Hyundai and Kia share most of their components in order to minimise the costs. It seems that this partnership will be extended in the close future also to commercial vehicles.
Hyundai Motor Company and Kia Motors Corporation announced a strategic investment of €100 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 and 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 development of a range of Purpose Built Vehicles (PBV).
Albert Biermann, President and Head of Research and Development Division for Hyundai Motor Group, and Denis Sverdlovsk, 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.
Founded in 2015, Arrival has production plants and R&D centers in the US, Germany, Singapore, Russia and the UK. The company’s strength lies in its ‘skateboard’ vehicle platform with a modular component structure, a cost-effective base which incorporates a battery pack, electric motor and driveline components.
Fully-scalable to accommodate multiple vehicle types, the platform can be used to accelerate vehicle development to meet diverse customer needs. Currently, Arrival is carrying out pilot projects with multiple logistics companies in Europe using cargo vans manufactured with the technology.