South Korea’s largest automaker Hyundai Motor and American tech giant Cisco Systems have agreed to cooperate on connected car technologies, the automaker said Tuesday.
The announcement came as Hyundai Motor vice chairman Chung Eui-sun and Cisco Systems CEO Chuck Robbins met in Seoul to discuss the two firms’ future smart car business.
Hyundai Motor vice chairman Chung Eui-sun (third from left) and Cisco Systems CEO Chuck Robbins (fourth from left) pose after a meeting at the carmaker’s headquarters in Seoul on Tuesday. (Hyundai Motor)
“Hyundai Motor will provide new values that go beyond our customers’ expectations in safety, quality and security through cooperating with Cisco,” said Chung in a statement.
Robbins said, “Technological innovation through the partnership with Hyundai Motor will create new user experiences and digital disruption in the auto industry.”
Under the agreement, the two companies are set to codevelop “in-vehicle networking solutions” that allow cars to control transmission and data reception.
In-vehicle networking is a key technology for connected cars, as it can offer super-high speed networks for handling massive data, real-time. Earlier this month, Hyundai chose cloud, big data and connected car security as the four core technologies for connected cars -- this includes in-vehicle networking.
Hyundai’s spokesperson said details of the agreement have not been finalized.
Market experts say a partnership with Cisco may be a chance for the industry to revalue Hyundai’s smart technologies, which so far have been somewhat undervalued.
“Hyundai’s advanced driver assistance systems are on par with those of GM and Toyota, but they are undervalued,” said Shin Jung-kwan, an analyst from KB Investment & Securities. “The partnership with Cisco will help spur the company to match the levels of other more advanced global automakers such as BMW and Mercedes-Benz.”
Hyundai previously proved its assistance system by applying the highway driving assistance system to its premium luxury sedan EQ900.
By 2030, the Korean automaker aims to develop completely autonomous vehicles.
“Hyundai, while it has shown much advancement in the area of smart technologies, needs more complex technologies to develop advanced connected cars,” said Song Sun-jae, an analyst from Hana Daetoo Securities.
By Shin Ji-hye