The Dutch navigation services provider said the system will be easily upgradeable, have a new user interface and can be mounted in a novel way.
It will be available in the new Lancia Ypsilon from the second quarter of 2011.
The new system will refresh traffic information every two minutes, which is faster than other systems, TomTom said. It will also provide up-to-date speed camera information, live weather and local search.
The system can be operated with steering wheel controls and voice commands.
The Blue&Me TomTom was launched for the Fiat Punto Evo in 2009. More than 50,000 units were sold in Europe.