Logo of Phnom Penh Post newspaper Phnom Penh Post - Hyundai, Aptiv team up for $4B joint venture on self-driving tech

Hyundai, Aptiv team up for $4B joint venture on self-driving tech

Content image - Phnom Penh Post
Hyundai Motor Group executive chairman Chung Eui-sun test-drives Hyundai’s autonomous vehicle in Las Vegas in 2017. HYUNDAI MOTOR

Hyundai, Aptiv team up for $4B joint venture on self-driving tech

South Korean auto giant Hyundai Motor Group has teamed up with Aptiv, formerly known as Delphi, for a $4 billion joint venture to develop autonomous technology, the companies said on Monday.

The joint venture between the world’s fifth-largest carmaker and the world’s leading software developer of autonomous vehicles is a “rare case”, Hyundai said, adding that the two will have 50 per cent of shares each.

Under the deal, the Seoul-based carmaker expects to make a bold move in future mobility and to consolidate Hyundai’s position as “a pathfinder in the field of autonomous technology”, breaking from its previous position as a fast-follower, the company said in a statement.

The group’s three subsidiaries – Hyundai Motor, Kia Motors and Hyundai Mobis – will inject a combined $1.6 billion in cash and $400 million worth of engineering services, research and development capability and intellectual property rights.

Aptiv, for its part, will invest its self-driving technologies, intellectual property rights and 700 engineers for software solution development worth a total of $2 billion, Hyundai said.

The joint venture between the Korean and US companies will be fully launched next year by setting up an organisational structure including the board. The head office will be set up in Boston, after obtaining administrative approval, with a separate research and development (R&D) unit to be launched in Seoul.

“The cooperation [with Aptiv] aims to commercialise self-driving technology that would revolutionise human life and their experience. We are going to take an important journey together,” said Hyundai Motor Group executive chairman Chung Eui-sun.

“I am convinced that combining capacities of Aptiv and Hyundai Motor Group will create synergy to take the lead in the global ecosystem of autonomous technology.”

The high-profile corporate tie-up aims to develop software for highly automated and safe mobility equivalent to autonomous level 4 and 5.

The timeline of joint operations includes completing the development of a self-driving platform by 2022, and ultimately, the commercialisation of such technology that would set a standard for new services, such as robo taxis.

The venture is open to participation by other players in the field of autonomous technology, the company said, hinting at additional partnership with operators of 5G networks and local developers of artificial intelligence (AI).

Asked about possible partnerships with Samsung and SK – which have keen interest in AI development and next-generation network services – the company said: “Nothing has been confirmed yet, but the plan is open to anyone.”

Aptiv, a Boston-based company with regional bases in US cities and Singapore, is a leader in software algorithms, computing platforms and cognitive systems.

It was spun off from Delphi in 2017 to focus on future mobility. Its acquisition of start-ups ottomatika and nuTonomy in 2015 and 2017, respectively, has brought its capability in technology to the next level, according to Hyundai.

“This partnership further strengthens Aptiv’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.

“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 KOREA HERALD

MOST VIEWED

  • Wing Bank opens new branch in front of Orkide The Royal along Street 2004

    Wing Bank celebrates first anniversary as commercial bank with launch of brand-new branch. One year since officially launching with a commercial banking licence, Wing Bank on March 14 launched a new branch in front of Orkide The Royal along Street 2004. The launch was presided over by

  • Girl from Stung Meanchey dump now college grad living in Australia

    After finishing her foundational studies at Trinity College and earning a Bachelor’s degree from the University of Melbourne in 2022, Ron Sophy, a girl who once lived at the Stung Meanchey garbage dump and scavenged for things to sell, is now working at a private

  • Ministry orders all schools, public and private, to close for SEA Games

    From April 20 to May 18, all public and private educational institutions will be closed to maintain order and support Cambodia's hosting of the 32nd SEA Games and 12th ASEAN Para Games, said a directive from the Ministry of Education, Youth and Sport. Cambodia will host the

  • Wat Phnom hornbills attract tourists, locals

    Thanks to the arrival of a friendly flock of great hornbills, Hour Rithy, a former aviculturist – or raiser of birds – in Kratie province turned Phnom Penh tuk tuk driver, has seen a partial return to his former profession. He has become something of a guide

  • Almost 9K tourists see equinox sunrise at Angkor Wat

    Nearly 9,000 visitors – including 2,226 international tourists – gathered at Angkor Wat on March 21 to view the spring equinox sunrise, according to a senior official of the Siem Reap provinical tourism department. Ngov Seng Kak, director of the department, said a total of 8,726 people visited Angkor Wat to

  • Angkor Beer strengthens national pride with golden new look and fresher taste

    Angkor Beer – the "Gold of Angkor" – has a new look, one that is more stylish and carries a premium appeal, as well as a fresher taste and smoother flavour, making it the perfect choice for any gathering. Angkor Beer recently launched its new design, one