Following several reports that Apple is working with Hyundai and Kia on an electric vehicle (EV), rumours now indicate that negotiations between the companies have halted.
According to Bloomberg, Apple is “upset” Hyundai mentioned the potential deal during the automotive giant’s recent earnings call. This makes sense, given that Apple hasn’t ever publicly discussed its ambitions to enter the automotive industry and is notoriously secretive about its products. Hyundai holds a controlling stake in Kia.
While Hyundai backtracked and released a statement denying that it’s in discussions to become the parts supplier and manufacturer of a self-driving Apple EV, it seems that wasn’t enough for the Cupertino, California-based tech giant.
Negotiations regarding the partnership between Apple and Hyundai have reportedly “paused,” and it’s unclear if or when they might resume. The report goes on to say that Apple is “discussing similar” plans with other companies. A report from earlier this week sourced from South Korean newspaper DongA Ilbo indicated that the deal was worth $3.6 billion (roughly $4.6 billion CAD).
Reuters has also reported that Hyundai executives were “divided” over a potential partnership with Apple given that it’s “not a company which manufactures cars for others.”
The report also mentions that a point of contention regarding the partnership is whether Hyundai or Kia would manufacture the Apple Car. If Kia becomes the manufacturer, it will likely be built at the tech giant’s Georgia factory.
The Apple Car’s development is reportedly still in the early stages, and the vehicle’s rollout likely won’t happen for “another five years,” reports Bloomberg.
Source: Bloomberg
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