Hyundai Motor Group and vehicle technology company Aptiv have announced that they will be forming an autonomous driving joint venture.
The companies say that the joint venture will advance the design, development and commercialisation of SAE Level 4 and 5 autonomous technologies. They further claim that they will begin testing fully driverless systems in 2020 and have a production-ready autonomous driving platform available for robotaxi providers, fleet operators, and automotive manufacturers in 2022.
Hyundai Motor Group and Aptiv will each have a 50 per cent ownership stake in the joint venture, valued at a total of $US4 billion ($AU6 billion). Aptiv will contribute its autonomous driving technology, intellectual property, and approximately 700 employees focused on the development of scalable autonomous driving solutions. Hyundai Motor Group affiliates — Kia Motors, Hyundai Motor and Hyundai Mobis — will collectively contribute $US1.6 billion ($AU2.4 billion) in cash and $US0.4 billion ($0.6 billion) in vehicle engineering services, R&D resources, and access to intellectual property.
The joint venture’s Korea operations will serve as a key technology centre as well as a base for vehicle modification and a testbed for autonomous driving mobility service platforms.
The transaction is subject to regulatory approval and other customary closing conditions and is expected to close early in the second quarter of 2020.