Component supplier Delphi Automotive Systems and telecommunications equipment maker Ericsson have formed a strategic partnership to develop mobile Internet products for the global vehicle market.
They are predicting an annual growth of 25% to 30% over the next five years in demand for in-vehicle mobile communications and entertainment products.
It is predicted that half of all new cars made in North America, Western Europe and Japan will have embedded communications modules in five years` time - a topic that is being addressed at this year`s CAR Conference at Auto Africa in Johannesburg on 25 October. In the premium segment, about nine of every 10 cars will have this Internet telematics capability by 2005.
No financial details of the Delphi-Ericsson deal are being revealed, but it is expected to give major impetus to this new area of automotive business and tie it closely in to the explosive growth in wireless mobile phones, which are expected to pass one billion subscribers by 2003.
"A lot of those consumers are going to spend a lot of their time in a vehicle, so we feel this market opportunity for us brings a lot to the table," says Jan Ahrenbring, Ericsson`s VP of consumer marketing.
Delphi is working on an in-car system that includes a navigation system, e-mail, Internet access, and an integrated hands-free telephone and address book. It will first appear at the end of this year in the new Cadillac Seville and DeVille.
Delphi and Ericsson say their strategic partnership will develop plug-and-play communications solutions to extend the advantages of mobile Internet to all car users at all levels. Delphi also named Ericsson as a key supplier for standard wireless communication modules.
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