Q&A: Mark Fields of Ford on Fiat-Chrysler, Microsoft

(MoneyWatch)  An interesting footnote to the proposed Fiat-Chrysler merger announced last week is that Ford already has a relationship with Fiat. The little Ford Ka, going on sale now in Europe, is based on the same platform as the Fiat 500.

Fiat also offers a feature it calls "Blue&Me," similar to Ford's Sync in-car system. Sync provides hands-free, voice-activated control of the driver's portable electronic devices, like cell phones and MP3 players. Both systems were developed with Microsoft Corp.

Ford is also adding new features, such as traffic reports, precise turn-by-turn driving directions and up-to-date information including business listings, news, sports and weather ?€" without the need for a built-in navigation system. The system accesses the data via the customer's phone.

Ford executive Mark Fields said that Ford models equipped with Sync sell twice as fast as the same cars without Sync. He said in a speech sponsored by J.D. Power and Associates on Jan. 23 that Ford expects to sell 1 million Sync units by the third quarter of this year. Sync debuted on the Ford Fiesta model in the fall of 2007.

Fields is Ford president of the Americas, responsible for development, manufacturing, marketing and sales of Ford, Mercury and Lincoln vehicles in the United States, Canada, Mexico and South America. BNET Auto Analyst Jim Henry had a quick interview with Fields following his speech at the J.D. Power Roundtable in New Orleans. The following are edited excerpts.

BNET: Does Ford have any objection, any grounds for objection that you know of, to the Fiat-Chrysler deal? For instance, Ford shares a platform between the Fiat 500 and the Ka. Mark Fields: The initial answer is no. Obviously, we have a relationship with Fiat, with the Ka -- Not initially, no, but we will be looking at it, and we will have to see.

BNET: What about Sync versus what Fiat calls, "Blue&Me?" I understand Ford had a one-year exclusive agreement with Microsoft for the Sync technology. I take it, that exclusive arrangement has expired? MF: Our one year of exclusivity was up in November. We knew Fiat was coming out with the technology, although their version doesn't have as many capabilities as ours.

BNET: Sync is getting a lot of marketing behind it, and it seems pretty important to Ford. Are you concerned about other car companies now being able to offer it? MF: We have a first-mover advantage on that technology, and we intend to exploit that.

BNET: How do you do that? MF: We've dedicated a whole group of people to interactivity and connectivity in the vehicle, and you can see that, in what amounts to Sync Version 3.0, that we introduced at the Consumer Electronics Show (in Las Vegas, on Jan. 8). Other companies are just getting going on this technology.

BNET: If the basic technology is no longer exclusive, what about the name, Sync? MF: That's still exclusive.