September 2002

What is believed to be the biggest telematics industry contract of its kind has been signed between Ford Europe and Thales, the European electronics company. Thales will supply vehicle hardware, telematics services, airtime and billing services, but the system will be sold under the Ford Fleet brand name. Thales was awarded the contract after two years of evaluation and field trials.

Thales' telematics division was formed at the end of 2001 when Thales acquired Global Telematics, the developer of the Orchid system. Chief executive Edward Belgeonne believes the company's ability to deliver an end-to-end service was crucial in securing the contract. "As well as hardware and Internet-based services, we offer 24/7 support and vehicle tracking, and we are a licensed reseller of airtime, so fleet customers have only one monthly invoice. Telematics delivers many benefits to operators, and we are confident we can drive volume in this market."

Kathryn Lees, director of telematics for Ford of Europe, said: "We are delighted to have secured this advanced telematics business solution, which will provide Ford Fleet customers with industry-leading management capabilities for their vehicle fleets. There is a lot of potential for improvement of the fleet business through the practical application of telematics and this best in class system takes us a long way forward in that respect."

In the US, Ford this summer closed down a consumer-oriented telematics venture called Wingcast, and analysts such as Allied Business Intelligence have been predicting that Ford and other automotive companies would probably focus their telematics energies on the commercial market. The outsourced deal with Thales appears to fall in line with that view. However, Ford retains its own UK car-oriented telematics business.