US Auto Makers' Silver Bullet: Technology For Everybody

The ailing auto industry, looking for ways to lure new generations of buyers, may have found a magic bullet - in-car digital technology for all consumers.

Auto makers, which are now almost even in quality standards, are now equipping their cars with docking stations for MP3 players, hideaway video players and voice-activated technologies. Most are also pushing these technology options into entry-level vehicles that sell for under $20,000.

"It's a new era," said Paul McCarthy, PricewaterhouseCoopers' U.S. Automotive transaction Services Strategist. "We're going from seeing the car as mechanical device with electronic enablers to an electronics device with mechanical enablers."

He added that the car has become less of a driving machine and more of a place that you "spend time in."

The automotive technology craving was evident this week at the Consumer Electronics Show in Las Vegas. Most notably, AT&T Inc. (T) has introduced a system that automobile manufacturers can use to manage all the digital gadgetry passengers bring with them.

Ford Motor Co. (F) Chief Executive Officer Alan Mulally also delivered a keynote address Thursday. He said Ford will begin selling its voice-activated Sync information and entertainment system globally next year. The product will be equipped with 10 different languages and will be offered in Europe before being rolled out to other regions.

Sync, co-developed with Microsoft Corp. (MSFT), allows drivers hands-free access to their cell phones, radio and CD player. The system has an activation fee of $395 and will soon offer turn-by-turn directions, weather information and sports scores.

Mulally said the auto maker plans to continue developing Sync with the aim of using the system to create a configurable cockpit displays to control everything from colors to automotive information as dictated by the driver.

"This is not Star Trek stuff, this is what we are actually working on," Ford Americas President Mark Fields said. "We want to have new features in the market on a regular six- to eight-month basis."

One concept calls for the creation of an Avatar which would interact with the driver. The Avatar, shown on a video display, would look up information and complete such tasks as entering appointments in a user's business calendar.

"In this tough economy, increasingly, tech has become a hook for driving new car sales, and a lot of car manufacturers recognize that," said Jeff Koenig, who tracks the auto industry for the Consumer Electronics Association. "The evidence is there, there are now moves to build more tech into their products."

Koenig said this is indicative of a broader, industry-wide push as consumers now demand that any car they buy have the same technology that has traditionally been found only in what are considered luxury vehicles. Most major automakers are all ensconced in this drive "because their customer appetite for tech has only increased."

-By Ben Charny, Dow Jones Newswires; [phone];

-By Jeff Bennett, Dow Jones Newswires; [phone]; [e-mail]

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