AUTOMOTIVE MULTIMEDIA AND COMMUNICATIONS

Detailed system and semiconductor demand analysis for in-vehicle infotainment, telematics and vehicle-device connectivity features.

September 1, 2010 17:09 rlanctot
When IBM had the personal computer industry in a headlock, the company was able to freeze customers’ plans to purchase competing PCs by releasing fear, uncertainty and doubt (FUD) in the marketplace. It achieved this goal by announcing its own plans for new products 6-12 months in advance. Sirius XM used its earnings call earlier this month for the same purpose, announcing plans for Satellite Radio 2.0 for Q4 2011. The difference, of course, is that Sirius XM does not control the market for broadcast radio content. In fact, the company is facing competitive pressures from both terrestrial and Internet-based sources. Further diminishing the Satellite Radio 2.0 gambit, is the declining portion of Sirius XM’s revenue and unit volume coming from retail, aftermarket devices. (According to estimates from the Consumer Electronics Association, satellite radio sales to dealers fell to $64M in 2009, with declines forecasted through 2013.) Sirius XM executives stated in the Q2 earnings call plans for the launch of the XM 5 satellite in October and the launch of Sirius 6 in Q4 2011. Also due to arrive in Q4 2011 is the newly touted Satellite Radio 2.0. Sirius XM execs said that SR 2.0 will offer consumers greater capacity and more functionality – both enhancements are intended to stimulate average revenue per user (ARPU). These same execs noted that no additional satellite launches will occur for several years, setting the stage for improved cashflow and profitability. In addition to the satellite and service launches late next year, the Federal Communications Commission (FCC) limitations on Sirius XM subscriptions will end in August 2011. All of these indicators are positive for Sirius XM except for the fact that competition has intensified. With the FCC limitations removed, Sirius XM will have a much broader scope of subscription options given the 150+ range of stations to choose from. SR 2.0 promises even more ARPU upside with added channel content and, as Sirius XM execs clearly indicated in their earnings call, a wider use of data for telematics and other applications. It is interesting to hear Sirius XM getting excited about telematics as a potential ARPU contributor, and it is an indication that the company is moving in the right direction and recognizes the shortcomings of the existing service. It is also, no doubt, a response to competitive pressures from HD Radio and Internet radio. The question is whether or not this awakening at Sirius XM is coming too late to matter. HD Radio technology is proliferating as more OEMs adopt the technology and more radio stations join the burgeoning ranks of participating broadcasters. HD Radio is appealing since it operates over the same FM frequencies, though requiring some additional hardware, and it is free. At the same time, more and more OEMs are lining up music service solutions such as Pandora along with Internet radio - via smartphone connectivity in the short-term and embedded solutions in the long run. The success of Pandora is a testament to that company’s ability to deliver a solution that is able to integrate seamlessly with automotive systems. Competitor Slacker’s content-caching music service is not less compelling, but OEMs have not found integration to be nearly as simple. Still, the tide that is lifting Pandora's boat will likely benefit other music services and Internet radio providers, such as ClearChannel's IHeartRadio. The timing and manner of Sirius XM's announcement of Satellite Radio 2.0 suggests that Sirius XM is attempting to prevent OEM defections to HD Radio, music service solutions or Internet radio. OEMs are in the process of making decisions today that will impact vehicle platforms four and five years hence. Sirius XM executives refused to explain exactly what SR 2.0 will be. But given the short launch window, it will no doubt arrive in the retail aftermarket first. The company is currently briefing OEMs regarding its confidential plans. Sirius XM has already lost momentum in the automotive market. Car makers (and aftermarket system makers) have shifted toward offering satellite radio as an option rather than as a standard feature. And both Sirius XM and its OEM customers are using subscription conversion data to determine which cars should and should not be offered with the service. This means that even though Sirius XM has been able to show subscriber gains in its past two quarters, rapid growth is a thing of the past and pales by comparison to the subscriber numbers of a Pandora or Slacker. On the earnings call Sirius XM execs said that availability of satellite radio technology in cars was at approximately 60% of car models with a paid subscription conversion rate of 47%. The company currently claims more than 19.5M subscribers and anticipates somewhat more than 20M by the end of the year. OEMs say that if it weren’t for their multi-year agreements with Sirius XM they might have walked away from the relationship a long time ago. (Several OEMs are also shareholders in Sirius XM.) This sour sentiment does not bode well for Sirius XM moving away from the subsidy model it maintains in the automotive market. This subsidy model also means that the cost of acquiring new subscribers – given the decline of retail satellite radio sales – will continue to rise as the balance between retail and OEM sales continues to shift toward subsidized OEM subs. Further clouding the otherwise rosy long-term outlook for Sirius XM is the mandated switchover to XM. OEMs currently offering Sirius satellite radio service have been told they will have to switch to XM by 2016. The honeymoon for Sirius XM is clearly over. The question now is whether SR 2.0 can save the store. Satellite Radio 2.0 There are three areas where SR 2.0 could help Sirius XM hold onto its existing subscribers while attracting new subscribers. Here are Strategy Analytics’ thoughts on what SR 2.0 will look like: Audio – Sirius XM faces its biggest audio challenge from Internet radio and music services generally and Pandora in particular. All of these services are paid and Internet radio has suffered a blow from the onset of tiered data plans limiting the use of such services. Nevertheless, OEMs have embraced Internet radio because of the powerful consumer demand and awareness – several times the user base of satellite radio and widely and easily accessed on multiple platforms without any additional hardware. The only solution Sirius XM can offer is more or better-targeted audio channels. Ironically, the more channels Sirius XM adds the more difficult it is to use. Expect Sirius XM to update its content search and save capabilities to better replicate an Internet radio experience. Sirius XM can also be expected to enhance its iPhone and iPod integration with song-tagging not unlike HD Radio’s capabilities. Expect Sirius XM to add additional capabilities, along the lines of what iBiquity Digital has been showing in HD Radio demos for the past 2-3 years. Enhancements are likely to include more artist, track, album information; album art; song duration; maybe even reviews or other metadata from suppliers such as Gracenote or Rovi. Traffic – For some reason Sirius’ traffic data services are not comparable to offerings from direct competitors such as ClearChannel’s RDS-TMC. Side-by-side comparisons conducted by this analyst of both XM NavTraffic and the Sirius traffic service have found them to be lacking in comparison to both PND and embedded solutions. The only good news for Sirius is that RDS-TMC is only offered standard by half a dozen car makers. Still, with the proliferation of HD Radio technology, Sirius will soon be up against TPEG traffic data content, putting it further behind the eight ball. Sirius must bring its traffic data services up to a competitive grade. Strangely, the company does not even use the same flow and incident sourcing between its data (Traffic.com) and broadcast traffic services (Westwood One). Expect Sirius XM to do something about the shortcomings in its traffic reporting. OEMs are definitely making comparisons between HD Radio and satellite radio traffic services and making critical long-term decisions. Expect major traffic data improvements in SR 2.0 including the implementation of a standard traffic database system – such as Gewi’s TIC 3 – and/or TPEG traffic information services. Only time will tell if the changes will be enough or will occur soon enough to preserve strong OEM relationships. Even more ominous for Sirius XM is the fact that more and more OEMs are building the cost of traffic into the cost of their vehicles. The $3.99/month traffic subscription for Sirius XM traffic data will not survive this process of commoditization - especially if the data quality is not competitive. Data – Sirius XM’s Travel Link service, offered by Ford, is an impressive voice-driven offering of content such as gas pricing, ski conditions, news, weather, and sports. Expect Sirius XM to bring this offering up to speed with a greater variety of content delivered with improved graphics. The competition here comes mainly in the form of smartphone solutions, so the challenge to compete is steep. Can Sirius XM breathe life into its retail aftermarket position with SR 2.0? Can the company preserve its standing with OEMs, which are more concerned with reducing costs and complexity? For now, Sirius XM is on a path to continue to build its subscriber base, enhance its service and reduce its operating expenses. But the future of the company hinges on whether car makers will continue to tune in beyond 2016. Further insight: http://tinyurl.com/2bz9zq6 - Google, Nokia and New Entrant Positioning in Automotive Infotainment - Lanctot – Automotive Multimedia and Communications Service http://bit.ly/dniNxa - Navigation Heuristic Evaluation: Telmap5 – Schreiner – Automotive Consumer Insights http://bit.ly/95NCoW - Automotive DMB Digital Radio: Marketing Strategies an Increasing Priority – Blight – Automotive Multimedia and Communications Service http://bit.ly/dtRE5C - Automotive Telematics Services: Shifts in Pricing and Monetization Expected – Canali – Automotive Multimedia and Communications Service http://bit.ly/bwdwcW - Connected Vehicle and Vehicle Device Connectivity System Database by Feature, Region, and Price 2010 – Canali – Automotive Multimedia and Communications Service http://bit.ly/d0aLhq - Connected Vehicle Telematics: Car Maker Profiles – Canali – Aumotive Multimedia and Communications Service

July 5, 2010 15:07 rlanctot
The cardiac kids at Sirius XM are at it again. After surviving years of multi-million dollar losses, a high-wire, company-saving merger with XM, and the downturn in auto sales, the company reported a strong first quarter in May. With auto sales recovering at the beginning of the year, Sirius was able to report revenue and subscriber increases and later revised its estimate of subscriber additions for the year to approximately 750,000. But now the ultimate test, the switch to XM, is on. The subscriber increase, which pushed the total close to 19M, reflected a net gain of 171,441 vs. a decline of 404,422 in the year-ago period. The numbers looked good, but they obscured the challenges arising from an increasingly competitive radio-listening landscape, the increasing inclination of car makers to make satellite radio an option rather than standard equipment and the impending termination of the Sirius half of the combined Sirius XM satellite network. All of these negatives were either swept from the table by the positive earnings report or were not mentioned at all on the earnings conference call. (In the interest of full disclosure allow me to acknowledge that I am a subscriber to both XM and Sirius services and enjoy the content, as do the members of my family. Each member of my family has his or her favorite stations and it is nice to know that those stations are available anywhere in the U.S.) Strategy Analytics consumer surveys in the U.S. show satellite radio lagging well behind traditional AM/FM as a must have in the car. While AM/FM is described as a must have by 88% of respondents, satellite radio is regarded as a must have by only 14%. Internet radio lags even further behind at 5% - but that is changing. Interestingly, U.K. survey respondents show a higher level of interest in digital radio (DAB or DMB), with 22% describing it as a must have in the car. The lack of enthusiasm for satellite radio reflected in the survey results is just one of several negative indicators. Another such indicator is the fact that the aftermarket for satellite radio products is almost non-existent. Just as car makers have been inclined to make satellite radio optional, makers of aftermarket head units have also tended to introduce systems that are “satellite ready” vs. offering one or the other system built in. And the market for portable devices enabled for satellite radio has been limited thus far. Sirius XM is line extending into the iPhone app marketplace, but here, again, the company will run up against music services and Internet radio. The music services leverage more liberal licensing models for storing and managing music and Internet radio will benefit from the increasing proliferation of programming guides such as Stitcher or RadioTime to access interesting and relevant local content including podcasts. Of course, these services also benefit greatly from having a two-way link. Millions of consumers are turning to music services and Internet radio. Car and handset makers are developing ways to integrate these music services (ie. Slacker, Pandora) and Internet radio (ie. IHeartRadio) into their platforms – while carriers are scrambling to introduce tiered data programs to shield themselves from the burgeoning traffic. While satellite radio is increasingly optional either from the factory or in the aftermarket, HD Radio is increasingly standard equipment on cars. But the real killer for Sirius is unfolding in recent meetings with OEMs. Sirius has told its clients, which include BMW, Mercedes, Chrysler, Ford, Kia, Land Rover, Jaguar and many others, that they must switch to XM by 2016. For the car makers that helped make Sirius XM what it is today, there are no special subsidies, no silver bullet hardware fix or retrofit. There is simply a notification that they must switch from Sirius to XM by 2016. The bottom line, of course, is that the two satellite systems – one based on a satellite in geosynchronous orbit and one on satellites in geostationary orbits and using similar frequencies – require different receivers and antennas. In spite of a legal requirement in the merger agreement that the companies find a solution for interoperability, nothing beyond a combination of the two incompatible receivers and antennas was ever introduced in the market. The quiet announcement of the switch to XM, though long anticipated, is surprising for a number of reasons: 1. The companies must have known this day would come when they originally merged, yet it was never acknowledged until recently that one of the satellite networks would have to be sacrificed. 2. Given the fact that subscriber growth has reached a plateau it is clear that Sirius XM can ill afford to lose half its subscribers. And winning new subscribers in the current competitive environment will be a challenge especially as auto sales – the source of the majority of new subscribers – continue to move sideways, failing to provide the engine satellite radio so desperately needs. 3. Car makers – including several premium marks - are incensed that Sirius is making this unilateral change with little or nothing in the way of guidelines or even a public information campaign strategy. Sirius has made no public statement yet and company representatives have failed to respond to repeated requests for comment. 4. There is also some irony in the fact that Sirius spent many years denegrating XM's solution but in the end has chosen to consolidate on the XM platform. Long term, the good news is that the company selected to preserve XM, the more robust of the two solutions. XM was first to market with data solutions for weather (XM Weather in August 2003), traffic (XM NavTraffic on 2005 Acura RL and XM NavWeather on the Acura TL. Sirius made up some ground with the launch of Travel Link by Ford, but XM’s platform, including its terrestrial repeater network, is better suited to providing a wider range of content and services to drivers. If Sirius can keep car makers on board with a vision of low-cost, nationwide content delivery – and the higher ARPU implied therein – it may emerge profitably and competitively vis-à-vis smartphone and digital radio-based solutions. But the company is changing gears just as these new solutions are gaining momentum and at a time when car makers have little patience for another high-wire act. Further Insight: CES 2010: The Arrival of Converged Automotive Multimedia Products - John Canali -  http://bit.ly/9gq4yo Automotive Bluetooth: Profile Strategy Key to Infotainment Success - Mark Fitzgerald - http://bit.ly/9qEXbU Internet Radio: Ready for Prime Time - Mark Fitzgerald - http://bit.ly/ZBXzd Internet Radio to Vie with Music Services for Automotive Dominance - Lanctot - blog - http://bit.ly/9xm6qR WorldDMB Car Manufacturers Workshop - Munich - July 7 - Arrange meeting with Strategy Analytics - http://bit.ly/aUcqgm

May 18, 2010 16:05 rlanctot
The business of capturing and reporting real-time traffic data is on the verge of a deluge of data from millions of GPS probes. From Google to RIM to TCS, TeleNav, Nokia/Navteq and others, the integration of handset GPS data feeds will transform the industry and alter consumer acceptance of traffic data. The importance of this development is the fact that consumers surveyed by Strategy Analytics, time and again, indicate that traffic data is the single most important application on their portable device followed closely by navigation. This is no surprise to marketers who are keen to target customers potentially on the move from one place of business to another and seeking to get there in the most efficient manner possible - which is to say, the supplier that delivers the highest quality real-time traffic data will have a privileged marketing platform for delivering advertising messages. But the onset of traffic data enhancements, though happening swiftly, will unfold as part of an evolution of traffic data that will progress from the combination of public and fleet data of today, to the aggregation of GPS data and crowd-sourced inputs, to the traffic “communities” of the near future. This transition will test the current market leaders and could shuffle the leadership ranks, but it will also reveal new opportunities for information and content sharing. Among the industry leaders watched most closely is Nokia Navteq. With the largest number of mobile devices deployed, Nokia is in the most powerful position to leverage GPS probe data. (Editor's note: updated info from Nokia Navteq follows) Navteq is using GPS probe data to enable accelerated expansion of its Navteq Traffic coverage including primary and secondary roads. The company says probe data is an integral part of its global probe data strategy. Navteq is currently collecting and integrating Nokia probe data records for Navteq Traffic in Belgium, Brazil, France, Finland, Germany, Sweden, the United Kingdom, the United States and Canada with plans to expand. The company expects to benefit from the growing variety of connected devices also using Navteq data and services. Navteq says that nearly 23M processed probe records are integrated into Navteq Traffic monthly in the U.S. in major metropolitan areas including Atlanta, Boston, Chicago, Houston, Los Angeles, New York, Orlando, San Francisco and Seattle. Worldwide, Navteq is collecting 3B probe records including Nokia data and anticipate a doubling of that figure by the end of 2010. Most executives in the industry now agree that TomTom’s HD Traffic solution, built around cellular signaling data and TomTom’s Live Service subscriber probe data, is the state of the art for real-time traffic data. The service is available in six European countries including Germany, where this analyst has used it side-by-side with RDS-TMC data. Nothing this analyst has seen has come close to the apparent completeness and accuracy of the real-time traffic data reporting on a connected TomTom. Long accustomed to incorrect traffic information delivered on a variety of embedded and mobile devices, I found the HD Traffic solution to be a revelation. In several days of driving on autobahns throughout Northern Germany it never once told me I was in a “stau” when I wasn’t or vice versa. Traffic information that contradicts reality continues to be the industry bugaboo. Just as important, the TomTom solution doesn’t rely solely on color-coded roads. The key interface is the barometer on the right hand side of the screen which shows the distance to the next point of traffic congestion and the anticipated delay. At this point in the evolution of traffic information delivery, color codes don’t cut it. They are nothing more than a distraction. With the arrival of mobile phone navigation applications the industry is poised to take a leap forward and sideways at the same time. The leap forward is the potential to replicate the HD Traffic experience on more navigation platforms. The sideways move is that this leap is taking place in connection with a device offering a much smaller screen for delivering up-to-date traffic information to drivers. In addition, with so many new players integrating new data sets for the first time there is bound to be confusion and user interface missteps. After all, if it were easy to convert mobile phone data into real-time traffic feeds this problem would have been solved a long time ago. To remove any doubts about the rising influence of mobile phone navigation, one need look no further than the recent financial reports of TeleCommunications Systems (TCS) – which acquired Networks in Motion – and TeleNav – which completed its initial public offering last week. In its earnings call, TCS said it expects $55-$65 million in mobile phone navigation subscription/sales revenue in 2010 and ongoing revenue growth of 30 percent/year going forward. TeleNav reported that it had 14.5M navigation subscribers/customers (up from 11M at the end of September 2009) and revenue of $122M for the nine month period ended March 30th, a growth rate of 59 percent. While TCS says it has 5-6 percent penetration of its addressable carrier customer base and anticipates increasing that to 30-50 percent, TeleNav claims a 20-25 percent rate of penetration. TeleNav, TCS and TomTom are all seeking to build their subscription bases as swiftly as they can which has led to discounting and bundling, thereby impacting average revenue per user (ARPU). All three companies have indicated a disinclination to share their ARPU figures. TCS has been coy about disclosing the size of its subscriber base. It remains to be seen if TeleNav and TomTom will continue to be forthcoming about their subscriber numbers. All of these numbers are vital to discerning consumer preferences for different business models and could serve as a competitive advantage for these early movers. The integration of anonymous handset signaling data currently used by TomTom, is likely to be supplanted by handset GPS data feeds. And the availability of GPS data feeds has greatly lowered the barriers to entry to the traffic business. Any company from industry titans such as Inrix and rising heavyweight Google to scrappy start-ups like Skobbler (which recently became the first navigation supplier to use OpenStreetMaps) can introduce a mobile phone application that will immediately start reporting GPS data for integration in a real-time traffic platform. Industry executives agree that the GPS data is more accurate an easier to process than hand-off data. That does not mean that signaling data will go away, especially since TomTom continues to use it, but it does represent a change that could ultimately manifest in changing user preferences if the “quality” or accuracy of one type of data is found to be or perceived to be superior to the other. Miles Traffic and Travel – a consortium of ITIS Holdings (U.K.), Infoblu (Italy) and MediaMobil (France) – is also making use of cellular hand-off data and has been chosen by BMW as its traffic data provider for Europe. MT&T is positioning itself as the first challenger to TomTom’s HD Traffic solution. All industry participants agree that the aggregation and integration of hand-off data is a non-trivial exercise. Case in point, AirSage and IntelliOne have been trying to deliver anonymous hand-off data in a commercial solution for years with no success to date. But even the arrival of handset data will not represent the “end of the road” in the evolution of real-time traffic data. The next step is already apparent in the quiet emergence of aha mobile, Telmap, Waze, TrafficTalk and other potential players seeking to build communities around the delivery of traffic and routing information. Aha mobile’s content and services aggregation platform serves as a front end for the full range of Internet-accessible content, including traffic and navigation information. Aha mobile’s traffic solution, though, allows drivers to share geo-coded traffic observation inputs with one another – in other words, an aha mobile user could literally share with fellow travelers what he or she is seeing out the car window. The aha mobile solution represents the same kind of ultra-local location data that Telmap is  trying to provide with the location aware services that are part of its navigation application. Waze also creates a community around traffic, navigation and the creation of the navigation map. For its part, TrafficTalk is seeking to build user communities around specific commuting corridors where drivers can share voice inputs regarding traffic conditions in their immediate vicinity. Today, the industry is poised for the next round of the shoot out at the OK Traffic Corral. All the major players have new ammunition in the form of handset GPS data and the emergence of this new source of data is creating new competitors and new opportunities. But this enhancement to traffic information is just another bend in the road which will lead to traffic information communities sharing on-the-ground information which will transform the industry yet again and set the stage for the next advance. Additional Insights: http://bit.ly/bMeg36 - Global Mobile Handset Navigation Forecast 2004-2014 – Nitesh Patel - Navigation and Location Opportunities http://bit.ly/aoQdpd - North America Mobile Handset Navigation Forecast 2004-2014 – Nitesh Patel – Wireless Media Strategies http://bit.ly/aHhWeV - Nokia & Google Shake Up $3.8 B Handset Navigation Market - Nitesh Patel - Wireless Media Strategies http://bit.ly/cc6O9K - PND Owners Unlikely to Discontinue Using Their Device - Chris Schreiner - Automotive Consumer Insights http://bit.ly/c5f65I - Automotive and Portable Navigation Market Forecast 2008-2016 - Joanne Blight - Automotive Multimedia and Communications Systems http://bit.ly/b5W8ZS - Nokia and RIM Push Into Automotive as 'Apps' Competition Mounts - Joanne Blight - Automotive Multimedia and Communications Systems

December 6, 2009 21:12 rlanctot

Clarion has reported receiving high marks for its factory-installed, voice-activated navigation system with Sirius Travel Link in the Lincoln MKS. The company says its system ranked highest in J.D. Power and Associates’ 2009 Navigation Usage and Satisfaction Study and the system in the Ford Flex is second on the list. Navigation systems in five Ford and Lincoln vehicles earned five of the top 10 positions, according to the company.

 

The announcement is significant for several reasons including the fact that the contract with Ford was won by Clarion just two or three years ago – long before the automotive industry meltdown was ever dreamed of. It is also important because the Clarion navigation systems are available on more than 15 Ford vehicles and Ford is showing the most visible success in the marketplace among the Detroit Three.

 

The news is not only important to Clarion, as the market moves into a recovery phase, it is also important to Sirius Satellite Radio and other Ford partners including Microsoft. It shows Ford’s increasing clout in a market littered with downturn casualties.

 

The downturn in the auto industry robbed Sirius of its major growth engine - new car sales. In its most recent earnings report, Sirius had surprisingly positive yet still modest good news. Reported revenue of $629.6M increased 2.75% year over year. Subscriber revenue, representing 93.3% of total revenue, rose 2.64% year over year. Net advertising revenue declined 30.5% year over year. Equipment revenue declined 18.3% year over year.  Net additions of new subscribers were 102,295 subscribers, or 0.6%, on a sequential basis, vs. a net loss of 405,181, or 2.14%, year over year. The company ended the quarter with a subscriber count of 18.5M.

 

Churn, defined by Sirius as the monthly average of self-pay deactivations for the quarter divided by the average self-pay subscriber balance for the quarter, was 2% in the quarter and 2.1% year-to-date. This compares with 1.7% in the third quarter of 2008. The conversion rate, defined by Sirius as the percentage of subscribers that receive Sirius service and convert to self-paying after the initial promotion period, was 46.8% in the third quarter of 2009 vs. 47% in the year-ago quarter. For year-to-date 2009, the conversion rate was 45.3% vs. 49.2% in the first nine months of 2008.

 

The average revenue per user, derived from adding both subscriber and advertising revenues then dividing that total by the average number of subscribers, was $10.87 vs. $10.51 a year ago. ARPU has averaged $10.67 for the first nine months of 2009, a 1.3% increase year over year.

 

The company faces continuing market, technology and content challenges including its contract with “shock jock” Howard Stern (expiring in late 2010), future infrastructure investments and competition from technologies ranging from Internet radio, podcasting and automotive Wi-Fi and Bluetooth connectivity to the impact of sun spot activity on service over the next few years.

 

The success of Ford and Clarion does make for strange bedfellows, though as Ford’s Sync technology may present one of the most immediate competitive threats to Sirius should Ford decide to deploy the Internet radio capability it demonstrated at last year’s Consumer Electronics Show.

 

Until its Ford win, Clarion was probably best known for its work for Nissan and Infiniti. Here, again, Ford’s success is a boon to both Clarion and its partners including Zenrin for map content and Nuance for voice technology. Ford’s success has thrown off additional accolades for many of these suppliers contributing to their success on other platforms and with other suppliers. Sirius, for example, has just announced that Mercedes will add Sirius traffic to its 2010 model year vehicles.

 

The success of the Ford system has a lot to do with its user interface which includes an enhanced, touch-enabled display with high contrast and company-specific colors and graphics. It is also noted for the performance of its voice recognition system. The combined solution is a powerful on-board and connectivity-enabled system that continues to receive high scores from consumers and serves as a model for the industry.