Hyundai is investing nearly $1 billion in developing self-driving technology through Motional, an autonomous driving startup.
“The Hyundai Motor Group decided to secure stable management rights in Motional to actively develop autonomous driving technology and internalize core technology,” said the South Korean automaker.
Hyundai and Aptiv, an Irish-American automotive technology company, established Motional in March 2020. Hyundai will invest $487,889,235 in a capital increase and an additional $456,246,344 to acquire an 11% stake in Motional. Following this investment, the South Korean automaker will hold a total share of 66.8% in Motional.
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“The additional investment is expected to enhance Motional’s technological competitiveness by setting the direction of technology development and laying the groundwork for expanding synergy within the autonomous driving units of Hyundai Motor Group,” added the Asian automaker.
In January 2024, Aptiv announced it would stop allocating capital to Motional and seek ways to reduce its ownership share due to the startup’s significant operating losses over the past three years. According to business reports from Hyundai Motor Group’s affiliates, Motional’s operating losses totaled $1,471,530,400.
In March, Motional showcased its self-driving technology in the United States using the Hyundai Ioniq 5 robotaxi. Motional’s self-driving tech successfully passed a standard United States driver’s license test with the Ioniq 5.