Apple rumored to invest $3.6B in Kia to produce 100,000 'Apple Cars' per year

Posted:
in General Discussion edited February 3
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.

Kia


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.
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Comments

  • Reply 1 of 73
    JWSCJWSC Posts: 881member
    All of a sudden, I want to know less about the Apple car.  My enthusiasm is draining.  Apple might want to consider taking control of the news narrative at this point.
    JapheyOferdk49blastdoorlkruppanantksundaramwatto_cobra
  • Reply 2 of 73
    fred1fred1 Posts: 751member
    I wonder how much the Kia name will affect the whole image of the Apple car. Kia may be a fine producer of cars, I don’t know, but I believe it”s seen as producing inexpensive cars for the lower sector of the market. Even if Apple has full control of every aspect of the design and manufacture, will people be able to disassociate it from the Kia brand?
    S8ER95ZMacProanantksundaramwatto_cobra
  • Reply 3 of 73
    fastasleepfastasleep Posts: 5,287member
    fred1 said:
    I wonder how much the Kia name will affect the whole image of the Apple car. Kia may be a fine producer of cars, I don’t know, but I believe it”s seen as producing inexpensive cars for the lower sector of the market. Even if Apple has full control of every aspect of the design and manufacture, will people be able to disassociate it from the Kia brand?
    Apple doesn't build any of their products, they use manufacturing partners that also build products for many other companies — you know that right?
    n2itivguyemcnairlolliverlongpathelijahg80s_Apple_Guylkruppmike1ronnRayz2016
  • Reply 4 of 73
    fastasleepfastasleep Posts: 5,287member

    JWSC said:
    All of a sudden, I want to know less about the Apple car.  My enthusiasm is draining.  Apple might want to consider taking control of the news narrative at this point.
    Get Schiller out of retirement, a random internet person is losing interest in the rumors about an unannounced product!
    n2itivguyOferlolliverbageljoeylkruppmike1JaiOh81ronnRayz2016retrogusto
  • Reply 5 of 73
    I'm ready to buy if it's less than $65k. 
    lolliverlongpathwatto_cobra
  • Reply 6 of 73
    entropysentropys Posts: 2,886member
    fred1 said:
    I wonder how much the Kia name will affect the whole image of the Apple car. Kia may be a fine producer of cars, I don’t know, but I believe it”s seen as producing inexpensive cars for the lower sector of the market. Even if Apple has full control of every aspect of the design and manufacture, will people be able to disassociate it from the Kia brand?
    tbh, Kia produces quite well made cars for the money, within a specific price category. Isn’t it good that Apple is going for a broader market than Porsche?

    see below:
    I'm ready to buy if it's less than $65k. 

    Oferlongpathgregoriusmuraharabshankronnradarthekatwatto_cobra
  • Reply 7 of 73
    cg27cg27 Posts: 108member
    Hope it comes with an AppleCare option and 
    3% back on my $99k purchase if I use ApplePay.

    ronnretrogustoplastico23stevenozwatto_cobra
  • Reply 8 of 73
    roakeroake Posts: 737member
    fred1 said:
    I wonder how much the Kia name will affect the whole image of the Apple car. Kia may be a fine producer of cars, I don’t know, but I believe it”s seen as producing inexpensive cars for the lower sector of the market. Even if Apple has full control of every aspect of the design and manufacture, will people be able to disassociate it from the Kia brand?
    Never underestimate Apple’s marketing ability.  They still keep a jar full of Steve Jobs’ Reality Distortion Field in the safe for rollouts like this.

    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!”
    gregoriusmbshankjas99ronnretrogustotmayradarthekatrandominternetpersonfastasleepwatto_cobra
  • Reply 9 of 73
    I also liked that the production mentioned here is US based. 
    longpathgregoriusmbshankjas99d_2ronnretrogustostevenozbonobobwatto_cobra
  • Reply 10 of 73
    dk49dk49 Posts: 86member
    This is exactly what I was thinking Apple might do. But I was hoping they would pump money into Magna and ask them to build a US plant. Having Magna as a partner would have allowed Apple to have complete control over manufacturing process, without needing to be associated with an existing auto manufacturer, and thus not worrying about dilution of their brand. They could have also build their own car platform with assistance from Magna, instead of using Hyundai's E-GMP platform. That would have allowed them to build it exactly as per their needs.

    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.
    edited February 3 ronnroundaboutnowwatto_cobra
  • Reply 11 of 73
    dk49 said:
    This is exactly what I was thinking Apple might do. But I was hoping they would pump money into Magna and ask them to build a US plant. Having Magna as a partner would have allowed Apple to have complete control over manufacturing process, without needing to be associated with an existing auto manufacturer, and thus not worrying about dilution of their brand. They could have also build their own car platform with assistance from Magna, instead of using Hyundai's E-GMP platform. That would have allowed them to build it exactly as per their needs.

    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.
    The platform would easily allow battery tech from Apple to be substituted, as long as it fits in the same bay. My concern is whether the platform is structurally dependent upon so-called mild steels being used in the battery box, which will render it vulnerable to salt rot. Hopefully, it is a design that’s adaptable to high nickel alloys, which resist rust and corrosion better.
    watto_cobra
  • Reply 12 of 73
    fred1 said:
    I wonder how much the Kia name will affect the whole image of the Apple car. Kia may be a fine producer of cars, I don’t know, but I believe it”s seen as producing inexpensive cars for the lower sector of the market. Even if Apple has full control of every aspect of the design and manufacture, will people be able to disassociate it from the Kia brand?
    I’m guessing won’t be branded as a Kia. Just like iPhone isn’t branded as a Foxconn. 
    longpathRayz2016ronnStrangeDaysfastasleepwatto_cobrabyronlurashid
  • Reply 13 of 73
    fred1fred1 Posts: 751member
    fred1 said:
    I wonder how much the Kia name will affect the whole image of the Apple car. Kia may be a fine producer of cars, I don’t know, but I believe it”s seen as producing inexpensive cars for the lower sector of the market. Even if Apple has full control of every aspect of the design and manufacture, will people be able to disassociate it from the Kia brand?
    Apple doesn't build any of their products, they use manufacturing partners that also build products for many other companies — you know that right?
    Of course I know that. But other manufacturers don’t sell products under their own name and they don’t have a clear reputation for a certain sector of the market that I don’t think Apple is going for (low cost). 
    watto_cobra
  • Reply 14 of 73
    fred1fred1 Posts: 751member

    entropys said:
    fred1 said:
    I wonder how much the Kia name will affect the whole image of the Apple car. Kia may be a fine producer of cars, I don’t know, but I believe it”s seen as producing inexpensive cars for the lower sector of the market. Even if Apple has full control of every aspect of the design and manufacture, will people be able to disassociate it from the Kia brand?
    tbh, Kia produces quite well made cars for the money, within a specific price category. Isn’t it good that Apple is going for a broader market than Porsche?

    see below:
    I'm ready to buy if it's less than $65k. 
    Would you buy a Kia that costs more than $25,000? You can bet the Apple car will cost much more than that. 

    watto_cobra
  • Reply 16 of 73
    ratsrats Posts: 19member
    Well well well, so Kia is becoming the TSMC (Taiwan Semi)  for the next gen autos, interesting.

    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! :)
    longpathbshankmike1jas99Rayz2016ronnretrogustoradarthekatrandominternetpersonlolliver
  • Reply 17 of 73
    bshankbshank Posts: 198member
    fred1 said:
    I wonder how much the Kia name will affect the whole image of the Apple car. Kia may be a fine producer of cars, I don’t know, but I believe it”s seen as producing inexpensive cars for the lower sector of the market. Even if Apple has full control of every aspect of the design and manufacture, will people be able to disassociate it from the Kia brand?
    Maybe inexpensive is the goal as inexpensive would make it affordable . Affordable means more people can buy it and thus a greater impact on the environment which is a huge value of Apple’s. Too many vehicle makers are trying to make luxury electric vehicles currently and this could match what Tesla is trying to do by making a $25,000 EV. Also made in the USA. Optics matter. Apple could then pivot to the luxury brands and make more money. Just a thought 
    edited February 3 ronnradarthekatwatto_cobra
  • Reply 18 of 73
    blastdoorblastdoor Posts: 2,362member
    rats said:
    Well well well, so Kia is becoming the TSMC (Taiwan Semi)  for the next gen autos, interesting.

    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! :)
    TSMC will be the TSMC of the apple car — they will fab the custom silicon.

    if the rumor is true, Hyundai is playing the role of foxconn
    ronnwatto_cobra
  • Reply 19 of 73
    lkrupplkrupp Posts: 9,012member
    I'm ready to buy if it's less than $65k. 
    Ha ha ha ha ha ha ha. You’re funny! Ha ha ha ha ha ha :) :) :)
  • Reply 20 of 73
    mike1mike1 Posts: 2,599member
    I'm amazed at how many people here are so short sighted and narrow minded regarding who Apple chooses to partner in order to MANUFACTURER an automobile.
    The cars won't be co-branded. Kia/Hyundai will be a contract manufacturer, just like with every other product they make. There isn't an Apple "factory" anywhere currently making Apple products. Do you care that your iPhone is likely made by Foxconn? Or it may be made by someone else. Sometimes you don't know.

    The average potential Apple Car customer is not on these forums and will NEVER have an idea who is producing the vehicle in partnership with Apple.
    Please stop with the noise that they should partner with Porsche or BMW or even worse a company that has not yet produced a single car and who will never reach the scale that will probably be required.
    ronnlolliverbshankfastasleepwatto_cobrabyronl
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