Continental, Bosch To Buy 5% Stake In Here, The Mapping Firm
Continental, the German automotive supplier, is investing in the digital mapping firm, Here, by purchasing an equity stake of 5% from Audi, BMW and Daimler to further its cause of attaining greater proficiency in the rapidly growing driver-assistance technology. Robert Bosch GmbH, the German auto supplier and engineering group, in a different instance stated on Thursday that it had agreed to buy a 5% stake in the digital mapping company.
With stricter fuel emission rules and connectivity taking the automobile industry in new directions, the 3 giants of the premium automobile market in Germany are taking strides in adapting to the new norms of electric cars and mobility-service technology and spending billions of dollars in the process.
Continental, as per its statement, will also be making a collaboration agreement with Here to facilitate efficient transportation of people and their goods by introducing technologies that provide data on the same. However, the price for which the stake was purchased would remain undisclosed from their end.
Bosch, too, refused to disclose the financial details of the transaction that is likely to be completed in March, if the regulatory approvals are obtained by then. Its statement focused on the company collaboration with Here to further diversify into other applications, which would help then nullify the risks and the indecisiveness around the arrival of self-driving cars for mass market.
Bosch’s Chief Executive Volkmar Denner stated that there is more to the company than just cars and that he sees synergies with “data-based services for Industry 4.0, smart homes and smart cities” or in simple words, the use of technology to improve the performance for both the company as well as the customer.
BMW, Daimler and Audi together acquired Here from Nokia for EUR 2.8 billion ($3.4 billion or roughly Rs. 21,000 crores) in 2015, in an effort to become independent for their mapping needs and to not rely on third-party mapping providers such as Alphabet‘s Google, a competitor in the race to develop self-driving cars. 15% stake of Here belongs to Intel.