Update: Ford, Qualcomm Ink Internet Deal
Updated from 9:13 a.m. EDT
Ford
(F) - Get Report
said Monday that it entered a joint venture with
Qualcomm
(QCOM) - Get Report
that will bring wireless services to automobiles.
The deal marks Ford's long-awaited entrance into telematics services, which include bringing phone, Internet and entertainment services to vehicles.
The new company is tentatively called
Wingcast
and will be based in San Diego, the home of Qualcomm. Dearborn, Mich.-based Ford and Qualcomm both have equity stakes, although terms were not disclosed.
Ford expects more than a million of its new cars and trucks to be equipped for wireless services by the end of 2002, 3 million by 2003 and by 2004 every Ford vehicle will be equipped with a wireless system.
International Data Corp.
estimates that the telematics market will grow to $42 billion a year by 2010, from $1 billion in 1998.
Harel Kodesh, a former Microsoft executive, will be Wingcast's president and chief executive officer.
Ford closed Monday at 46 9/16, down 7/16. Qualcomm gained 2 1/2 to close Monday at 64 15/16.
