Apple rumored to invest $3.6B in Kia to produce 100,000 'Apple Cars' per year
A new report claims Apple and Kia are close to reaching a deal that will see the tech giant invest some 4 trillion won (about $3.6 billion) on a collaborative effort to bring "Apple Car" to life.
Without citing sources, a report from South Korean news outlet Dong-A, spotted by Bloomberg, says Apple and Kia are primed to strike a production deal on Feb. 27.
According to the publication, Apple will invest 4 trillion won to secure access to Kia's U.S. facilities in Georgia. The companies are eyeing a production run in 2024 with an initial capacity of 100,000 cars per year, though the plant can ramp up to a maximum of 400,000 units a year, the report says.
Terms of the contract are unknown and it is unclear what, exactly, the supposed investment covers.
News of the potential deal arrives as the "Apple Car" rumor mill churns. On Tuesday, Apple analyst Ming-Chi Kuo in a note to investors predicted the iPhone maker will work with Kia parent company Hyundai on the design and manufacture of an electric vehicle.
Specifically, the so-called "Apple Car" will be built on Hyundai's E-GMP electric vehicle platform, with Hyundai Mobis offering assistance with component design and production. Like the Dong-A report, Kuo said Kia will handle production in the U.S. Apple is expected to be in charge of self-driving hardware and software, semiconductors, battery technologies, form factor and user experience.
Previous reports also marked Hyundai as a likely collaborator on "Apple Car." The South Korean automaker in January confirmed it was in talks to produce the vehicle, but quickly walked back those statements to say it was in talks with a number of parties regarding the development of electric vehicles.
A report last week said Hyundai executives are still assessing the risks involved with taking Apple on as a customer.
Without citing sources, a report from South Korean news outlet Dong-A, spotted by Bloomberg, says Apple and Kia are primed to strike a production deal on Feb. 27.
According to the publication, Apple will invest 4 trillion won to secure access to Kia's U.S. facilities in Georgia. The companies are eyeing a production run in 2024 with an initial capacity of 100,000 cars per year, though the plant can ramp up to a maximum of 400,000 units a year, the report says.
Terms of the contract are unknown and it is unclear what, exactly, the supposed investment covers.
News of the potential deal arrives as the "Apple Car" rumor mill churns. On Tuesday, Apple analyst Ming-Chi Kuo in a note to investors predicted the iPhone maker will work with Kia parent company Hyundai on the design and manufacture of an electric vehicle.
Specifically, the so-called "Apple Car" will be built on Hyundai's E-GMP electric vehicle platform, with Hyundai Mobis offering assistance with component design and production. Like the Dong-A report, Kuo said Kia will handle production in the U.S. Apple is expected to be in charge of self-driving hardware and software, semiconductors, battery technologies, form factor and user experience.
Previous reports also marked Hyundai as a likely collaborator on "Apple Car." The South Korean automaker in January confirmed it was in talks to produce the vehicle, but quickly walked back those statements to say it was in talks with a number of parties regarding the development of electric vehicles.
A report last week said Hyundai executives are still assessing the risks involved with taking Apple on as a customer.
Comments
Get Schiller out of retirement, a random internet person is losing interest in the rumors about an unannounced product!
see below:
Do you remember all the jokes when the iPad came out? “No women were on the team that came up with that (iPad) name.” “Pro version will be called the MaxiPad.” “Who could ever take “iPad” seriously?” Et cetera. A year later, the jokes were gone, and the iPad was the only serious tablet out there. Everyone wanted one, and they didn’t even know why.
If the Apple Car gets fabricated/assembled by Kia, people will make jokes during the first couple of months. After a year, it will barely be remembered. Apple Car will be no joke; it will be groundbreaking. People will soon start to think “Apple” when they see it, not “Kia.” We don’t read these forums thinking, “Yeah, that new Foxconn phone that Apple’s will sell is going to be sweet!”
The article says that Apple will use its own battery technology. But if they are using Hyundai's E-GMP platform, they would probably have to stick with the battery included in that platform, unless Hyundai allows Apple to customize the platform with their own batteries.
https://www.cc.com/video/8h7eb0/the-daily-show-with-jon-stewart-north-korea-s-taepo-dong
Why is no one talking about the possible Boston Dynamics tie-in with this autos???
Apple couldn't have picked a better partner for their initial foray into autos, a long time auto manufacturer who owns THE most cutting edge robotics company. To me that's the most exciting part of this whole partnership.
The branding issue is a nothing burger, no one cares who makes Apple's stuff, be it Hon Hai, TSMC, or Kia, they're just manufacturing partners. In fact, choosing Kia probably saved your whinning butts $10k right off the bat when you buy one of these babies.
So Stop yo Whining!
if the rumor is true, Hyundai is playing the role of foxconn