Microsoft, Hyundai partner for car music and information technology

06 May 2008

Microsoft Corporation and South Korean carmaker Hyundai Motor Co have agreed to build a music and information system to debut in cars sold in North America in 2010. The companies did not reveal financial terms of the joint venture.

Microsoft and Hyundai Motor Group will invest $113 million and $166 million, respectively, in the `Automotive IT Innovation Center' they will set up jointly, South Korea's presidential Blue House said.

Microsoft chairman Bill Gates is visiting Seoul to sign the agreement with Hyundai. Gates also met South Korean President Lee Myung-bak to discuss cooperation with South Korean companies.

The joint venture will develop a version of its Windows Automotive software for the Hyundai Kia Automotive Group, the world's fifth-largest automaker.

Microsoft already has a deal with the Ford Motor Company for its Sync system, which uses voice activation technology to operate cellphones and play digital music.

With both Ford and Hyundai as customers, Microsoft's software could potentially be put into more than eight million vehicles worldwide each year.