Korean automaker shares Kia Motors came after a major South Korean newspaper reported that Apple (NASDAQ: AAPL) will invest $ 3.6 billion in Kia as part of an agreement to build Apple cars at Kia’s US plant.
The Seoul-based newspaper Dong-A Ilbo, reported that Kia and Apple are close to an agreement that Kia will build a long-rumored Apple electric car at its West Point, Georgia plant. The initial production target is 100,000 vehicles per year starting in 2024, according to the report, with the potential to expand to a maximum of 400,000 per year.
As part of the deal, Apple will invest 4 trillion Korean won ($ 3.6 billion) in Kia, according to the report.
Apple’s longstanding project to develop a car has been rumored for years. Originally thought to be an autonomous taxi, more recent reports suggest that the Apple vehicle will be a slightly more conventional electric car – possibly with some autonomous driving technologies – that will be fully integrated into the existing Apple device ecosystem. It is possible that the Apple car is based on the E-GMP electric vehicle architecture developed by Kia’s corporate sister Hyundai (OTC: HYMTF).
Hyundai’s E-GMP electric vehicle platform could underpin Apple’s car. Image source: Hyundai.
Although the reported production volumes suggest a luxury but not luxury price target (in line with Apple’s strategy around its other consumer devices), it is still unclear whether Kia’s plant in Georgia will manufacture cars for global export or only to the United States.
The companies plan to provisionally announce the collaboration on February 17 Dong-A Ilbo reported.