Hyundai and Kia Make Strategic Investment in Arrival to Co-develop Electric Commercial Vehicles
16 Jan, 2020, 06:00 GMT
- Agreement accelerates Hyundai and Kia's clean-mobility transformation
- €100 million investment enables co-development of eco-friendly vans and other products for logistics, on-demand ride-hailing, and shuttle service companies
- Partnership takes advantage of Arrival's scalable 'skateboard' platform technology to underpin future Purpose Built Vehicles (PBV) from Hyundai and Kia
- Arrival has developed in-house software, materials, components and other technologies for the development of Generation 2.0 electric vehicles
- Boosts Hyundai-Kia strategy for deployment of electrified commercial vehicles
SEOUL, South Korea, Jan. 16, 2020 /PRNewswire/ -- Hyundai Motor Company and Kia Motors Corporation today announced a strategic investment of €100 million (US $110 million) in a new partnership with Arrival, a UK-based electric vehicle startup.
Through the partnership, Hyundai and Kia plan to introduce competitively priced small and medium-sized electric vans and other products for logistics, on-demand ride-hailing and shuttle service companies. Arrival's scalable electric platform can be adapted for multiple vehicle categories and types which Arrival, Hyundai and Kia will explore for the development of a range of Purpose Built Vehicles (PBV).
The partnership with Arrival will help Hyundai and Kia meet the rapidly growing demand in Europe for eco-friendly commercial vehicles, and accelerate the brands' transformation from car makers to clean-mobility providers.
Albert Biermann, President and Head of Research and Development Division for Hyundai Motor Group, and Denis Sverdlov, Chief Executive Officer of Arrival, signed a contract for investment and the joint development of electric vehicles at the headquarters of Hyundai and Kia in Seoul. Of the total investment, Hyundai will contribute €80 million; Kia €20 million.
"The eco-friendly vehicle market in Europe is expected to grow rapidly due to the introduction of further environmental regulations," said Biermann. "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."
Arrival's CEO Sverdlov added: "Arrival has created a game changing product category - Generation 2 Electric Vehicles. Hyundai and KIA make world-class vehicles with uncompromising quality. This strategic partnership will empower our companies to scale Generation 2 Electric Vehicles globally."
For more information about strategic investment, please visit our media website: globalpr.hyundai.com / kianewscenter.com
SOURCE Hyundai Motor Group
