Kuo: 'Apple Car' to use Hyundai's E-GMP platform, GM and PSA partnerships possible
Noted TF Securities analyst Ming-Chi Kuo weighed in on "Apple Car" on Monday, saying Apple will work in close cooperation with Hyundai on an initial model that could lead to new vehicles built in association with General Motors and European manufacturer PSA.
In a note to investors, Kuo corroborated recent reports of a potential partnership with Hyundai, saying the first "Apple Car" will be built on that company's E-GMP electric vehicle platform. Hyundai Mobis is taking the lead in component design and production, while Hyundai subsidiary Kia will handle production in the U.S.
Unveiled in December, E-GMP is a dedicated battery electric vehicle (BEV) platform that consists of up to two motors, five-link rear suspension, integrated drive axle, battery cells, charging system and other rolling chassis components. According to the company, the system has a maximum range of about 310 miles on a full charge and be charged up 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 ceiling of 160 mph.
Hyundai intends to use E-GMP as a foundation for a variety of models set to debut under both its flagship and Kia brands this year.
Like past rumors, Kuo believes Apple will farm out parts manufacturing and assembly to established automakers. EVs contain about 40 to 50 times more parts than a smartphone, the analyst points out, suggesting Apple will need to rely on existing automaker resources if it hopes to create a functional car on time. The tech giant will not be able to build out its own automotive supply chain -- as it has done for devices like iPhone, iPad and Apple Watch -- without incurring significant delays.
"Apple's deep collaboration with current automakers (Hyundai Group, GM, and PSA) who have extensive development, production, and qualification experience will significantly shorten the Apple Car development time and create a time-to-market advantage," Kuo writes. "We believe that Apple will leverage current automakers' resources and focus on self-driving hardware and software, semiconductors, battery-related technologies, form factor and internal space designs, innovative user experience, and the integration with Apple's existing ecosystem."
Given a longer development lead time, higher validation requirements, more complex supply chain and "very different" sales and after-sales service, Kuo does not anticipate a so-called "Apple Car" to hit roads until 2025 at the earliest. That date is still considered aggressive for a tech company making its first foray into a new industry.
Apple will likely market the vehicle as a "very high-end" model, or "significantly higher" than a standard electric vehicle.
If the first "Apple Car" proves successful, Apple could court regional partners in GM and PSA, the latter of which produces cars under a variety of marques including Peugeot, Citron, and Opel.
Kuo throws cold water on rumblings that longtime manufacturing partner Hon Hai, which is entering the EV fray with its MIH platform, will secure "Apple Car" assembly or casing orders. Pan-International, Eson, Long Time Tech and G-Tech are also unlikely to enter the supply chain, the analyst says.
Kuo's predictions arrive amid a flurry of "Apple Car" gossip. In early January, Hyundai confirmed -- but subsequently walked back -- reports that it was in negotiations to produce Apple's long-rumored automotive project. Most recently, a report last week claims executives at the South Korean automaker are deliberating whether a collaboration with the world's largest tech company would be good for business.
"It is not like working with Apple would always produce great results," an unnamed executive told Reuters last week. "Apple is the boss. They do their marketing, they do their products, they do their brand. Hyundai is also the boss. That does not really work."
In a note to investors, Kuo corroborated recent reports of a potential partnership with Hyundai, saying the first "Apple Car" will be built on that company's E-GMP electric vehicle platform. Hyundai Mobis is taking the lead in component design and production, while Hyundai subsidiary Kia will handle production in the U.S.
Unveiled in December, E-GMP is a dedicated battery electric vehicle (BEV) platform that consists of up to two motors, five-link rear suspension, integrated drive axle, battery cells, charging system and other rolling chassis components. According to the company, the system has a maximum range of about 310 miles on a full charge and be charged up 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 ceiling of 160 mph.
Hyundai intends to use E-GMP as a foundation for a variety of models set to debut under both its flagship and Kia brands this year.
Like past rumors, Kuo believes Apple will farm out parts manufacturing and assembly to established automakers. EVs contain about 40 to 50 times more parts than a smartphone, the analyst points out, suggesting Apple will need to rely on existing automaker resources if it hopes to create a functional car on time. The tech giant will not be able to build out its own automotive supply chain -- as it has done for devices like iPhone, iPad and Apple Watch -- without incurring significant delays.
"Apple's deep collaboration with current automakers (Hyundai Group, GM, and PSA) who have extensive development, production, and qualification experience will significantly shorten the Apple Car development time and create a time-to-market advantage," Kuo writes. "We believe that Apple will leverage current automakers' resources and focus on self-driving hardware and software, semiconductors, battery-related technologies, form factor and internal space designs, innovative user experience, and the integration with Apple's existing ecosystem."
Given a longer development lead time, higher validation requirements, more complex supply chain and "very different" sales and after-sales service, Kuo does not anticipate a so-called "Apple Car" to hit roads until 2025 at the earliest. That date is still considered aggressive for a tech company making its first foray into a new industry.
Apple will likely market the vehicle as a "very high-end" model, or "significantly higher" than a standard electric vehicle.
If the first "Apple Car" proves successful, Apple could court regional partners in GM and PSA, the latter of which produces cars under a variety of marques including Peugeot, Citron, and Opel.
Kuo throws cold water on rumblings that longtime manufacturing partner Hon Hai, which is entering the EV fray with its MIH platform, will secure "Apple Car" assembly or casing orders. Pan-International, Eson, Long Time Tech and G-Tech are also unlikely to enter the supply chain, the analyst says.
Kuo's predictions arrive amid a flurry of "Apple Car" gossip. In early January, Hyundai confirmed -- but subsequently walked back -- reports that it was in negotiations to produce Apple's long-rumored automotive project. Most recently, a report last week claims executives at the South Korean automaker are deliberating whether a collaboration with the world's largest tech company would be good for business.
"It is not like working with Apple would always produce great results," an unnamed executive told Reuters last week. "Apple is the boss. They do their marketing, they do their products, they do their brand. Hyundai is also the boss. That does not really work."
Comments
I’m not saying this leads to a bad product at all, but it doesn’t make me excited for the brand and have respect for building a car company from the ground up, like Tesla has been doing. They’ve created their own factories, their own production tech and processes, their own battery tech, chips and software.
That said - rumors! We don’t know anything for sure yet.
Oh and they are not going to do everything on their own from day 1.
Member the ole Mac? and that took them 30+ years to "almost" do everything in house/by themselves.
I think Apple has learned from the past.
Laters...
Apple will have different segments and price points in mind, and correspondingly can make other design choices. The core platforms of major car companies are all decent quality these days.
Times change, China is also no longer the country’s famous for cheap plastic crap.
Should Apple have a breakthrough in autonomouss driving, other things matter anyway. While a driver’s car must handle, corner, drift; an autonomous vehicle must allow passengers to enjoy tea and champagne without being slung around the seat benches.
Apple’s first cars likely won’t be fully autonomous, unless they can surprise the world with a killer system that others don’t have, but given where this journey is heading, a BMW M3 won’t be the inspiration for Apple, more likely a luxurious Minivan with amenities: sound system, entertainment, etc.
it’s going to be fun to see how Apple thinks it can be “10 times better” (if they stick to Jobs’ credo for entering a new market) than everyone else competing in that field…
This makes the most sense. I never understood the idea that Apple would go it alone. It would be silly for Apple to reinvent the wheel, (and the suspension, and the door locks, and the wiper blades, and the...). This would let Apple do what Apple does best, and let a car company do the mundane stuff that they do best.
Parts sharing is a major thing in the auto industry: anything from wheels to suspension components, transmissions, ECUs, etc. are made by companies that don’t make their own cars for a variety of companies that do.
Even the parts that are made by the car company itself, are shared amongst many models or even brands.
Similarly, platforms are very versatile: same platform was used for Golf, R32, Jetta, Audi A3, Audi TT, some Volkswagen delivery vans, and some mini SUV.
So the choice of a platform says relatively little about the car to be expected.
One of the key selling points, to me, regarding obvious competitor, Tesla, is their use of aluminum in their S3XY line and their use of 30X stainless in their upcoming pickup. I’ve lost too many fun and mechanically viable vehicles to salt rot/metal cancer for this to be a small issue.
And you're high if you think buying Lucid is a good idea. Lucid has not mass-produced a single car in its entire existence. Might as well have proposed that Apple buy Nikola.
Jony Ive: "Each car is beautifully and exquisitely individually milled from a solid block of Titanium..."