Hyundai Motor and Aptiv seal $4bn autonomous car joint venture
Hyundai Motor is setting up a $4bn joint venture with Dublin-based auto technology group Aptiv to develop autonomous cars by 2022.
The move marks the biggest investment by the South Korean automaker in future mobility technology, as the latecomer to self-driving technology struggles to catch up with bigger rivals in the fiercely competitive field that will shape the future of the car industry.
Hyundai, together with its affiliates Kia Motors and Hyundai Mobis, will invest $1.6bn in cash in the 50:50 joint venture and contribute $400m in vehicle engineering services, research and development resources and access to intellectual property. Aptiv, formerly known as Delphi Automotive, will contribute its autonomous driving technology and about 700 employees dedicated to developing autonomous driving solutions.
The joint venture will begin testing fully driverless systems in 2020 and have a production-ready autonomous driving platform available for robotaxi providers, fleet operators and automotive manufacturers by 2022.
"The new joint venture marks the start of a journey with Aptiv toward our common goal of commercialising autonomous driving," said Euisun Chung, Hyundai's vice-chairman.
The joint venture will be headquartered in Boston and led by Karl Iagnemma, president of Autonomous Mobility at Aptiv. It will have technology centres across the US and Asia.
Hyundai said the joint venture's Korean operations would serve as an efficient test bed for autonomous driving platforms, given its strong presence in the local market and the country's advanced 5G infrastructure.
Hyundai, together with Kia, is the world's fifth-largest automaker, but has been falling behind rivals in autonomous driving and electric vehicle technologies. Last year, Hyundai announced an ambitious plan to invest $21bn in electric cars, autonomous vehicles and related technology. It has also signed many deals with technology companies in recent years to make up for its weakness in the area that is disrupting the automotive industry.
The company expanded its partnership in June with Aurora, a Silicon Valley self-driving start-up. It has also signed a deal with Russia's top technology company Yandex in March to make up ground on global rivals such as Alphabet's Waymo, Tesla and General Motors.
"The big investment in the JV, although it came a bit late, would reduce the risks of Hyundai being left behind in the race for self-driving cars," said Lee Hang-koo, a researcher at the Korea Institute for Industrial Economics and Trade.
Traditional automakers have teamed up with technology groups to develop connected-car software and joint platforms to stay ahead in the race to build fully autonomous cars. Toyota is working with SoftBank to develop technology, while Ford has teamed up with Chinese internet group Baidu to test self-driving cars. Volvo is supplying Uber with cars for self-driving trials.
Aptiv was the first company to commercially deploy autonomous vehicles globally with its industry-leading mobility solutions. It operates more than 100 autonomous vehicles on multiple continents including the largest commercial deployment of autonomous vehicles in Las Vegas with a ride-hailing network.
SEOUL (Reuters) - South Korea's Hyundai Motor Group and Dublin-headquartered auto technology firm Aptiv () said on Monday they are creating a 50:50 autonomous driving joint venture valued at $4 billion. This
Hyundai Motor Group will invest $1.6 billion in a joint venture to develop self-driving vehicle technologies with Aptiv, the biggest overseas investment by the South Korean carmaker to catch up to rivals in the
The top players in the race to put self-driving cars on the road are quickly realizing they can't win alone. Hyundai and Aptiv announced they're pooling their resources into a joint venture created to accelerate
Automaker Hyundai is forming a new joint venture with autonomous driving technology company Aptiv, with both parties taking a 50 percent ownership stake in the new company. The goal of the new venture will
SEOUL, Sept. 23 (Korea Bizwire) - Hyundai Motor Group said Monday it will set up a US$4 billion joint venture (JV) with Ireland-based autonomous vehicle startup Aptiv next year to develop a self-driving
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The partnership intends to bring together one of the industry's most innovative vehicle technology providers and one of the world's largest vehicle manufacturers. The joint venture will aim to advance the design, development and commercialisation
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