By Ben Otto
Aptiv and South Korea's Hyundai Motor Group said they will form an autonomous-driving joint venture that the two companies valued at $4 billion.
Hyundai and Dublin-based Aptiv, an automotive-technology company, will each own a 50% stake in the venture, they said in a joint statement Monday.
Aptiv will contribute its autonomous-driving technology and about 700 employees to the effort, while Hyundai group firms Hyundai Motor Co. Ltd. (005380.SE), Kia Motors Corp. (000270.SE) and Hyundai Mobis Co. Ltd. (012330.SE) will provide $1.6 billion in cash and $400 million in vehicle-engineering services and research and development, they said.
The companies will begin testing driverless systems next year, with a goal of readying an autonomous-driving platform for production in 2022.
The deal is subject to regulatory approvals and other conditions, and expected to close in the second quarter of 2020, the companies said.
"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, president and chief executive of Aptiv.
Euisun Chung, executive vice chairman of Hyundai Motor Group, said the JV marks the start of a journey toward the companies' "common goal of commercializing autonomous driving."
The venture will be led by Karl Iagnemma, Aptiv's president of autonomous mobility, and headquartered in Boston, they said.
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