What if Apple (NASDAQ: AAPL) decides to enter the car business, it seems Hyundai Motor (OTC: HYMTF) can be your partner of choice.
Hyundai’s shares rose 20% on Friday after Korean media reported that the automaker was in talks with Apple over the co-development of an autonomous car. Apple’s interest in the automotive space has long been discussed. It was reactivated last year after media reports that the tech giant has a small team of hardware engineers working on drive systems, vehicle interiors and external body designs.
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If Apple wanted to enter the car market, it would likely partner with another manufacturer, as it does with its phones, tablets and other electronic equipment.
Hyundai distanced itself from the conversation at the end of the day, Korean time, saying only that it received requests for potential cooperation from several companies. A partnership with Apple would give Hyundai a significant boost to its brand, as well as allowing the company to come together and share part of the burden of developing autonomous and powertrain technologies.
Apple is notoriously secretive and has in the past discouraged business partners from discussing collaborations. Bloomberg reported on Thursday that the so-called “iCar” development is still in its early stages, and any product launch is at least half a decade away. Assuming that is the case, Apple is probably in no hurry to select a manufacturing partner.
It has long been assumed that if Apple decides to develop a vehicle, it will work with third parties instead of developing in-house manufacturing capabilities. In addition to Canadian auto parts manufacturer Hyundai Magna International he was also mentioned as a potential partner.