(04 Apr 05)

It may come as a surprise that Microsoft has been heavily involved in car navigation systems for some time now. Despite its incredible performance in the home computer market, though, it has struggled in the automotive business, but it has a plan.

Until now, Microsoft has been trying to sell software for expensive navigation systems. Its new ploy is to produce an in-car computer called TBox, running on a dedicated software system called Windows Automotive. TBox can provide directions, make hands-free phone calls and play digital music on customers' mobile phones, iPods or similar devices. It also allows access to telematics services such as remote vehicle diagnostics and electronic yellow pages, which the customer would purchase separately from a service provider.

All this for a couple of hundred euros. And that's the key. According to consultancy Forrester Research in Massachusetts, Microsoft "has finally cracked the code with a working device that provides more functionality at a lower cost than anything else available today".

If Microsoft follows through, it could become a major player in a business which is forecast to generate annual sales of $6 billion by 2010. And the process has already started - Fiat Auto has already agreed to fit TBox to all 23 of its Fiat, Lancia and Alfa Romeo models.

(Source: Automotive News Europe)

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