Hyundai, Kia invest $110M in electric van company
The investment will further Hyundai and Kia's 'clean-mobility transformation' goals
South Korea's sister automakers, Hyundai and Kia, have invested $110 million in U.K. electric van company Arrival, the companies said in a statement Wednesday.
The carmakers said the $110 investment to co-develop electric vans with Arrival and offer other services like ride-hailing and shuttles will further their "clean-mobility transformation" goals.
"The eco-friendly vehicle market in Europe is expected to grow rapidly due to the introduction of further environmental regulations," Hyundai Head of Research and Development Albert Biermann said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HYMTF | HYUNDAI MOTOR CO. LTD. | 53 | -0.31 | -0.58% |
"Through the joint development of electric commercial vehicles with Arrival, we will be able to gain a competitive advantage and progressively establish our leadership in the global eco-friendly vehicle market, with Europe at the forefront," he said.
Of the total $110 million, Hyundai will contribute approximately $88 million and Kia will add approximately $22 million.
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Arrival's futuristic-looking electric vans have battery life for 300 miles before they need recharging. The company is conducting a number of pilot programs with a number of logistics companies in Europe, according to the announcement.
"Arrival has created a game changing product category -- Generation 2.0 electric vehicles," Arrival CEO Denis Sverdlov said in the statement.
"Hyundai and Kia have been making amazing vehicles with uncompromising quality and share our vision for an electric mobility future. Our Strategic Partnership with Hyundai and Kia means we will scale Generation 2 electric vehicles globally and importantly -- in the very near future."
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Hyundai announced the development of its new fully electric Purpose Built Vehicle (PBV) at CES 2020 earlier in January, and Kia announced plans for a strategy aimed at developing more electric vehicles on Jan. 15.
"This investment is part of an open innovation strategy pursued by Hyundai and Kia," Youngcho Chi, president and chief innovation officer at Hyundai Motor Group, said in the statement. "We will accelerate investment and cooperation with companies with advanced technology such as Arrival, to respond to the rapidly changing eco-friendly vehicle market."
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Hyundai also became the latest car manufacturer to unveil an autonomous vehicle in October, joining Tesla, Google, Apple and others.