Not in talks with Apple to develop cars: Hyundai, Kia
Hyundai Motor Co. and its affiliate Kia Motors Corp. said that they aren’t in talks with Apple Inc. to develop an autonomous vehicle, responding to intense speculation about the potential new product by the maker of the iPhone.
Apple paused discussions with Hyundai and Kia weeks ago about building an electric vehicle, people familiar with the matter told Bloomberg late last week. Apple has discussed similar plans with other auto manufacturers, the people added, asking not to be identified because the information isn’t public.
The South Korean carmakers also said in regulatory filings Monday they were in talks with multiple companies about autonomous EVs, but that no decision has been made. Shares of Hyundai, which said discussions with partners were in early stages, fell as much as 8.4% in Seoul, while Kia slumped 14%.
Reports surrounding Apple’s possible foray into the global market for automobiles re-emerged this year after going dormant since development first began in 2015. Apple has sought to keep its plans for an EV shrouded in secrecy, given the project’s potential to upend the industry—similar to how its iPhones have shaken up the consumer-electronics market. There are now millions of design-conscious shoppers globally devoted to the tech giant.
“Talks with Apple ending isn’t going to dampen Hyundai’s strategy because the automaker already has set up plans on its EV business with the Ioniq brand,” said Lee Jae-il, an analyst at Eugene Investment & Securities Co. in Seoul. “There’s still possibility for Hyundai and Kia to cooperate with other automakers for its EV platform.”
Hyundai’s statement is almost identical to one it issued a month ago, after the company muddled its message around the highly anticipated Apple vehicle, first confirming local Korean media reports that it was in discussions with the tech behemoth, then revising its statement twice in a matter of hours. Hyundai finally said it had received requests for potential cooperation from a number of companies.