- 16 January 2020
- Transport / Logistics Services
Two major automotive players – Kia Motors Corporation and Hyundai Motor Company – have invested a combined €100 million in a partnership with UK based electric commercial vehicle company Arrival.
In making the investment, the two Far Eastern automotive players plan to introduce small and medium-sized electric vans to logistics, ride-hailing and shuttle service companies at competitive prices with fossil fuelled vehicles. Arrival has a scalable electric vehicle platform that can be adapted for multiple vehicle categories and types.
Kia and Hyundai, using the Arrival platform, will be able to meet the rapidly growing demand for low emissions commercial vehicles in Europe, accelerating their own move away from fossil fuelled vehicles.
Albert Biermann, President and Head of Research and Development Division for Hyundai Motor Group, and Denis Sverdlov, Chief Executive Officer of Arrival, signed a contract for investment and the joint development of electric vehicles at the headquarters of Kia and Hyundai. Of the total investment, Kia will contribute €20 million; Hyundai €80 million.
“The eco-friendly vehicle market in Europe is expected to grow rapidly due to the introduction of further environmental regulations,” said Biermann. “Through the joint development of electric commercial vehicles with Arrival, we will be able to gain a competitive advantage and progressively establish our leadership in the global eco-friendly vehicle market, with Europe at the forefront.”
Arrival’s CEO Sverdlov added: “Arrival has created a game changing product category – Generation 2 Electric Vehicles. Kia and Hyundai make world-class vehicles with uncompromising quality. This strategic partnership will empower our companies to scale Generation 2 Electric Vehicles globally.”
Arrival has been operational since 2015 and has production and R&D centres in the US, Russia and the UK among others. Its core platform is a modular component structure, cost-effective base including battery pack, electric motor and driveline components. As well as selling its vehicles direct to market, it is partnering with major automotive players.