The ongoing turmoil in Detroit might benefit Redmond – creating new opportunities for Microsoft Corp. to expand the footprint of its in-car information and entertainment system as financially troubled automakers seek new ways to appeal to increasingly technology-conscious consumers.
That’s the belief of some industry analysts, particularly after Fiat’s alliance with Chrysler gave the Italian automaker a new foothold in the U.S. auto market. Fiat was an early adopter of Microsoft’s technology, using it in its “Blue & Me” communication and entertainment system.
Increasingly, the cash-strapped auto industry could find itself without the research and development resources to keep pace with advances in consumer technology. That may lead automakers to look for more outside help from companies that focus on technology, said industry analyst Phil Magney, vice president for the automotive practice at the iSuppli Corp. research firm, in Minnetonka, Minn.
“What the industry is going through right now will be a catalyst to more outsourcing of telematics and infotainment,” Magney said, using the industry terms for information, entertainment and other data received and transmitted in a vehicle.
Overall, he said, the situation “bodes well for Microsoft.”
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