Photographer: Brent Lewin / Bloomberg
Photographer: Brent Lewin / Bloomberg
Apple Inc. had conversations with Hyundai Motor Co en According to people familiar with the situation, Kia Motors Corp. on the construction of an electric vehicle, although discussions have recently ceased.
Apple has also discussed similar plans with other automakers, the people said. They asked not to be identified who discussed private matters.
The secret project has shot up over the past few months. It has the potential to improve the automotive industry and its supply chain in the same way as Apple’s reinvention of the consumer device market.
Apple declined to comment. In January, Hyundai, which owns a controlling stake in Kia, returned from a statement saying it was in talks with Apple.
That announcement, and other reports of conversations have upset Apple, which has been keeping development projects secret for years and controlling relationships with suppliers with ruthless efficiency.
It is unclear whether – or when – talks between Apple and Hyundai could resume. There are only a handful of global automakers that have the ability and capability to manufacture vehicles, and it is unclear how many of them are interested in working with Apple.
There are other hookups as well. One of them is a dispute within the Hyundai group over who of its two brands, Hyundai or Kia, may manufacture a car for Apple, said one of the people familiar with the situation. If the conversation is finally resumed, Kia is considered more likely and wants to build an Apple car at its factory in Georgia, the person said.
An important question for the industry is how serious Apple is in tackling Tesla Inc., General Motors Co. and other manufacturers of electric vehicles, and whether he needs an established manufacturer to be able to roll out his own product.
The Cupertino, California-based company has a small team of engineers developing systems as well as designers, but with the development being at an early stage, the rollout is unlikely to happen in another five years. This suggests that Apple has more time to decide on potential partners in the automotive industry.
Read more: Apple’s self-driving electric car is at least half a decade away
– With help from Chester Dawson and Gabrielle Coppola