Ford Gets Geeky, Invites Developer Apps for Open Source Platform

Ford (NYSE:F) plans to replicate the success of customized apps for smartphones in its car line-up by building a open-source developer tools to advance in-car connectivity innovation. To realize this, the car company announced its partnership with Bug Labs to develop a new in-car research platform named OpenXC, earlier this week. ^[1] Ford also plans to introduce socially-networked in-car fuel economy monitor connected to the Internet via Bug Labs’ cloud-based service, BUGswarm. Ford mainly competes with auto manufacturers like BMW (GR:BMW), GM (NYSE:GM), Daimler (ETR:DAI), Audi (NSU:GR), Honda (NYSE:HMC), and Toyota (NYSE:TM).

We believe that Ford’s focus on creating industry leading products for enhancing in-car connectivity and its endeavor to make connectivity more available, affordable and personalized for the millions of Ford’s existing and potential consumers will help its vehicle sales grow over mid-term, providing further upside to its stock price.

Our $14 price estimate for Ford stock is about 40% above current market price.

In-Car Innovations Could Enhance

OpenXC platform will transform the car into a plug-and-play platform where interchangeable open-source hardware and software modules that can be quickly and easily customized by developers for specific tasks. Countless add-ons in the form of developer apps will customize the driving experience of users by providing access to fast-changing content preferences around the globe. Ford announced that features such as new visual and audio feedback interfaces, environmental sensors and safety devices can be implemented quickly through this platform.

The ability to sell or rent hardware and software OpenXC modules through local dealerships and/or other aftermarket distribution channels will also encourage its adoption by many price-conscious users, especially in markets such as Asia where car sales are expected to experience the fastest growth. Over time such moves could lead to greater sales and improvements in its market share.

You can drag the trend lines in the  modifiable chart above to see the impact of these trends on Ford’s stock value.

See our complete analysis for Ford.

1. Ford: Ford and Bug Labs Develop Open-Source R&D Platform for Socially-Networked In-Car Connectivity [↩]