[조재환의 카테크] Why’Apple’ is missing from the position of Hyundai’s Apple car

Hyundai Motor Group office building in Yangjae-dong, Seoul
Hyundai Motor Group office building in Yangjae-dong, Seoul

Expectations for collaboration between Hyundai Motor Company and Apple are high. In an economic media TV report, an in-depth analysis was conducted under the title that Hyundai Motor Company acknowledged the collaboration with Apple.

However, if you look at the contents of Hyundai Motor’s’clarification on rumors or reports’ published on the 8th in the Financial Supervisory Service’s Electronic Disclosure System (DART), content that is interpreted differently from market expectations comes out.

Park Hae-sung, head of the Hyundai Motors Finance Management Department, posted an explanation of the report that Hyundai Motor and Apple jointly developed an autonomous electric vehicle (Apple Car) and that the vehicle will be released in 2027.

According to the explanation, he said, “We are receiving requests for cooperation in joint development related to self-driving electric vehicles from a number of companies. It has not been decided as an initial stage.”

There was no’Apple’ in the subject of the post Park posted. It has received proposals from numerous companies including Apple, but it is interpreted as meaning that the contents of Apple’s proposal have not yet emerged as an important agenda at this time.

Hyundai Motor Company’s recently uploaded report on Apple Car cooperation clarification (Photo = DART capture)

Automotive industry raises concerns about Apple cars since 2015

The reason why Hyundai Motor Company does not view cooperation with Apple as such an important agenda is interpreted as partially reflecting the car industry’s concern about Apple cars.

The public’s expectations for Apple cars began in 2015. At that time, various foreign media such as Bloomberg also released reports reflecting the expectation that the Apple car could be released in 2019.

However, the automotive industry was concerned about Apple cars. It can be interpreted for the purpose of preventing self-damage caused by Apple’s occupation of the automobile market.

Former GM CEO Dan Ackerson told Bloomberg in 2015 that he thought Apple should focus on the infotainment business instead of making cars.

He said, “If I were a shareholder of Apple, I would not be pleased with the news of Apple’s automobile manufacturing business,” he said. “I will have doubts about the move to jump into the low-margin heavy industry.”

“The automobile business is much more difficult than the average person thinks because there are many things that must be observed, such as regulations and safety requirements.”

Apple Carplay connected to Genesis GV80. Apple has worked hard to develop infotainment such as CarPlay, but there are predictions that it can develop cars directly. (Photo = GDNET Korea)

There was also a market prediction that Apple would make Apple cars with German automakers such as Daimler and BMW at one time. In fact, both companies are known to have given positive reviews to Apple’s proposal.

However, there was great disagreement between Apple and the German automaker.

According to the German economic daily Handelsblatt, Apple wanted a vehicle that fused with the iCloud service, but Daimler and BMW wanted to build a vehicle based on their own customer forecast data.

There was also a disagreement between the three companies in the negotiations on’who will lead the project’. It is analyzed that if BMW and Daimler are commissioned to produce cars from Apple, they can become subcontractors of Apple.

As the automotive industry’s opinion on Apple has already led to a negative trend from 2015 to the present, Hyundai Motor Company must be cautious about promoting cooperation with Apple. No matter how much Hyundai Motor Group operates an electric vehicle platform and a factory line in the US, there is also a prospect that it will not be able to embark on an Apple car project that has little substance yet.

Apple still has no eye-catching automotive technology

One more thing to watch is Hyundai Motor’s additional position.

Hyundai Motor Company announced its policy to reorganize its position within one month through a public announcement. It is a position that it will release an additional position on collaboration with Apple by the 8th of next month at the latest.

Hyundai Motor Company has already joined hands with Aptiv, an autonomous driving company in the US, and Boston Dynamics, a robotics company. It has already secured robotic technologies based on autonomous vehicles and autonomous driving sensors.

The background of Hyundai Motor Company’s cooperation with these companies is related to the achievements Aptiv and Boston Dynamics have made so far. Aptiv attracted foreign attention by introducing a BMW-based autonomous vehicle with a reduced sensor size, and Boston Dynamics has already proven its technology through the release of two-legged and four-legged walking robots.

Opening the door of a BMW vehicle with a digital key mounted on an Apple iPhone (Photo = BMW)

As of yet, Apple’s major auto-related achievements are not clear. The automotive infotainment system CarPlay and the iPhone-based digital key in collaboration with BMW are all achievements in the automotive field. Already, Hyundai Motor Company has developed an infotainment system in cooperation with various IT companies in the domestic and overseas markets, and expanded the distribution of digital key technology based on Android phones. If Apple possesses automotive electronic technology that Hyundai Motors cannot do or secures autonomous driving sensor technology, it is expected to capture Hyundai’s heart.

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In a domestic economic media report, Hyundai Motor Company announced that the launch date of the Apple car, which will be made in partnership with Apple, will be in 2027. However, this is not yet accurate. Even the part that Apple and Hyundai Motor Company are cooperating with each other to release a new electric vehicle battery technology has not been confirmed at this time.

Hyundai Motor Company and Apple have not made any statements regarding the launch of the vehicle. It is pointed out that the timeline for vehicle launch should be approached carefully, as it may vary depending on market conditions.





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