US Auto Makers' Silver Bullet: Technology For Everybody
January 08 2009 - 6:45PM
Dow Jones News
The ailing auto industry, looking for ways to lure new
generations of buyers, may have found a magic bullet - in-car
digital technology for all consumers.
Auto makers, which are now almost even in quality standards, are
now equipping their cars with docking stations for MP3 players,
hideaway video players and voice-activated technologies. Most are
also pushing these technology options into entry-level vehicles
that sell for under $20,000.
"It's a new era," said Paul McCarthy, PricewaterhouseCoopers'
U.S. Automotive transaction Services Strategist. "We're going from
seeing the car as mechanical device with electronic enablers to an
electronics device with mechanical enablers."
He added that the car has become less of a driving machine and
more of a place that you "spend time in."
The automotive technology craving was evident this week at the
Consumer Electronics Show in Las Vegas. Most notably, AT&T Inc.
(T) has introduced a system that automobile manufacturers can use
to manage all the digital gadgetry passengers bring with them.
Ford Motor Co. (F) Chief Executive Officer Alan Mulally also
delivered a keynote address Thursday. He said Ford will begin
selling its voice-activated Sync information and entertainment
system globally next year. The product will be equipped with 10
different languages and will be offered in Europe before being
rolled out to other regions.
Sync, co-developed with Microsoft Corp. (MSFT), allows drivers
hands-free access to their cell phones, radio and CD player. The
system has an activation fee of $395 and will soon offer
turn-by-turn directions, weather information and sports scores.
Mulally said the auto maker plans to continue developing Sync
with the aim of using the system to create a configurable cockpit
displays to control everything from colors to automotive
information as dictated by the driver.
"This is not Star Trek stuff, this is what we are actually
working on," Ford Americas President Mark Fields said. "We want to
have new features in the market on a regular six- to eight-month
basis."
One concept calls for the creation of an Avatar which would
interact with the driver. The Avatar, shown on a video display,
would look up information and complete such tasks as entering
appointments in a user's business calendar.
"In this tough economy, increasingly, tech has become a hook for
driving new car sales, and a lot of car manufacturers recognize
that," said Jeff Koenig, who tracks the auto industry for the
Consumer Electronics Association. "The evidence is there, there are
now moves to build more tech into their products."
Koenig said this is indicative of a broader, industry-wide push
as consumers now demand that any car they buy have the same
technology that has traditionally been found only in what are
considered luxury vehicles. Most major automakers are all ensconced
in this drive "because their customer appetite for tech has only
increased."
-By Ben Charny, Dow Jones Newswires; (415) 765-8230;
-By Jeff Bennett, Dow Jones Newswires; (248) 204-5542;
jeff.bennett@dowjones.com
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