German manufacturers buy Nokia maps service

A CONSORTIUM consisting of German carmakers Audi, BMW and Daimler has purchased Nokia’s HERE mapping and location service in a deal reported to be worth close to €2.9 billion.

The deal will boost the premium manufacturers’ connected car offerings and is expected to be completed in the first quarter of 2016, subject to regulatory approval..

Interest in Nokia’s HERE system was reportedly high, with the consortium believed to have beat off competition from Uber and Chinese web services giant Baidu.

Although developed by the Finnish mobile phone giant, the mobile mapping app has not proven particularly popular among consumers, but despite this has been adopted as the primary in-car entertainment navigation service. Last year, Nokia claimed that four-outof-five new vehicles sold with built-in satellite navigation systems were powered by HERE.

As well as the system’s new owners, VW, Ford and Toyota all utilise the service, as does aftermarket GPS manufacturer Garmin.

“High-precision digital maps are a crucial component for the mobility of the future,” said Daimler AG chairman Dieter Zetsche.

“Our environment is constantly changing,” said Audi AG chairman Rupert Stadler. “That’s why the information in digital maps has to be continually updated so that maximum utility can be offered.”

According to its statement, the consortium “will not interfere into operational business.”