A Hyundai Motor logo is seen on a glass door at a company branch in Seoul on July 23, 2015
Jung Yeon-Je | AFP | Getty Images
South Korean automakers Hyundai Motor and Kia Motors said on Monday they are not in talks with Apple to develop an autonomous vehicle.
Hyundai Motor shares fell 6.41% in South Korea on Monday morning, while Kia Motors shares fell 13.2%. Other affiliates, including Hyundai Wia, Hyundai Mobis and Hyundai Glovis, also fell sharply.
“Hyundai Motor is receiving requests from several companies for cooperation in the joint development of autonomous electric vehicles, but nothing has been decided since it is at an early stage,” the company said, according to a CNBC translation of a regulatory document.
“Hyundai Motor is not negotiating with Apple to develop autonomous vehicles,” he added.
Its affiliate Kia Motors, which is the second largest car manufacturer in South Korea, behind Hyundai, placed a similar order. The company said it was looking at the prospect of cooperation with “several companies abroad” on autonomous electric vehicles – but nothing has been decided.
Kia Motors also said it is not in talks with Apple.
Hyundai initially said last month that it was in an early stage of negotiations with Apple, but later revised the statement and made no mention of the iPhone maker. This led to an increase in the shares of Hyundai and its affiliates, including Kia Motors, at the time.
This month, CNBC reported that Apple was close to finalizing an agreement with Hyundai-Kia to manufacture an autonomous electric vehicle of the Apple brand at the Kia assembly plant in West Point, Georgia. Sources told CNBC’s Phil LeBeau that no deal has been reached yet and that Apple may decide to partner with another automaker separately, or in addition to working with Hyundai.
Shares may fall further
Retail investors bought shares in Hyundai Motor and Kia worth approximately 915.7 billion Korean won ($ 817 million) and 798.8 billion won (about $ 713 million), respectively, since the speculation of 8 January on a potential collaboration with Apple, according to Sung Yop Chung, regional head of automobiles and components at Daiwa Capital Markets.
“Following the negative vibration of both (Hyundai Motor) and Kia’s filing this morning, pointing out that there is currently no EV cooperation with Apple, the worst case suggests that Kia’s shares could correct up to 31%,” he said. CNBC’s Chery Kang.
Speculation about Apple’s entry into the auto industry has abounded for several years, but nothing concrete has materialized.
Some Wall Street analysts see the automotive sector as a new market for Apple’s growth, but others warn against the reality of making a car under the Apple brand, as this could mean heavy investments with low margins.
– Chery Kang from CNBC contributed to this report.