TomTom is launching a GPS routefinder device for cars together with mapping web site Mapquest. TomTom said the Mapquest device would be a repackaged version of the TomTom Go 300 device. TomTom, whose initial public offering in May was the biggest in five years on the Amsterdam stock exchange, said the device, which will sell for $699, would help it expand its presence in the United States.

I should point out that first TomTom used TeleAtlas's map data (which is terrible in my opinion - at least the U.S. map data), then TomTom announced they would be using NAVTECH's map data (more accurate in my opinion), and now Mapquest.

You know what, I'm not even sure this is necessarily newsworthy since Mapquest already licences and uses the NAVTECH data themselves, thus TomTom already has the Mapquest data (technically NAVTECH data) in the TomTom Go 300. I suppose Mapquest could have their integrated their own special routing algorithm, which is well known for taking you on the most convoluted, err I mean efficient route to your destination.

Update: 5 min from post
Actually, I should have read my prior post on TomTom where I figured out that TomTom was only licensing the NAVTECH maps for the TomTom Rider (motorcycle GPS) product and not other popular TomTom products such as TomTom Go. I also determined and griped that TomTom and Tele Atlas signed a 3 year extension through 2007 (I was rooting for a TomTom Go product with NAVTECH map data).

So I guess this news about a Mapquest OEM'ed version of TomTom Go is probably a way around the TeleAtlas contract good till 2007. I will assume this gives TomTom a way of offering a TomTom Go product that uses the more accurate U.S. NAVTECH data without TomTom breaking their Tele Atlas contract. (assuming it is an exclusive contract)