SEOUL, Korea, Nov. 1, 2017 – Hyundai Motor has outlined plans to invest extensively in prominent Israeli start-ups to accelerate developments in advanced future automotive technologies. Moving the business toward a Fourth Industrial Revolution, a new investment office in Israel will lead the operation and identify newly established businesses that focus on ‘Disruptive Innovations’, including artificial intelligence, autonomous driving, and cyber security.
Hyundai Motor announced its vision at the 2017 Fuel Choices and Smart Mobility Summit in Israel, detailing its expectation for synergies with the newly-launched HTK Consortium for Future Mobility Research. The Korean car maker recently entered into a memorandum of understanding with Technion – Israel Institute of Technology, and Korea Advanced Institute of Science and Technology (KAIST) – to conduct joint R&D projects globally, around future mobility technologies.
Furthermore, Hyundai Motor established a Strategy & Technology Division in February to gain new momentum for future technological innovation. The division oversees the company’s research in future technology from AI, advanced materials, energy, and robotics, to the next generation of information communication technologies. The organization largely is composed of two divisions; one with engineers in charge of R&D and one with strategists devising business models based upon the new technologies.
“Hyundai Motor is very interested in Israel’s ecosystem of technology innovation, especially in the sector of transportation. This is why we recently signed an MOU with Technion, one of the world’s top science and technology research universities,” said Dr. Young Cho Chi, Executive Vice President of Strategy & Technology Division and Chief Innovation Officer of Hyundai Motor Group. “Our new investment center will allow us to work more closely with the most innovative new businesses and lead the industry in new and creative smart mobility.”
The announcement was made during a meeting with Mr. Eli Cohen, Israel Minister of Economy and Trade. He said, “We welcome Hyundai Motor Group’s decision to open an investment office in Israel called Open Innovation Center. This decision, made by one of the biggest automotive companies in the world, is further proof of the quality of Israeli innovation and the good economic ties between Korea and Israel.”
Open Innovation Center outlined the three pillars of investment that will allow them to accelerate developments in advanced future technologies:
The first stage of the program will see the Israel investment center identify prominent start-ups with creative ideas that are working to develop innovative technology. This follows the example of the HTK Consortium, which acts as a bridge between Hyundai Motor and emerging companies, to conduct joint R&D projects.
The second stage will see investment made in leading start-ups that demonstrate the greatest potential and creativity. The investment includes both direct and indirect investment, and leads to commercialization.
Hyundai Motor will work in close partnership with start-ups as it establishes the Group’s Open Innovation Center in Israel next year. This facility will also build strong relationships with local colleges and companies, with a mid- to long-term plan to establish it as a global R&D center, to develop artificial intelligence or future mobility.
Through the investment in start-ups and the HTK Consortium for Future Mobility Research, Hyundai Motor and the associated globally-renowned institutes will work together to respond quickly and effectively to the global automotive industry’s rapidly changing needs.
Hyundai Motor Group has a track-record of using start-ups in its projects. Last year, start-ups with relevant technologies were invited to contribute to a Hyundai Motor and Cisco joint project for connected car technology development.
About Hyundai Motor
Established in 1967, Hyundai Motor Company is committed to becoming a lifetime partner in automobiles and beyond. The company leads the Hyundai Motor Group, an innovative business structure capable of circulating resources from molten iron to finished cars. Hyundai Motor has manufacturing bases in eight countries as well as a global network of eight technical centers and four design centers. Hyundai Motor Hyundai Motor sold 4.86 million vehicles globally in 2016 and employs more than 110,000 employees worldwide. The company continues to enhance its product line-up with localized models and strives to strengthen its leadership in clean technology, starting with the world’s first mass-produced hydrogen-powered vehicle, ix35 Fuel Cell and IONIQ, the world’s first model with three electrified powertrains in a single body type.
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