LG & Magna partnership 'very near' to winning 2024 'Apple Car' contract

Posted:
in Future Apple Hardware edited April 13
An LG and Magna partnership is claimed to be "very near to signing contracts" to produce an "Apple Car," although similar leaks allegedly scuttled previous deals between Apple and other car companies.

EV promotional poster from LG-Magna
EV promotional poster from LG-Magna


Days after quitting the smartphone market to focus on "growth areas such as electric vehicle components," LG may be doing more than providing EV parts. Reportedly, LG Electronics and Canada's Magna International are together on the verge of becoming the manufacturers of an Apple EV.

According to The Korea Times, unnamed sources familiar with the issue say that the LG Magna e-Powertrain partnership is discussing final details.

"LG Magna e-Powertrain is very near to signing contracts with Apple under which they could handle the initial volume production of Apple EVs," said the source. "Contract details are still being discussed."

Two sources say that the deal will be quite small, because Apple is planning to only produce test-market vehicles for evaluation. It's also claimed that LG had the advantage of already being an Apple supplier.

"Because LG Group affiliates including LG Display, LG Chem, LG Energy Solution and LG Innotek are already included in Apple's parts supply chain, Apple doesn't have to worry about any supply chain issues," said one source. "These LG affiliate are qualified to guarantee production yields and faster delivery of parts needed for Apple EVs."

The second source, referencing LG's stated aim of growing its EV area, says that such a deal benefits both companies. "As the LG brand is not that strong in the global EV industry, it needs a pretty competitive reference to show off its transformation efforts," he or she said.

"From that standpoint, LG's bet on the Apple EV is not that bad, and vice versa for Apple," the source continued.

Neither LG nor Magna have commented on the report.

Previously, Hyundai was in a similar situation regarding its Kia brand, although there it was the company itself revealing news of its Apple deal. That announcement, and the immediate retraction, reportedly contributed to Apple stepping away from the deal.

It also saw Hyundai's share price rise considerably, to the extent that the company's executives are facing investigation by the South Korea stock exchange.

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Comments

  • Reply 1 of 10
    crowleycrowley Posts: 7,633member
    This seems like a very good fit.  Both will probably be satisfied taking the Foxconn role, as that's what they're used to.
    watto_cobra
  • Reply 2 of 10
    Magna builds a number of mid to high-end vehicles for other makes (BMW, Mercedes and Jaguar)
    If the build quality of my I-Pace is anything to go by, Apple won't have panel gaps and rattles to worry about.
    gregoriusmwatto_cobrajony0byronl
  • Reply 3 of 10
    CarmBCarmB Posts: 35member
    So who’s trying to prevent this deal from happening?

    After all, Apple tends to kill deals with potential partners who start discussing in public deals that are still being negotiated. LG is well aware of how this works having worked with Apple for years.

    As we speak, Apple is no doubt looking into how this information has gotten out, assuming of course, that there is any there, there.
    watto_cobra
  • Reply 4 of 10
    CarmB said:
    So who’s trying to prevent this deal from happening?

    After all, Apple tends to kill deals with potential partners who start discussing in public deals that are still being negotiated. LG is well aware of how this works having worked with Apple for years.

    As we speak, Apple is no doubt looking into how this information has gotten out, assuming of course, that there is any there, there.
    If Apple is going to build a car then they'll quickly get used to the lack of secrecy in the automotive industry.  There are almost no surprises that happen with cars.  Shared platforms, shared tech, shared manufacturing facilities, required vehicle road testing... yeah, doubling down won't help.  I can't remember the last time a car debuted without being leaked .  Heck, the industry often actively participates in leaks.
    byronl
  • Reply 5 of 10
    blastdoorblastdoor Posts: 2,353member
    Sounds pretty sensible, so maybe this one will be true. 

    Just to reiterate -- I'm still betting Apple will be focused on selling transportation as a service (think Uber, but classy and integrated into the Apple ecosystem), not on selling cars to consumers. This business model is more amenable to a limited test rollout.


    watto_cobra
  • Reply 6 of 10
    dk49dk49 Posts: 86member
    What exactly is LG providing to Apple? Batteries? 
    watto_cobra
  • Reply 7 of 10
    dk49 said:
    What exactly is LG providing to Apple? Batteries? 
    From the article: "Because LG Group affiliates including LG Display, LG Chem, LG Energy Solution and LG Innotek are already included in Apple's parts supply chain, Apple doesn't have to worry about any supply chain issues," said one source. "
    LG Display provides displays for some iPhones, iPads, iMacs, and watches.  Not sure about laptop screens, but maybe some of those as well.
    LG Chem provides some batteries.
    • LG ES - spinoff from LG Chem. Batteries and battery storage solutions.
    LG Innotek provides camera modules.

    LG is a long time partner for Apple.
    jony0byronl
  • Reply 8 of 10
    qwerty52qwerty52 Posts: 284member
    Very interesting.
    I’m happy that Apple didn’t cooperated with any of the big names in the car industry. Non of the traditional companies would let Apple to have better vehicle than their own and it would be always kind of competition between the partners.
    I think it is much better for Apple to cooperates with new players (hope it is true) in the EV industry, because all of them will also try do their best in order to succeed and to prove themselves in a new market. 
    And this are exactly the type of partners Apple needs for its own success.

    watto_cobrajony0byronl
  • Reply 9 of 10
    this rumored partnership makes more sense than the Hyundai/Kia one
    jony0
  • Reply 10 of 10
    this rumored partnership makes more sense than the Hyundai/Kia one
    It only makes more sense if Apple has small scale production goals.  If their plans were for a mass market vehicle, Hyundai/Kia would have been infinitely more sensible.
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