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5. Aptiv PLC (Formerly Delphi Automotive PLC) Business Report FY ended Dec. 2019

Aptiv PLC (Formerly Delphi Automotive PLC) Business Report FY ended Dec. 2019

Joint Venture

-On September 23, the Company and Hyundai Motor Group announced an autonomous driving joint venture. It will advance the design, development and commercialization of SAE Level 4 and 5 autonomous technologies, furthering the partners' leadership position in the global autonomous driving ecosystem. The joint venture will begin testing fully driverless systems in 2020 and have a production-ready autonomous driving platform available for robotaxi providers, fleet operators, and automotive manufacturers in 2022. Hyundai and the Company will each have a 50 percent ownership stake, valued at a total of USD 4 billion. the Company will contribute its autonomous driving technology, intellectual property, and approximately 700 employees focused on the development of scalable autonomous driving solutions. Hyundai Motor Group affiliates - Hyundai Motor, Kia Motors and Hyundai Mobis - will collectively contribute USD 1.6 billion in cash at closing and USD 0.4 billion in vehicle engineering services, R&D resources, and access to intellectual property. Hyundai Motor Group and the Company will each appoint an equal number of directors to govern the joint venture. The joint venture's Korea operations will serve as a key technology center as well as a base for vehicle modification and a testbed for autonomous driving mobility service platforms.
(Aptiv press release on September 23, 2019)

Business Partnership

-The Company announced a commercial partnership agreement with Affectiva, a Boston-based MIT Media Lab spin-off and leader in human perception artificial intelligence (AI). The partnership will deliver innovative, scalable software - derived from deep learning architectures - to enhance perception capabilities in advanced safety solutions and reimagine the future of the in-cabin experience. To further support the commercial partnership, the Company made a minority investment in Affectiva. Affectiva's patented software is the first multi-modal interior sensing solution to unobtrusively identify, in real time, complex cognitive states of vehicle occupants. (From a press release on January 3, 2019)

Award

-The Company is democratizing active safety through the efficient and scalable Automated Driving Satellite Compute Platform. Its Automated Driving Satellite Compute Platform takes processing and electronics out of individual sensors, instead sending the information to the central platform, allowing the sensors to be smaller, more cost efficient, lighter and easier to package in a vehicle. The reduced mass and volume also eliminates sensor heat dissipation concerns. From basic ADAS to Level 4 autonomous vehicles, this compute platform is scalable for increasing automated driving levels and complexity demands. The Automotive News PACE panel of judges recognized the the Company-Audi team working on the Automated Driving Satellite Compute Platform with an Innovation Partnership Award, for their “special levels” of supplier and OEM collaboration. (From a press release on April 9, 2019)

R&D Facilities

-As of December 31, 2019, the Company has 15 major technical centers across the world:

• North America: 8 facilities
• Europe, Middle East and Africa: 2 facilities
• Asia Pacific: 5 facilities

-The Company's Pittsburgh Technology Center will relocate to new offices at Mill 19 in Hazelwood Green. The move provides the Company’s autonomous mobility team with the space needed to grow as it furthers the development of a safe and trusted autonomous driving platform for robotaxi providers, fleet operators, and automotive manufacturers. The Company’s local team of over 200 employees will occupy three floors and 70,000 square feet in the Mill 19 building. In September 2019, the Company announced that it is entering into a joint venture with Hyundai Motor Group, which is expected to close in Q2 2020. Pittsburgh Technology Center, which will be part of the new joint venture, is scheduled to officially open in the second quarter of 2020. The Company has now safely tested its self-driving cars throughout Pittsburgh for over six years. Beyond Pittsburgh, the Company also operates autonomous vehicles across Boston, Singapore, and Las Vegas. (From a press release on December 4, 2019)

R&D Activity

-The Company announced the full release of nuScenes by it, an open-source autonomous vehicle (AV) dataset. Through sharing critical safety data in nuScenes with the public, the Company aims to broadly support research into computer vision and autonomous driving by AV innovators and academic researchers to further advance the mobility industry. As the first large-scale public dataset to provide information from a comprehensive AV sensor suite, nuScenes by the Company is organized into 1,000 “scenes,” collected from Boston and Singapore, and is representative of some of the most complex driving scenarios in each urban environment. The company says providing public data of this kind enables robust progress and innovation in the industry. (From a press release on March 28, 2019)

Product Developments

<Infotainment system on the new Volvo Polestar 2>
-The Company has used “Continuous Integration” process to develop the infotainment system on the new Volvo Polestar 2. Continuous Integration (CI) is a new way of working across multiple program stakeholders based on an agile development methodology. It starts during quotation, with the establishment of a partnership based on capabilities, as opposed to a predefined set of features. To support this new way of working, the Company created a lean software factory, complete with the tools and interfaces needed to support all program stakeholders. This includes a high degree of automation, fast feedback loops at all levels, and a transparent, built-in approach to quality and bug fixes. (From a press release on December 30, 2019)

-The Company is powering the world’s first vehicle infotainment solution with native Google Automotive Services - called “GAS.” The Polestar 2, followed shortly by the Volvo XC40, will be the first vehicles to natively run GAS, which supports built-in access to services such as Google Maps, Google Assistant, and Google Play. As Lead Device and Development Partner for Google, the Company leads the development and integration of the platform, while gaining early access to Android updates and features.  It supported essential software requirements unique to automotive applications such as vehicle interface, comfort, and control, helping to improve the platform in the process.  GAS, combined with OTA updates, will allow the vehicle to evolve and improve over time, maintaining a fresh solution over the life of the vehicle, rather than being at its peak when it leaves the factory. (From a press release on December 9, 2019)

<Robotaxi service>
-Aptiv Autonomous Mobility announced that it has successfully completed more than 50,000 passenger rides in Las Vegas making it the world’s largest public robotaxi service. One year ago, in partnership with Lyft, the Company became the first autonomous vehicle provider to offer commercial robotaxi rides to the general public. Over the course of the 50,000 rides, passengers provided the companies with feedback to improve their technology and operational performance. Passengers cumulatively awarded the Company’s autonomous robotaxi service a rating of 4.97 out of 5.0, commenting positively about the vehicles’ intelligence, comfort, and the expertise of the safety operators who accompany passengers during their rides. Overall, 92% of riders said they felt “very safe” or “extremely safe” during their rides. Working with the State of Nevada, City of Las Vegas, Clark County, and Regional Transportation Commission, the operation grew to provide access to over 2,100 hotels, entertainment venues, restaurants, and popular destinations throughout the Las Vegas Strip and downtown area, including the Las Vegas Convention Center. (From a press release on May 31, 2019)

Investment in U.S.

-Affectiva, an MIT Media Lab spin-off and specialized in Human perception AI, announced it has raised USD 26 million in funding. The round, led by Aptiv PLC, as well as Trend Forward Capital, Motley Fool Ventures and CAC, brings the total invested in Affectiva to USD 53 million. Affectiva will use its latest round of funding to fuel deployment of its Human Perception AI in production vehicles. Leading OEMs, Tier 1 suppliers, ridesharing providers, fleet management companies and developers of autonomous vehicles are currently working with Affectiva’s Automotive AI solution to understand drivers’ and passengers’ states and moods. Affectiva’s technology is also used by 25% of Fortune Global 500 companies to test consumer engagement with ads, videos and TV programming. (Affectiva press release on April 11, 2019)

Investment outside U.S.

<China>
-The expansion of its industry-leading autonomous driving capabilities to the Chinese market with the establishment of the company’s China Autonomous Mobility Center. Located in Shanghai, the Center will focus on development and application of the company’s L4 autonomous driving technology. To coincide with testing, the company is actively in discussions with potential partners for mapping and commercial deployment of the Company’s vehicles in China. It allows the Company to gain real-world experience with the general public and supports broader technology and IP development, two critical components to grow commercial deployment and develop future mobility solutions. (From a press release on April 17, 2019)

<Mexico>
-HellermannTyton Manufacturas will expand plant in Nuevo Leon with an investment of USD 30 million by the end of 2019 to increase the installed production capacity to 45%. The company expects to create 300 new jobs in its flanges and cable fasteners production for electrical insulation, cable protection, as well as components for the automotive and others. In the next three years, the company expects to reach an installed capacity of 80%, so they will be investing another USD 10 million in the future creating another 200 jobs, closing the 2022 with 500 workers in total. (From Mexico-Now article on June 3, 2019)