DETROIT - Visteon Corp. believes telematics and vehicle multimedia components will grow into a $47 billion market over the next 20 years. And last week the company launched its own telematics/multimedia business unit to go after it.
Visteon did not estimate the current size of the market, but endorsed the $47 billion industry forecast published by the investment house UBS Warburg, which predicts big growth in the vehicle-communications business.
Visteon has created the business unit out of its navigation, communication, entertainment, in-car computing and audio system operations. Visteon CEO Peter Pestillo said the company has booked almost $550 million in incremental telematics and multimedia business this year.
'It is critical that Visteon create a focused group that can leverage its engineering and technology expertise within this business,' said Pestillo, speaking at the new division's launch last week.
The division will employ 800 engineers, including 150 in Europe, and be headed by James Wynalek, vice president and general manager.
Wynalek had led Visteon's engineering processes and advanced technology efforts as the company's chief technical officer.
Doug Sandelbach, formerly director of the Electronic Design Factory at Visteon's Technology office, has been appointed director of the European and South American Business Unit.
John Slosar, manager of the North American and Asian telematics and multimedia business systems, will be responsible for the development of some of the key technologies for the unit, including voice, navigation and satellite-based services.
Visteon, spun off from Ford Motor Co. in June, is the world's second-largest auto parts supplier after Delphi Automotive Systems Corp. The company said it has obtained contracts to supply telematics components and systems to such non-Ford customers as General Motors, Honda Motor Co. and Nissan Motor Co. Ltd.