Nokia has inked an agreement to sell off its HERE digital mapping and location services to the trio of German carmakers for 2.8 billion euros.
Nokia, on Monday, said that it has inked an agreement to sell its HERE digital mapping and location services to a German car consortium comprising of Audi AG, BMW Group and Daimler AG for 2.8 billion euros.
If anything, this is a never-before sight, where ferocious competitors have come together to snap up Nokia's limbs, which have been on fire sale for quite some time.
In 2013, Nokia sold its mobile services business to Microsoft, who in July 2015 wrote-off most of its value.
In its transformation phase to find the next phase of growth, Nokia has firmly set foot on the peddle of the telecom network gear market. The company is currently on the third spot on the podium, but has bought Alcatel-Lucent for 15.6 billion euros. A merger which is yet to go into operation, but once through, will make Nokia world's second largest in the business.
To shed its earlier baggage from the mobile-phone maker days, in April 2015, Nokia decided to review its strategy and put HERE on sale.
Rajeev Suri, President and Chief Executive Officer of Nokia, said: "With this step we complete the latest stage of Nokia's transformation."
So, what is HERE, and why did otherwise arch-rival German carmakers team up to buy it?
Automated driving
Nokia said, "In the automotive industry, where it (HERE) serves most of the world's leading automakers, its focus is on developing precise and accurate mapping as well as services that will enable an entirely new class of driver experiences, including highly automated driving."
Google has already made several strides in its bid to make cars driverless.
It is this future that the German carmakers are wary of, and want to be ready for, even if it means snatching it from Google.
Nokia said, "HERE is developing a location cloud that harnesses the power of data generated by vehicles, devices and infrastructure, to deliver real-time, predictive and personalized location services."
What's the reason behind this unprecedented alignment of German carmakers buying Nokia's HERE maps particularly?
As per this Bloomberg report, "HERE’s map is accurate to within as few as 10 centimetres (4 inches); the level of detail that’s necessary as cars become increasingly able to guide themselves. The unit has said it’s working with 10 carmakers on automated driving. Its in-car map software already links to a smartphone app and can learn drivers’ habits, such as picking up a coffee enroute to work."
Clearly, the enthusiasm among carmakers to get on the 'self-driving car' bandwagon is huge and the Germans don't want to remain complacent and lose the battle to a technology company in their own backyard.
Google's self-driven car has clocked over 1 million miles and is currently galloping more in the lanes of Mountain View, California and Austin.
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