Korean automakers Hyundai (OTC: HYMTF) and Kia say a deal to build cars for the tech giant Apple (NASDAQ: AAPL) – what was expected next week – is not happening.
RRecent reports have suggested that an electric vehicle designed by Apple could be manufactured in a Georgian factory owned by Kia, and that an agreement could be announced as early as next week. Hyundai confirmed in January that it held talks with Apple about the possibility.
But in a lawsuit with South Korean regulators on Monday, the companies said they were no longer talking to Apple.
Reports have suggested that the Apple car could use an electric vehicle architecture developed by Hyundai. Image source: Hyundai Motors.
“We are receiving requests for cooperation in the joint development of autonomous electric vehicles from several companies, but they are at an early stage and nothing has been decided. We are not halving negotiations with Apple on the development of autonomous vehicles,” the companies said. in the document.
Reuters reported that Hyundai executives were undecided about whether to cooperate with Apple, for fears that the deal could lead it to become nothing more than a third-party manufacturer, similar to FoxconnApple’s role with Apple.
Kia’s shares have risen more than 60% since Hyundai confirmed negotiations with Apple in January. Shares in Kia and Hyundai fell sharply in trade in Seoul, South Korea, on Monday.