Hyundai, IBM partner on telematics venture

DETROIT November 19, 2002; John Porretto writing for the AP reported that Hyundai Motor Co. and IBM Corp. are teaming up in a venture to provide an array of telematics services to vehicles made by the South Korean automaker.

The two companies were scheduled to announce the deal Tuesday in Seoul. Terms were not disclosed.

"With telematics developed in alliance with IBM, we can now offer an incredible new dimension in automobile driving that enhances safety, security and connectivity," said Sangkwon Kim, senior executive vice president of Hyundai's research and development division.

Telematics refers to wireless communications products designed into vehicles. A few years ago, telematics consisted mainly of navigation systems in a few high-end cars and the OnStar service from General Motors Corp.

Today, some form of telematics is available on 80 models representing 14 brands in North America, according to the Telematics Research Group in Minnetonka, Minn. Globally, the numbers rise to 200 models and 32 brands.

Hyundai and IBM say they expect their services to debut in June in vehicles produced for the Korean market. It wasn't immediately known when the vehicles would be available in North America, or how much telematics would add to the cost of a vehicle.

Hyundai, whose models include the Accent, Elantra and Tiburon, is building its first U.S. manufacturing plant near Montgomery, Ala. The $1 billion plant, scheduled to open in 2005, will give the company capacity to build 300,000 units a year.

The automaker and Armonk, N.Y.-based computer giant said the telematics arrangement will result in the following features:

--Air-bag deployment notification to automatically call emergency rescue services to an accident.

--Remote stolen-vehicle tracking via a global positioning system, also known as GPS.

--GPS capabilities for delivering real-time traffic information by map or interactive voice response.

--A portal for providing news, weather and stock quotes, as well as e-mail and Internet access, in text or by interactive voice response.

--Data synchronization for personal digital assistants, mobile telephones and other devices.

--24-hour assistance and concierge services from on-call representatives.

"It appears they've taken the most important features of telematics and bundled them into one system," said Phil Magney, the Telematics Research Group's principal analyst. "This looks like it will be a competitive, relatively low-cost telematics unit for the average driver."

IBM's other telematics customers include BMW, Audi, Peugeot, Honda and DaimlerChrysler AG.

Magney's organization said Americans bought 1.85 million vehicles last year equipped with telematics. That number is expected to grow to 2.4 million next year and 6.6 million by 2007.

By the end of the decade, the research firm expects 70 to 75 percent of vehicles sold in the U.S. to be equipped with a telematics feature.

Some companies are working on wireless technologies that one day -- perhaps in five to 10 years -- would allow users to control thermostats and lights at home while driving.