Hyundai and Apple would be negotiating a possible partnership, whereby the automaker would assist the Apple company to produce its first electric car, according to Reuters. Details about the conversation, confirmed by Hyundai itself, were not provided, but documents suggest that the deal would involve delivering projects to the Kya sub-brand. Automotive group executives, on the other hand, seem to be divided on the closing of the proposal.
“We are very concerned about what to do in this situation, whether it is good for us or not,” said one of them on Tuesday (26), during a meeting at which the results of the company were presented, which had its best quarterly profit. in more than three years. “We are not a company that produces cars for others. It’s not like working with Apple would always guarantee good results,” he added.
People involved in the discussion, according to Reuters, would have said that the design would be exclusively for the organization led by Tim Cook, while it would be up to the other to produce the models and sell them under his brand. It turns out that Hyundai is known for manufacturing engines, transmissions and even steel internally, in addition to being reluctant to work with strangers.
Even the surge in stocks after the rumors would not have convinced the entire internal audience that this is a good idea. “Apple heads. It does its marketing, its products, its brand. Hyundai too. It doesn’t really work,” said a source.
Pros and cons
Another impediment is that Hyundai’s entire production chain is centered in South Korea, and Apple would like to diversify the origin of various components and centralize them in the United States.
In addition, dedicating the responsibility to Kia would be a move not to characterize the automaker’s main brand as an outsourced company, like Foxconn, which would undermine its premium image construction plans.
“Cooperation may initially help raise the image of the Hyundai or Kia brand, but in the medium to long term, we will only supply car bodies, and Apple would take care of the brains,” commented another source.
The claim is contested by Park Chul-wan, a South Korean battery specialist and professor at Seojeong University, who says there are broad areas in which both could benefit, citing as examples the one electric car platform and autonomous vehicle designs. on the other, which would be shared.
“Hyundai would be more than just a Foxconn”, concludes the professional. Apple did not comment on the matter.