SEOUL (Reuters) – Hyundai Motor Group will invest $1.6 billion to create a joint venture for the development of a self-driving vehicle technologies, Aptiv (APTV.(N), the largest overseas investment by a South Korean car manufacturer to catch up to rivals in the autonomous car market.
FILE PHOTO: The logo of Hyundai Motor displayed in the second media day of the Shanghai auto show in Shanghai, China-April 17, 2019 at the latest. (REUTERS photo/Aly Song, File/Photo
The global vehicle manufacturers and their suppliers, the forging of alliances, to develop autonomous vehicle technologies, due to the need to share the financial and technical burden.
Hyundai continued to be a global competitors that have invested heavily in the development of new technologies for power and autonomous vehicles. For example, BMW (BMWG.DE and Daimler ag (DAIGn.DE announced earlier this year that they have their act together on automated driving technology.
Hyundai Motor (005380.KS), Kia Motors (000270.KS) and Hyundai Mobis (012330.KS), is a joint contribution of $1.6 billion in cash and $400 million in funding for research and development, and for the rest of us, the valuation of the joint venture for $4 billion, Hyundai Group, and Aptiv said in a statement.
Dublin-headquarterd Aptiv, which will own 50% of the joint venture, will contribute its autonomous driving technology, intellectual property rights, in and to approximately 700 employees are focused on the development of a scalable, autonomous driving solutions.
The new company will begin testing of a complete uav systems by 2020, and a production-ready autonomous car-platform and is available for a robotaxi service providers, service providers, transport companies and the automakers, in 2022.
Aptiv, which manufactures automotive components, provides technology for self-driving cars, and was formerly known as Delphi Automotive, which was divided into Aptiv, and the Delphi Ones (DLPH.(N) a year in 2017.
THE ONLY STRATEGY
Market research firm Navigant Research, Aptiv put Aptiv is at Number 4 with an automatic drive system for companies, the following Waymo, General Motors (GM.(N) and Ford (F. N). Hyundai is not in the top-10 vendors, according to Navigant Research.
Aptiv said in the 2018 annual report Hyundai Mobis, was one of the competitors in the advanced security and user experience segment, which, together with the Bosch Group, Denso Corporation.
Its main clients include GM, Volkswagen VOWG_p.DE and, by Fiat, according to the annual report. Hyundai Motor is one of her clients, a Hyundai spokesman said.
The latest investment is a further sign that Hyundai has abandoned the strategy of developing the technology in-house, a strategy that has previously been raised investor concerns that it may be left behind in the race for the mobility of the future.
Hyundai, along with affiliate Kia Motors (000270.SO on to the fifth spot in global sales, have been rivals in a series of investments in technology, including a self-driving car, tech, startup, and Aurora, especially since the heir of the Euisun Chung was promoted from the year-ago period.
Hyundai Motor said in February that it will invest in a 14.7 billion won ($12.3 billion) in future technologies such as self-driving, connectivity and car-sharing areas, by 2023.
In March, Hyundai Motor co and Kia Motors Corp announced a plan to invest $300 million into the Indian’s ride-coming platform in the Country, after a $275 million, of which the couple has invested in a Singapore-based ride-hailing firm Grasp on the previous year.
In November, Hyundai Motor Co. invested $250 million in a Singapore-ride-coming firm Grasp, raising the stakes in the growing South east Asian markets.
The Aptiv venture, headquartered in Boston, with technology centers in the United States of america, and in Asia, including South Korea.
The transaction is subject to approval by the regulatory authorities and is expected to close early in the second quarter of 2020.
(This version of the story removes extraneous word from headline)
Reporting by Hyunjoo Jin and Ju-min Park; Editing by Louise Heavens, Muralikumar Anantharaman and Emelia Sithole-Matarise