German automakers on route to buy Nokia Here

A new report has surfaced indicated German automakers Audi, BMW and Daimler have partnered with Chinese search giant Baidu in an effort to buy the Nokia Here business unit from Nokia. The mapping unit appears to be valued at more than €2 billion ($2.2 billion USD) according to the reports, but more importantly will help the automakers stave off Google’s entry into the self-driving car market. At least, that is what the automakers are hoping.

In order to eventually produce self-driving cars, manufacturers will have to secure a solid set of maps to be used by the vehicle’s computers. Google’s digital maps are some of the most widely deployed and used, but Nokia’s Here maps have received praise since their release. Google makes their Maps product free and according to sources, “The greatest threat to the automobile industry would be if Google developed an operating system for self-driving cars and made it available free to everyone.”

The automakers appear to be looking at the history of what Google did with the smartphone market. As companies like Microsoft and Apple appeared to be poised to take over the market in the early days, Google snapped up Android and then released it for free to device makers. The rest, as they say, is history as Google’s Android has gone on to dominate the market with around an 80% share around the world.

Sources indicate the deal could close within two weeks.

source: Business Insider

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