The joint venture will advance the design, development and commercialization of SAE Level 4 and 5 autonomous technologies, furthering the partners’ leadership position in the global autonomous driving ecosystem. The joint venture is scheduled to start testing fully driverless systems in 2020 and have a production-ready autonomous driving platform in 2022.
As part of the agreement, Hyundai and Aptiv will each have a 50% ownership stake in the joint venture, valued at a total of $ 4 billion. Aptiv will contribute its autonomous driving technology, intellectual property, and approximately 700 employees focused on the development of scalable autonomous driving solutions. Hyundai affiliates — Hyundai Motor, Kia Motors and Hyundai Mobis — will collectively contribute $1.6 billion in cash at closing and $ 0.4 billion in vehicle engineering services, R&D resources, and access to intellectual property.
The new joint venture will be led by Karl Iagnemma, President, Aptiv Autonomous Mobility and headquartered in Boston, with technology centers across the United States and Asia, including Korea. Hyundai Motor Group and Aptiv will each appoint an equal number of directors to govern the joint venture.
The JV’s Korea operations will serve as a key technology center as well as a base for vehicle modification and a testbed for autonomous driving mobility service platforms, the companies said in a press release. Hyundai’s presence in the local automotive market and the country’s 5G infrastructure are anticipated to spur the partnership’s development efforts.
Aptiv – the mobility technology spin-off of automotive supplier Delphi – has a portfolio of advanced mobility solutions that includes perception systems, software algorithms, compute platforms, and data and power distribution.
The transaction is subject to regulatory approval and other customary closing conditions and is expected to close early in the second quarter of 2020.