Although nothing has been finalized, several media outlets reported on Friday that Hyundai has confirmed that it is talking to Apple. The news was initially reported by Korea Economic Daily TV, although Reuters, Bloomberg and others have reported that Hyundai said it is in some kind of discussion with Apple (AAPL) on a tied car.
CNN Business was unable to confirm the nature of the discussions. Hyundai said in a statement only that “we are receiving proposals for cooperation from several companies, but no decision has yet been made.”
Apple declined to comment.
The automaker’s shares, however, are rising as investors consider the possibility that Hyundai (HYMTF) could have been a partner in Apple’s car project for a long time. The stock lasted more than 20% in Seoul, putting it in pace for its best day in at least 20 years, according to data provider Refinitiv.
Both companies have reason to consider a partnership. Discussions about Apple’s interest in self-driving electric cars have been around for years, although they have heated up recently. A Reuters report last month, citing unidentified sources, said that Apple plans to produce a passenger vehicle by 2024. A Bloomberg report this week, also citing unidentified sources, said that Apple started the initial development work for an electric vehicle, but any resulting product would be at least five years away.
Hyundai, for its part, has pledged to enter the race to build these vehicles. The company said last October that it plans to invest 41 trillion won ($ 37 billion) in “future mobility technology” by 2025 – a commitment that puts it on a par with major competitors like Volkswagen.
In December, Hyundai revealed the engineering of a series of new electric cars. Called the E-GMP, this basic vehicle structure will provide more than 300 miles of autonomy, according to Hyundai, and can charge up to 80% of its total power in 18 minutes. It can be used as a base for cars and SUVs, the company said.
“We believe that Apple is in the early stages of negotiations and looking at a handful of strategic partnerships and collaborations globally with existing automakers in the [electric vehicle] ahead, with Hyundai on the radar, “wrote Dan Ives, an analyst at Wedbush, in a research note published shortly after the first reports on discussions with Hyundai.
He added that autonomous cars are probably a long way off for Apple due to safety and regulatory issues. But he said electric cars are “what could be a trillion dollar opportunity globally in the next decade”.
“It’s a smart strategic move for Apple to plunge into rock bottom in this new era of [electric] vehicles, “said Ives.
– Peter Valdes-Dapena and Yoonjung Seo contributed to the report.
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