Kia Motors Corp jumped to 14.5% after a local media reported Apple Inc. will invest 4 billion won ($ 3.6 billion) as part of a collaboration with the South Korean automaker on the manufacture of electric vehicles.
The iPhone maker plans to set up production with Kia and build Apple cars at the carmaker in Georgia, USA, DongA Ilbo reported, without naming anyone. According to the newspaper, the companies could sign an agreement on February 17 and aim to launch Apple cars in 2024. They said they have an initial goal of producing 100,000 cars a year.
A representative of the car manufacturer in Seoul and an Apple representative in California declined to comment.
Reports from Apple that it is considering expanding to vehicles have led to speculation about potential manufacturing partners. The technology giant’s automotive development work is still at an early stage, and the company will at least take half a decade to launch an autonomous EV, people with knowledge of the efforts told Bloomberg News. This indicates that the company is not in a hurry with partnership decisions.
Last month, Hyundai Motor Co., a subsidiary of Kia, has backed down from a statement that it is in talks with Apple, to review it to say that it was only contacted by potential partners for the development of autonomous EVs. The news increased the stake in Hyundai by almost 20% on the day. Kia shares are now at their highest since 1997.
An Apple Electric Car Would Compete Against Cars Tesla Inc. and companies like the start of Lucid Motors and China’s Nio Inc., as well as established manufacturers such as Daimler AG and Volkswagen AG. Setting up a car plant can cost billions of dollars and take years, probably why Apple is talking to potential partners.
Other technology companies looking to expand into automobiles have also sought partnerships. Taiwanese iPhone compiler Foxconn Technology Group said last month that it was setting up a business with the Chinese carmaker Zhejiang Geely Holding Group Co. provides manufacturing and consulting services to global automotive companies.
– With help by Mark Gurman
(Updates with Kia’s answer in third paragraph.)