SYNC Is A Proven Halo Product For Ford

Don't do this while driving: SYNC allows passengers who bring along their WIFI-enabled mobile devices to connect to the internet.

The two best things that have happened to the Ford Motor Company (after hiring Alan Mulally in 2006) was to hock all of its assets before the great financial crash of 2008, thereby freeing up billions in cash, and to avoid the fate of General Motors and Chrysler who took federal government funds and thereby ceded their businesses to outsiders. Combined, these actions have enabled Ford to remain independent and to grow its business while its domestic competition flounders.

Halo SYNC

But there is a third matter that has helped Ford and that would be its halo product, SYNC. Ford describes SYNC as its “voice-controlled communications and infotainment system,” developed in cooperation with Microsoft and exclusive to Ford when it hit the market in late 2007. Ford no longer has a proprietary claim to the technology which means other manufacturers such as Hyundai are developing their own products in cooperation with Microsoft, but Ford has a huge head start.

Most importantly, consumers seem to understand the value of adding SYNC to their purchase if offered optionally. And, still priced at $395, SYNC adds value to vehicles so equipped while returning a handsome profit for Ford.

Millions Sold

On Wednesday, Ford announced that it had reached an important milestone with SYNC, having sold its 2 millionth equipped vehicle just days earlier. SYNC is available in three vehicle brands—Ford, Lincoln and Mercury—adding to the resale value of equipped vehicles. For example, Ford calculates that a 2008 Ford Focus equipped with SYNC is worth $240 more than one without. That’s especially good considering some products offer little to no return on the buyer’s original investment.

Another bit of news that has Ford marketers salivating is that their own research shows that one-third of its customers said that SYNC played an important role in their purchase decision. Furthermore, after demonstrating SYNC to customers, 80 percent reported that it improved their opinion of Ford with 70 percent saying that they would likely include SYNC if purchasing a Ford product.

What was it that I said about a halo product?

SYNC Improvements

Ford is not resting on its SYNC laurels, however. Beginning with 2009 model vehicles Ford added two new features to SYNC: 911 Assist and Vehicle Health Report. The former allows users to put a call in for local emergency services in the event of an accident. If the vehicle occupant cannot respond, 911 Assist sends a canned message asking for help.

Vehicle Health Report allows owners to keep up with vehicle maintenance through a report offering “diagnostic systems’ statuses, scheduled maintenance, needed repairs from the last dealership visit, and will even alert owners of any open recalls.” Maybe Ford should share the technology with Toyota who is busy recalling millions of its own vehicles. No, wait!

High Tech

Perhaps the most intriguing thing about SYNC is what it proves about today’s vehicles—customers want useful technologies and they’re willing to pay for it. Today’s cars are computer systems on wheels and as long as drivers aren’t distracted while driving these types of enhancements can improve the driving experience.

Source: Ford Motor Company

Ford Delivers Millionth SYNC Vehicle

Redmond, Wash. - May 26, 2009 - Ford President and CEO Alan Mulally (left) visits the Microsoft campus to deliver Microsoft CEO Steve Ballmer's new 2010 Fusion Hybrid equipped with the 1 millionth Ford SYNC system. SYNC, which is powered by Microsoft Auto software, is Ford's fully-integrated, voice-activated in-car communications and entertainment system for mobile phones and digital music players.

It doesn’t seem all that long ago that Ford rolled out its SYNC technology, developed with Microsoft Corporation to provide drivers with a voice-activated communications and entertainment system like none other available on the road. Ford had an exclusive arrangement with Microsoft to deliver SYNC technology for one year, giving the automaker a leg up on its competition.

One Million SYNC Models Later

Just this past week, Ford rolled out its one millionth vehicle equipped with SYNC, a 2010 Ford Fusion Hybrid model which was delivered to Microsoft’s president, Steve Ballmer.

“We have made a commitment to deliver the vehicles that people really want and value,” Mulally said. “The success of SYNC is another proof point that we are doing just that. We will continue to innovate and expand the capability of SYNC by integrating even more new technologies that fit our customers’ lifestyles.”

SYNC Helped Ford Focus Sales

Last Spring, as gas prices began to climb, Ford took advantage of the technology by offering it in one of its most economical models, the Ford Focus. That combination of great sound and terrific fuel economy propelled Focus sales enabling the car to quickly become one of the top selling vehicles for 2008.

“Working with Microsoft and other key technology partners, we’ve made Ford the connectivity leader in the auto industry,” said Jim Buczkowski, director of electrical and electronic systems. “We do not plan to stand still; we have several additional developments in the pipeline, including launching SYNC in Europe and around the world.”

Moving Forward With SYNC

Although the proprietary licensing period with Microsoft has now ended, Ford’s edge in the arena of in-car communications is evident, something the automaker plans to build upon in the years ahead.

See Also — New Ford Shares Program Looming

Photo Credit: Ford Motor Company

Ford, Microsoft Roll Out New SYNC Features

One of the best partnerships the Ford Motor Company has forged over the past few years is its relationship with the Microsoft Corp. Working together the two companies developed SYNC, an in dash computer system offering hands free entertainment and information for drivers.

Ford signed on with Microsoft for an exclusive one year deal in 2007 and that first year gave the automaker a head start over the competition. Since then, companies like Hyundai have also teamed up with Microsoft to create their own system, while SYNC remains proprietary for Ford.

At last week’s Consumer Electronics Show (CES) in Las Vegas, Ford and Microsoft took the wraps off of several new SYNC features. Now, SYNC offers a bevy of helpful features including:

• Voice-recognition software.

• Integrated GPS technology and a customer’s Bluetooth mobile phone.

• SYNC with Traffic — Directions and Information provides simple hands-free access to personalized traffic reports, precise turn-by-turn driving directions, and up-to-date information such as business listings, news, sports and weather.

Ford says that the new services will be available on nearly all 2010 Ford, Lincoln and Mercury models with no monthly subscription fees for the first three years of service, which is included with a new vehicle purchase.

Compared to competing plans the three year trial period is three times as long as what GM offers with OnStar and what Toyota will be offering with its new system, Lexus EnForm and Toyota Safety Connect, when they roll out late this summer.

Ford also showcased the 2010 Ford Fusion Hybrid, an all new model that will go on sale this spring.

The Fusion Hybrid has been receiving a lot of attention lately, most notably for its projected high fuel economy numbers. The EPA projects that the Fusion Hybrid will get 41 mpg in the city and 36 mpg on the highway. The city figure is 8 mpg higher than the Toyota Camry Hybrid, the model that Ford has in its crosshairs when marketing the all new Fusion.