Photographer: Brent Lewin / Bloomberg
Photographer: Brent Lewin / Bloomberg
Apple Inc. held talks with Hyundai Motor Co. and Kia Motors Corp. about the construction of an electric vehicle, although discussions have recently been interrupted, according to people familiar with the situation.
Apple has also been discussing similar plans with other automakers, people said. They asked not to be identified discussing private matters.
The secret project has increased in recent months. It has the potential to transform the automotive industry and its supply chain in a similar way to Apple’s reinvention in the consumer device market.
Apple declined to comment. In January, Hyundai, which controls Kia, withdrew from a statement that said it was in talks with Apple.
That announcement, and other reports of conversations have bothered Apple, which has kept development projects under wraps for years and controls supplier relationships with relentless efficiency.
It is unclear whether – or when – discussions between Apple and Hyundai can be resumed. There are only a handful of global car manufacturers with the capacity and capacity to mass-produce vehicles, and it is not clear how many of them would be interested in collaborating with Apple.
There are other obstacles as well. One is a dispute within the Hyundai group over which of its two brands, Hyundai or Kia, can make a car for Apple, a person familiar with the situation said. If negotiations resume, Kia will be seen as more likely and will seek to build an Apple car at its plant in Georgia, the source said.
A key issue for the industry is how serious Apple is in taking Tesla Inc., General Motors Co. and other electric vehicle manufacturers and whether an established manufacturer is needed to launch its own product.
The Cupertino, Calif.-Based company has a small team of engineers developing drive systems as well as designers, but with development work at an early stage, any implementation is unlikely to happen in the next five years. This suggests that Apple has more time to decide on potential partners in the auto industry.
Read more: Apple’s autonomous electric car is less than half a decade away
– With the help of Chester Dawson and Gabrielle Coppola