BMW, Magna can partner with Apple On Cars

After Hyundai dropped the race to make an autonomous car for Apple, other candidates could include BMW and Magna, 9To5Mac reported on Tuesday (February 9).

Hyundai said last month that it was not sure if it wanted to sign the deal with Apple, and announced on Monday (February 8) that it would not do so. South Korea requires publicly traded companies to offer public updates when there is speculation about productive rumors that could affect share prices.

An agreement would only move the car business to a manufacturer with little interest in the decision making. The report takes note of Hyundai’s traditional reluctance to work with external collaborators, and has usually worked alone to manufacture engines and transmissions as the largest conglomerate in South Korea.

“Apple is the boss. They do their marketing, they do their products, they do their brand. Hyundai is also the boss. It does not really work, ”said a source according to the report.

The race is therefore open, but according to reports, there are reasons why larger companies may be wary of entering into an agreement – with companies likely to be in the situation of Pegatron and Foxconn, making iPhones for Apple but no major financial money does not get rewards for doing so. Other carmakers such as Volkswagen have expressed a desire not to allow Apple into their businesses.

According to Jürgen Pieper, an analyst at German bank Metzler, there are smaller companies that are more open-minded, including companies such as Honda, Nissan, Stellantis and BMW. Magna, which already makes cars for other carmakers, could also be a consideration.

Apple more than doubled its testing of its autonomous technology last year, Bloomberg reported. The company’s cars drove 18,605 miles in 2020, compared to 7,544 the previous year. According to Apple, there were also 130 disconnections, meaning a human driver had to take over for the autonomous vehicle.

Apple’s recent work on autonomous cars has recently competed with competitors such as Tesla and General Motors. But the technology giant will probably not have its own product on the way for several more years.