|
News
Issue #2002 - 22
(June 2002)
(Updated June
12, 2002)
ACQUISITIONS, MERGERS
& AGREEMENTS
Ford Pulls out of Wingcast Investment
Ford Motor Co. said that it has
decided to cease funding the telematics service Wingcast, its joint
venture with Qualcomm, Inc. According to a statement from Qualcomm,
Ford’s decision means Wingcast will be dissolved less than two
years after its début.
Since May of 2001, Ford Motor has been the sole funding
contributor, after Qualcomm stopped investing in the venture.
Qualcomm had invested $25-million in exchange for a 15 percent
stake, while Ford controlled 85 percent.
"Ford made the decision to stop funding the joint venture
with Qualcomm as part of our back-to-basics efforts," Ford
spokesman David Reuter told the Associated Press. "We felt
continued funding of Wingcast was not in our best interests."
Reuter added that the combination of the changing technology and
changing customer desires was the driver behind Ford’s decision.
The car maker has not given up on the telematics sector; it still
continues to explore services based on Bluetooth technology, which
will let a driver’s cell phone interact with their vehicle’s
electronics systems, eliminating the need for expensive on-board
hardware or specialized services.
With the absence of Wingcast, the telematics field is now left
wide open for GM’s OnStar service, which claims to have roughly
one million users.
For more information: http://www.qualcomm.com
(Additional source Associated Press)
MobileInfo.com’s Comments & Advisory: We
are surprised with Ford's decision to pull out of Telematics venture
so early in the game. It appears that it is a tactical decision to conserve
cash. Payback from Telematics investment is going to take a while. We still
feel that fundamentals of Telematics are right but in the current economic
environment, we may have to wait before we surf the Net in a Ford car.
Putting the finger on the on-board hardware alone may not give you all the
answers because backend infrastructure is not ready either.
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.
|
