Hyundai Motor Group and Apple, are the negotiations completely over?

Input 2021.02.08 14:18

Hyundai Motor (005380), Kia(Kia Motors (000270)), Hyundai Mobis (012330)The Hyundai Motor Group announced on the 8th that “We are not discussing the development of self-driving vehicles with Apple.” It is to be seen whether the negotiations between the two companies are completely broken or whether they are a last minute fight. In addition, it is revealed that Hyundai Motor Group is not conducting discussions on the development of’autonomous vehicles’, and some observations are made that the possibility of consultations in other fields such as electric vehicles is open. In the field of future cars, cooperation between automobile companies and IT companies is important.

As for the cooperation between Hyundai Motor Company and Apple, specific prospects have been poured out, such as’Kia and Apple will sign a formal contract worth 4 trillion won this month’ and’Plan to produce Apple cars at the Kia plant in Georgia, USA’.

Earlier, Hyundai Motor Company indirectly admitted that cooperation discussions with Apple were in progress. On the 9th of last month, when a report on the Apple car cooperation came out, Hyundai Motor Company said, “We are receiving requests for cooperation in joint development related to self-driving electric vehicles from a number of companies, but this has not been decided at an early stage.” It wasn’t explicitly referring to Apple, but it didn’t actively deny it. On the 20th of last month, Kia said, “We are considering cooperation with a number of foreign companies in relation to the autonomous electric vehicle business.”

Until the beginning of this month, domestic and foreign reports related to the cooperation between the two companies were pouring out. It was said that Kia will take over the production of the apple car and produce it at the Georgia plant in the US, and that it will sign a formal contract worth 4 trillion won for the production of the apple car this month. “Hyundai Motor and Apple are in the final stages of an agreement for an Apple car collaboration” (CNBC, USA), “Kia is discussing with potential investors to take charge of the assembly and production of the Apple car. It will start producing Apple cars as early as 2024” ( There was also a foreign media report called WSJ).

In the industry, various interpretations have been made regarding Hyundai Motor’s sudden denial of negotiations with Apple. The most influential reason is Apple’s’mysticism’. Strategic alliances between global companies must be conducted secretly under water until negotiations are completed, but Apple is extremely reluctant to know who it is working with. In this situation, when Hyundai Motor Company indirectly admitted to the Apple car collaboration, it is an interpretation that Apple was burdened.

In fact, on the 5th (local time), Bloomberg said, “Hyundai Motor and Apple have recently temporarily suspended consultations on Apple car production. The fact that Hyundai Motor Company and Kia indirectly admitted this to the Korean media is that Apple’s It made planting uncomfortable,” he said. Apple has kept its Apple car development projects a secret for years, and in the process, it has over-controlled its relationship with suppliers. CNBC also said, “As Hyundai has learned this time, doing business with Apple means you shouldn’t tell anyone.”

It is reported that Apple is discussing Apple car production with other global companies besides Hyundai Motor Company and Kia. Until this day, there are at least 10 companies known to be discussing cooperation with Apple, including Hyundai and Kia. According to the Nihon Keizai Shimbun (Nikkei) on the 5th, at least six companies, including Honda, Mazda, Nissan, and Mitsubishi, are discussing cooperation in Japan. According to Guo Ming-chi, a researcher at Taiwan TF International, PSA Group, which owns General Motors (GM) of the United States and Peugeot-Citroin, is also discussing cooperation with Apple.

It is interpreted that the reason why Apple is considering cooperation with Japanese car brands is due to its various car classes and excellent quality. Hyundai and Kia are focusing on some popular car classes such as semi-mid-sized sedans and sports utility cars (SUVs), while Japanese cars have a wide lineup of small cars, light cars, minivans, and trucks.

An industry insider said, “Japanese companies have excellent monozukuri (craftsmanship) spirit, so the quality of finished cars is high, and even after-sales service (AS) is getting a good evaluation.” There is a possibility to think about cooperation with them.”

However, none of these companies admitted to contacting Apple. Honda and Mazda “can’t say”, Mitsubishi told Nikkei “it’s not true,” Nissan didn’t respond. According to Nikkei reports, one parts maker executive said, “I have never heard of Apple car production from Toyota or Honda.”

In the industry, there is a possibility that the negotiations between Hyundai Motor Company, Kia and Apple will proceed again. Tesla is currently leading the self-driving and electric vehicle market that Apple intends to enter through cooperation with Hyundai Motor Company. In particular, among the existing traditional automakers, GM, Volkswagen, and Hyundai and Kia are three that are aggressively preparing for self-driving and electric vehicles. Apple doesn’t have many options.

The Hyundai Motor Group not only has its own platform for electric vehicles, E-GMP, but also has a production facility in the US. It is equipped with both the capability and requirements to actually produce a car in 2024, when Apple plans to launch an Apple car.

An industry insider said, “From the standpoint of Apple, which is developing self-driving cars, GM and Ford are already leading in autonomous driving in the US, so it is difficult to partner with them.” They will be looking at foreign companies as an alternative.”