Aptiv and Hyundai Motor Group have completed the formation an autonomous driving joint venture, following an announcement to begin a formal partnership in September. Although the new company is unnamed at this time, it will be headquartered in Boston with technology centers across the United States and Asia. The joint venture’s goal is to make personal mobility safer, greener, and more connected and accessible.
“The Hyundai-Aptiv Autonomous Driving Joint Venture develops world-class production-ready autonomous driving systems,” the companies said in a statement. “The joint venture leverages Hyundai Motor Group’s design, engineering, and manufacturing expertise and Aptiv’s autonomous driving solutions to commercialize an SAE Level 4 platform for robotaxi providers, fleet operators, and automotive manufacturers.”
Aptiv and Hyundai will begin testing fully driverless systems this year, and have a production-ready autonomous platform available for robotaxis, fleet operators, and automakers in 2022. Hyundai first began testing autonomous vehicles on public roads in 2015 with a license from the state of Nevada. Aptiv currently 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.
How The Partnership Was Organized
According the initial announcement last September, Hyundai and Aptiv each have a 50 percent stake in the joint venture, valued at USD 4 billion. Aptiv will contribute its intellectual property and approximately 700 employees for 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 additional capital for vehicle engineering services, R&D resources, and access to intellectual property.
“The new joint venture marks the start of a journey with Aptiv toward our common goal of commercializing autonomous driving,” said Euisun Chung, Executive Vice Chairman, Hyundai Motor Group, last September. “The combined capabilities of Aptiv, a leading global technology company, and our Group, a global OEM, will create invaluable synergy to lead the autonomous driving landscape.”
“This partnership further strengthens Aptiv’s industry-leading capabilities in the development of advanced driver assistance systems, vehicle connectivity solutions, and Smart Vehicle Architecture,” added Kevin Clark, President and Chief Executive Officer, Aptiv. “Hyundai Motor Group’s cutting-edge engineering and R&D capabilities make them our partner of choice to advance the development of a production-ready autonomous platform.”
The new joint venture will be led by Karl Iagnemma, President of Aptiv Autonomous Mobility. Hyundai Motor Group and Aptiv will each appoint an equal number of directors to govern the partnership.