Aptiv, Hyundai Motor Form $4B JV To Test Driverless Systems In 2020

Aptiv APTV and Hyundai Motor Group have teamed up to form an autonomous driving joint venture which will see the two companies test fully driverless systems in 2020.

The companies will aim to have a production-ready autonomous driving platform available for robotaxi providers, fleet operators and automotive manufacturers in 2022. Under 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 Motor Group affiliates — Hyundai Motor, Kia Motors and Hyundai Mobis — will contribute $1.6 billion in cash at closing and $0.4 billion in vehicle engineering services, R&D resources, and access to intellectual property.

"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 Kevin Clark, CEO of Aptiv. "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."

Aptiv shares closed last week at $87.07. The stock has a 52-week range between $92.98 and $58.84.

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