LAS VEGAS—Microsoft's been talking up the idea of the "Connected Car" for a couple of years now. But this week at the Consumer Electronics Show (CES) here, the company actually had real cars to show off that are running its latest Windows Automotive software.

Microsoft launched its Windows CE 4.2-based Windows Automotive release last spring. But it has taken auto manufacturers about a year to deliver cars supporting the new release.

The Windows Automotive platform that has undergone a couple of name changes since Microsoft first launched it in 1998. (It originally was known as "AutoPC," and later as "CE for Automotive.) The platform is the base upon which Microsoft is building its complete "Connected Car" strategy. Windows Automotive is not designed to power cars. Instead, it controls less mission-critical functions, like navigation, on-board e-mail, audio/visual entertainment and the like.

Here at CES, Microsoft showed off a BMW X5, Cadillac C75 and Hummer H2 running the Windows Automotive software embedded in a prototype "Tbox." Among the new features that the Tbox delivers: hands-free phone support (using Microsoft's VoiceCommand software); driving directions; real-time traffic, stock and weather reports delivered as MSN services; and vehicle diagnostics.

"Our job is to make life work in the car," said Peter Wengert, marketing manager for Microsoft's eight-year-old Automotive Business Unit.

"Most car systems today do navigation. Our goal is to connect the car to the outside world," Wengert added.

Wengert said OEMs built the Tbox prototype for roughly $100. The Tbox connects directly to on-board vehicle computers.

Wengert said Microsoft already is working on enhancements to the platform, especially around VoiceCommand. The company is rolling out a free trial version of the standalone VoiceCommand software, which runs on PocketPCs and PocketPC Smartphones. Microsoft is adding international language support; retail availability and will add VoiceCommand as a default feature to forthcoming Smartphone models.

Microsoft now has12 automotive OEMs (both car makers and after-market car-device/on-board system providers) with 23 different products backing the Windows Automotive platform, Wengert said.

In addition to the vendors demonstrating Concept Cars at the show, other Windows Automotive partners include Citroen, DaimlerChrysler, Fiat, Subaru, Honda, Hyundai, Mitsubishi, Toyota and Volvo.