Weekly Review: Ford’s New In-Car Infotainment System Will Attract More Customers To The Brand

January 30th, 2015 by Trefis Team
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January has been a busy month for Ford Motors. The company launched its 2017 version of the GT Super car at the North America International Auto Show and also showed two other performance oriented vehicles, the F-150 Raptor and Shelby Mustang GT350R at the event. There is another piece of news relating to the company that should be of interest to investors.

Back in 2010, Ford debuted its MyFord Touch System, an inbuilt infotainment system for the drivers of Ford’s cars. The system was well received on its launch, but consumers didn’t take to it nearly as well. The system was ranked no.5 in JD Power’s Initial Quality Study of automotive brands, but after falling into disrepute with consumers, it fell down to no.23 in the rankings. The company’s infotainment system has been one of biggest complaints against its products in the past and the U.S. auto maker has realized this. Consequently, the company redesigned its in-car infotainment technology and named it SYNC 3. The new technology will be available on full Ford and Lincoln lineups by the end of 2015. [1]

Recently, Ford also announced intentions to roll out Ford SYNC App Link 3.0, a technology that will give consumers the ability to access compatible navigation apps on a touch screen inside the car in a manner similar to how they access these apps on a smartphone. The AppLink will have an open-source SmartDeviceLink initiative which should improve the in-vehicle experience through a better integration of smartphone applications with the car infotainment screens. [2] Additionally, Ford is working with global consumer internet service company Alibaba to improve its map navigation and music services in its vehicle system.

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We estimate gross revenues of about $160.1 billion for Ford Motors in 2015, with EPS of $1.19. We currently have  a $15 price estimate for Ford Motors, which is just about in line with the current market price.

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Notes:
  1. Ford SYNC 3 Delivers New, Innovative Ways for People to Stay Connected with Their Lives While on the Move, Ford media, December 2014 [↩]
  2. Ford will let third-party navigation apps run on cars with Sync 3, The Verge, January 2015 [↩]