• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • Toyota is No. 3 — Third Automaker to Pass EV Tax Credit Threshold
  • Ford Gains Ground on Strong June Sales, Up 31.5% YOY
  • Q&A: Cadillac Lyriq Exterior Design Manager Josh Thurber
  • After 18% Sales Slide, Tesla No Longer World’s Best-Selling EV Brand
  • Get Updated on Cars, EVs and More with the Headlight News Podcast
  • Founder of Spartan Diesel Technologies Faces a Year in Jail for Selling Diesel Defeat Devices
  • What Costs More: New Car or Rent? The $1K a Month Car Payment Hit’s New Highs
  • The Rearview Mirror: The End of the Road for Route 66
  • Here We Go Again: Automakers Report June Sales Decline
  • Recession or Not, U.S. Car Market is in For a Big Boom
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2022 Lexus NX 350h
    • A Week With: 2022 Jeep Grand Cherokee 4xe Overland
    • A Week With: 2022 Volkswagen Tiguan SE R-Line Black
    • First Drive: 2023 Cadillac Lyriq
    • First Drive: 2022 Ford Bronco Everglades Edition
    • A Week With: 2022 Mazda3 2.5 S AWD Hatchback
    • First Drive: 2023 Honda HR-V
    • First Drive: 2022 Ford Bronco Raptor
    • A Week With: 2022 GMC Terrain AT4 AWD
    • A Week With: 2022 Cadillac Escalade Sport
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automakers > Apple Car Deal Could Mean Massive Investment in Hyundai’s Kia Subsidiary

        Apple Car Deal Could Mean Massive Investment in Hyundai’s Kia Subsidiary

        Korean analyst suggests tech giant also talking with other automakers.

        Paul A. Eisenstein
        Paul A. Eisenstein , Publisher & Editor-in-Chief
        Feb. 03, 2021
        Apple iCar rendering
        Rumors — and renderings like the one above — of an Apple Car have been around for at least a decade.

        Apple could invest as much as $3.6 billion, or 4 trillion South Korean won, in Kia Motors as part of a deal to get its long-rumored Apple Car into production.

        The report came from Korean news outlet DongA Ilbo which quoted Ming-Chi Kuo, an analyst at TF International Securities. Kuo expects Apple’s new battery-electric vehicle will make use of a platform developed by Kia parent Hyundai Motor Group, and it will be assembled at the Kia Motors Manufacturing plant in West Point, Georgia.

        The Apple-Kia deal, said Kuo, could be inked by Feb. 17. But it may not be monogamous, according to the analyst who, in a new report, suggested Apple could add alliances with several other automakers, including General Motors and Stellantis, the latter recently formed by the merger of Fiat Chrysler Automobiles and France’s PSA Group.

        Apple could seek multiple auto partners

        “Apple’s deep collaboration with current automakers … who have extensive development, production and qualification experience will significantly shorten the ‌Apple Car‌ development time and create a time-to-market advantage,” wrote Kuo.

        Apple CEO Tim Cook
        Apple Tim Cook had called self-driving vehicles “the mother of all AI projects,” however, it may be what the company is best at in the automotive space.

        For the record, Hyundai acknowledged the discussions, adding “Nothing has been decided.” A well-placed insider at the Hyundai Motor Group (HMG) confirmed to TheDetroitBureau.com that the talks are, in fact, moving along rapidly.

        Separately, Carlos Tavares, the new CEO of Stellantis, said during a Jan. 19 news conference that “Working with Apple or any tech company is something we are open to.” The PSA side of the company already has limited relations with Apple.

        Initially, Apple appeared set to go into the car business entirely on its own several years ago, but it terminated a large portion of the staff assigned to Project Titan, its electric vehicle program. It was left unclear whether the effort was entirely abandoned or rolled back. The latest expectations are that the tech giant wants to avoid the incredibly difficult task of setting up its own manufacturing network to focus, instead, on what it does best.

        “We believe that Apple will leverage current automakers’ resources and focus on self-driving hardware and software, semiconductors, battery-related technologies, form factor and internal space designs, innovative user experience, and the integration with Apple’s existing ecosystem,” wrote Kuo.

        Apple’s long-term production targets could be substantial

        Kuo and other observers believe the talks would see Kia produce an initial 100,000 vehicles annually for Apple starting in 2024, with a potential for boosting that to 400,000 later. Whether the West Point plant could handle that, at least by expanding its manufacturing footprint, however, is unclear.

        Exactly what sort of vehicle – or vehicles – Apple would build remains a closely held secret. While early

        Kia West Point, Georgia plant
        The Kia plant in West Point, Georgia could be the assembly site for the rumored Apple Car.

        plans were thought to focus on an all-electric sedan, the realities of today’s market would likely lead it to focus on some sort of utility or multi-purpose vehicle.

        Apple’s high-tech focus could offer some insight, said Sam Abuelsamid, principal auto analyst with tech research firm Guidehouse. He believes they well may “aim for robotaxis, which I think is the more likely scenario” than producing vehicles to be sold to retail customers. That could put it in competition with Waymo, the spinoff of Apple archrival Google.

        According to Asian market analyst Kuo, the premium version of the vehicle under development would be able to get as much as 300 miles per charge and add another 60 miles after plugging in for five minutes. It would be capable of launching in 3.5 seconds from 0 to 60, taking advantage of the instant torque of electric motors, with a top speed of 160 mph. But less expensive vehicles delivering less range and performance would also be offered – in line with what EV competitors such as Tesla and Ford are doing.

        Analyst sees better alignment between Apple and Canadian contract manufacturer Magna

        Teaming up with an established manufacturer makes sense, said Stephanie Brinley, principal auto analyst with IHS Markit, at least for Apple, but, for the Hyundai Motor Group, she added, “There are benefits – and risks – to being a contract manufacturer for Apple.”

        On the positive side, such a deal would improve the South Korean carmaker’s economies of scale. But it could cause

        Apple iCar interior sketch
        A sketch of a possible Apple Car interior leaked out several years ago.

        challenges when it comes to branding, among other things.

        Brinley also questioned whether Apple might not be better served by talking to a company like Magna. The Canadian mega-supplier already has a significant business going as a contract assembler for brands as diverse as Jeep and Mercedes-Benz.

        Magna recently announced that it will provide the underlying platform for EV startup Fisker, and build its Ocean SUV out of the Magna-Steyr plant in plant in Graz, Austria. Magna said it is looking for other similar deals and would be willing to erect a new assembly plant in North America if needs dictated.

        In China, meanwhile, a similar strategy has been laid out by Foxconn. And that tech company already has a solid relationship with Apple producing its iPhones and other products.

        The latest reports on an Apple-Kia deal have had little apparent impact on the tech firm’s stock price, but Hyundai shares have surged from around $50 at the beginning of the month to a high of as much as $57.

        Recently Published
        2023 Toyota bZ4X XLE FWD driving

        Toyota is No. 3 — Third Automaker to Pass EV Tax Credit Threshold

        Yesterday
        2022 Ford F-150 Tremor - front 3-4

        Ford Gains Ground on Strong June Sales, Up 31.5% YOY

        Yesterday

        Q&A: Cadillac Lyriq Exterior Design Manager Josh Thurber

        Yesterday

        One response to “Apple Car Deal Could Mean Massive Investment in Hyundai’s Kia Subsidiary”

        1. Jim says:
          February 3, 2021 at 3:28 pm

          Will it refuse to drive you to a Trump rally?

          Reply

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2022
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: