Well-known TF Securities analyst Ming-Chi Kuo informed ‘Apple Car’ on Monday that Apple would work closely with Hyundai on an initial model that could lead to new vehicles being built in collaboration with General Motors and European manufacturer PSA word.
In a note to investors, Kuo confirms recent reports of a potential partnership with Hyundai and says the first “Apple Car” will be built on the E-GMP platform for electric vehicles. Hyundai Mobis takes the lead in the design and production of components, while Hyundai subsidiary Kia will handle production in the US
E-GMP was unveiled in December and is a dedicated platform for electric vehicle batteries (BEV) consisting of up to two motors, five-link rear suspension, integrated drive shaft, battery cells, charging system and other chassis components. According to the company, the system has reached a maximum of about 310 miles on a full charge and should be charged to 80% within 18 minutes. Acceleration for a ‘high performance’ configuration is quoted at 0-60 mph in less than 3.5 seconds, with a speed limit of 160 mph.
Hyundai plans to use E-GMP as the basis for a range of models that will launch under its flagship and Kia brands this year.
Like rumors in the past, Kuo believes Apple will expand manufacturing and assembly of parts to established automakers. EVs contain about 40 to 50 times more parts than a smartphone, says the analyst, suggesting that Apple will have to rely on existing carmaker resources if it hopes to create a functional car in time. The technology giant will not be able to build its own supply chain for cars – as it has done with devices such as the iPhone, iPad and Apple Watch – without incurring significant delays.
“Apple’s deep collaboration with current automakers (Hyundai Group, GM and PSA), which has extensive development, production and qualification experience, will significantly shorten Apple Car’s development time and create a time advantage,” Kuo writes. “We believe Apple will leverage current automakers’ resources and focus on self-driving hardware and software, semiconductors, battery-related technologies, form factors and internal space design, innovative user experience and integration with Apple’s existing ecosystem.”
Given a longer lead time for development, higher authentication requirements, more complex supply chain and ‘very different’ sales and after-sales service, Kuo does not expect a so-called ‘Apple Car’ to arrive in early 2025. The date is still seen as aggressive for a tech company embarking on a new industry for the first time.
Apple is likely to market the vehicle as a ‘very expensive’ model, or ‘significantly higher’ than a standard electric vehicle.
If the first “Apple Car” proves successful, Apple could sue local partners in GM and PSA, the latter of which manufactures cars under a variety of brands, including Peugeot, Citron and Opel.
Kuo is pouring cold water on the rumble that longtime manufacturing partner Hon Hai, who is entering the EV battle with its MIH platform, will secure the order of ‘Apple Car’ events or casings. Pan-International, Eson, Long Time Tech and G-Tech are also unlikely to enter the supply chain, the analyst said.
Kuo’s predictions come amid a spate of ‘Apple Car’ gossip. In early January, Hyundai confirmed reports – but then stepped back – that it was in negotiations to manufacture Apple’s long-rumored car project. Recently, drivers at the South Korean carmaker claimed in a report last week whether a collaboration with the world’s largest technology company would be good for business.
“It’s not like working with Apple will always yield good results,” said an unnamed manager. Reuters last week. “Apple is the boss. They do their marketing, they do their products, they do their brand. Hyundai is the boss too. It doesn’t really work.”