(Bloomberg) -- Toyota Motor Corp. is collaborating with Microsoft Corp. to consolidate much of the carmaker’s global research in telematics, data analytics and network security services as the auto industry expands connected-vehicle technologies.

The Toyota Connected venture will be headed by Zack Hicks, chief information officer and group vice president at Toyota Motor North America, and will be based in Plano, Texas. The initial investment will be $5.5 million, the automaker said Monday.

Toyota plans to use data science through Microsoft’s Azure cloud technology to develop services that “help to humanize the driving experience,’’ according to a statement. “Toyota Connected will help free our customers from the tyranny of technology,’’ Hicks said in the statement.

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Automakers expanding connected-car services


Automakers are expanding connected-car services as the industry heads toward technologies such as autonomous vehicles. Telematics combines computers and wireless technology to provide services such as infotainment and real-time traffic updates to moving vehicles. Toyota and Microsoft have been collaborating in this area since 2011.

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