SEOUL / SAN FRANCISCO (Reuters) – Hyundai Motor Co., South Korea, said on Friday it was early in an unspecified conversation with Apple after a local broadcaster said the couple were discussing an electric car and battery connection, which Hyundai- shares rose 24%.
“Apple and Hyundai are in talks, but they are at an early stage and nothing has been decided,” Hyundai said in a statement without saying what the talks were about.
Apple declined to comment.
In a regulatory submission later issued, the automaker said it was “receiving requests for cooperation on the joint development of autonomous electric vehicles from different companies”, without identifying any of them.
The remarks come after Hyundai shares rose following a report by Korea Economic Daily TV that the US technology giant and Hyundai were negotiating and expecting to develop batteries at US factories run by Hyundai or its subsidiary Kia Motors Corp. The broadcaster did not cite sources for its report.
Hyundai and Apple are already working together on CarPlay, Apple’s software to connect iPhones to vehicles from different car manufacturers.
In December, Reuters reported that Apple was moving forward with self-driving car technology and aimed to manufacture a passenger vehicle as early as 2024 that could include its own breakthrough battery technology.
“Apple outsourced car production to Hyundai because it (the Korean firm) is known for quality,” said Jeong Yun-woo, a former Hyundai designer.
“But I do not know if it’s a good strategy for automakers to be like Apple’s Foxconn, as automakers run the risk of losing control of technology companies,” he added, referring to the offer from the Taiwanese contract manufacturer with the iPhone manufacturer. .
Analysts say a Hyundai-Apple partnership will help Apple save costs on developing and manufacturing vehicles because it can use Hyundai’s electric car platform and facilities.
“Apple may consider Hyundai an ideal partner, because when it comes to US automakers, they all have a strong union, which Apple would like to avoid,” said Kevin Yoo, an analyst at eBEST Investment & Securities.
“In addition, their (legacy American car manufacturers) labor costs are much higher than those of Hyundai, which often plays a major role in car production.”
The shares in Hyundai Motor jumped to 23.8% and reached a high of more than seven years of 255 000 won, while the car parts manufacturer Hyundai Mobis Co Ltd jumped by almost 30%. Kia shares rose about 14%.
The broader KOSPI market rose by 2.8% from 0336 GMT.
Reporting by Heekyong Yang, Stephen Nellis and Hyunjoo Jin; Edited by Sayantani Ghosh and Kenneth Maxwell