Business

Ford Bets on the Digital Car

  • Monday, January 9, 2012
  • By Mahendra Ramsinghani

(Page 3 of 4)

Safety alert: In a test of vehicle-to-vehicle communications, an SUV running a red light sets off a dashboard alarm in another car. The vehicles exchange speed, location, and trajectory data over a WiFi network.
Credit: Ford

About a decade ago, Doug VanDagens, a senior executive at Ford Motor Company, raised his hand at a board meeting and asked a fundamental strategy question: Why go proprietary when the world is moving to open-source?

At the time, Ford was concerned about its Detroit rival GM. At issue was GM's OnStar, the successful in-car communication device offering emergency alerts, stolen-car tracking, and a built-in phone for an annual fee of $199 (plus cellular-minute charges). The OnStar business had two million subscribers and an 80 percent share of the car communications services market, and it was valued at over $4 billion.

 

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