Thursday brought more rumblings out of the auto industry.
Ford Motor (NYSE:F) said Thursday it has launched the technology to make significant remote upgrades to its cars and trucks, and it plans to roll it out to 33 million vehicles by 2028.
The new technology would create a massive global fleet that would collect data on millions of consumers and commercial customers, giving the automaker access to lucrative new markets and potential streams of revenue.
"We believe that data is the new oil," said Alex Purdy, director of business operations, enterprise connectivity for Ford’s enterprise connectivity unit. "It enables us to have an always-on relationship with our customer."
Ford is calling its new over-the-air update capability "Power-Up," highlighting its ability to enhance and upgrade a vehicle well into its lifecycle.
Tesla (NASDAQ:TSLA) in 2012 became the first automaker to utilize OTA for significant upgrades such as driving characteristics. Other automakers such as General Motors (NYSE:GM) have used remote updates for navigation or infotainment systems but have only recently started launching vehicles that can receive more significant upgrades.
OTA updates could save automakers billions in warranty and recall costs. They also provide a direct connection between the automaker and consumer, increasing potential earnings from data fleet monetization and recurring revenue opportunities for new features or updates.
Ford said it has already sent OTA updates to more than 100,000 F-150 pickups and Mustang Mach-E customers since late March. An update to the F-150 for a battery drainage issue saved Ford more than $20 million in warranty costs.
F shares vaulted 24 cents, or 2.1%, to $11.57.
