Delphi and Ericsson launch partnership

10 April 2000

Delphi and Ericsson launch partnership to create innovative plug & play car telematics products

    STOCKHOLM, Sweden--April 10, 2000--At Americas Telecom today Delphi Automotive Systems and Ericsson announced a strategic partnership that will bring telematics products to the vehicles market.
    These plug and play communications solutions will extend the advantages of mobile Internet to all car users at all levels. Delphi also named Ericsson as a key supplier for standard wireless communication modules.
    Delphi will work closely with Ericsson to define new standards for telematics systems, with a plug and play feature that will allow vehicle owners to make quick upgrades to their vehicles' mobile multimedia products. This is especially important since development cycles in the telecom world are much shorter than the average vehicle ownership cycle.
    "Taking from the experience of Delphi and Ericsson, we have the opportunity to create a standard telematics architecture that will reduce product development cycle times and cost," said Dr. Robert W. Schumacher, Director of the Mobile MultiMedia Group at Delphi Delco Electronics Systems. "The partnership will also bring new wireless solutions to consumers much faster, and will allow them to take advantage of innovations such as Bluetooth wireless technology, wireless application protocol Internet browsing, and packet switched data transmission. In addition, the collaboration will also package third generation wireless technologies and make these advances available to the installed base through plug and play upgrades."
    "In short, standardization will significantly enhance the potential telematics market growth rates," said Dave Wohleen, Executive Vice-President of Delphi Automotive Systems and President of the Electronics and Mobile Communication Sector. "We believe both companies will benefit through market and technology sharing."
    The partnership unites Ericsson's leadership in global wireless communications, with Delphi, the world's leading provider of automotive technology and systems, in order to meet the strong demand for connectivity, mobile Internet, advanced communications, information, and entertainment features for vehicles.
    "The integration of mobile Internet in vehicles will provide a new era of services", said Gunilla Nordstrom, Director & General Manager of Wireless Communications Modules at Ericsson. "People in cars will be able to check e-mail, buy stocks, browse favorite Internet pages and even keep kids entertained by folding out video screens installed in the front-seat backs.
    "People are no longer willing to be isolated in their cars. They want the same access to information inside the car that they currently have outside the car, and this will provide increased productivity, convenience and safety. All together, it is an unbeatable combination," said Nordstrom.
    In support of the partnership, market studies indicate that fifty percent of all new cars produced in North America, Western Europe, and Japan will have embedded communications modules in five years. Approximately 90 percent of all luxury cars will have telematics capability by mid-decade. The studies also emphasize the importance of distinct product positioning and partnering strategies to fully take advantage of the opportunities in this rapidly growing market.
    "We are pleased to have Ericsson as a partner to help create the future for our exciting mobile multimedia products," said Dave Wohleen. "Moving forward with Ericsson gives us the strategic advantage of connecting and mapping our products with the rapid development cycles of the wireless communications industry. It also gives us the opportunity to define a standard for telematics with a technology partner that is leader in the wireless industry."
    "We will be able to join competencies from the different industries by bringing together the strengths of Delphi and Ericsson," said Jan Ahrenbring, Vice President of Marketing Communication, Ericsson Mobile Communications AB. "We are very happy to team with Delphi, a company that is as enthusiastic as we are to develop this market."
    Formed just 20 months ago, Delphi's Mobile MultiMedia Business Group has already booked more than $2.5 billion in new business through 2005. The business is expected to grow between 25 and 30 percent compounded annually. Delphi markets Mobile MultiMedia products under the Communiport brand name and targets three product areas that include smart radios, telematics and rear-seat entertainment systems. Delphi integrates these products into vehicle systems, taking advantage of decades of expertise in antennas and reception systems, audio, vehicle acoustics, displays, embedded processors, communications, and user interface design.
    Ericsson is the leading provider in the new telecoms world, with communications solutions that combine telecom and datacom technologies with freedom of mobility for the user. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for its customers -- network operators, service providers, enterprises and consumers -- the world over.
    Please visit Ericsson's Press Room at: http://www.ericsson.se/pressroom.