(Reuters) – Telenav Inc., said on Thursday, General Motors Co.-in partnership with the roman Alphabet, is a Google to the power of its car navigation and other infotainment features, does not make any changes to its contract with the manufacturer.
General Motors (GM), said on Thursday it will use the embedded Google technology to power navigation system, voice-activated control, and other vehicle-infotainment (ivi) positions starting in 2021, in a victory for the Alphabet, Inc., in the race to Amazon.com and other technology companies to take control of the dashboard.
Telenav, which provides navigation services to auto manufacturers such as Ford Motor Co. and General Motors, has said it does not expect GM’s decision as to the impact on the internal operating forecasts for fiscal years 2020 and 2021.
“Telenav has a strong and long-standing relationship with GM, a contract will be effective through model year 2025,” according to the company.
The Santa Clara, Calif. – based company, which has been gaining market share in GM, it will be indicated that the trend of increasing income, the automaker was able to stop after 2022. The company generated 18% of sales in fiscal 2019 at the latest from the AMERICAN manufacturer.
“Telenav has been gaining market share in the GM, while the increase of the sales volume of GM, and Telenav is expected that this trend will continue until the model year is 2022, and they proclaimed,” Telenav, said in a statement.
General Motors does not have a mandatory purchase requirements of Telenav under the terms of the agreement, ending the year 2025, it is for the navigation solution provider, he said. Under the agreement, GM was able to offer Telenav navigation solution in the car, by the year 2025.
Telenav shares fell by as much as 48.4%, as a result of GM’s announcement.
Reporting Soundarya J, Kanishka Singh in Bengaluru; Editing by Sherry Jacob-Phillips