Telenav says GM’s deal with Google does not hurt its contract with...

Telenav says GM’s deal with Google does not hurt its contract with automaker

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Telenav Inc rejected the viewpoint that partnership of General Motors Co with Alphabet Inc’s Google to provide navigations and other infotainment functions in its vehicles is not disturbing its contract with the automaker, said Telenav on Thursday.

General Motors last week said that it will be using embedded technology of Google to power navigation system, voice activated controls and other infotainment features in its vehicles starting in 2021, a winning move for the Alphabet Inc to control dashboard of the GM, while Amazon.com and other tech companies are also running in that race to make bonds with automakers for navigation systems and relevant technological solutions.

Telenav is a navigation system provider to different automakers such as General Motors and Ford Motor Co, and it said that Telenav is not seeing decision of GM to partner with Google putting any impact on its fiscal years 2020 and 2021 internal operating forecasts.

Telenav is in strong and continuing relationship with the General Motors, and has a contract that will remain in effect through its model year 2025, said the company.

The Santa Clara, California-based company, which has came increasing its share in navigation system market by doing more of the business with GM, highlighted that it is seeing the upward trend of increasing revenue from the automaker will possibly be coming to an end after 2022. Telenav’s revenue generated from the U.S.-based carmaker was about 18% of the total revenue it has generated in fiscal 2019.

By increasing generating revenue from the GM, Telenav has been gaining on market share within the automaker and is expecting that trend to be continued till the automaker’s model year 2022, Telenav said in a statement.

The contract between GM and Telenav that will end in 2025 does not put the GM under any requirement of obligatory purchases from Telenav, but states that GM can use navigation system of Telenav in its vehicles through 2025, the navigation solution provider said.

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I handle much of news coverage for tech stocks, and occasionally cover companies in different sectors. In the past, I've written for other financial sites and published independent investment research, primarily on tech companies. I have a B.A. in Economics from Columbia University. I'm based out of San Diego, but grew up in Southern New Jersey. I play basketball and tennis in my spare time, am a long-time (and long-suffering) fan of Philadelphia's sports teams, and alternate daily between using an iPad Air, a Galaxy Note 3, and one or two Windows PCs.

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