Market Pulse

Aptiv and Hyundai Motor form self-driving venture valued at $4 billion

Aptiv PLC aptv+2.45% and Hyundai Motor Co. Ltd. kr:005380-0.87% said Monday they are forming a self-driving car venture valued at $4 billion. The new entity will work to design, develop and commercialize autonomous vehicles of SAE Level 4 and 5, the companies said in a joint statement. The venture is expected to start testing cars in 2020 and have a production-ready self-driving platform available for robotaxi providers, fleet operators and automotive manufacturers in 2022. The companies each own a 50% stake in the ventures with Dublin-based Aptiv contributing autonomous driving technology, IP and about 700 employees focused on developing products. "Hyundai Motor Group 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," said the statement. The venture will be headed by Karl Iagnemma, president of Aptiv Autonomous Mobility and based in Boston. The deal is expected to close in the second quarter of 2020. Aptiv shares were slightly lower premarket, but have gained 41% in 2019, while the S&P 500 spx+1.6% has gained 19%.

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