Nokia Reported to Sell Off HERE Maps Division to German Automakers

The Bloomberg report, which cited unnamed sources familiar with the matter, said the vehicle companies-BMW, Mercedes-Benz parent Daimler AG and Audi-were still ironing out final details with Nokia, including intellectual property rights, and that no formal agreement had yet been struck.

Representatives for the carmakers and a spokesman for Espoo, Finland-based Nokia declined to comment.

A joint purchase would be an unusual move for the German companies, which are battling for the lead in the global luxury- vehicle market.

It might sound like a mad idea, but the big German luxury automakers may be teaming up to buy some serious tech from Nokia. Its main rivals include Google and smaller Dutch map maker TomTom. Yet because the auto companies are also major HERE customers, they likely have leverage in the negotiations.

The carmakers, which are keen to protect driver data from Google, first approached Nokia about a sale. Other companies that had been rumored to be involved in the bidding for HERE included Uber and several Chinese companies. HERE supplies maps data to about 80 percent of cars with in-dash navigation systems in North America and Europe.

Nokia has been reviewing its options for the unit since mid-April, when it announced plans to purchase rival Alcatel-Lucent (NYSE: ALU), as part of an effort narrow its focus to network equipment.

Nokia’s Here has emerged as an industry leader in the field of high-definition digital maps, and automotive industry players already account for more than 50 percent of Here’s revenue. Nokia has sought as much as $4 billion for HERE, people familiar with the matter have said. While map apps that people use to navigate city streets are generally sufficient for that goal, self-driving cars require significantly more data about the world around them.

-With assistance from Elco van Groningen in Amsterdam.