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Automotive Industry Jumps into Electronics.


DETROIT, Mich. -- Backseat Entertainment, Navigation & Bluetooth Become Leading Features for 2005 Model Year

The automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide.  is increasingly looking to electronics and entertainment devices to differentiate their new models according to according to
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 the Telematics Research Group (TRG TRG Training Group
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TRG Technical Resource Group
TRG Technical Review Group
TRG Technology Research Group
TRG Tory Reform Group
TRG Tactical Reconnaissance Group
TRG Training received (on overtime forms) 
)--an automotive and mobile electronics research firm based in Minnesota.

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 International Auto Show An auto show, or motor show, is a public exhibition of current automobile models, debuts, concept cars, or out-of-production classics. It is commonly attended by automobile manufacturers. Most auto shows occur once or twice a year.  earlier this week, TRG found that 17 automotive manufacturers will offer Bluetooth-based communications options in their 2005 production vehicles. Bluetooth is a common wireless standard used to facilitate the handsfree use of cell phones inside cars. Last year only 7 auto manufacturers supported Bluetooth.

The immediate opportunity may be with backseat entertainment and in-vehicle navigation solutions where TRG found the majority of the automotive manufacturers (28 out of 37) are offering these features as standard or optional equipment.

"Auto makers have begun to realize that not offering these features is like leaving money on the table," says Phil Magney, TRG's principal telematics analyst. According to TRG, nearly 10% of vehicles sold last year had backseat entertainment systems, growing to 25% by the end of the decade.

"The aftermarket Aftermarket

See: Secondary market.


aftermarket

See secondary market.
 began to pounce on these opportunities a few years ago as they can address consumer electronics demand faster than automotive manufacturers" says Dr. Egil Juliussen, TRG's chief technology analyst. "The lead time for auto companies to incorporate consumer electronics is a couple of years and the '05 model year show they have caught up in some categories."

In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified"
meantime, meanwhile
 the aftermarket capitalizes on their lead time advantage by introducing solutions almost as fast as the trends begin to appear. According to TRG, one of the latest trends is interface kits that allow portable media devices to integrate with the in-car audio system. These are the products that are riding the success of Apple's iPod and dozens of such kits were introduced to the aftermarket last week at the Consumer Electronics Shows in Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. . So far, only a couple of automakers have been able to respond with iPod solutions.

Navigation systems are also getting the attention of the auto industry with 27 auto manufacturers offering navigation as standard or optional equipment. Here too, the aftermarket is ready to capture a chunk of this market with a slew of new portable solutions selling for as little $400 through the retail channel. "In the case of navigation, the automakers were first to offer these systems a few years ago but sales have been slow due to limited availability When customers of the PSTN make telephone calls, they commonly make use of a telecommunications network called a switched-circuit network. In a switched-circuit network, devices known as switches are used to connect the caller to the callee.  or high price points. The increasing availability of aftermarket navigation systems including new portable solutions will be a catalyst for the category," says Magney.
Number of Auto Brands Offering New Technologies
----------------------------------------------------------------------
                              2004 Model Yr        2005 Model Year
----------------------------------------------------------------------
    Navigation Systems          23 Brands             27 Brands
----------------------------------------------------------------------
   Bluetooth Solutions           7 Brands             17 Brands
----------------------------------------------------------------------
 Rear Seat Entertainment        19 Brands             28 Brands
----------------------------------------------------------------------
   Monitored Telematics         16 Brands             15 Brands
----------------------------------------------------------------------


Monitored telematics solutions (such as GM's OnStar or BMW Assist Overview
BMW Assist is a cellular based automotive roadside assistance service offered by BMW. BMW Assist is similar to GM's OnStar or Mercedes-Benz TeleAid services as they both use the cellular network and Global Positioning telemetry to locate or guide the vehicle.
) are mostly the domain of the auto companies according to TRG. Fifteen auto makers offer monitored solutions that provide safety and security through an embedded Inserted into. See embedded system.  phone coupled with a GPS location device.

About TRG:

TRG (Telematics Research Group, Inc.) tracks and analyzes the OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and  and aftermarket for automotive telematics, including in-vehicle wireless, navigation and digital entertainment. TRG conducts a global telematics survey of these technologies and publishes this information through reports and on-line research services.

TRG was established in 2001 and expanded its operation in January 2004 with the formation of TRG Europe GmbH, a joint venture between TRG and Dornier Consulting (Sindelfingen, Germany).
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Jan 12, 2005
Words:589
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