Completion of autonomous driving platform development by the end of 2022
Hyundai Motor Secures Level 4/5 Autonomous Driving Technology

Hyundai Motor Group has established a joint venture in the United States with Aptiv, a company possessing technology in the field of autonomous driving.

Aptiv, which was spun off from GM affiliate Delphi Automotive in 2017, is a company specializing in autonomous driving and is a global enterprise with a market capitalization of 27.4 trillion won.

Aptiv, which acquired KUM, a domestic company providing connector and cable management solutions for autonomous vehicles, last year, focuses on driver assistance systems (ADAS), infotainment, and connected technology, which are fundamental to autonomous driving, and ranks third globally in pure autonomous driving technology according to Navigant Research in 2019.

Senior Vice Chairman Chung Eui-sun (left) and Aptiv CEO Kevin Clark (right) at the autonomous driving software development joint venture
The definitive agreement for establishment was signed on the 23rd. [Photo courtesy of Hyundai Motor Group]

With the establishment of this joint venture, Hyundai Motor Group's autonomous driving technology ranking rises to 4th place in the overall ranking. This is because it is based on Aptiv's 4th place ranking in the overall autonomous driving technology rankings. Currently, Navigant Research's 2019 overall rankings for autonomous driving technology show Waymo in 1st place, GM in 2nd, and Ford in 3rd.

Hyundai Motor Group, currently ranked 15th globally, will move from following the autonomous driving market to leading it through the establishment of this joint venture. By possessing both a global automotive manufacturing base and autonomous driving technology, it will secure autonomous driving software technology reaching levels 4 and 5.

Based on this, Hyundai Motor and Aptiv also announced plans to complete the development of an autonomous driving platform to supply to automakers and robotaxi operators by 2022 and to commercialize it.

The joint venture will hold equal 50% stakes, with Hyundai Motor, Kia Motors, and Hyundai Mobis contributing a total of $2 billion, including $1.6 billion in cash and $400 million in automotive engineering services, R&D capabilities, and intellectual property sharing, while Aptiv will contribute autonomous driving technology, intellectual property, and approximately 700 autonomous driving solution development personnel.

With the launch of this joint venture, it appears that the majority of autonomous driving technology alliances are being formed within the global automaker industry.
Currently, Japan's Toyota Motor Corporation is forming an autonomous vehicle technology alliance with SoftBank, Volkswagen with Argo AI, and BMW with Intel and Mobileye.

A Hyundai Motor official stated that the key to the global competition in autonomous driving development is “who secures driving data with more partners,” adding, “Through this joint venture, we have been able to develop a platform optimized for Hyundai and Kia.” He also added, “Based on our research centers at home and abroad, natural collaboration involving 5G communication and artificial intelligence will take place.”

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