Hyundai Motor Says No Joint Car-building Plan with Apple

  • Kia Motors will provide assistance to Apple and implement Apple's car-building plan.
  • The investment made by the automaker in this particular facility will be used to manufacture engines for hybrid and plug-in hybrid cars.
  • Hyundai is presently running two different production lines for vehicle production - the North American International (NAIC) and the Korean Motor Company (KMCA).

In recent years, there have been many sources of news that have confirmed that Apple has started a car project internally, but it has not been fully implemented. Recently, there have been many rumors that Apple will cooperate with Hyundai’s Kia Motors.

The Hyundai Motor Company, is a South Korean multinational automotive manufacturer headquartered in Seoul.

Kia Motors will provide assistance to Apple and implement Apple’s car-building plan. This has also attracted widespread attention worldwide.

“Hyundai Motor is getting requests from multiple companies for cooperation in joint development of autonomous, electric vehicles but nothing has been decided since it’s in early stage,” the company said, according to a CNBC translation of a regulatory filing. “Hyundai Motor is not in talks with Apple on autonomous vehicle development,” it added.

However, this matter may only be a rumor. Hyundai officially refutes rumors and plans to cooperate with Apple. According to foreign authoritative media reports, Kia and Hyundai Motor officials have revealed that they have not discussed cooperation with Apple on electric vehicles.

It is understood that Apple and Hyundai did have some simple cooperation contacts some time ago, but the spokesperson of Hyundai Group said that the two sides are only in the early stage of negotiations and have not yet reached a consensus.

“Following the negative vibe from both (Hyundai Motor) and Kia’s filing this morning, highlighting that there is currently no EV cooperation with Apple, worst-case suggests that Kia’s shares could correct as much as 31%,” said Sung Yop Chung, regional head of automobiles and components at Daiwa Capital Markets.

At the same time, within Hyundai, there have been large differences in this cooperation plan with Apple. Some objections believe that this matter will cause Hyundai to evolve into a foundry company in the future, and its own brand will be weakened.

The Hyundai Motor America facility has built up an excellent workplace for car manufacturing and design engineers to come up with new ideas to improve efficiency, production, and quality. The lab also houses Hyundai Motor Group’s Technical Center, where engineers are trained to produce technologically advanced products.

The investment made by the automaker in this particular facility will be used to manufacture engines for hybrid and plug-in hybrid cars.

Chung told CNBC’s “Street Signs Asia” on Monday. “I think Apple was probably not happy because of that.”

“From Hyundai’s perspective and Kia’s perspective, I mean, there could’ve been a bit of a conflict of interest,” he said. “They don’t really want to just become a subcontractor of Apple, I think they were looking to sort of gain from Apple’s strong capabilities in software.”

“I wouldn’t say that this is the end of it, I would say it’s a temporary halt if you like for the negotiation between the two groups,” he said.

Hyundai Motor has established several strategic vision plans that focus on providing customers with a premium quality car at a fair price while maintaining profitability. Hyundai Motor America is committed to maintaining its brand name and developing new performance and environmental-friendly vehicles.

In line with these plans, Hyundai Motor America is developing styling solutions for its vehicles that are more dynamic, sporty, and stylish.

Hyundai is presently running two different production lines for vehicle production – the North American International (NAIC) and the Korean Motor Company (KMCA).

Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services.

The Korean automobile maker utilizes the NAIC facility for its Asian production. This company has also invested a substantial amount of money in the Korean Motor Company to acquire shares and other assets from it.

These acquisitions have helped Hyundai Motor Corporation to reduce its overhead costs and improve its working capital management.

Hyundai Motor has released many high-performance vehicles such as the Hyundai i20, Hyundai Ionic, Hyundai Accent, and now the Hyundai Grand Cherokee. Apart from these models, the automaker has several entry-level vehicles such as the Hyundai ION Skyline which have been designed keeping in view the young driver and passenger markets.

The goal of Hyundai is to increase the customer base and automotive sales in emerging markets such as China, India, and Brazil. Additionally, the company is focusing on the creation of super pocket cars which will provide consumers with a larger segment of choice.

Benedict Kasigara

I have been working as a freelance editor/writer since 2006. My specialist subject is film and television having worked for over 10 years from 2005 during which time I was the editor of the BFI Film and Television.

Leave a Reply