Ford Includes Sirius in Long-Range Plans

Ford Motor Company is working hard to streamline their business and build synergies of their own. With truck sales down, and consumers buying smaller and more fuel efficient cars, Ford is Focusing on the Focus model.

The big three automaker is making strides at creating a more global platform. By doing this the automaker will bring the U.S. model cars more in line with cars sold in other parts of the world. Right now, the commonality in parts is at 20%. Ford is targeting 90% common parts for the 2010 Ford Focus.

Ford sees such moves as allowing them to weather the storm of slow sales, by getting more value out of the manufacturing process. As with many automakers, Ford is trying to find any way possible to squeeze dollars out of cars, while at the same time, keeping up with all of the technical gadgetry sought by consumers.

Satellite Radio provides a residual income for automakers, and their shift to including the service on more and more models would indicate that auto manufacturers see a value in the satellite delivered services. Unlike AM, FM, or CD’s, satellite radio actually puts money into the coffers of the auto industry.

The fact that Ford is hiring a 40-person research team to deal specifically with on board wireless systems indicates a strong commitment from Ford to not only Sirius, but on board technology. watch for satellite penetration to keep improving, as it is, for OEM’s, a revenue generating venture.

[via MarketWatch]

Position - Long SIRI, No Position Ford

Comments

[ZenInvestor:]

There is a benefit to being the 'only' satellite radio system, you get the phone call every time without having to compete. Ford and all other manufacturers are looking for ways to tap into the Internet and Sirius, with its strong bandwidth and number of channels can bring features to a vehicle long after the initial sale. The revenue streams from these additional services benefit both the manufacturer and Sirius.

2008 Aug 14 08:32 AM

[blogwatcher:]

While the Internet could have uses for a vehicle such as VOIP or messaging, the other technologies for more driver centric needs such as GPS mapping and Satrad have the coverage issue resolved by design. Any effective coverage from Internet will have to come from the likes of telephone carriers, likely from 3G technology (ala the new iPhone). The 3G service will need to be subscription based and you can bet they won't be giving minutes away or putting up cell towers to cover every place a vehicle could go. There are also technical issues with handoffs and service continuity that will need to be resolved. I'm betting that SatRad combined with personal devices such as the iPhone will fulfill the need for some time before fully functional integrated Internet vehicle systems will be practical or affordable. Then there is that sticky and expensive issue of paying for content regardless of the delivery technology.

2008 Aug 14 09:07 AM

[rhj123:]

Only two of the 13 comments on this Seeking Alpha article had any substance. Does Seeking Alpha not screen any comments? Or is it simply a place for showing pure ignorance...?

2008 Aug 14 01:21 PM