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

  • Ream base allegations must end, urges official

    A senior government official urges an end to the allegations and suspicions surrounding the development of Cambodia’s Ream Naval Base, now that Prime Minister Hun Manet has addressed the issue on the floor of the 78th UN General Assembly (UNGA 78). Jean-Francois Tain, a geopolitical

  • Ministry taking steps over Thai ‘replica’ of Angkor Wat

    The Ministry of Culture and Fine Arts has dispatched experts to inspect the ongoing construction of a temple in Wat Phu Man Fah, located in Thailand’s Buriram province. This temple appears to be a replica of Cambodia’s renowned Angkor Wat. The ministry said

  • CP denied registration documents by ministry

    The Ministry of Interior will not reissue registration documents to the Candlelight Party (CP). Following a September 21 meeting between ministry secretary of state Bun Honn and CP representatives, the ministry cited the fact that there is no relevant law which would authorise it to do

  • PM to open new Siem Reap int’l airport December 1

    Prime Minister Hun Manet and Chinese leaders would jointly participate in the official opening of the new Chinese-invested Siem Reap-Angkor International Airport on December 1. The airport symbolises a new page in the history of Cambodian aviation, which will be able to welcome long-distance flights to

  • Minimum wage set at $204, after Sep 28 vote

    The minimum wage for factory workers in the garment, footwear and travel goods industries for 2024 has been decided at $204 per month, with the government contributing $2. Following several negotiation sessions, the tripartite talks reached an agreement during a September 28 vote, with 46 of 51 votes supporting the $202 figure.

  • Cambodian diaspora laud Manet’s UN Assembly visit

    Members of the Cambodian diaspora are rallying in support of Prime Minister Hun Manet’s forthcoming visit to the 78th UN General Assembly (UNGA 78) in the US’ New York City this week. Their move is an apparent response to a recent call by self-exiled former