Cupertino’s interest in the electric car sector has been a constant rumored presence for a few years now. Earlier this month, Korean giant Hyundai actually released a tentative statement that it was in ongoing talks with Apple on the matter, to quickly scramble to change the information on multiple occasions. Nothing fancy, really, given Apple’s track record of extreme project and product secrecy.
However, one thing has become clear as a result of these events: The Hyundai Motor Co group at least has some insight into the matter. We can only assume that this prompted Reuters to dig deeper, which revealed a few fragmented statements from various anonymous Hyundai and industry insiders.
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We’ll go through most of it, but the main thing seems to be that Hyundai is definitely one, if not the main party that Apple is discussing its EV and autonomous vehicle plans. However, the executives of the traditionally independent and vertically integrated auto giant are divided over the decision to become a contract manufacturer for Cupertino.
We ask ourselves how to do it, whether it’s good or not… We are not a company that makes cars for others. It’s not like working with Apple will always produce great results.
According to industry insiders, discussions and the partnership between Apple and Hyundai began in 2018, with “Project Titan,” led by Alexander Hitzinger, who is not a Volkswagen executive. While this may seem like a slow progression and therefore a bad indicator for the future, it is not necessarily the case, as an automotive development cycle is much longer than the few months we are used to seeing for. RnD smartphones. Not to mention a smart, self-driving car and according to the sources, a car that Apple ultimately wants to source major components for, such as frames, bodies, powertrains and other parts from various places by simply relying on Hyundai or its Kia subsidiary for assembly. . Something that comes up against Hyundai’s current reluctance to work with outsiders, make engines, transmissions and even its own steel in-house.
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Another source also adds that Apple would ideally want assembly to take place in the United States, which makes sense on a number of levels, given current trade economic and tariff realities. Apparently, Hyundai Motor Group has even “tentatively decided” that if it passes the deal, it would want Kia to partner with Apple. Some of the justifications being:
The Group fears that the Hyundai brand will become Apple’s only contract manufacturer, which would not help Hyundai in its efforts to forge a more premium image with its Genesis brand.
In addition, Kia is making faster progress in electric cars and currently has production capacity available at its Gorgia plant in the United States. It sounds like a potential “win-win” situation for both parties involved. Moreover, experts also added that it would allow the pair cross-access to Hyundai’s electric car platform and the essential supplier for things like batteries, on the one hand, and the battery of autonomous vehicles and Apple’s software, on the other hand.
However, Hyundai’s concerns for the faith of its own company and brand remain and appear to be very strong. As a few other quotes from various sources illustrate:
Cooperation can initially help enhance the brand image of Hyundai or Kia. But in the medium to long term, we will only provide covers for cars, and Apple would be the brains.
It’s really difficult (for Hyundai) to open up… Apple is the boss. They do their marketing, they make their products, they make their mark. Hyundai is also the boss. It doesn’t really work …
Everyone is calling to know if this particular partnership will come to fruition, but it’s heartening to at least hear that progress is being made. Apple actually aims to launch its vehicle by 2024, according to a previous Reuters report. Perhaps a little ambitious, given the circumstances, but an exciting prospect no less.
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