Qualcomm has announced that it plans to dissolve Wingcast LLC, the company’s joint venture with the Ford Motor Company. Wingcast was created to provide telematics services. Qualcomm had previously recorded losses related to its equity interest in the venture. Around 200 people will lose their jobs as a result of the venture’s failure.
Ford had been the sole contributor of funding for the venture since 2001. Prior to that, Qualcomm had invested $25 million in exchange for a 15% equity stake in Wingcast. This was reduced to $11 million after Qualcomm recorded $14 million in losses related to its equity interest.
According to Qualcomm, the dissolution of Wingcast could result in the impairment of certain Wingcast assets. Qualcomm plans to write off up to $11 million on its remaining Wingcast investment in the third quarter of this year.