Toyota, Microsoft sign $12 million tech deal

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SAN FRANCISCOToyota Motor Corp. on Wednesday announced a $12 million partnership with Microsoft Corp. aimed at bolstering the Japanese automaker’s in-car technology.

The initial investment is a pittance compared to the
overall size of the vehicle “infotainment” market, but it’s “an
important step in developing” the burgeoning technology, according to Toyota President Akio Toyoda.

Toyota is looking to deploy its telematics system, powered by Microsoft’s
Azure platform, across its 2012 fleet of electric and plug-in hybrid
vehicles, and then establish a global cloud platform within three years.

Telematics services generally include navigation,
hands-free telephone and data access, safety communications and driving
assistance systems. Toyota also said it plans to add software that helps drivers manage their energy consumption.

Toyota will begin
selling a plug-in version of its popular Prius hybrid for model year
2012 along with a RAV4 sport-utility vehicle powered by a battery from Tesla Motors Inc. Toyota announced Wednesday that U.S. Prius sales surpassed the 1 million milestone.

Referring to the pilot program with Toyota, Microsoft CEO Steve Ballmer said the investment “further validates the power of the cloud, as the
Windows Azure platform will provide the enterprise-grade, scalable
platform that TMC needs to deliver telematics in its automobiles
worldwide.”

Car makers have turned to the bells and whistles of
in-car connectivity to help differentiate themselves in the
increasingly competitive new-car market. Toyota rival Ford Motor Co. previously tapped Microsoft to power its Sync system, which has helped Ford burnish its image as a technology leader.

Toyota previously
launched its Entune system, which connects the car to the Web using
smartphone technology. It allows drivers to do things like make
restaurant reservations or search using Microsoft’s Bing.com.

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