Hyundai and Kia made huge investment in electric vehicle company

Hyundai and Kia made huge investment in electric vehicle company
The investment made Arrival one of the most valuable startups in the UK.
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Daily US Times, London: Korean auto giants Hyundai and Kia made a huge investment in electric vehicle company Arrival, making the company Britain’s one of the most valuable startups.

The two companies jointly invested €100 million ($112 million). 

An Arrival spokesperson said the investment will help jump-start collaboration between the three automakers.

The investment is a huge boost for the five-year-old company. The London based company has 800 employees across five countries, including Germany, the United States and Russia. 

Arrival wants to make electric cars that cost about the same as traditional cars. Their cars will be powered by fossils fuels. Its innovation lies in its design and manufacturing processes.

The company has plan to launch their first car later this year. It has two production sites in the United Kingdom and expecting to expand to the United States, Asia and elsewhere in Europe.

Once designed, the company’s engineers send their plans to “microfactories” for manufacturing.

Arrival is also utilizing a modular “skateboard” platform which allows a range of models to be built on one system. World’s biggest carmaker Volkswagen has invested in a similar production platform.

One Arrival vehicle prototypes are currently running trials with delivery providers such as DHL, UPS and Royal Mail. The vehicle is a boxy delivery van.

The investment made Arrival’s market value to $3 billion. Only five UK startups are worth more than that.

Youngcho Chi, Hyundai’s president and chief innovation officer, stated on Thursday. He said, “This investment is part of an open innovation strategy pursued by Hyundai and Kia.”

All to the electric vehicle

Top automakers across the globe have been investing a massive amount of money in developing electric vehicles. The transformation needed to meet tough new emissions standards in China and Europe.

Toyota plans to sell electric vehicles account for roughly half of its total sales by 2025. Volkswagen plans to launch more than 60 new electric vehicles models in the next decade.

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