Delphi, which claims to have won $2.9 billion in orders for its car multimedia products, announced that it will be working with Ericsson Mobile Communications to produce telematics products that offer plug-and-play wireless solutions. The partnership is not exclusive, and Delphi says its relationship with Motorola remains in tact.
Delphi also named Ericsson as a key supplier for embedded wireless modems and said that it will work closely with Ericsson to define new standards for telematics systems. The focus will be on plug-and-play connections to wireless products so that vehicle owners can make quick upgrades on their car electronics. This is especially important since development cycles in the telecom world are much shorter than the average vehicle ownership cycle, said Dr. Robert W. Schumacher, director, Delphi Mobile MultiMedia Group. "The partnership will also bring new wireless solutions to end-users much faster, and will allow them to take advantage of innovations such as Bluetooth connectivity, wireless application protocol Internet browsing, and packet-switched data transmission. In addition, the collaboration will also package third-generation wireless technologies and make these advances available to be installed through plug-and-play upgrades," Schumacher said.
Delphi said studies show that 50 percent of all new cars produced in North America, Western Europe, and Japan will have embedded cellular modems within the next five years. The studies also indicate that about 90 percent of all luxury cars will have telematics capability by mid-decade.
Delphi's Mobile MultiMedia Business Group was formed 20 months ago and has already booked more than $2.9 billion in smart radios, telematics and rear-seat entertainment systems through 2006 from seven car divisions. The business is expected to grow between 25 and 30 percent compounded annually.