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Apple was secretive about its ambitions for electric vehicles.
Agence France-Presse / Getty Images
Apple’s search for a carmaker to join the technology giant continues to build autonomous vehicles, following reports that the talks have been dissolved with
Nissan.
Shares in the Japanese car giant traded up about 3% in Tokyo.
appeal
Shares were not traded in the US on Monday due to the Presidents’ Day holiday.
The back story. There has been speculation about Apple’s vehicle ambitions since 2015, when The Wall Street Journal reported that it was ready to tackle Tesla. The iPhone maker was very secretive about its plans for ‘Project Titan’, confirmed in 2016, which were developed to include self-driving, or autonomous, electric vehicles.
Analysts suspected the giant in Silicon Valley would partner with an existing automaker to break into the capital-intensive vehicle industry.
On February 8, Korean carmakers
Hyundai
and
Kia
said they are no longer in talks with Apple over an autonomous electric vehicle project, following speculation by press and analysts that an agreement is imminent. That news dropped Hyundai’s stake by more than 6% and Kia’s shares by 15%.
The next day, Nissan CEO Makoto Uchida was caught up in an earring call about whether Apple had been approached by Apple about the collaboration. Uchida avoids Apple directly, but suggests that Nissan may partner with technology companies to build the next generation of cars.
Also read:An Apple car could disrupt the car industry just as much as the iPhone Upended Tech. Here’s what to know.
What’s new. Nissan confirmed on Monday that it was not in talks with Apple, but said it was open to cooperation and partnerships to accelerate the vehicle industry.
The Financial Times reported earlier that there were talks between the two groups about a partnership, but that talks about possible brands came to a standstill. According to the report, the discussions did not reach the level of senior management.
A source close to Nissan told Agence France-Presse that “when you make a product under the Apple brand, you give your soul – and your profit margins – to Apple,” and that Nissan “is not interested in giving Apple the best to give what we offer. ”
Plus:Apple iCar is a terrible idea. Here’s why.
Look ahead. It makes sense for Apple to partner with a strong manufacturer to make its dreams about electric vehicles come true. With the shutdown of Nissan, following Hyundai and Kia, the list is getting narrower.
On February 7, just before Hyundai and Kia confirmed they were not involved with Apple, veteran technology analyst Daniel Ives of investment firm Wedbush said it was a matter of ‘when not if’ Apple enters the electric vehicle race not. Ives puts an 85% chance that the technology giant will announce a relevant partnership or collaboration within the next three to six months.
Ives singled out Hyundai as the most likely choice, with
Volkswagen Group
—What also Audi and
Porsche
– as the next best bet. With Hyundai out, investors need to keep an eye on the German giant. The analyst also has Tesla and
Ford
as possible candidates.
Barron’s contacted Apple and Nissan for comment.