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Benzinga
Benzinga
World
Bibhu Pattnaik

Here's Why Ford Can't Produce Or Sell Internet-Linked Cars In Germany

Ford Motor Company (NYSE:F) now has restrictions on producing or selling vehicles in Germany that have internet-connected infotainment systems, according to a Reuters report

Reason? A German court has put a nationwide sales and production ban on Ford cars that can establish an internet connection. 

The move is a part of a lawsuit over the violation of wireless technology patents. 

The ruling by the Munich regional court is primarily over the licensing of standard-essential patents for LTE networks used in Ford vehicles in Germany. 

Also Read: Is Ford Stock Revving To Take Off Or Slamming On The Brakes?

"Reason for this court case is the licensing of standard-essential patents for LTE networks. Since we did not yet have [sic] received the written opinion of the court, we do not want to comment on this matter at this time," Ford said in a statement.

The ruling by the Munich regional court can still be appealed. However, a $240 million security payment by the plaintiff, Japan's IP Bridge Inc, was required for it to become "provisionally enforceable".

Ford's connected cars of the future will come packed with 5G and LTE-based communications technology. It will power the vehicle from autonomous driving, navigation, and digital payments.

In another development, Ford recalls 39,013 Expedition and Navigator sports utility vehicles in the U.S. that were built between Dec. 1, 2020 and April 30, 2021 over potential fire risks under the hood.

Photo courtesy of Ford.

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