Although nothing has been finalized, several media outlets reported on Friday that Hyundai has confirmed that it is talking to Apple. The news was initially reported by Korea Economic Daily TV, although Reuters, Bloomberg and others have since reported that Hyundai says it is in some sort of discussion with appeal (AAPL) tied over a car.
CNN Business could not confirm the nature of the discussions. Hyundai only said in a statement that “we have received proposals for cooperation from different companies, but no decision has been made yet.”
Apple declined to comment.
However, shares in the carmaker increase as investors consider the possibility Hyundai (HYMTF) could be a partner in Apple’s long-running car project. According to data provider Refinitiv, the share last increased more than 20% in Seoul, increasing the pace for its best day in at least twenty years.
Both companies have reason to consider a partnership. The conversation about Apple’s interest in electric, self-driving cars has been going on for years, though it has heated up recently. A Reuters report last month, citing unnamed sources, said Apple plans to build a passenger vehicle by 2024. A Bloomberg report, citing unnamed sources, said Apple had begun early development work on an electric vehicle, but any product resulting from it. would be away for at least five years.
Hyundai, meanwhile, has promised the highest dollar to take part in the race to build such vehicles. The company said in October last year that it plans to invest $ 41 billion ($ 37 billion) in ‘future mobility technology’ by 2025 – a commitment that puts it on the same level as major players such as Volkswagen.
In December, Hyundai introduced engineering for a range of new electric cars. According to Hyundai, this basic vehicle structure, called E-GMP, will provide more than 300 km of driving and can be charged up to 80% of its full power within 18 minutes. The company said it could be used as the base for sedans and SUVs.
“We believe Apple is in the early stages of discussions and are looking at a handful of strategic partnerships and collaborations worldwide with existing automakers on the [electric vehicle] before, with Hyundai on the radar, “Wedbush analyst Dan Ives wrote in a research note published shortly after reports of the Hyundai discussions first broke.
He added that self-driving cars are likely to be quite far for Apple, given safety and regulatory issues. But he said electric cars could finally be a trillion-dollar opportunity in the next decade.
“It’s a smart strategic move for Apple to dive into the deep end of the pool in this new era of [electric] vehicles, ”Ives said.
– Peter Valdes-Dapena and Yoonjung Seo reported.
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