Ford Deal Signals New Push for Common Car Apps

Ford Motor Co., seeking to forge a common way for mobile phone applications to work with its and other auto makers’ digital systems, on Monday purchased a small Michigan software company for less than $10 million.

It is the first technology company that Ford has purchased since 2000, said Paul Mascarenas, Ford’s chief technology officer.

The purchase of the Ferndale, Mich.-based company shows how important developing applications for Ford’s Sync AppLink system has become. AppLink allows applications on smartphones and tablet computers to work with a car’s radio and navigation digital display.

Ford aims to merge Livio’s Livio Connect technology with its own AppLink system. For example, Ford’s AppLink allows applications such as Pandora, Spotify, Wall Street Journal Radio and MLB radio to stream nternet content through a vehicle’s stereo. The applications are voice-activated.

“I think the strength of that team coming in is very powerful,” Mr. Mascarenas said. Ford and other auto makers have struggled to lure talent away from high-tech companies based in Silicon Valley, but the need for the workers is growing every year as vehicles become more like rolling mobile devices.

The unique systems developed by each auto maker has required each application developer to make different designs for every car company. Ford has offered to allow other companies to use its system, AppLink, but none so far has accepted

Ford and Livio founder Jake Sigal say the combination of the companies should help drive a standard way for applications to connect. Mr. Sigal started the company in 2008 after leaving Delphi Corp., where he worked in consumer electronics.

Livio will continue to operate under its name, and operate as a wholly-owned subsidiary of Ford.