Bloomberg News - Microsoft Corp. (MSFT) and Toyota Motor Corp. (7203) are forming a partnership to develop in-car electronics systems that help battery-powered vehicles run more efficiently.
The companies will jointly invest 1 billion yen ($11.7 million) in Toyota Media Service Co., a Toyota subsidiary that provides data services to drivers, the companies said in a statement today. The system will include navigation and in-car entertainment using Microsoft’s Windows Azure software. It will also manage energy use in vehicles.
Automakers are adding a broader range of entertainment and power-saving tools to entice buyers to adopt electric vehicles. Microsoft needs more customers to ensure success for Azure, its cloud software for enabling companies to build and provide software that can be delivered as a service over the Internet.
Microsoft Chief Executive Officer Steve Ballmer and Toyota President Akio Toyoda plan to discuss the project with reporters later today. The system relies on so-called telematics, which involve the integration of wireless communications and computing systems, often in vehicle navigation.
General Motors Co. (GM) and Ford Motor Co. (F) have expanded the range of technology services available in cars as well. Ford, for instance, also offers an in-car electronics system developed with Microsoft.
Toyota aims to distinguish its system by including features that can improve a vehicle’s energy efficiency. An electric car’s range can vary significantly based on how drivers use heating and cooling systems, and other in-car functions powered by electricity.
Managing Energy Use
Toyota, based in Toyota City, Japan, said it’s already testing a telematics system in its home country that links drivers, cars and homes to help manage energy consumption. Toyota plans next year to start selling a plug-in version of its Prius hybrid. It also plans a tiny two-passenger electric car and a rechargeable RAV4 sport-utility vehicle with a battery system from Tesla Motors Inc. (TSLA)
The partnership between Microsoft, based in Redmond, Washington, and Toyota "is an important step in developing greater future mobility and energy management for consumers around the world," Toyota’s Toyoda said in the statement.
Toyota has been an early customer for Azure, with the carmaker saying last year that it was using the software to track thousands of roadside assistance calls for its Lexus cars. Azure competes with programs from Amazon.com Inc., Google Inc. and Salesforce.com Inc.
