Volkswagen has signed a deal with Dutch maker of navigation and mapping products, TomTom, to produce traffic software for European-market Volkswagen vehicles. The deal follows a separate agreement reached in January between TomTom and VW to provide navigation and traffic information software for in-dash navigation systems of U.S.-market Volkswagen vehicles, replacing Nokia.
Volkswagen sells about 350,000 vehicles in the U.S. every year, which is significantly lower than most mainstream brands and like Ford, Chevrolet, and Toyota. However, the brand sells roughly 10 times more vehicles in Europe. For TomTom, the situation is quite similar, as the Dutch firm’s navigation software sells much better than its traffic information software, and its European sales are much higher.
Since some models are not quipped with navigation systems, the new deal would cover about 2 million cars, according to TomTom spokesman Jan-Maarten de Vries. The second deal for European-market VW vehicles raises the possibility of Volkswagen using TomTom for maps in cars outside the United States. But according to analyst Jos Versteeg of Theodoor Gilissen, TomTom faces stiff long-term competition from Google, “which has a better product that it gives away for free”.
Stay tuned to Motrolix as we cover the rollout of TomTom’s wares in VW vehicles.