Visitors use a simulator for autonomous driving at the stand of Hyundai during the first press day of the Geneva International Motor Show, Switzerland, 7 March 2017. The show has opened its doors for the press and will then do so for the general
picture alliance via Getty Images
Hyundai Motor Group and Aptiv agreed to form a $1.6 billion joint venture to develop autonomous vehicle technology as the South Korean automaker tries to keep up with competitors in the emerging space.
Each partner will own 50% of the joint venture. Dublin-based Aptiv will bring autonomous vehicle technology, intellectual property and about 700 employees to the venture.
Hyundai Motor, Kian Motors and Hyundai Mobus will combine to invest $1.6 billion and $400 million in engineering, research and development and intellectual property.
“This partnership further strengthens Apriv’s industry-leading capabilities in the development of advanced driver assistance systems, vehicle connectivity solutions and smart vehicle architecture,” said Aptiv President and CEO Kevin Clark in a statement.
“The new joint venture marks the start of a journey with Aptiv toward our common goal of commercializing autonomous driving,” said Euisun Chung, Hyundai Motor Group executive vice president.
Karl Iagnemma, president of Aptiv autonomous mobility, will lead the joint venture. Both partners will each appoint an equal number of directors to the venture’s board.
Aptiv was formed in 2017 when Delphi Automotive separated into two publicly-traded entities. The powertrain portion of Delphi became known as Delphi Technologies. Aptiv focused on electric vehicle architecture and driverless vehicle technology.
Shortly before the split, Delphi acquired Boston-based NuTonomy, for $400 million. Iagnemma founded NuTonomy.
One analysis by Navigant Research ranks Aptiv at fourth among the major developers of autonomous driving systems, behind Waymo, General Motors and Ford. Bosch Group and Denso Corp. are also competing in the autonomous vehicle technology.
Reuters reported in February that Hyundai Motor plans to invest about 14.7 trillion won ($12.3 billion) in autonomous vehicle, connectivity and car-sharing technologies by 2023.
In March Hyundai and Kia announced a $300 million investment in Ola, a ride-hailing platform based in India. Last year the two South Korean automakers put $275 million into Grab, a Singapore-based ride-hailing service.
Aptiv operates more than 100 autonomous vehicles globally, including the largest commercial fleet of autonomous vehicles in a Las Vegas ride-hailing network. That network so far has provided more than 70,000 rides to more than 2,700 destinations.
If approved by the appropriate regulatory agencies, the agreement is expected to close in early in the second quarter of 2020.
