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Microsoft, Siemens Partner Up

They will combine to make entertainment products for the automobile.

SAN FRANCISCO -- Windows began on your desktop, then moved into your living room. Now, the Microsoft (MSFT) - Get Free Report operating system will be parked in your driveway.

The Redmond, Wash. software developer has extended its reach into more devices and systems through

recent agreements with companies such as

LG Electronics



(CSCO) - Get Free Report







(SI) - Get Free Report

to the list. Microsoft and the automotive division of the German electronics company will co-develop "infotainment" products for entertainment, navigation and communications.

The first joint product will go into production in 2009, according the companies. They say they will be able to bring such systems to market faster than the automotive industry typically can.

The deal could prove to be more bad news for the automotive electronics giant



, which filed a reorganization plan Thursday to exit bankruptcy, which it entered in 2005. That company plans to strengthen its focus on vehicle electronics systems.

Microsoft and Siemens will first develop multimedia capabilities for the Microsoft Auto platform, in order to easily connect portable entertainment devices with vehicle systems.

Microsoft closed Friday down 47 cents to $28.44. Siemens finished down nearly 4%, to $122.04.