The connected car is fast becoming the next big thing in the auto industry. Auto-makers are building new partnerships with providers of in-vehicle digital systems that allow the delivery of a wide range of digital services via the car's 4G LTE or 3G connectivity or via the mobile users' devices that are compatible with the vehicle's digital display platform. One the more recent endeavor by auto-makers in this space is the acquisition of 10% stake by Porsche Automobil Holding SE (Porsche S.E.) in INRIX, the leading provider of real-time traffic information. Porsche S.E. is the main investor in Volkswagen Group whose brands include Volkswagen Passenger Cars, Audi, SEAT, ŠKODA, Bentley, Bugatti, Lamborghini, Porsche, Ducati, Volkswagen Commercial Vehicles, Scania and MAN. The company paid USD55 million for the stake.
INRIX Traffic Intelligence platform leverages crowd-sourced data from 175 million real-time vehicles and devices, collecting real-time traffic information for a total of 6.4 million kilometres of roads in 40 countries. INRIX data is already being delivered by other automakers such as Audi, BMW, Ford, Mercedes, Volkswagen and Toyota.
The acquisition marks Porsche's focus on the connected car and is in tandem with the trend in the in-vehicle infotainment services segment where more auto makers are offering a host of bundled digital services - from parking information to local business directory to music streaming - on their models that come with data connectivity. INRIX said that pursuant to the acquisition, Philipp von Hagen, a member of the Executive Board at Porsche Automobil Holding SE will join the INRIX board of directors.
"We’re pleased to have an investor like Porsche SE who shares our vision for transforming INRIX from a traffic data company to a connected car and smart cities leader worldwide."
- Bryan Mistele, President and chief executive officer, INRIX
“Connectivity between cars and infrastructure is one of the mega trends in the automotive industry. The need for traffic-related information and data-driven solutions is therefore growing fast. We see tremendous potential in this segment of the automotive value chain.”
- Philipp von Hagen, a member of the Executive Board, Porsche Automobil Holding SE