Ford US cars to get bluetooth, Microsoft operating system

DETROIT (MarketWatch) -- Ford Motor Co. (F) will unveil next month a hands-free Bluetooth wireless system and in-vehicle operating system developed by Microsoft Corp. (MSFT) as an option for its entire Ford brand lineup. The system will integrate some of the features of a personal computer into a car's cockpit, according to sources familiar with the auto maker's plans.
The move is Ford's latest attempt to spruce up its U.S. product portfolio and follows the company's recent decisions to expand satellite radio offerings and introduce features such as connection jacks for Apple Computer Inc.'s (AAPL) iPod music player. The new system, to be dubbed "Sync," will allow for hands-free cellphone communication and other wireless information transfers inside the car, including the ability to receive email.
In many cases, the technology will be integrated into a navigation system. The technology is based on Microsoft's automotive operating system, which has been under development in recent years.
Ford's Sync system will debut next year as an option on at least two Ford brand models that are to be refreshed in 2007 - the Focus and Five Hundred sedans, according to one source briefed on the company's plan. The auto maker plans to offer the system as an option on the entire Ford brand lineup, including trucks, starting in the 2008 model year, according to that source. Eventually, the Lincoln and Mercury divisions are expected to have the option.
Ford and Microsoft will jointly announce the Sync initiative at the Detroit auto show and the Consumer Electronics Show in Las Vegas during the week of Jan. 10, according to multiple sources. A source said Ford views the announcement on the same scale as a new vehicle announcement and sees the availability of the Sync system as a major competitive advantage over close rivals.
Ford spokeswoman Sara Tatchio declined. Microsoft spokesman Chris Elliott said the company has been working with Ford on certain technologies and will have an announcement at the Detroit auto show. Elliott declined to discuss specifics.
While the Sync system is complex, it will share attributes with Bluetooth wireless technology that is integrated in Ford products built in Europe, where certain hands-free phone use laws are enforced. Various Ford competitors also utilize Bluetooth.
Microsoft started an automotive unit 10 years ago and in 2004 struck a broad development deal with Italy's Fiat SpA (FIA) related to in-car computing. A source close to Microsoft said the company has turned in a spotty performance when it comes to Bluetooth technologies and that the Ford deal could help spur Microsoft's efforts.
The drive to install more and more electronic features in cars has sparked debate in the auto industry concerning the amount of distraction that drivers encounter in the cockpits of their cars.