Boston, MA - February 11, 2005 -- The new Strategy Analytics report, "OEM Activities in In-Vehicle Multimedia, Communications and Telematics Markets," reveals that automotive manufacturer investment in an ever growing range of in-vehicle technologies and increasingly fragmented market opportunities will result in major cost pressures for OEMs (vehicle manufacturers).

There is growing competition for OEM R&D budget funds between a wide and increasing range of automotive technologies. In addition to the need to invest in technologies intended to make their vehicles more competitive and desirable, there are other automotive investment pressures for OEMs, particularly in the areas of advanced safety systems, emissions control, and other automotive software development. Financial pressures mean will prevent OEM investment in a wide and increasing range of in-vehicle technologies. Over the next 2-3 years, OEMs need to prioritize their market strategies

Premium brand OEMs, particularly BMW and Mercedes Benz, as well as the more profitable volume makers, such as Toyota, are currently the best positioned to address the wide range of emerging in-vehicle market opportunities. But the growing cost and competitive pressures of investing in an ever growing range of technologies will soon force all OEMs to rethink their in-vehicle product development strategies According to Joanne Blight, Director, Automotive Practice, "OEMs need to make more focused in-vehicle product development investments, particularly in entertainment and communications. But they will need to balance development in these product areas very carefully against other automotive technologies." Blight continues, "Undoubtedly some OEMs will try to push some of this investment pressure to their supplier community which will create opportunities for suppliers. However suppliers will require ample car buyer data to avoid agreeing to costly investment errors with their OEM partners."