Top
Image Alt

The Investing Box

  /  Investing   /  Hyundai, Aptiv name self-driving joint venture Motional

Hyundai, Aptiv name self-driving joint venture Motional

imageEconomy3 hours ago (Aug 11, 2020 08:15AM ET)

(C) Reuters. FILE PHOTO: The Hyundai logo is seen at the Paris auto show

By Paul Lienert

(Reuters) – South Korean automaker Hyundai Motor Co (KS:005380) and auto supplier Aptiv PLC (N:APTV) have named their self-driving joint venture Motional, the companies said Tuesday.

Formed a year ago, the $4-billion venture is developing a fully automated system that it hopes to begin selling in 2022 to robotaxi companies and fleet operators, Chief Executive Karl Iagnemma said in an interview.

“In a post-COVID world, driverless technology is more relevant and important than ever,” he said. “More Americans are interested in ride hailing now than before the pandemic.”

Boston-based Motional, which expects to have more than 1,000 employees by year-end, has locations in Pittsburgh, Las Vegas, Santa Monica, Singapore and now Seoul.

Its chief competitors include Waymo, the Alphabet Inc (O:GOOGL) affiliate; Cruise, the San Francisco startup that’s majority-owned by General Motors Co (N:GM), and Pittsburgh-based Argo AI, which is jointly controlled by Ford Motor Co (N:F) and Volkswagen AG (DE:VOWG_p).

Waymo’s self-driving technology was developed in-house at Google, and the company has attracted funding from Canadian auto supplier Magna International (TO:MG) and dealer AutoNation (N:AN). It is testing its system in robotaxis and commercial vehicles, with Fiat Chrysler Automobiles (MI:FCHA) and United Parcel Service (N:UPS), among others.

Cruise, whose shareholders include Honda Motor Co (T:7267) and SoftBank Group (T:9984), has been testing both ride and delivery services, and eventually will deploy an electric shuttle jointly developed by GM and Honda.

Argo has been testing its system in Ford vehicles at several U.S. locations, with plans to expand to Europe with VW.

Iagnemma said those three self-driving ventures — and Motional — may have the best changes of survival.

“Unless you check all three boxes” — software, capital and a strategic partnership with a vehicle manufacturer — “your chances of succeeding at scale are slim,” he said. “If you don’t have resources to get to scale, ultimately you’ll end up with a novelty.”

Hyundai, Aptiv name self-driving joint venture Motional

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Post a Comment