Apple's Talks With Hyundai Break Down
February 07 2021 - 9:48PM
Dow Jones News
By Tim Higgins in San Francisco and Elizabeth Koh in Seoul
Apple Inc.'s talks with Hyundai Motor Group have broken down
without an agreement for the South Korean auto giant to assemble
vehicles for the iPhone company, Hyundai affiliates said
Monday.
In regulatory filings, Hyundai Motor Co. and Kia Corp. said they
are "not in talks with Apple over developing an autonomous
vehicle." The two auto makers have fielded multiple requests from
other firms to jointly develop autonomous electric vehicles, though
no initial steps have been determined, according to the regulatory
filings.
The companies had held talks with the Cupertino, Calif.
technology giant about a deal for Hyundai subsidiary Kia to build
vehicles for Apple in Georgia, The Wall Street Journal reported
last week. The prospect of an auto partnership had sent the Korean
companies' stocks soaring this year, igniting investor enthusiasm
after both Kia and Hyundai had suffered years of slumping car
sales.
Shares sank 6% for Hyundai Motor following Monday's
regulatory-filing disclosures, while Kia plunged by more than
13%.
Apple began seeking potential automotive partners late last year
as it considers whether it can begin production of a vehicle as
soon as 2024. In a rare move for a potential Apple partner, Hyundai
in January said it was talking to Apple about a potential
cooperation around electric, driverless vehicles. No sooner than it
had said so, Seoul-based Hyundai tried to backtrack on the
statement.
Kia had begun reaching out to potential partners in recent weeks
about making an electric car for the iPhone maker, even without a
deal having been locked down, the Journal previously reported.
Apple has flirted with other automotive companies over the
years, but without reaching a partnership. Word of its secret car
program broke in 2015, stoking excitement for the potential of what
new possibilities Apple might bring to the auto market. The
interest raised fears among traditional car makers that they'd soon
be surpassed -- like Nokia Corp. or BlackBerry Ltd. had been after
the iPhone's debut in 2007.
Instead, Apple's auto effort has been largely unrealized as it
has struggled to decide which path it will choose. It has gone
through different leadership and approaches since beginning in
2014.
Write to Tim Higgins at Tim.Higgins@WSJ.com and Elizabeth Koh at
Elizabeth.Koh@wsj.com
(END) Dow Jones Newswires
February 07, 2021 21:33 ET (02:33 GMT)
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