Ford Includes Sirius In Long Range Plans
The big three automaker is making strides at creating a more global platform. By doing this the automaker will bring the U.S. model cars more in line with cars sold in other parts of the world. Right now, the commonality in parts is at 20%. Ford is targeting 90% common parts for the 2010 Ford Focus.
Ford sees such moves as allowing them to weather the storm of slow sales, by getting more value out of the manufacturing process. As with many automakers, Ford is trying to find any way possible to squeeze dollars out of cars, while at the same time, keeping up with all of the technical gadgets sought by consumers.
Satellite Radio provides a residual income for automakers, and their shift to including the service on more and more models would indicate that auto manufacturers see a value in the satellite delivered services. Unlike AM, FM, or CD’s, satellite radio actually puts money into the coffers of the auto industry.
The fact that Ford is hiring a 40-person research team to deal specifically with on board wireless systems indicates a strong commitment from Ford to not only Sirius, but on board technology. watch for satellite penetration to keep improving, as it is, for OEM’s, a revenue generating venture.
Position – Long SIRI, No Position Ford
Ford is big on the Microsoft Synch software that ties in most of the electronics in Ford vehicles into a voice activated command system. Now that Sirius is going to be further intergrated into that system it adds more fuel to the fire that Microsoft with with extra deep pockets could be a buyer of Sirius XM late 2008 or early 2009. It’s speculation for sure, but Microsoft is the odds favorite for the task and you know that they have the money to do it without borrowing a dime.
I agree about Microsoft. Their pockets are VERY deep. And they just got rejected in a long drawn out attempt to acquire Yahoo…so i think them trying to buy Sirius is TOTALLY feasible.
The only question is will Mel want to sell too soon before synergies are realized? I dunno. Microsoft would get Sirius for a steal the sooner they buy. But I am sure Mel wants to increase it’s value more first…which could take longer.
Should be interesting.
Mel is the master broker of merger deals. I bet he has planted the seed and talked with possible interested parties. I say parties because Google and Microsoft could create a bidding war. Who knows.
But if the criminally long delay by the FCC concerning the merger taught me anything, is that one should NEVER become too attached to timelines. Especially when everyone starts SAYING it will happen by such and such a time.
We all know that more often than not however…things happen at their own pace independent of what ANYONE thinks or expects.
Long and strong baby. Long and strong.
Tyler,
There appears to be a note out this morning by Citi talking about APPL and SIRI on the iPhone. Can you look into finding such note?