Hyundai and Kia are no longer in talks with Apple on car development

KUALA LUMPUR: Just after a month of confirming the early-stage talks with Apple, Hyundai now declared that it is no longer in negotiation with the global IT leader to build the long-awaited self-driving Apple car. 

While giving an update to the investors, the Korean automaker stated, "We're receiving requests for co-operation in the joint development of autonomous electric vehicles from various companies, but they're at an early stage and nothing has been decided. We aren't having talks with Apple on developing autonomous vehicles."

Hyundai’s affiliate, Kia Motors has also made a similar filling and as a result, the shares of both companies witness a dump. Bloomberg reported that Hyundai's shares fell 8.4% after the filing, while Kia shares dropped by 14%.

According to CNBC reports, Apple and Hyundai Motor Group were close to finalizing the deal in which Kia would have building an electric, autonomous Apple car at its assembly plant in West Point, Georgia. The said facility currently builds the Sorento, Telluride, and K5. The reported production target for 2024 was 100,000 units with the possibility of annual 400,000 vehicles to be built in the following years.

But the deal hinges on the ground that the iPhone maker being in control of both the software and hardware of the vehicle. This is just like the terms between Apple and other hardware tech companies who are associated with it for decades, such as iPhone is designed by the tech giant but built by its manufacturing partners including Foxconn. 

So all this means that Hyundai is definitely out from the manufacturing of long-time coming Apple car. But, Apple may choose to enter a partnership with any other automotive company. Market experts see Honda, Jaguar Land Rover, and Geely as potential partners.

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