'Half Hyundai, Half Parts Supplier'... The Reason Why 42dot is Called 'Tier 0.5'

The Kim Han-yong's MOCAR channel has released a video of a visit to 42dot while riding in Tesla FSD Lite. The video introduces the current state of Hyundai Motor Company's autonomous driving as felt after watching the Atria AI driving footage and discusses domestic regulations heard on-site, while also pointing out why Hyundai Motor Company and 42dot operate as different organizations and whether this is a meaningful development even if it has not yet reached the level of Tesla.

The host mentioned that although the Software Dream Center, the headquarters of 42dot, is a very small place, 150 reporters applied to participate, which serves as an example of how much interest there is in Hyundai Motor Company's autonomous driving recently. He introduced the day as an opportunity to show the achievements made so far, noting that although 42dot has made significant progress in autonomous driving, such aspects did not seem to be widely known.

'Half Hyundai, Half Parts Supplier'... 42dot's 'Tier 0.5'

Automotive parts supply is divided into tiers according to stages. According to the host, companies like Hyundai Mobis or Hyundai Transys are Tier 1, the first tier of parts suppliers, and those that supply parts to those suppliers are Tier 2. 42dot is a company that does not fit into this structure. Although 42dot is a subsidiary of Hyundai Motor Company that supplies software to Hyundai Motor Company, it is a completely different company in terms of structure, with the explanation that employees are not Hyundai Motor Company employees and their salary systems and working environments are different.

The host cited the need for 42dot employees to maintain creativity as the reason why it must be so. He explained that because automobile manufacturers are completely focused on the existing processes of planning, designing, producing, and cutting prices for cars, they cannot easily change these, so an additional company is needed. Therefore, he explained that while it performs a role similar to Tier 1, it is not actually Tier 1, and is called 'Tier 0.5' in the sense that the manufacturer operates it halfway. He stated that 42dot's current status is being half a Hyundai Motor Company company and half a parts supplier.

Differences in Internal Perspectives Pointed Out by the Host

Premising that he does not know the internal affairs of 42dot and Hyundai Motor Company well, the host spoke about the difference in perspective that can arise from an outside view. While Hyundai Motor Company goes through the difficult process of making and selling cars—from parts sourcing to design, engineering, production planning, mold manufacturing, and quality/price negotiations with suppliers—42dot only needs to make software without hardware, so it may look relatively easy from the outside. He viewed that controversy can easily arise within the company due to the perspective that 42dot is merely spending the money that Hyundai Motor Company earned.

The host explained that while a typical software supplier would be in a position of power (the "Gap") to strongly demand schedules and quality from Hyundai Motor Company, 42dot is Tier 0.5, so it cannot act as it pleases, yet it is not part of the Hyundai Motor Company organization, creating a structure where conflicts arise. However, he added that such complaints have subsided a lot now, and he has not seen anyone speaking negatively about 42dot, as everyone seems to have changed their thoughts to be positive.

'Better Than Expected' Regarding the Atria AI Driving Video

The Atria AI driving video released that day tested whether the vehicle could respond well to various incidents and accident situations while traveling from the 42dot headquarters in Pangyo to Gwanghwamun. The host evaluated it as being better than expected and said this could be viewed from two perspectives. One could see it as Tesla taking credit for something they have only just managed to do, but conversely, it can be seen as the result of working very hard. While he thought Hyundai-Kia were entities that had not even started autonomous driving compared to Tesla, they have caught up to a significant extent, and his thought was that even if they might be inferior to Tesla in quality, wouldn't this level be acceptable in our lives?

The host said he is not looking for something grand in autonomous driving, stating that it would be sufficient if it simply goes in the direction indicated when a turn signal is turned on to overtake, or automatically reduces speed when the car in front stops. He also expressed hope that highway driving assistance will develop further, even if not to the level of FSD, and pointed out that Hyundai Motor Company's HDA gives up its function if a corner is even slightly deeper.

The 'Reasoning' Required for Autonomous Driving and Changes in Daily Life

As the car heading to 42dot changed lanes 1km in advance, the host mentioned the so-called "black box problem," noting that this is also discussed as an issue. It is difficult to explain whether changing the lane in advance was truly a prediction or if it just happened by luck. He mentioned that many famous people, including NVIDIA's Jensen Huang, say that autonomous driving requires "reasoning" to build up reasons, and he thought 42dot's Atria AI was also being created in that manner.

The host saw that autonomous driving could bring great changes to daily life. He, who does not like being trapped in a car and ensures his commute does not exceed 10 minutes, said that if it reaches the current level of FSD, a longer commute would not be a big problem, and said that autonomous driving could be a solution that alleviates the overcrowding of the metropolitan area to some extent. He stated that it is not just a problem of automobiles or AI, but a problem related to real estate and food, clothing, and shelter. Therefore, he emphasized that laws regarding autonomous driving must be made quickly, and that Hyundai Motor Company must play the most important role in this.