Ford, QUALCOMM to Create Telematics Venture
31 July 2000
Ford, QUALCOMM to Create Telematics Venture
DEARBORN, Mich. - Ford Motor Company and QUALCOMM Incorporated today
announced the creation of a new company that will develop and deliver wireless
mobility and information services that will bring voice, entertainment, Internet
access and safety services into cars and trucks.
Known at present as Wingcast, the new company will become a comprehensive
provider of telematics services to global consumers. The new company will
work with the leading industry hardware, software, and content providers to
offer state-of-the-art, in-vehicle applications to consumers.
Ford Motor Company cars and trucks will be the initial recipients of these
newly developed products and services. Ford expects more than a million of
its new cars and trucks to be equipped by the end of 2002, three million by
2003 and virtually all of its cars and trucks by the end of 2004, with the
level and depth of services increasing each year during that period.
"Wingcast is Ford's vehicle for redefining the future of mobile
communications," said Jac Nasser, Ford Motor Company president and chief
executive officer. "We are not only transforming the automobile into the next
mobile portal, but also are creating a new company that will develop and
deliver a collection of leading-edge technologies and services."
"The wireless and telematics industries are at a pivotal point as we
approach a new era of the wireless Internet," said Dr. Irwin M. Jacobs,
chairman and chief executive officer of QUALCOMM. "Beginning next year,
evolved and new CDMA cellular networks will enable high-speed, widely
available, low-cost access to the information superhighway. Wingcast will
support a broad range of mobile services and become the first portal to offer
consumers unparalleled wireless Internet access."
Combining QUALCOMM's Code Division Multiple Access (CDMA) wireless
technology with Ford Motor Company's telematics and consumer expertise,
Wingcast will bring to consumers seamless access to applications and services
including communication, information, navigation, entertainment, safety and
security from their cars and trucks as well as any compatible mobile device or
computer. Located in San Diego, Calif., Wingcast plans to introduce its first
services in cars and trucks in late 2001.
Harel Kodesh, formerly of Microsoft, has been chosen to lead Wingcast as
its president and CEO. "Harel Kodesh is the right choice to lead the creation
of wireless, in-vehicle services for our global consumers," said Brian Kelley,
vice president of Ford and president, ConsumerConnect. "His depth of
expertise and experience will jump-start our new venture."
"QUALCOMM is focused on driving demand for high-speed, high-capacity
wireless data through the wireless Internet that is enabled by all forms of
CDMA, including cdmaOne, cdma2000 and WCDMA," said Paul E. Jacobs, executive
vice president and the next president of QUALCOMM. "Wingcast's new services
will extend beyond the car, providing the critical mass of customers to drive
new technologies and standards into the automotive, telecommunications and
Internet industries."
Nissan is working with Ford Motor Company and QUALCOMM to bring Wingcast
services into certain luxury vehicles. Nissan may extend the use of these
applications to a broader selection of Nissan and Infiniti vehicles in the
future.
"Wingcast services will enable Nissan customers to access the information
and applications most relevant in a mobile environment," said Ron D'Amico,
vice president, Nissan Technical Center North America. "Wingcast goes beyond
standard automotive applications to offer users greater security, information
and entertainment applications that they can access anytime, not only from
within the car, but also from a variety of wireless devices."
"Cars and trucks will soon become the fastest growing mobile platform for
seamless communications and digital information services," said Kodesh.
"Wingcast will leverage best-of-breed technologies to deliver unique
capabilities that are completely focused on the customers and their
experiences."
International Data Corporation has estimated that the telematics market
will grow to $42 billion by 2010 from $1 billion in 1998.
Ford and QUALCOMM each will own equity in Wingcast, but terms have not
been disclosed. Additionally, Cartell, a Romulus, Mich.-based supplier of
telematics equipment to automakers, is a minority equity stakeholder in the
company.
Wingcast services will be available initially in North America over
cdmaOne(TM) digital wireless networks. Advanced offerings using high-speed
wireless data will become available as third-generation cdma2000 and WCDMA
networks roll out.
Ford Motor Company (http://www.ford.com ) is the world's leading truck
manufacturer and the second largest manufacturer of cars and trucks combined.
Worldwide revenues in 1999 exceeded $162 billion with net income at a record
$7.2 billion. More than 20,000 dealers serve customers in more than 200
markets. Ford's automotive brands include Aston Martin, Ford, Jaguar, Land
Rover, Lincoln, Mazda, Mercury, Th!nk, and Volvo. Other major businesses
include Ford Credit and Hertz.
In July, Ford Motor Company, headquartered in Dearborn, Mich., reported
record second-quarter operating earnings of $2.7 billion, the 17th consecutive
quarter of improved operating results. Worldwide car and truck sales in 1999
exceeded 7.2 million units.
QUALCOMM Incorporated is a leader in developing and delivering innovative
digital wireless communications products and services based on the company's
CDMA digital technology. QUALCOMM's business areas include integrated CDMA
chipsets and systems software, technology licensing, Eudora e-mail software for
Windows and Macintosh computing platforms, and satellite-based systems including
OmniTRACS and portions of the Globalstar system and wireless fleet management
systems, OmniTRACS and OmniExpress. QUALCOMM owns patents, which are essential
to all of the CDMA wireless telecommunications standards that have been adopted
or proposed for adoption by standards-setting bodies worldwide. QUALCOMM has
licensed its essential CDMA patent portfolio to more then 80 telecommunications
equipment manufacturers worldwide. Headquartered in San Diego, QUALCOMM is
included in the Standard & Poor's 500 Index and is a 2000 Fortune 500 company
traded on The Nasdaq Stock Market under the ticker symbol QCOM.
