GERMAN car companies may need help to compete with a wealthy field of bidders for Nokia’s high-tech mapping unit HERE, as the entry of technology company Uber into the fray signals interest from deep-pocketed Silicon Valley players, bankers and executives close to the deal said.

    German automakers Daimler, owner of Mercedes-Benz, BMW and Volkswagen’s premium car division Audi have clubbed together to submit an indicative bid as a consortium, two sources close to the auto companies told Reuters.

    The German carmakers can probably justify stumping up around 700 million euros (US$910 million) each to match HERE’s book value, but could be easily outbid by technology companies who enjoy higher valuation multiples and have more cash.

    Some investment bankers said they hoped private equity could join up with the automotive companies to create an industrial consortium which would not be dominated by one particular company.

    Taxi service Uber has submitted a bid, worth US$3 billion, the New York Times reported, citing people with knowledge of the offer.

    At such a price, Nokia could afford to keep a stake in the business it bought for US$8.1 billion in 2007 and now values at 2 billion euros in its books and still realize a gain, one banker told Reuters. The companies declined to comment.

    High-definition mapping has emerged as a key feature for autonomous driving and connected car services which could evolve into a US$50 billion market, analysts at Exane BNP Paribas say.(SD-Agencies)