Hyundai confirms that Apple is developing an electric car

Hyundai confirms that Apple is developing an electric car

She said a company South Korea’s Hyundai on Friday: It is in early talks with a company Apple, after local media reported that the two companies were discussing electric vehicle and battery issues, leading to Hyundai’s shares up 25 percent.

The report comes weeks after Reuters announced that Apple is pushing ahead with self-driving car technology, and was aiming to produce a passenger car that could incorporate its battery technology as early as 2024.

Earlier on Friday, the Korea Economic Daily said: The iPhone manufacturer and Hyundai are in discussions to develop electric autonomous cars by 2027 and to develop batteries in US factories run by Hyundai or its subsidiary Kia.

Hyundai said in a statement: Apple and Hyundai are in discussions, but since it is still in an early stage, nothing has been decided.

The statement did not say what the talks were about, and Hyundai has revised the statement twice since the initial announcement, with the first amendment indicating that Hyundai is only one of many car manufacturers that Apple has contacted, while through the second amendment it removed references to Apple entirely. .

Hyundai later said: It is receiving requests for cooperation in the joint development of independent electric cars from various companies, without specifying any of them.

And the Apple branded car could pose a major challenge to Tesla, the market leader in electric cars.

It remains unclear who will collect such a vehicle, but analysts said: They expect the company to rely on a manufacturing partner.

In a note, Wedbush analysts said: We still firmly believe that Apple will eventually announce a strategic electric vehicle partnership in 2021 that will lay the groundwork for entering the booming electric vehicle field.

Hyundai and Apple are working together on CarPlay, Apple’s software to connect iPhones to a variety of vehicles.

Jeong Yun-woo, a former Hyundai designer, said, “It makes sense for Apple to use Hyundai to produce electric cars because the Korean company is known for quality.

“But I’m not sure if this strategy is good for carmakers,” he addedAutomakers faced risks of losing control to tech companies, referring to a contract to supply Taiwanese chip maker Foxconn with Apple.

Analysts said: Apple may be interested in using Hyundai’s electric vehicle platform and facilities to reduce car development and manufacturing costs.

And Apple might see Hyundai as the perfect partner, because when it comes to the old American automakers, they all have strong unions, which is what Apple would be willing to avoid.

As that The labor cost of old American automakers is much higher than that of Hyundai, something that often plays a big role when it comes to producing cars.

The link with Apple will be a big boost for Hyundai, whose global sales fell by more than 15 percent last year as the epidemic affected demand, and the new news added nearly $ 8 billion to Hyundai’s market value.

Leave a Reply