TomTom wins deal to provide Volvo Cars with maps, data
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TomTom, the Dutch navigation company, said on Wednesday it had won a contract to provide Volvo Cars with real-time maps and traffic data for its vehicles.
Terms were not disclosed, but the contract is a major win for TomTom, which competes with Google Maps and HERE, the former Nokia unit now owned by Audi, BMW and Daimler.
TomTom, once known mostly for dashboard-mounted GPS systems, has won a string of contracts for its mapping technology, which it believes will play an important role as car driving becomes increasingly automated.
Other TomTom customers include Volkswagen, Uber and Apple.
TomTom’s shares are down more than 30 percent so far this year, declining sharply during the January market sell-off and again in February after issuing a forecast for 5 percent sales growth in 2016 that fell short of market expectations.
Questions & Answers
Q.What specifically will TomTom provide to Volvo Cars under this new contract?
What specifically will TomTom provide to Volvo Cars under this new contract?
TomTom will be supplying real-time maps and traffic data for Volvo Cars' vehicles. This information is crucial for modern navigation and increasingly automated driving systems within the automotive industry.
Q.How significant is this contract for TomTom, given its current market position?
How significant is this contract for TomTom, given its current market position?
This contract is described as a major win for TomTom, especially as the company competes with larger rivals like Google Maps and HERE. It helps consolidate its position in providing mapping technology for car manufacturers.
Q.Which other prominent companies are currently customers of TomTom's mapping technology?
Which other prominent companies are currently customers of TomTom's mapping technology?
TomTom's mapping technology is also currently utilised by several other significant companies. Its customer base includes major players such as Volkswagen, the ride-sharing service Uber, and tech giant Apple.
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