Hyundai Motor Company exceeds GM market cap in cooperation discussions with Apple… WSJ “Collaboration with Apple 毒”

Enter 2021.01.12 11:55 | Revision 2021.01.12 13:52

Global IT Dinosaur Apple is in the process of producing self-driving electric vehicles Hyundai Motor (005380)As the news that Hyundai Motor Company requested cooperation was delivered, the stock price of Hyundai Motors soared, and the market capitalization surpassed General Motors (GM) of the United States. However, an analysis was raised that the production of Apple cars could be poisonous to automakers. It is said that the profitability of consignment production is low, and it only increases the value of the brand that must compete. For this reason, it is pointed out that the stock price of Hyundai Motors is also excessively rising.

According to industry sources, Apple recently proposed to the Hyundai Motor Group to discuss ways to collaborate on Apple car development and production. Hyundai Motor Company announced on the 8th that “a number of companies are requesting cooperation for joint development of self-driving electric vehicles, but it has not been specifically decided at the initial stage of the discussion.”

According to Factset, a financial information company, Hyundai Motor’s corporate value as of the 11th was 63.9 billion dollars (about 70 trillion won), followed by Tesla (83.41 billion dollars), Toyota (2138 billion dollars), Volkswagen (892 billion dollars), and Daimler (75 billion dollars). Above. With the recent surge in stock prices, it beat GM ($61.6 billion).

The Wall Street Journal (WSJ) said on the 11th (local time), “Hyundai Motor could probably become a production partner similar to the role that Foxconn in Taiwan plays in the iPhone.” “It seems like overheating that the total has increased by nearly $15 billion.” Aside from the risk of not reaching final negotiations or the project’s low profitability, cooperation with Apple is unlikely to be seen as a very good thing.

For example, Canadian auto parts maker Magna International is making Jaguar’s electric vehicle SUV, I-Pace, in a manufacturing, development and manufacturing (ODM) method, and the operating margin of the business is 1.1% in 2018 and 2.1% in 2019. Compared to business, the profitability is very low.

WSJ analyzed that if Hyundai Motor Company cooperates with Apple, it can lower enormous electric vehicle development costs and increase sales in the electric vehicle sector. However, there are two risks to this. First of all, Hyundai Motor will play a role in raising the value of a new electric car brand called Apple by producing Apple’s electric cars. On the other hand, the margins for producing Apple cars can be very small.

WSJ paid attention to the fact that Foxconn announced its electric vehicle platform in October last year, citing a situation where the margins obtained by Foxconn, which commissioned Apple’s iPhone, are very low. WSJ analyzed, “It is unclear how aggressive Foxconn will be in the automotive assembly business, but it means that competition will be fiercer and margins will decrease as many global companies enter the EV ODM market.”

At the same time, WSJ added, “When an automobile company goes into the electric vehicle ODM business, it is like running to a dead end even with a strong brand like Apple.”

In addition, WSJ said, “Much of the recent pouring of enormous amounts of money on electric vehicles by the automotive industry is due to Tesla’s stock price surge.”