South Korea's Hyundai Motor said on Monday that it is not currently in talks with Apple about the electric, self-driving cars known as the Apple Car, just one month after it confirmed early stage talks with the tech company. Giant.
A Reuters report stated that 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 unveils 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.
Today, Monday, the automakers said, 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 various companies, but they are in their early stages and nothing has been decided, and we are not in talks with Apple." On the development of self-driving vehicles. "
Kia’s shares have jumped 61% 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 for Apple by 2027 and to develop batteries in US factories run by Hyundai or Kia. .
Last week, the media reported that the deal was nearing completion. A South Korean report said, "The two companies were about to sign 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.
Despite shares in Kia and Hyundai surging after news of the talks, major domestic opposition has emerged, fearing it could become a maker of Apple contracts.
Apple and Hyundai first started talks about a car partnership in 2018, but progress was hampered by the South Korean carmaker's reservation to work with strangers (Reuters)
Apple and Hyundai first began talks about a car partnership in 2018, but progress has been hampered by the South Korean carmaker's reservations to work with strangers.
Reuters reported in December that Apple is pushing 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 that of a manufacturer, not a strategic partner.