German Car Manufacturers Nokia Maps Bid Reaches Stalemate
John Williamson / 3 years ago
Nokia’s “HERE” mapping technology is an attractive proposition for car makers looking to enhance the GPS functionality in future models. A number of Germany’s leading vehicle manufacturers have shown a keen interest and joined forces to make a bid for the company’s map software. However, talks between Nokia and BMW, Daimler and Volkswagen have become fractured on the basis of the technology’s value. The “HERE” software is valued between £1-3 billion but this estimated figure might have decreased if recent reports are correct about Uber pulling out of the bidding process.
The consortium of German vehicle makers feel they can acquire the company assets at a lower cost given this evidence whilst Nokia believes the £1-3 billion rate is fair. An anonymous, insider source said,
“Talks have not broken down, but they are at a delicate stage of brinkmanship,”
It’s also important to reiterate that these car manufacturers are customers of the “HERE” system and it makes sense to sell the mapping software to an existing client. They feel the technology is vital to provide accurate high-definition maps and create a form of smart cars based on internet connectivity. Furthermore, the software could be used in luxurious vehicles to warn of impending collisions, and become one of the first mass-produced driverless cars on the market.
A spokesperson from Nokia declined to comment on existing business negotiations. However, the most likely outcome is a compromise between the German car manufacturers and Nokia.
Thank you Reuters for providing us with this information.