According to Bloomberg,
Ford Motor Co.
) is planning to use
) QNX operating system in the new version of its Sync in-car
communication and entertainment system, instead of
) Windows, which it uses currently. The shift is being induced by
numerous reported malfunctions in Ford's current technology
systems and touch screens.
In-car communication systems are increasingly becoming
deciding factors for consumers' car purchases, according to a
). As a result, Ford is not faring well in consumer surveys
conducted by J.D. Power & Associates and Consumer Reports.
The automaker's Ford and Lincoln brands occupied the 26
positions, respectively, in Consumer Reports' survey on 28
brands, which was released in Oct 2013.
As a result, Ford is seeking a change in the operating system
used by Sync. As QNX and Microsoft are the most popular operating
systems used in cars, a shift to QNX seems the obvious choice.
BlackBerry had acquired the QNX Software Systems in 2010 for a
consideration of $200 million.
QNX is used in the Audi and BMW cars at present. It is also
used in nuclear power plants and unmanned aerial drones.
According to Bloomberg, QNX will not only cost less than
Microsoft but also provide better speed and flexibility to Ford's
Sync system. Currently, the Microsoft-based Sync system is
operative in over seven million Ford vehicles.
The company posted earnings per share of 31 cents (excluding
special items) in the fourth quarter of 2013, flat year over
year. However, the automaker surpassed the Zacks Consensus
Estimate of 28 cents.
Revenues in the quarter grew 3.6% to $37.6 billion, exceeding
the Zacks Consensus Estimate of $35.47 billion. The improvement
was attributable to increased wholesale volumes in the automotive
Ford currently carries a Zacks Rank #3 (Hold).
ACCENTURE PLC (ACN): Free Stock Analysis
BLACKBERRY LTD (BBRY): Free Stock Analysis
FORD MOTOR CO (F): Free Stock Analysis Report
MICROSOFT CORP (MSFT): Free Stock Analysis
To read this article on Zacks.com click here.