BlackBerry Ltd (BBRY)’s QNX to Replace Microsoft’s Windows in Ford Sync System


Ford Motor Company (NYSE:F) will no longer use Microsoft Corporation’s (NASDAQ:MSFT) Windows operating system in its next generation sync system after experiencing in-car technology glitches.The automaker decided to replace Windows with QNX operating system from BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB), according to Bloomberg based on information from people familiar with the situation.

With QNX, Ford Motor Company (NYSE:F) will be able to improve the flexibility and speed of its next sync system at a lower cost. According to the sources, Microsoft Corporation (NASDAQ:MSFT) charges higher licensing fee for its technology compared with BlackBerry Ltd.

There are more than 7 million Ford vehicles on the road integrated with sync system powered by Microsoft’s voice-activate software that enables drivers to make phone calls and play music. The rankings of Ford Motor Company (NYSE:F) in surveys conducted by J.D. Power & Associates and Consumer declined. Ford customers indicated experiencing malfunctions in the tech systems and touch screens.

Last June, the ranking of the automaker’s Lincoln luxury brand in the J.D. Power Initial Quality study matched the industry average, but its Ford brands ranked 27th out of the 33 vehicle brands. On the other hand, the rankings of the Ford and Lincoln brands were 26th and 27th, respectively out of 28 vehicle brands in the Consumer Report’s annual auto-reliability survey in October.

According to the latest study released by Accenture, in-vehicle technology is one of the top-selling features among 39% of auto buyers higher than the 14% of customers who consider power and speed as their priority in buying a car. This is one of the reason why it is critical for Ford Motor Company (NYSE:F) to improve its sync system.

BlackBerry Ltd’s (NASDAQ:BBRY) (TSE:BB) customers using the QNX operating system include Acura, Audi, BMW, Chrysler, General Motors Company (NYSE:GM), and Hyundai. The software is also used by General Electric Company (NYSE:GE), Cisco Systems, In (NASDAQ:CSCO), and Caterpillar, Inc (NYSE:CAT).