Chrysler and Hughes Telematics Part Ways

Joshua Duval

Chrysler and Hughes Telematics displayed some high-tech vehicle diagnostic and in-car telematics systems with a cool factor challenging Ford's SYNC system back at the 2008 Consumer Electronics Show in Las Vegas, but it seems they'll never actually appear in production vehicles. According to a filing submitted to the United States Securities and Exchange Commission, negotiations with the two companies have fallen apart.

In its filing, Hughes says its contract with Chrysler was left behind with the 'old' automaker during bankruptcy proceedings. 'New' Chrysler wanted to renegotiate the terms of its agreement with Hughes, and talks continued until recently. Then, according to the SEC filing, the parties "reached an impasse in negotiations."

In a statement to Autoblog, Hughes said that Chrysler introduced "additional business terms that were not part of either the prior business discussions or the original arrangement." Unable to reconcile the differences, Hughes has ceased work with new Chrysler. Hughes technology was scheduled to make its debut in Chrysler vehicles by the fourth quarter of 2009.

The news is disappointing for consumers, because the technology slated to appear in Chrysler's vehicles was actually pretty exciting. Besides the standard telematic features like emergency crash notification, hands-free calling, and roadside assistance made popular by services like GM's OnStar and Ford's SYNC, the Hughes technology equipped on the Jeep show car at the Consumer Electronics Show included recall notification, red light camera alerts, remote emissions reporting, vehicle tracking, and real-time traffic.

Hughes also provides the service for Chrysler's "uconnect guardian," which is slated as a standard feature for the 2011 Jeep Grand Cherokee.

Source: Autoblog, SEC

Once again, an example of the free market clashing with big brother. Another in the growing list of bailout casualties. These morons with the Auto Task Force need to pull their heads out of their asses.

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