Talk about Apple’s car immobilization drives Kia Motors shares to soar

Talk about Apple’s car immobilization drives Kia Motors shares to soar

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The automaker’s shares closed up 9.7% in Seoul on Wednesday, reaching 97,700 Korean won ($ 87.70) per share. This is the highest level since August 1998, according to data provided by Refinitiv Eikon.

According to a report in the Dong-a Ilbo newspaper, Apple (AAPL) is about to invest 4 trillion won ($ 3.6 billion) in Kia for a partnership to build a new vehicle.

CNN Business was unable to verify the report. Kia and Hyundai parent company declined to comment on Wednesday, while Apple did not immediately respond to a request for comment.

According to the newspaper, Kia would start producing cars for Apple at its plant in the US state of Georgia, with an initial target of 100,000 cars a year. That capacity could increase to 400,000 a year, he said.

The newspaper also reported that an agreement could be signed as early as February 17, with the goal of launching Apple cars by 2024.

Speculation about Apple’s interest in working with the South Korean auto industry has recently increased.

Last month, Hyundai (HYMTF) has been reported in discussions with the iPhone maker to develop electric cars. The news of the time also propelled Hyundai’s stock to its best day in at least two decades.

Hyundai previously said it was “receiving proposals for cooperation from several companies, but no decision has yet been made”.

Hyundai shares soar with reports that it is in talks with Apple to build a car

If the deal goes through, Apple’s multi-billion dollar investment will go towards making and developing the new car, according to Dong-a.

A collaboration with the South Korean giant can make a lot of sense.

Of all the automakers, Hyundai is among the most open to joining forces with other companies – and even technology firms, according to analysts. In addition to its Kia ownership, Hyundai is also working with the Chinese search giant Baidu (BIDU) and US chip maker Nvidia (NVDA) in the autonomous direction. The large number of existing partnerships can make the company a more attractive partner for Apple.
Hyundai has also made significant strides in next generation vehicles, including hydrogen fuel cell cars and an electric vehicle manufacturing platform that it unveiled in December.
But Apple may also choose to enter into several partnerships, with analysts citing other major automakers as potential options.

– CNN’s Jake Kwon, Jill Disis and Charles Riley contributed to this report.

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