Ford to Use Google's Android System in Most Cars -- Update

By Mike Colias 

Ford Motor Co. plans to use Google's Android operating system to power its vehicle display screens starting in 2023, the latest auto maker to tap Silicon Valley amid the accelerating digitization of the car business.

The Dearborn, Mich.-based car company said Monday it has entered into a six-year agreement with the tech giant to embed Google's suite of apps, including voice commands and navigation, into multimedia displays on all Ford models outside of China.

Ford also intends to work with Alphabet Inc.'s Google for cloud services to help the auto maker develop in-car features and manage the reams of data streaming from its vehicles.

Terms of the agreement weren't disclosed.

Silicon Valley firms are pushing further into the auto business, eager to capitalize on the growth prospects of the car's evolution as a rolling personal device. Tech companies now provide core operating systems to run in-vehicle multimedia systems, while also providing cloud-based service to store and manage the proliferation of data produced by cars, many of which now are sold with broadband connections.

Microsoft Corp. had struck deals to provide its Azure cloud service to some of the world's largest car companies, including General Motors Co. and Volkswagen AG. Amazon.com Inc.'s AWS cloud service works with Toyota Motor Corp. and other auto makers.

Ford said it will use Google's cloud services for everything from flagging potential new service offerings to managing equipment on the factory floor and streamlining supply chains. The companies said they will form a jointly staffed group to work on projects together.

Inside the car, both Google and Apple Inc. have for years been offering dashboard features that mimic the look and feel of their ubiquitous operating systems. Apple also has been working secretively on its own car project for many years. Amazon's Alexa personal assistant is featured across many models.

While most car makers offer so-called mirroring software to replicate the Android or Apple interfaces on the car's display, those features require drivers to connect their smartphones to the vehicle. Ford, GM and others are now working with Google to offer Android as built-in software, a move that allows owners to download apps directly to their vehicle's tabletlike display, said Sam Abuelsamid, an analyst at consultancy Guidehouse Insights.

Auto makers are mobilizing to offer in-car services to customers that would allow the companies to collect recurring revenue streams and update features on the fly, from automated-driving features to new apps. They also are using data from vehicles to develop features for future models.

Write to Mike Colias at [e-mail]

(END) Dow Jones Newswires

February 01, 2021 12:45 ET (17:45 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.