Korean Automakers Say Apple Deal Isn't Happening
Over the weekend, Hyundai Motor Group addressed rumors that Kia had been in negotiations to build an electric vehicle for Apple. While the scuttlebutt seems to have been true, talks were indeed underway, the automaker confessed that they had ended without an agreement.
It’s known that Apple has been hunting for potential partners after its EV program was placed into an extended stasis and was hoping to gain access to a skateboard-type platform. Hyundai’s E-GMP architecture certainly qualifies, too. But it’s just one of many entities entering the field as most manufacturers strive to build their own.
Regardless, it wasn’t great for either brands’ share price. Both saw spikes in valuation as the Apple rumor spread and sharp drops when it was explained that there would be no deal. On Monday, Hyundai Motor shares fell by over 6 percent in South Korea. Kia Motors shares dropped by bout 15 percent.
Apple reportedly remains committed to reinvigorating its electric vehicle program, however. Insiders have tipped off numerous outlets that the company is hoping to have the first “Apple Cars” produced by 2024.
In December, Reuters claimed to have sources suggesting the first examples would appear in 2024. But Taiwanese outlets were reporting that key Asian suppliers had already been mobilized to accelerate production on components that would be necessary for an upcoming EV. While suppliers were supposed to have signed rock-solid confidentiality agreements, the United Daily News named several participating Taiwanese automotive factories in the final week of 2020.
But the iCar concept has been nixed before and reinvigorating the codenamed Project Titan in 2019 doesn’t mean it will survive all the way to 2024. If we could count on every rumor and corporate promise being true, numerous companies operating from both outside and within the auto industry would have been selling totally self-driving conveyances for a couple of years.
[Image: Hyundai]
A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.
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Loose lips sink ships. If someone at H/K leaked info regarding Apple as reported last week they might have gotten a phone call with an offer they can't refuse. As mentioned Apple is notorious about dealing with its suppliers and keeping its future (and even current) plans under wraps.
Or they did come to the agreement and the first rule of apple club is you don't talk about apple club.