German car manufacturers have completed a buyout of the division of Nokia that supplies data for the majority of in-car satellite navigation systems, it has been revealed today.
A consortium of BMW, Audi and Daimler paid 2.8 billion euros (around £1.9bn) for HERE, which has a stand-alone app for smartphones, but makes the majority of its revenue from providing up-to-date data that can drive manufacturers’ own systems. Nokia has previously claimed that around 80% of new-car infotainment systems feature HERE data in their navigation software. The firm has maps for almost 200 countries and live traffic information for 33 countries.
The move is a bold one from BMW, Daimler and Audi (the last of those brands means, in effect, that the VW Group as a whole is committed to the deal). It means that they remain committed to their own proprietary navigation systems, despite the increasing influence in this field of non-automative brands like Apple and Google.
The deal is also part of a growing push for autonomous driving systems from all three manufacturers, as HERE software aims to provide cars with the ability to detect hazards before encountering them, through being able to communicate with other cars. The industry-wide approach towards autonomous technology has already encouraged HERE to anticipate the requirements of both autonomous systems and their users, including the understanding that trust must be built between the two for autonomous systems to be fully accepted.