Delphi will work closely with Ericsson to define new standards for telematics systems, with a plug and play feature that will allow vehicle owners to make quick upgrades to their vehicles' mobile multimedia products. This is especially important since development cycles in the telecom world are much shorter than the average vehicle ownership cycle. The partnership will also bring new wireless solutions to consumers much faster, and will allow them to take advantage of innovations such as Bluetooth wireless technology, wireless application protocol Internet browsing, and packet switched data transmission. We believe both companies will benefit through market and technology sharing. The partnership unites Ericsson's leadership in global wireless communications, with Delphi, the world's leading provider of automotive technology and systems, in order to meet the strong demand for connectivity, mobile Internet, advanced communications, information, and entertainment features for vehicles.
People are no longer willing to be isolated in their cars.
They want the same access to information inside the car that they currently have outside the car, and this will provide increased productivity, convenience and safety. In support of the partnership, market studies indicate that fifty percent of all new cars produced in North America, Western Europe, and Japan will have embedded communications modules in five years. Approximately 90 percent of all luxury cars will have telematics capability by mid-decade. The studies also emphasize the importance of distinct product positioning and partnering strategies to fully take advantage of the opportunities in this rapidly growing market. It also gives us the opportunity to define a standard for telematics with a technology partner that is leader in the wireless industry.