Hyundai, Kia ink deal for car infotainment system with Intel

SEOUL: Hyundai Motor Co and its affiliate Kia Motors Corp signed a deal with Intel Corp to develop an enhanced in-vehicle infotainment (IVI) platform system.

The memorandum of understanding (MOU) reached in Seoul yesterday calls for the joint development of a platform that can allow users to receive entertainment content, as well as location-based and social network services in their cars, the carmakers said.

This will be an improvement over the current telematic systems employed by cars that usually provide real-time information about the vehicle, road navigation and video and audio services.

Under the pact, Intel will be in charge of making a mobile IVI platform, and developing related applications and software, while the two South Korean carmakers will be tasked with using the technology in the vehicles they make.

Hyundai and Kia are the flagship companies of Hyundai Motor Group, the world's fifth-largest vehicle manufacturer.

Intel, a global leader in information technology (IT), in addition, will share its virtual reality knowhow in IVIs. C&S Technology Inc - a South Korean company dedicated to making automotive non-memory semiconductors and the third partner in the MOU - will be responsible for making the necessary computer chips needed for the future infotainment system.

The non-memory company will work with Hyundai and Kia to make input and output hubs and integrate Intel's technology for actual use.

"The MOU aims to fuel growth of next generation IT products for vehicles that can meet growing consumer requirements for both driving related information and entertainment contents," said Hyundai vice chairman Yang Woong-chul.

He said Hyundai and Kia decided to work with Intel because the company holds a competitive edge in the image and sound data processor fields.

Through close cooperation, the senior executive said efforts will be made to reduce costs and streamline the manufacturing process.

The cooperative tie-up with Intel, in addition, highlights the commitment by the South Korean carmakers to build up both the software and hardware aspects of car IVIs, which are expected to attract consumers down the road.

"Building up this sector can lead to a firm foundation for manufacturing next generation 'smart cars' that will allow it to compete with other carmakers for future market share," the company said.

South Korean companies such as Hyundai and Kia claimed to have already reached rough parity in terms of fuel economy and power train systems with foreign carmakers such as Toyota, Honda and Volkswagen.

The agreement signing ceremony, meanwhile, was held earlier in the day, and attended by Yang, Intel Vice President Ton Steenman and Kim Dong-jin, chairman of C&S Technology.