Ford Motor Company (NYSE:F) may be dumping Microsoft Corporation (NASDAQ:MSFT) for BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) in its next-generation Sync system. That’s according to unnamed sources cited by Bloomberg. Shares of BlackBerry rose as much as 6% today on the rumor.
BlackBerry’s O/S to be used in Ford’s vehicles
According to the network’s sources, Ford Motor Company (NYSE:F) has been having problems with the technology in its cars As a result, the automaker is said to be planning on using BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s QNX operating system rather than Microsoft Corporation (NASDAQ:MSFT)’s Windows for its next version of the Sync system used in its cars.
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s operating system is less expensive than Microsoft Corporation (NASDAQ:MSFT)’s. The sources also said Sync will become more flexible and faster on QNX. Currently 7 million Ford vehicles have its Sync system.
Ford to address consumer complaints
Consumers have been complaining about problems with the technology in Ford vehicles. Ford Motor Company (NYSE:F)’s new vehicles have been hurt in surveys from Consumer Reports and JD Power & Associates because of the technological flaws. Among the reported problems are issues with the stereo and other in-car systems and components.
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) CEO John Chen recently said he would be looking to capitalize upon the company’s QNX operating system, among other things. If Ford Motor Company (NYSE:F) really is switching to the struggling company’s O/S, then it would be a major vote of confidence for a company many have thought would be completely defunct within just a few years.
Currently BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)’s QNX system is used in BMWs and Volkswagen’s Audi vehicles. Cars aren’t the only place the company’s QNX system is used. Nuclear power plants use it in management of their systems, and the U.S. military uses it to control unmanned drones. BlackBerry counts Cisco Systems, Inc. (NASDAQ:CSCO), General Electric Company (NYSE:GM) and Caterpillar Inc. (NYSE:CAT) among its QNX clients. The company has owned QNX since it bought QNX Software Systems in 2010.