boost sales of sensors, the crucial eyes and ears of tomorrow's safety systems.

Cars without these features will be hard-pressed to achieve the top five-star rating. And European adoption of more stringent rules is expected to force other markets, such as the United States and Japan, to raise the bar as well.

But it trails European rivals such as Robert Bosch GmBH and Continental AG in advanced safety sensors. Denso's bread-and-butter products are drivetrain components and air conditioners.

But deployment is rapidly moving downmarket because of stricter European Union safety rules taking effect in 2015. The Euro New Car Assessment Program, or Euro NCAP, rates vehicle safety and increasingly will test for crash avoidance technologies.

The components include systems using camera-based optical sensors, millimeter wave radar and laser radar.

That is because the regulations set a baseline for sensor performance that must be met by all carmakers. And the clear specifications make it easier to develop standardized sensors. Standardization, in turn, allows for higher volume and lower costs, meaning a wider array of customers can use the same part.

The strategy underscores how Toyota is playing catch-up in a fundamental field, as rivals gain on the automaker's top fleet average fuel economy in the United States with big advancements in such fuel-saving technologies as direct injection, turbocharging and stop-start systems. For years, Toyota has focused on its best-selling gasoline-electric hybrid systems. It hasn't abandoned that track.

Toyota is seeking fuel economy increases of up to 30 percent and cost cuts on key components of up to 50 percent.

"Just like putting something beautiful on top of your hairdo, by using kanzashi through such things as turbocharging or downsizing, you can improve the performance of the engine."Kanzashi add-ons may include direct fuel injection, exhaust gas recirculation systems or stop-start technologies that turn off the engine when the vehicle stops.

The EPA's annual report on fuel economy trends, which calculates automakers' fleet average fuel economy based on sales, shows Toyota losing ground to rivals such as Nissan and Mazda. For example, in 2010, Toyota's U.S. fleet average fuel economy was 25.4 mpg. In 2013, it was 25.2 mpg. Meanwhile, Mazda improved from 24.4 mpg in 2010 to 27.5 mpg in 2013, and Nissan rose from 23.3 mpg to 24.6 mpg during the period.

"Eventually we think this is where the technology is going, but right now we don't know what the reaction of U.S. customers will be," he said. "So probably right up until the last moment, we will have to be ready with both and watch customer feedback."

Having fewer parts would simplify a vehicle's manufacturing process

That means potentially lower development costs.

Having fewer parts also translates to reduced vehicle weight, which appeals to automakers straining to meet fuel economy targets

"There's no question that X-by-wire technology will bring all sorts of benefits to the industry," he says. "But automakers will really have to work hard at making sure their customers are willing to come along with them."

Research Association of Automotive Internal Combustion Engines. It pools the resources of Toyota Motor Corp., Nissan Motor Co., Honda Motor Co., Mazda Motor Corp., Mitsubishi Motors Corp., Daihatsu Motor Co., Suzuki Motor Corp. and Fuji Heavy Industries Ltd., the maker of Subaru-brand vehicles.

The objective is to share costs in an increasingly competitive, investment-heavy field to meet more stringent fuel economy guidelines, organizers

The strategy is patterned after a similar approach taken by competitors in Europe, organizers said. There, rivals cooperate with academia and the government on basic technologies, giving European carmakers a head start in cutting costs.

While Japanese automakers have developed advanced electric and hybrid drivetrains, the creation of AICE acknowledges that internal combustion engines will remain the workhorse of global fleets for a long time, especially in cost-sensitive emerging markets.

Organizers outlined a 10-year time frame for achieving world-leading advancements in combustion engine efficiency.

Engineers target thermal efficiency rates for both approaching 50 percent. That compares with today’s best rates of around 39 percent for gasoline engines and 42 percent for diesel engines. Higher thermal efficiency means more energy from internal combustion is captured for higher engine output. Organizers said such a breakthrough could boost the fuel efficiency of gasoline and diesel engines 30 percent by 2020.

Diesel engine development will focus on eliminating particulate matter and nitrogen oxide emissions, partly through better particulate filters and exhaust gas recirculation systems. Gasoline engine research will focus on achieving more complete combustion cycles and better ignition while reducing knock.

Keiji Ohtsu, managing officer of Honda R&D Co., Honda’s product development arm, will be AICE president.

The FCV will go on sale in Japan first, in April 2015, for the equivalent of about $70,000, with US and European launches planned for the summer.

the FCV would only go on sale in areas like California and Germany, where adequate hydrogen refueling stations and delivery infrastructure existed

cruising range of 700km (about 435 miles

compressed hydrogen’s higher energy density and its ease of storage and transport

The vehicle refuels in just three minutes and only emits water vapor.

Ford engineers saw room to improve the efficacy of knee-level airbags

"This skips a whole generation of S class -- it went into the future. It is 70 percent autonomous driving."

Available first on the S-class sedan as a $2,800 option, Intelligent Drive also is offered on the re-engineered 2014 E-class lineup. Much of the technology will trickle down to the redesigned 2015 C-class sedan that goes on sale in the fall. Some features are even available on the smaller B-class Electric Drive that went on sale last month.

The take rate on Intelligent Drive for the S-class sedan is 50 percent. It falls to 15 percent for the E class.

For Mercedes, having this edge is a competitive weapon in the luxury segment, where quality, gadgets and horsepower are no longer significant differentiators.

Hyundai with its new Genesis is the closest but the competition is probably three years behind

Battery models carry electricity in their lithium-ion battery packs while fuel cell vehicles make electricity on board in a chemical reaction between hydrogen and oxygen, with only water vapor as a byproduct. While hydrogen vehicles have a range comparable to gasoline vehicles and need only a few minutes to refuel -- compared with hours for most battery autos -- there are few hydrogen pumps currently open to the public.

California has said it will provide as much as $200 million over the next decade to help open stations across the most populous U.S. state.

Fuel cell autos will need three to five years to build a market presence in California, and at least a decade to get to U.S. sales of half a million or more annually, Lentz said. Still, advances in the technology and an industrywide push, with Daimler AG, General Motors Co. and Nissan also planning to sell fuel cell models, may help the vehicles get a market foothold faster than hybrids, according to Lentz.

The driving force behind the trend will be new government mandates for vehicle-to-vehicle communication technologies that improve safety and enable self-driving features.

Mitsubishi Electric, a Tier 1 supplier in Mason, Ohio, hopes the technology will be used in 2018 model vehicles, but has not yet signed any agreements with automakers for FLEXConnect, Doug Ray, a Mitsubishi Electric audio, video and communications director, told reporters Monday.

Mitsubishi Electric partnered with other companies -- such as Apple, Google and Garmin -- to develop FLEXConnect.

The U.S. version is expected to be sourced from Mazda’s new plant in Salamanca, Mexico, which opened earlier this year and makes the Mazda3.

The fourth-generation Mazda2, called the Demio in Japan, will go on sale here in the fall, Mazda said in a statement. It will hit American showrooms in 2015.

U.S. sales of the outgoing Mazda2 surged 42 percent to 7,957 vehicles in the first six months of the year, from 5,594 the year before, as the carmaker cleared out inventories.

But last year, sales of the aging nameplate, which is getting its first full redesign in seven years, slumped 39 percent to 11,757.

That ranked it near the bottom of the subcompact segment, way below such rivals as the Chevrolet Sonic, the Ford Fiesta, the Honda Fit, the Kia Soul, the Nissan Versa, the Hyundai Accent and the Toyota Yaris.

The next Mazda2 will also provide the basis for a new subcompact sedan from Toyota Motor Corp. That car will be made in Salamanca, where Mazda has allocated about 50,000 vehicles for Toyota from its full annual capacity of 230,000 units. While that car will get Skyactiv underpinnings, including a Skyactiv engine, it will have a Toyota-designed body. Output for Toyota is expected to begin after April 1, 2015, but before March 31, 2016.