Apple and Hyundai Talks Over Apple Car Production Have Halted

apple car c1

A new Bloomberg report claims that the partnership talks between Hyundai-Kia and Apple over Apple Car have paused. The report says that Apple has been talking to other carmakers as well.

Hyundai first confirmed in early January that it was in talks with Apple over Apple Car production. Since then, plenty of details about the possible partnership between the two companies have leaked out. These leaks have upset Apple which is known to keep all its products under tight wraps before launch. At the moment, it is not clear if and when Apple will resume its talks with Hyundai. If the talks do resume and the deal goes through, Apple will reportedly invest $3.6 billion in Kia for Apple Car production. Another report had claimed that Apple was in talks with other Japanese carmakers over Apple Car production as well.

The problem for Apple is that there are very few carmakers that have the capacity and resources to fulfill its needs. Other major carmakers like Ford and Toyota are unlikely to partner with the company as they are too busy developing their own autonomous electric vehicle. As for Hyundai, executives within the company are divided on who should manufacture the Apple Car — Hyundai or its subsidiary Kia. The latter is likely the most probable candidate as it has the production capacity at its plant in Georgia.

The Apple Car is still in the early stages of development, with the team inside Apple still working on developing the drive system and the design. This gives Apple plenty of time to decide on a manufacturing partner for Apple Car.

[Via Bloomberg]