Tuesday, April 23, 2024

Hyundai and Kia Announce “Apple Car” Deal is Off

Hyundai Motor Co of South Korea stated today that it is no more in talks with Apple on developing autonomous vehicles, only a month later it announced that the talks were at their initial stage with the big tech company, transferring skidding shares of the car manufacturer.

Hyundai stock dropped 4.3 percent by 0428 GMT after taking away $2.4 billion off its value in the market. Shares in its Kia Corp subsidiary, which had been tipped as Apple’s probable operational partner in local media stories, tumbled 12.8 percent – a $4.7 billion hit.

The announcement brings down the curtain on weeks of Hyundai Motor Co Group’s internal divisions – parent to both car manufacturers – about the possible tie-up, with some executives raising fears about becoming a contract manufacturer for the US tech giant in a tie-up reminiscent of the role of electronics company Foxconn in manufacturing Apple devices like the iPhone.

“We are not having discussions on producing an autonomous car with Apple.”

Since Hyundai initially reported a local media early in January that Apple and Hyundai were in talks to produce electric cars that would be self-driven, by 2027 and to develop batteries at either Hyundai or Kia-operated US factories, Kia shares have increased 61 percent.

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