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Hyundai confirms end of talks with Apple about Apple Car

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She said South Korea’s Hyundai Motor Company on Monday: It is not currently in talks with Apple about self-driving electric cars Apple Car, just one month after it confirmed early stage talks with the tech giant.

The confirmation caused Hyundai to lose about $ 2.4 billion of its market value, while the losses of its subsidiary Kia Motor Company, which was reported as a potential operating partner of Apple, amounted to about $ 4.7 billion.

The announcement brings down weeks of internal divisions at Hyundai Motor Group over the potential relationship, with some executives raising concerns about becoming a contract maker for the US tech giant, in a partnership reminiscent of Foxconn’s role in making Apple devices.

The automakers said today, Monday, in compliance with stock market rules that require regular updates to investors regarding market rumors: We receive requests for cooperation in the joint development of autonomous electric vehicles from different companies, but they are in their early stages and nothing has been decided, and we are not in talks with Apple about Self-driving vehicle development.

Kia shares have jumped 61 percent since Hyundai initially confirmed a local media report in early January that Apple and Hyundai were in discussions to develop an electric self-driving car Apple Car by 2027 and to develop batteries in US factories run by Hyundai or Kia.

Media reported last week that the deal was nearing completion, and a South Korean report said the two companies were close to signing the deal on February 17th.

Hyundai has traditionally been known for its reluctance to work with outsiders, as it manufactures engines, transmissions and even its own steel in-house in the vertically integrated supply chain as the second largest conglomerate in South Korea.

Although shares in Kia and Hyundai rose after news of the talks, there was significant domestic opposition to the contract maker becoming Apple.

Apple and Hyundai first began talks about a car partnership in 2018, but progress has been hampered by the South Korean carmaker’s reticence to work with strangers.

Reuters reported in December that Apple is pressing ahead with self-driving car technology and aims to produce a vehicle that could incorporate its own battery technology as early as 2024.

Analysts said: The talks may have collapsed due to leaks of the partnership plan to the media, or because of potential insistence from Apple that Hyundai’s role in any partnership would be the role of a manufacturer, not a strategic partner.

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