Continental has reportedly reached an agreement with communications giant Motorola, which would see Continental purchase Motorola’s telematics and automotive electronics division.
The deal, which is worth approximately U.S. $ 1 billion, would help Continental expand their product line in terms of collision avoidance technology, as well as post-accident safety features.
Large clients for the company include the big three U.S. makers, as well as BMW.
The acquisition comes quickly on the heels of a new study from the U.S., which seems to indicate that a significant percentage of Americans would like some form of telematics system in their cars, with safety and security being the number one reasons.
The study conducted through the interview of some 500 American drivers, found that some 80 per cent of respondents expressed some desire for their vehicle to incorporate such a technology.
While close to half cited cost as a reason why they have yet to purchase a vehicle that featured telematic components, the growth in the number of vehicles rolling off the assembly line with the technology already built in, the cost is widely expected to decline significantly in the coming years.
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