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Hyundai, Aptiv create JV for autonomous driving technology

South Korean auto manufacturer Hyundai Motor Co. and Dublin-based auto parts company Aptiv PLC will form a 50/50 joint venture for autonomous driving technology valued at $4 billion.

According to a joint press release, the venture aims to develop and commercialize level 4 and 5 self-driving technologies. It will test fully driverless systems in 2020 and make a production-ready autonomous driving platform for robotaxi providers, fleet operators and auto manufacturers in 2022.

"The partnership reinforces the companies' shared vision of making mobility more safe, green, connected, and accessible," the release also said.

Under the agreement, Aptiv will contribute its autonomous driving technology, intellectual property and about 700 employees to the venture. Hyundai — through its Hyundai Motor, Kia Motors and Hyundai Mobis affiliates — will provide $1.6 billion in cash at the close of the deal and another $400 million in vehicle engineering services, research and development resources, as well as access to intellectual property.

Both companies will appoint an equal number of directors to the JV's board.

The new entity will be headquartered in Boston and led by Karl Iagnemma, president of Aptiv Autonomous Mobility. It will have technology centers across the U.S. and Asia, including Korea, which will be its base for vehicle modification and a testbed for platforms related to autonomous driving mobility service.