skip to Main Content
Robotaxi Firm Motional Loses Funding From Aptiv

Robotaxi Firm Motional Loses Funding From Aptiv

Aptiv, the auto parts maker announced its stake reduction in the autonomous vehicle joint venture, Motional after incurring millions in losses.

Source: Reuters

Motional is a joint venture between Aptiv and Hyundai Motor Company, which uses the IONIQ 5 electric car as its robotaxi. The EV is used in Las Vegas through Uber and Lyft.

“While our Motional joint venture continues to make progress on their technology road map, we’ve decided to no longer allocate capital to it,” Aptiv CEO Kevin Clark said during the earnings call.

Aptiv’s 2024 profit forecast of US$5.55 to US$6.05 per share includes a non-cash equity loss of about US$340 million, or US$1.20 of earnings per share, related to Motional’s losses. The company joins Ford Motor, Volkswagen and General Motors in cutting down or backing out of the technology, which is often touted as the future of mobility.

Reuters heard from Evangelos Simoudis, an investor, author and corporate adviser, who said: “Companies are realising that attaining level 4 of autonomous driving is way more difficult and expensive than the industry predicted.”

Level 4 autonomous driving refers to the vehicle moving automatically in longitudinal and lateral axes and the driver does not have to keep their eyes on the road or supervise the vehicle. Last October, GM found itself in hot water after an accident involving a pedestrian with its robotaxi. It resulted in General Motors’ Cruise recalling 950 driverless cars from the roads across the United States and slapped with federal investigations.

The exit from Argo came after three years of joint efforts to develop automated driving systems and more than US$3 billion in investments, highlighting the cost pressure and safety hurdles automakers face. Meanwhile, Aptiv beat Wall Street expectations for fourth-quarter profit, fueled by an uptick in demand for auto parts and tech-related products from global automakers.

It reported adjusted earnings of US$1.40 per share for the quarter ended 31 December 2023 compared with expectations of US$1.33, according to LSEG data. Aptiv’s shares were down about 4% amid a weak broader market.




What You Missed:



DJI’s Releases First Delivery Drone, DJI FlyCart 30 (FC30)
Tesla Dethroned By BYD As World’s Best Selling EV Maker
Quang Ninh Industrial Zones Face Electricity Shortage
Siemens And Intel To Collaborate On Advanced Semiconductor Manufacturing
Universal Robots Launches 30 Kg Cobot
Charlie Munger, The Man Who Saw BYD’s Potential Passes At 99
LG Energy Solutions And SK On Lay Off Workers As EV Battery Market Slows
Korea Loses Semiconductor Talent Pool To China
Slaughtering Undone, Sam Altman Resumes Chapter
OpenAI Slaughters Its Golden Goose — Sam Altman






CONNECT WITH US:  LinkedIn, Facebook, Twitter


Letter to the Editor
Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? APMEN News would love to hear from you!



Email your letter to the Editorial Team at [email protected]

DJI’s Releases First Delivery Drone, DJI FlyCart 30 (FC30)
Tesla Recalls 2 Million Cars Over Brake System Warning Light
Back To Top