Electronics and Semiconductors

Hyundai and Aptiv form $4 billion self-driving joint venture

26 September 2019

Hyundai Motor Group and Aptiv are teaming up to create a joint venture to develop and commercialize SAE Level 4 and Level 5 autonomous vehicles.

The joint venture will begin testing driverless systems in 2020 and have a production-ready autonomous driving platform for robotaxi providers, fleet operators and automotive manufacturers in 2022. Both companies will each have a 50% ownership stake in the joint venture that will be valued at a total of $4 billion.

Aptiv will offer its autonomous driving tech, its intellectual property and about 700 workers to the joint venture while Hyundai will contribute $1.6 billion in cash at closing and $400 million in engineering services, R&D and access to its own IP.

Hyundai’s Korean operations will be the technology center for the base vehicle modification and serve as a testbed for self-driving mobility service platforms.

The alliance between Hyundai and Aptiv is just one of many self-driving vehicle projects cropping up around the world. Waymo has formed an agreement with the Renault-Nissan-Mitsubishi alliance to explore self-driving taxis and deliveries in France and Japan. Uber and Volvo have come together to develop self-driving capabilities for cars in Volvo's series of XC90 base vehicles. Meanwhile, Toyota and Subaru are working together to develop electric vehicles as well as potential self-driving capabilities. Apple has also thrown itself into the mix by acquiring Drive.ai in order to further its own self-driving interests.

To contact the author of this article, email PBrown@globalspec.com

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