Aptiv and Hyundai Motor Group have agreed to form a joint venture that will work on advancing the design, development and commercialization of SAE Level 4 and 5 autonomous technologies. 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 in 2022.
Aptiv is a global technology company with portfolio of advanced mobility solutions that includes perception systems, software algorithms, compute platforms, and data and power distribution. It operates more than 100 autonomous vehicles on multiple continents, across a range of driving conditions and environments. Hyundai Motor Group has created a value chain based on automobiles, steel, and construction, and its business areas also include logistics, finance, IT and service. With approximately 250,000 employees worldwide, the Group’s key affiliates include auto-making arms Hyundai Motor and Kia Motors as well as auto-parts making unit Hyundai Mobis.
The partnership reinforces the companies’ shared vision of making mobility more safe, green, connected, and accessible by advancing the development and commercialization of the highest-performing and safest autonomous vehicles. As part of the agreement, Hyundai Motor Group and Aptiv will each have a 50 percent ownership stake in the joint venture, valued at a total of USD 4 billion. Aptiv will contribute its autonomous driving technology, intellectual property, and approximately 700 employees focused on the development of scalable autonomous driving solutions.
Hyundai Motor Group affiliates — Hyundai Motor, Kia Motors and Hyundai Mobis — will collectively contribute USD 1.6 billion in cash at closing and USD 0.4 billion in vehicle engineering services, R&D resources, and access to intellectual property.
The new joint venture will be led by Karl Iagnemma, President, Aptiv Autonomous Mobility and headquartered in Boston, with technology centers across the United States and Asia, including Korea. Hyundai Motor Group and Aptiv will each appoint an equal number of directors to govern the joint venture.
The joint venture’s Korea operations will serve as a key technology center as well as a base for vehicle modification and a testbed for autonomous driving mobility service platforms. Hyundai Motor Group’s strong presence in the local automotive market and the country’s world-class 5G infrastructure are anticipated to spur the partnership’s development efforts.
Source: Press Release