German engineering company Siemens AG and software maker Microsoft are joining forces to develop communication, information, entertainment and navigation products for vehicles.

Siemens is planning to develop next generation automotive infotainment systems using Microsoft’s software technology platform.

The systems include navigation, high end multimedia units and interfaces to connect portable electronic entertainment devices. Siemens said it will deliver the products to market faster than the typical automotive industry’s product development cycle.

The first collaboration will be a multimedia platform that Siemens is developing based on Microsoft Auto. The platform will make it possible to integrate functions and portable devices more closely into the vehicle.

Consequently, new consumer electronic products will be adapted for in-vehicle use more quickly as it will only be necessary to add individual software components.

New products could be delivered as soon as 2009 because of the collaboration.

Financial details of the transaction were not disclosed.