Ford Motor Co.'s philosophy on navigation systems is if you can't beat them, join them.
"The reality is there are very affordable, portable navigation devices," John Schneider, Ford's chief engineer-multimedia and entertainment, tells Ward's.
"If you can get a $150 Garmin portable, and you put it up against an (OEM's) $2,000 or $1,500 navigation system, people are going to think 'OK, the embedded system has enhancements because it's integrated, but for $150, geez, I'll buy the portable.'"
As companies such as Garmin Inc. and TomTom Inc. continue to roll out less expensive and more advanced portable navigation devices, consumers are shying away from OEM units.
In 2008, auto makers installed navigation systems in 28% of all U.S. light vehicles sold, according to Ward's data. That figure has dwindled to 24.3% through mid-2010.
And the trend seems likely to continue, as new competition comes from smartphones that can access emerging, and highly sophisticated, Internet-based navigation apps.
Rather than concede navigation to the aftermarket, Ford has worked to lower the cost of its systems by integrating competitive technologies into the vehicle.
"Instead of utilizing the traditional Tier 1 supplier, we're turning to the same suppliers winning in consumer electronics," Schneider says." We see them as leading the industry and being on the cutting edge of navigation."
