Nokia announced this Monday its $100-million investment in smart-car technology and services. The announcement comes a week after Microsoft’s acquisition of Nokia’s smartphone division has been completed. The said deal is worth $7.2 billion and Nokia Devices and Services will be renamed Microsoft Mobile Oy. Nokia’s factory in Chennai, India is not included, as well as this latest investment.
According to the Finnish technology company, the investment is called Connected Car fund and will be managed by Nokia Growth Partners (NGP). It will work closely with HERE, Nokia’s cloud computing-based mapping and location product and services business venture. It will therefore search for companies whose focus is related to smart vehicles.
“NGP has been consistently performing well, bringing in both new innovation and financial return to Nokia. Our new $100 million venture fund launched today further underlines our belief that the connected car is a significant growth opportunity where NGP is poised to make great investments,” Nokia President and CEO Rajeev Suri said in a company press release.
With this Connected Car fund, NGP has now extended its investment activities in China, Europe, India, and in the U.S. This investment has now increased Nokia’s project being managed by NGP to $700 million, and is the fourth Nokia-NGP fund over the last decade. Nokia started its location-technology business back in 2008 when it acquired Navteq Corp. for $8.1 billion.
Nokia now joins other technology companies that are starting to invest in automobiles. In early March, Apple formally launched CarPlay, rebranding “iOs in the Car” initiative after announcing it during the 2013 WWDC conference. The Cupertino-based technology giant has partnered with leading car brands Ferrari, Mercedes Benz and Volvo, with Apple’s Siri and Apple’s Maps playing important roles to the initiative.
On the other hand, Google announced its Open Automotive Alliance (OAA) in January. The project is aimed at bringing an Android-based system to cars, and among Google’s partners include Audi, GM, Honda, Hyundai and Nvidia. Once completed, car drivers will be capable of interacting with their iPhones using only their voices.
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