Aptiv, a key player in the development of autonomous vehicles through its joint venture with Hyundai, announced its decision to halt capital allocation towards Motional’s robotaxi endeavors during its fourth-quarter earnings call. Citing the substantial costs associated with deploying autonomous technology, Aptiv Chairman and CEO Kevin Clark emphasized the challenges in the mobility-on-demand market.
While Aptiv explores strategies to reduce its ownership interest in Motional, the autonomous vehicle company remains steadfast in its funding roadmap and commercialization efforts. Motional, which operates autonomous taxi services in several cities, reassured stakeholders of its commitment to scaling driverless operations and forging strategic partnerships to advance its robotaxi ambitions, including a collaboration with Kia for next-generation vehicles.
Motional’s roots trace back to nuTonomy, an autonomous vehicle startup acquired by Delphi in 2017, later integrated into Aptiv. In partnership with Hyundai, Motional aims to commercialize self-driving cars, with plans to launch a robotaxi service using Hyundai vehicles in 2024. Despite Aptiv’s withdrawal, Motional continues testing its technology in multiple cities and advancing its AV development initiatives, including a recent partnership with Kia announced during CES 2024.