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Hybrid and electric vehicles present a promising trade-off between the necessary reductions in emissions and fuel consumption, the improvement in driving pleasure and performance of today's and tomorrow's vehicles. These hybrid vehicles rely primarily on electronics for the control and the coordination of the different sub-systems or components. The number and complexity of the functions distributed over many control units is increasing in these vehicles. Functional safety, defined as absence of unacceptable risk due to the hazards caused by mal-function in the electric or electronic systems is becoming a key factor in the development of modern vehicles such as electric and hybrid vehicles. This important increase in functional safety-related issues has raised the need for the automotive industry to develop its own functional safety standard, ISO 26262.

PlugIn Hybrid Electric Vehicles (PHEV) offer the opportunity to experience electric driving without the risk of vehicle break-down due to a low battery charge state. Thus, PHEV's represent an attractive means of meeting future CO2-legislation. PHEV batteries must fulfill a divergent list of requirements: on the one hand, the battery must supply sufficient energy to ensure it can be driven an appropriate distance in EV-mode. On the other hand, even with a low state-of-charge (SOC), the battery must supply sufficient power to assist the engine in vehicle acceleration or to recuperate on deceleration. This leads to a compromise in terms of cell selection. Fundamentally, high energy cells cannot provide high charge and discharge rates and high power cells cannot provide sufficient energy.