Hyundai, Apple
I was deeply worried about how Hyundai would write a reply to a letter from Apple in the United States. According to the automobile and financial investment industry on the 10th, Apple and Hyundai Motor Company exchanged opinions that by 2024, they will produce 300,000 self-driving electric vehicles at factories in the United States. Regarding the’Apple Car’ collaboration, Hyundai Motor Company’s official position is that “nothing has been decided in an early stage”, but it is known that insiders are busy calculating profits and losses.
Distribution of calculation to the proposal of “300,000 units collaboration”
Hyundai Motor Company “In the early days, nothing has been decided”
Industry “It is advantageous to join hands with the ODM method”
In the auto industry, it is analyzed that if Hyundai Motors joins forces with Apple, the dedicated platform will be fully operational and economies of scale can be realized in electric vehicle production in an early time. Just as Samsung, a latecomer in the smartphone market, jumped to the Galaxy, Hyundai Motor Company can join hands with Apple to grow into the’second Galaxy’ brand in the electric car market. However, there are also concerns that even if Hyundai Motor Company collaborates with Apple, if it is limited to a production base like Foxconn, a consignment maker of smartphones in Taiwan, it could become a subcontractor with a margin of 1-2%.
Among the auto industry and experts, the view that Hyundai Motors’ cooperation with Apple is advantageous. Ko Tae-bong, head of the Research Center for Hi Investment & Securities, said, “There is no reason not to avoid reducing potential competitors because anyone will (cooperate with Apple) even if it is not Hyundai.” The key is the content of cooperation. Experts point out that Hyundai Motor doesn’t have to assume a low tax. This is because if Apple is looking for a partner with quality and mass production capabilities, such as a platform for exclusive use of electric vehicles, it will be difficult to find the right person only for Hyundai. Cha Doo-won, director of the Cha Doo-won Mobility Research Institute, analyzed, “Apple seems to be promising in the way that the manufacturer design production (ODM) method in cooperation and production with a company that has a production platform, like the iPhone production method, is promising.”
If Apple launches an electric vehicle, the first market is likely to be the domestic market. Hyundai and Kia Motors have car factories with production capacity of 370,000 units and 340,000 units, respectively, in Alabama and Georgia, USA. In both places, lines for electric vehicles can be expanded. Even if a new factory is built, it can quickly respond to the US electric vehicle market using the existing supply chain. There were also rumors of cooperation between Apple and Chinese electric car makers, but the possibility is small. “It will be difficult for Apple to join hands with China in a situation where the US-China trade conflict continues.”
However, among the forms of cooperation with Apple, there are many concerns that if Hyundai Motor’s role is solidified to ODM, Apple’s interference will be inevitable. Also, if Apple is given the initiative, it could be contrary to Hyundai Motor’s strategy to expand the territory of electric vehicles through Apple’s advanced technology, design and quality control. Lee Hang-gu, a senior research fellow at the Korea Automobile Research Institute, said, “It is not a simple production base, but a win-win situation through a horizontal relationship. I said.
It is known that current opinions are divided even inside Hyundai Motor Company. An industry insider said, “The discussion between the two companies is at the level of tapping (demand survey). Even if it does, we look conservative about the impact.” Meanwhile, after the establishment of the Hyundai-Apple alliance, Dan Yves, an analyst at Weedbush Security, an US investment company, said, “There is a 35-40% chance that Apple will launch its own car. The first step will be to select a partner.” Analyzed.
Reporter Kim Young-joo [email protected]