Hyundai and Kia invest £85.2m in UK-based electric van firm

Marco Green
January 18, 2020

It was announced today that Hyundai and Kia would make a sizable investment of €100 million into UK-based electric van startup, Arrival, and will hope to have some cooperation on future Hyundai and Kia models in the future.

Those automobiles will likely be built on Arrival's modular automobile platform or "skateboard" that bundles motor, batteries, and chassis components, similar to the skateboard manufactured by USA startup Rivian.

In a statement, Hyundai and Kia said the investment in Arrival would help them transform "from auto makers to clean-mobility providers".

Hyundai Motor said Arrival's technological strength in developing a module-type "skateboard platform" will reduce the cost of manufacturing and enhance customization for clients as well as cut down manufacturing time.

Hyundai and Kia injected $89 million and $22 million, respectively, in the British company, which has developed in-house software, components and other technologies for the development of a next-generation electric vehicles, it said.

Arrival's Chief Executive Denis Sverdlov said, "Arrival has created a game changing product category - Generation 2 Electric Vehicles". Hyundai and KIA make world-class vehicles with uncompromising quality. This strategic alliance would be empowering their firms to scale the Generation 2 electric automobiles across the globe.

With the rapid global growth in online shopping, the volume of light commercial vehicles in urban areas has increased.

To avoid big fines for exceeding the targets, automakers are either doubling down to ensure they can reach the targets by selling more eco-friendly vehicles, or buying credits from other automakers such as in the case of Fiat-Chrysler and Tesla.

Kia also recently announced a plan at its January 14 Investor day to develop PBVs for shared-service companies and logistics companies.

Youngcho Chi, Hyundai Head of Innovation, said: "This investment is part of an open innovation strategy pursued by Hyundai and Kia". Arrival has over 800 people globally and is headquartered in London, UK. By the end of 2025, it aims to export 1600 hydrogen fuel-cell trucks to the European market.

These investments are seen as a way to build a leadership position in the rapidly expanding global EV market. Four months later, the group invested in IONITY, Europe's largest high-power electric vehicle charging network.

Other reports by Click Lancashire

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