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News
Issue #2001 - 22 (May 2001)
(Updated May 30, 2001)

PRODUCTS & SERVICES

Ford Delays Launch of Wingcast Telematics Service Until Mid-2002

Drivers wanting to be part of Ford Motor Co.’s vision of ‘a truly mobile lifestyle,’ where information is seamlessly transported between their home, office, and vehicle, will have to stand in line a little while longer, at least to mid-2002.

Unveiled last July, Wingcast is a joint venture by Ford and Qualcomm. The telematics service was to transform the automobile into the next mobile portal; it would bring customers seamless access to applications and services including communication, information, navigation, entertainment, safety features along with a compatible mobile device, the company said last summer.

However, the vision is more complex technically than first realized. Ford spokesman Chris Vineyard told Reuters that Wingcast technology is more complicated and said the company would prefer a short delay in the launch to get it right.

Once deemed as the long awaited challenger to GM’s OnStar, which was launched in 1996 and now has over one million subscribers and is available on 32 GM cars, Wingcast will have to work hard to catch-up. While Ford and Qualcomm technicians work on getting it right, OnStar continues to line up its forces. Just recently Subaru of America signed on with OnStar to bring the telematics service to its OutBack by 2003. OnStar said that it plans to release new services such as Personal Calling, for hands-free calling, and Virtual Advisor, for personalized Web information.

It now remains to be seen how close Ford comes to meeting its goal of having Wingcast on over one million vehicles by the end of 2002 and three million by the end of 2003, the company said last July.

Then again delaying the launch may be in Ford’s best interest. With some industry observers saying that OnStar is losing money because the consumer is not ready to pay out monthly fees for such services, Ford may be in a position next year to capitalize on any shift in consumer spending habits. But, of course, this will require reining in the marketing professional to educate Ford customers, who are not already waiting in line, to the lifestyle benefits and safety features of the telematics service.

For more information: http://www.wingcast.com/company/vision.htm

Mobileinfo Comments and Advisory: Telematics (in-car computing) introduces a journey. It will take a few years before you get all the advertised functions.  It might cost Ford a few percentage points in market share of the high-end market. But then Ford has bigger problems with its Firestone tire fiasco. As far as making money, we wonder who told whom that they will make money in Telematics the very first year. Look for the long-term ROI.

Note: This news release may contain forward-looking statements. Readers should take appropriate caution in developing plans utilizing these products, services and technology architectures.  All trademarks used in this summary are the property of their respective owners.


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