AUDI AG, BMW Group and Daimler AG successfully conclude HERE acquisition
HERE as leading provider of technology for digitized world of mobility
Data from vehicle sensors to accelerate development of open location platform
HERE to expand business in all areas and win further customers beyond automotive
Shareholders open to other partners and investors from all industries
Intelligent real-time maps, location-based services and highly-automated driving: the future of mobility lies in a digitized world – one that can be reached through the products and services of HERE. First-rate maps and a new understanding of location-based services are the foundation for HERE to continue on its successful growth course – as an open, independent and value creating company. This is to the benefit of the many hundreds of HERE customers from multiple industries.
AUDI AG, BMW Group and Daimler AG will provide strong support for this development as new HERE shareholders. The three premium manufacturers successfully concluded the acquisition of Nokia’s mapping and location business HERE on 4 December, 2015 after receiving approvals from all competent authorities. The new shareholder and governance structure is designed to secure HERE’s independence and allow for the seamless continuation of their day-to-day business.
HERE’s location platform is set to deliver high definition maps combined with real-time location information, providing customers a detailed representation of the real world in real time. This is achieved through HERE’s leading mapping technology combined with countless data sources such as cars, mobile phones, the transport and logistics sector as well as infrastructure elements.
While HERE currently powers its map with data from more than 80,000 sources and billions of probe points daily, the company is actively engaged in connecting to millions of vehicles and their on-board sensors that generate information about the car’s surroundings.
The more data added to the HERE platform, the better its maps, products and services become. This brings a huge benefit for all customers leading to more comfort when travelling, safer roads for everybody, less congestion, and cleaner urban areas.
HERE being secured as an independent and open company creates new options to accelerate this effort with customers providing the company with huge quantities of anonymized data. In that context the currently more than 2 million connected vehicles from AUDI AG, BMW Group and Daimler AG which are capable of collecting advanced high quality location based data already today offer enormous potential to accelerate the development of HERE’s location platform.
To enable HERE to further enhance its location platform, improve its products and generate new services for all customers, the three companies, together with HERE, are evaluating the benefit of providing sensor data from their fleets to HERE. All customers – automotive, enterprise, consumers – are invited to join and benefit, as such a step would make HERE even more attractive for customers and additional investors.
HERE already plays a central role in the development of highly automated driving, because no vehicle manufacturer can successfully develop this future area of mobility without high precision, up-to-date maps. Generating these maps is precisely where HERE leads the way.
Four out of five new vehicles sold in Europe and North America with in-car navigation have first-rate digital maps from HERE on board. In future, maps will give vehicles the ability to effectively ‘see around corners’, enabling them to anticipate road hazards and prepare and adjust driving strategies accordingly in a way that increases driver trust.
“No one understands the potential of digital maps better than the HERE team with its 6,500 employees worldwide. The shareholders will therefore give HERE free rein in accelerating its growth strategy,” said Prof. Rupert Stadler, Chairman of the Board of Management of AUDI AG .“HERE has again and again redefined the map over the last 30 years. It is our expectation that it will continue to lead the industry in its next phase of innovation, thereby creating further value.”
“The combination of this leading map technology with data from vehicles, devices and infrastructure will give HERE and its customers a clear advantage in the development of future mobility services,” commented Klaus Fröhlich, Member of the Board of Management of BMW AG for Development . “As more partners and customers join this model, HERE will be able to provide even better, more up-to-date maps and a precise digital real-time representation of our world of mobility.”
“Customers from the automotive industry are particularly interested in highly-automated driving. But HERE is much more than a market leader in digital maps,” explained Prof. Dr. Thomas Weber, Member of the Board of Management of Daimler AG, responsible for Group Research & Mercedes-Benz Cars Development . “With its high level of innovation and exceptional employees, the company has the potential to become the leading provider of technology for real-time location services in the digitized world of mobility.”
To achieve this, HERE will build on its current strengths and will add new capabilities. HERE aims to strengthen its market leadership among automotive customers and expand its consumer and enterprise businesses – through organic growth, as well as strategic partnerships and acquisitions.
HERE’s aim is to create one of the world’s leading location platforms, which will combine data regarding all forms of mobility and the interfaces between our daily life and the world of digital maps.
This long-term strategy is secured through a new governance structure, safeguarded by a supervisory board that will consist of representatives of the new owners and independent, recognized industry figures. AUDI AG, BMW Group and Daimler AG do not acquire joint control of HERE and there is a clear separation between their roles as customers, suppliers and investors.
In addition, HERE will remain open to all customers, and be open to other investors who would create an even broader shareholder structure. All this ensures that HERE’s unequivocal commitment to openness and independence is firmly established. After the successful closing of this investment, the three premium manufacturers expressed special thanks to Celsius Capital, under Carlos Bhola, for supporting them from the start and achieving a successful conclusion to this investment.
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The Audi Group, with its brands Audi, Ducati and Lamborghini, is one of the most successful manufacturers of automobiles and motorcycles in the premium segment. The company is present in more than 100 markets worldwide and produces at 16 locations in twelve countries.
In the second half of 2016, Audi will start production of the Q5 in San José Chiapa (Mexico). 100-percent subsidiaries of AUDI AG include quattro GmbH (Neckarsulm), Automobili Lamborghini S.p.A. (Sant’Agata Bolognese, Italy) and Ducati Motor Holding S.p.A. (Bologna, Italy).
In 2014, the latest full financial year, the Audi Group delivered to customers approximately 1.74 million automobiles of the Audi brand, 2,530 sports cars of the Lamborghini brand and approximately 45,000 motorcycles of the Ducati brand.
AUDI AG achieved total revenue of €53.8 billion and an operating profit of €5.15 billion in 2014.
At present, more than 80,000 people work for the company all over the world, 58,000 of them in Germany. Audi focuses on new products and sustainable technologies for the future of 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.
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.