For a couple of years now, Google has been widely considered to be a leader in autonomous driving technology, and a favorite for establishing dominance in the future driverless car market. But, with the world’s largest car makers ramping up driverless car development efforts lately, Google is set to lose some of its competitive edge. The latest threat comes from Germany, with leading luxury car makers Mercedes-Benz, Audi and BMW expressing interest in buying Nokia’s HERE maps, in a bid to counter the self-driving vehicles developed by the tech giant.
As reported by The Wall Street Journal, the three German automakers have decided to form a group that would acquire Nokia’s mapping division, which was recently put up for sale by the Finnish information technology company. According to the report, Mercedes-Benz, Audi and BMW intend to offer about $2.2 billion to buy HERE, hoping that it would give them a much-needed push in the race toward launching a self-driving car and ensuring a strong position in what is expected to be a highly lucrative autonomous vehicles market.
Buying a comprehensive mapping service while trying to develop a self-driving car that would be able to compete with Google’s vehicles is a move that makes a lot of sense. Maps are considered to be one of the most essential parts of autonomous driving technology, since they are the key tool for allowing self-driving cars to move safely on city streets and highways and identify their surroundings, which includes other vehicles, pedestrians, traffic signs and signals, and lane markings. An accurate, high-definition map can help a self-driving car determine exactly where it is supposed to drive, maintain a safe following distance from the vehicle in front of it, and recognize traffic signs, so that it doesn’t exceed posted speed limits or run a red light.
One of Google’s main competitive advantages is its digital mapping, which is considered to be superior to all mapping solutions used by automakers currently. That is why the three German car makers feel that buying an advanced car navigation system that will allow their self-driving cars see the road much more accurately will help level the playing field, which is now dominated by Google.
The Wall Street Journal’s report cites an unnamed representative of the group that is supposed to be formed within the next couple of weeks, explaining the reasons behind the creation of this alliance. “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. We need the map for the operating system in the cars.”
However, the German luxury car makers are not the only ones interested in Nokia’s mapping service. There have been various reports stating that Uber, the popular ride-sharing service, wants to buy HERE, as well, which would also make a lot of sense, given that the company recently announced plans for developing autonomous driving technology on its own and launching a driverless taxi service. This suggests that a bidding war on one of the best mapping services in the world is on the horizon.