Waymo Partners with Hyundai, Expanding Self-Driving Technology
Waymo, the autonomous driving technology developer, announced a significant partnership this week with the Korean automaker Hyundai. The deal involves equipping a fleet of Hyundai’s electric vehicles with Waymo’s self-driving technology. These modified Ioniq 5s are slated to join Waymo’s ride-hail service by late 2025, according to a joint statement released by the companies.
Hyundai Motor Company president and global COO José Muñoz, in a released statement, framed the agreement as a “first step” in the collaboration between the two firms, opening the door for potential future integrations. “We are actively exploring additional opportunities for collaboration,” Muñoz stated, suggesting Waymo’s autonomous technology might eventually be installed in a broader range of Hyundai passenger vehicles.
This multinational partnership arrives at a critical juncture for Waymo as the automotive industry undergoes a global realignment. Waymo, considered a leader in autonomous driving, must navigate these shifting dynamics.
Navigating Global Trade and Automotive Industry Shifts
The deal with Hyundai is the latest in a world where the automotive landscape is rapidly changing. Concerns regarding China’s dominance in auto manufacturing and exports are rippling through the industry, prompting Western countries to erect trade barriers to counter less expensive Chinese electric and autonomous vehicles. The United States recently finalized rules that increased tariffs on Chinese-made EVs and battery materials; the US Commerce Department is also proposing restrictions on Chinese and Russian automotive hardware and software used in the US, particularly those enabling autonomy. The EU has also taken steps to increase tariffs on Chinese electric vehicles.
Interestingly, Waymo maintains its existing relationship with Zeekr, a Chinese-owned automaker. In late 2021, the partnership was announced to have Zeekr build purpose-built, spacious autonomous minivans for the Alphabet subsidiary, with a focus on cost-effectiveness. The Zeekr vehicle made its official debut in San Francisco in June, though Waymo says it is still in testing, and not yet deployed within its public ride-hail service.
Zeekr is owned by Chinese automaker Geely. Its design center and one of its research and development facilities are in Gothenburg, Sweden. This Swedish city is also the headquarters for Volvo and Polestar, automakers also owned by Geely.
In response to the recent trade concerns, Waymo has indicated that its partnership with Zeekr will continue. Waymo spokesperson Chris Bonelli, in an email, confirmed the Hyundai Ioniq 5s “will not replace any of our other vehicle platforms.” Bonelli added that the company is “hard at work validating” the latest version of Waymo’s tech on the Zeekr platform.
National Security Considerations and Data Privacy
The US government has expressed concerns that Chinese-made auto software and hardware installed in US vehicles could pose a long-term national security risk. US Commerce Secretary Gina Raimondo articulated these concerns, noting the potential for widespread vehicle disablement from Beijing. Waymo representatives, however, have asserted that the Zeekr-made robotaxi’s vital technology is independent of Chinese influence. In comments to the Commerce Department, Waymo declared that “The AV-ready base vehicles being provided to Waymo have no driving automation or telematics capabilities built into them.” The company further stated that Waymo personnel, based in the US, are responsible for installing autonomous technology onto the vehicles in an American factory. Waymo has assured that, once in operation in the US, the vehicles cannot communicate remotely with Zeekr, the manufacturer.
“No data that Waymo collects from American consumers, from our technology, or from our vehicles, is or is planned to be stored in, transferred to, or processed in a foreign adversary’s jurisdiction,” the company wrote in its comments.
The US Trade Representative’s office is monitoring the situation, noting that the rule is subject to a 30-day public comment period before the US government finalizes the rule, with a goal of having the rule completed before President Joe Biden leaves office early next year.
The Future of Waymo
The Hyundai announcement provokes questions about Waymo’s evolving role in the autonomous vehicle sector. The long-term agreement confirms the company’s plans to operate its self-hail service, Waymo One, while staying out of vehicle manufacturing itself, but building parts of the vehicles.
Simultaneously, Waymo has announced a partnership with Uber to deploy robotaxis on the Uber platform in Atlanta and Austin, leaving management services to Uber. This mixed approach raises the question: Is Waymo becoming a ride-hail company, a tech developer that licenses its product, or both?
Michael Dunne, auto expert and CEO of the intelligence and advisory firm Dunne Insights, suggests this dual nature reflects a work in progress. “It’s as if we’re putting pieces of a puzzle together, but the picture isn’t in place yet.”
The Hyundai partnership also emerges at a pivotal moment for the Korean automotive group. Hyundai has invested significantly in Motional, a joint venture with Aptiv, to develop its own self-driving technology. However, Motional has faced headwinds this year, experiencing reduced investment from Aptiv, a restructuring, employee layoffs, and the departure of its longtime CEO.
Waymo offers public ride-hailing services in metro Phoenix, Arizona, and San Francisco, with a more limited service in Los Angeles. It plans to launch public service in Austin, Texas, and Atlanta, Georgia, by next year. The company has provided 2 million paid trips to customers and has autonomously driven over 20 million miles.
