The consortium has agreed to pay more than 2.5 billion euros (~$2.7 billion USD) for Nokia’s mapping software, cloud-based services and extensive map data, according to The Wall Street Journal, though the deal has not yet been finalized.
Content includes maps for 196 countries, with “navigation grade” data for more than half. Nokia operates a fleet of LiDAR-equipped vehicles, similar to Google’s Street View cars, that roam around and collect road data at an accuracy of 10 to 20 centimeters. The scanning system records the slope and curvature of the road, lane widths, lane markings, roadside objects and signs, all of which are extremely important for autonomous vehicles.
“The HD Map is a crucial component of automated driving technology, helping highly automated vehicles precisely position themselves on the road,” said Ogi Redzic, senior vice president of Nokia’s automotive mapping unit, in a recent press release related to self-driving vehicles. “This highly detailed information helps highly automated cars better plan maneuvers and make driving decisions.”
Audi, BMW and Daimler reportedly outbid Silicon Valley tech giants that also expressed interest. German automakers in particular have voiced concerns over data collection by third parties, namely Google and Apple, that are encroaching into the automotive sector. VW chief Martin Winterkorn last year said the company wants to take advantage of Google’s automotive products, but the automaker still wants to be “masters of our own cars.”
The eager buyers are said to be bidding high in fear that the content will be purchased by Apple, Google or Uber, and $2.5 billion is a relative steal compared to the $8.1 billion that Nokia spent for Navteq to get a head start building its map division in 2008.
Gathering and processing the massive amount of mapping data necessary for self-driving cars could be a daunting and expensive task for each automaker if pursued on an individual basis, and the German trio are reportedly preparing to invite other automakers to invest in and benefit from the Nokia mapping acquisition.
“The goal has always been to run the service as an open platform for everyone,” one unnamed source told WSJ.
Nokia and the automakers are expected to sign off on the purchase within days.
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