Update: Ford, Qualcomm Ink Internet Deal
Updated from 9:13 a.m. EDT
Ford
(F) - Get Ford Motor Company Report
said Monday that it entered a joint venture with
Qualcomm
(QCOM) - Get Qualcomm Inc 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.
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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.
