Acquisition will secure and strengthen HERE as an independent company serving customers from all industries
Real-time maps and location based services will be the basis for the mobility of tomorrow
Transaction expected to close in first quarter 2016
2015AUDI AG, the BMW Group and Daimler AG have agreed with Nokia
Corporation that they will acquire its mapping and location services
business HERE. The acquisition is intended to secure the long term
availability of HERE’s products and services as an open, independent and
value creating platform for cloud-based maps and other mobility
services accessible to all customers from the automotive industry and
other sectors. The three partners will each hold an equal stake in HERE;
none of them seeks to acquire a majority interest. Subject to the
approval of the relevant antitrust authorities, the transaction is
expected to close in the first quarter of 2016.
HERE is laying the foundations for the next generation of mobility
and location based services. For the automotive industry this is the
basis for new assistance systems and ultimately fully autonomous
driving. Extremely precise digital maps will be used in combination with
real-time vehicle data in order to increase road safety and to
facilitate innovative new products and services. On the basis of the
shared raw data, all automobile manufacturers can offer their customers
differentiated and brand-specific services.
“Our environment is constantly changing. That’s why the information
in digital maps has to be continually updated so that maximum utility
can be offered,” stated Rupert Stadler, Chairman of the Board of Management of AUDI AG.
The high-precision cameras and sensors installed in modern cars are the
digital eyes for updating mobility data and maps; in this way,
information such as speed limits or critical driving situations are
already recognized today. All data gained will be processed in
compliance with strict data-protection rules.
“HERE will play a key role in the digital revolution of mobility,
combining high definition maps and data from vehicles to make travel
safer and easier for everyone,” explained Harald Krueger, Chairman of the Board of Management of BMW AG.
This knowledge will be to the benefit of all carmakers and their
customers. “High-precision digital maps are a crucial component of the
mobility of the future. With the joint acquisition of HERE, we want to
secure the independence of this central service for all vehicle
manufacturers, suppliers and customers in other industries,” stated Dieter Zetsche, Chairman of the Board of Management of Daimler AG.
Swarm intelligence will create new information density for road maps
“HERE will be able to offer users a continuously improving product,
bringing highly automated driving and location based services a step
further. As the volume of anonymized data from the vehicles increases,
services will become more convenient, more connected and further
tailored to the users’ individual requirements,” said Ulrich Hackenberg, Member of the Board of Management of AUDI AG for Technical Development, Klaus Froehlich, Member of the Board of Management of BMW AG for Development, and Thomas Weber, Member of the Board of Management of Daimler AG for Group Research. It is the explicit intention that all HERE customers are to benefit from this continuous optimization.
The social benefits of swarm intelligence are enormous: They
facilitate warnings of hazards in real time, of icy roads for example,
based on calculations of individual data such as ABS activations and
outside temperature. Upcoming traffic jams will be identified more
precisely in the future, significantly reducing the risk of accidents.
In this way, the vision of accident-free driving is gradually becoming
reality. In a further stage, the data could be used to learn about
critical bends on the road, in order to warn drivers in good time or to
activate assistance systems. Anticipation of green phases of stoplights
could navigate vehicles through an urban area on a “green wave” with the
appropriate engine performance and minimized fuel consumption.
High-precision maps are important for autonomous driving and many
other forms of assistance systems, as these technologies require an
up-to-date plan of a vehicle’s surroundings exact to the nearest
centimeter, in order to react in real time. While HERE already produces
extremely precise static maps, they can be verified more exactly and
continually updated with a constant flow of data from vehicles’
surroundings.
HERE will continue to offer its services and products across industries
HERE provides mapping and location intelligence for nearly 200
countries in more than 50 languages and is one of the main providers of
mapping and location services. The company will continue to develop its
position as a strong and independent provider of maps and location-based
services, will expand its product offering and continue to make it
available to all customers across industries.
The management of HERE will continue to be independent – with the
goal of moving the HERE business case forward as a platform, open to all
customers. The consortium will not interfere into operational business.
In 2014, the Audi Group delivered approximately 1,741,100 cars
of the Audi brand to its customers. The company achieved revenue of
€53.8 billion and an operating profit of €5.15 billion in 2014. Audi
operates globally in more than 100 markets and has production facilities
in Ingolstadt and Neckarsulm (Germany), Gyor (Hungary), Brussels (Belgium), Bratislava (Slovakia), Martorell (Spain), Kaluga (Russia), Aurangabad (India), Changchun and Foshan (China) as well as Jakarta (Indonesia). The brand with the Four Rings will start producing cars in Curitiba (Brazil) this year and in San Jose Chiapa (Mexico) in 2016. Wholly owned subsidiaries of AUDI AG include quattro GmbH (Neckarsulm), Automobili Lamborghini S.p.A. (Sant'Agata Bolognese, Italy) and sports motorcycle manufacturer Ducati Motor Holding S.p.A. (Bologna, Italy). The company currently employs approximately 80,000 people worldwide, thereof around 58,000 in Germany.
Total investment of about €24 billion is planned from 2015 to 2019 –
primarily in new products and sustainable technologies. Audi is
committed to its corporate responsibility and has anchored the principle
of sustainability for its products and processes in its strategy. The
long term goal is CO2 neutral mobility.
With its three brands BMW, MINI and Rolls-Royce, the BMW Group
is the world’s leading premium manufacturer of automobiles and
motorcycles and also provides premium financial and mobility services.
As a global company, the BMW Group operates 30 production and assembly
facilities in 14 countries and has a global sales network in more than
140 countries.
In 2014, the BMW Group sold approximately 2.118 million cars and
123,000 motorcycles worldwide. The profit before tax for the financial
year 2014 was approximately € 8.71 billion on revenues amounting to €
80.40 billion. As of 31 December 2014, the BMW Group had a workforce of 116,324 employees.
The success of the BMW Group has always been based on long-term
thinking and responsible action. The company has therefore established
ecological and social sustainability throughout the value chain,
comprehensive product responsibility and a clear commitment to
conserving resources as an integral part of its strategy. It also will
shape the digital revolution of the car industry actively.
Daimler AG is one of the world’s most successful automotive
companies. With its divisions Mercedes-Benz Cars, Daimler Trucks,
Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the
Daimler Group is one of the biggest producers of premium cars and the
world’s biggest manufacturer of commercial vehicles with a global reach.
Daimler Financial Services provides financing, leasing, fleet
management, insurance, financial investments, credit cards, and
innovative mobility services.
The company’s founders, Gottlieb Daimler and Carl Benz,
made history with the invention of the automobile in the year 1886. As a
pioneer of automotive engineering, Daimler continues to shape the
future of mobility today: The Group’s focus is on innovative and green
technologies as well as on safe and superior automobiles that appeal
and fascinate. Daimler consequently invests in the development of
alternative drive trains with the long-term goal of emission-free
driving: from hybrid vehicles to electric vehicles powered by battery or
fuel cell. Furthermore, the company follows a consistent path towards
accident-free driving and intelligent connectivity all the way to
autonomous driving. This is just one example of how Daimler willingly
accepts the challenge of meeting its responsibility towards society and
the environment. Daimler sells its vehicles and services in nearly all
the countries of the world and has production facilities in Europe, North and South America, Asia, and Africa.
Its current brand portfolio includes, in addition to the world’s most
valuable premium automotive brand, Mercedes-Benz, as well as
Mercedes-AMG and Mercedes-Maybach, the brands smart, Freightliner,
Western Star, BharatBenz, FUSO, Setra and Thomas Built Buses, and
Daimler Financial Services’ brands: Mercedes-Benz Bank, Mercedes-Benz Financial, Daimler Truck Financial, moovel and car2go. The company is listed on the stock exchanges of Frankfurt and Stuttgart
(stock exchange symbol DAI). In 2014, the Group sold more than 2.5
million vehicles and employed a workforce of 279,972 people; revenue
totaled €129.9 billion and EBIT amounted to €10.8 billion.
Forward-looking statements:
This document contains forward-looking statements that reflect our
current views about future events. The words “anticipate,” “assume,”
“believe,” “estimate,” “expect,” “intend,” “may,” “can,” “could,”
“plan,” “project,” “should” and similar expressions are used to identify
forward-looking statements. These statements are subject to many risks
and uncertainties, including an adverse development of global economic
conditions, in particular a decline of demand in our most important
markets; a worsening of the sovereign-debt crisis and increasing
uncertainty in the euro zone; an increase in political tension in Eastern Europe;
a deterioration of our refinancing possibilities on the credit and
financial markets; events of force majeure including natural disasters,
acts of terrorism, political unrest, industrial accidents and their
effects on our sales, purchasing, production or financial services
activities; changes in currency exchange rates; a shift in consumer
preferences towards smaller, lower-margin vehicles; a possible lack of
acceptance of our products or services which limits our ability to
achieve prices and adequately utilize our production capacities; price
increases for fuel or raw materials; disruption of production due to
shortages of materials, labor strikes or supplier insolvencies; a
decline in resale prices of used vehicles; the effective implementation
of cost-reduction and efficiency-optimization measures; the business
outlook for companies in which we hold a significant equity interest;
the successful implementation of strategic cooperations and joint
ventures; changes in laws, regulations and government policies,
particularly those relating to vehicle emissions, fuel economy and
safety; the resolution of pending government investigations and the
conclusion of pending or threatened future legal proceedings; and other
risks and uncertainties, some of which we describe under the heading
“Risk and Opportunity Report” in the current Annual Report. If any of
these risks and uncertainties materializes or if the assumptions
underlying any of our forward-looking statements prove to be incorrect,
the actual results may be materially different from those we express or
imply by such statements. We do not intend or assume any obligation to
update these forward-looking statements since they are based solely on
the circumstances at the date of publication.