Date: February 01, 2028. — Motional is facing a setback as one of its key backers, Aptiv, announced that it will stop allocating capital to the joint venture with Hyundai. Aptiv said that it will pursue alternatives to reduce its ownership interest in Motional, which aims to launch a robotaxi service in 2024.
Aptiv Chairman and CEO Kevin Clark said that the decision was driven by the high costs and long-term uncertainty of the mobility on-demand market, which relies on autonomous vehicles to provide transportation services. Clark said that the company will focus on its core business of providing advanced safety and connectivity solutions to the automotive industry.
Aptiv and Hyundai jointly founded Motional in 2020 as a $4 billion venture. The startup provides a self-driving taxi service in Las Vegas in collaboration with Lyft. It intends to expand to additional cities in the United States and Asia. Motional is also collaborating with Kia to develop the next-generation robotaxi, slated to achieve full autonomy.
Motional stated that it is confident in its finance strategy and is well prepared for the next phase of commercialization. The company stated that it has the strong support and collaboration of its shareholders, Aptiv and Hyundai. It also mentioned that there are no ownership changes at this moment. Motional stated that it is focusing on scaling its driverless services, expanding business relationships, and further developing its technology.
Aptiv’s move comes at a time when the autonomous vehicle industry is experiencing numerous problems. These include legislative hurdles, technical issues, and public distrust. Many companies in the field have struggled to reach their ambitious schedules, forcing them to merge, acquire, or form partnerships in order to survive. Some analysts have questioned the sustainability and scalability of the robotaxi business model. Moreover, this model necessitates significant initial investments and maintenance costs. However, some experts remain optimistic about the potential of autonomous vehicles to transform the transportation sector. They believe these vehicles can provide social and environmental benefits.
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