Apple Car talks with Hyundai have "paused"

Joe White

Posts: 69   +0
Staff
Highly anticipated: Reports concerning an upcoming electric vehicle developed by Apple have reached fever-pitch in recent weeks, with Hyundai identified as a likely manufacturer for the Cupertino company to work alongside. However, following a flurry of rumors, reports, and retracted comments, Apple’s talks with Hyundai are now said to have “paused.”

Hyundai had confirmed that it was in early talks with Apple to develop an electric car, before backing away from further comments when a subsequent report claimed a deal could be inked as early as March 2021.

From there, we heard that Hyundai executives remained “divided” over a possible deal with Apple, partly due to the controlling role Apple would take in terms of development, marketing, and release. “We are not a company which manufactures cars for others. It is not like working with Apple would always produce great results,” one executive said.

Now, Bloomberg reports that Apple-Hyundai talks have effectively paused, according to people familiar with the matter. This not only suggests that a March deal is likely unrealistic, but could indicate that any deal between the two companies is off the table. Apple is said to be unhappy with recent reports sharing details about the project.

But that’s not all. Bloomberg writes, “there are other hitches, too. One is a dispute within the Hyundai group over which of its two brands, Hyundai or Kia, may get to manufacture a car for Apple, one of the people familiar with the situation said. If talks end up resuming, Kia is seen as more likely and is seeking to build an Apple car at its plant in Georgia, said the person.”

For now, at least, an Apple-developed electric, autonomous car seems firmly parked in the development phase. Apple could sign with the Hyundai group, or it may end up taking the Apple Car in a whole other direction.

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QuantumPhysics

Posts: 4,997   +5,601
Apple is making ungodly amounts of profit just selling smart phones, headphones, watches and computers. I see no reason for them to build a car considering the increased amount of liability. It took tesla a long time to become profitable selling Tesla cars: they really didn’t gain profit until they built the model 3 and the model Y.

Why is Apple trying to build a car when they already have entered everyone else’s cars using Apple CarPlay?
 
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DrSuess

Posts: 108   +80
The leaks were likely intentional, as was reported may Hyundai execs were worried about working with Apple, and having to work with and within the Apple culture. I am sure many of them are hoping the deal gets killed outright.
 

OortCloud

Posts: 612   +469
Every moving part in Apple devices fail after a few years which is staggering as they only have to make 3 but they still f@@k it up. Imagine a car by Apple - you'd be lucky to get off the driveway.
Also will it start going at 5 MPH once your 3 year warranty is elapsed?
 

umbala

Posts: 368   +485
An Apple car is only going to happen when Apple builds one themselves; so never. They've been in talks with car manufacturer's for like a decade now and nothing ever comes of it. The reason is simple: Apple wants every aspect of the deal tilted in their favor. They want to control the entire process *and* they want the lion's share of the profits. This is the same reason it took forever for Apple to start using Intel CPUs. They kept insisting that Intel sell them their chips basically at cost. They'll never find a car manufacturer stupid enough to give in to all their demands.
 

pan1c

Posts: 23   +9
Every moving part in Apple devices fail after a few years which is staggering as they only have to make 3 but they still f@@k it up. Imagine a car by Apple - you'd be lucky to get off the driveway.
Also will it start going at 5 MPH once your 3 year warranty is elapsed?

Thats why they partner with hyundai so that the car is reliable..
 

LuckyMenace

Posts: 49   +40
Apple is making ungodly amounts of profit just selling smart phones, headphones, watches and computers. I see no reason for them to build a car considering the increased amount of liability. It took tesla a long time to become profitable selling Tesla cars: they really didn’t gain profit until they built the model 3 and the model Y.

Why is Apple trying to build a car when they already have entered everyone else’s cars using Apple CarPlay?

Apple has a bunch of key technologies that’s applicable to an EV. Battery management, camera AI, AI Neural Engine, software development, LiDAR, material science, and more. While it seems like a lofty goal, Apple is uniquely positioned to produce a viable, driverless EV. Most automakers are really good at making the mechanics of a car, they are lacking when it comes to the technology required. A strategic partnership between an automaker and Apple is a no brainer.
 

QuantumPhysics

Posts: 4,997   +5,601
Apple has a bunch of key technologies that’s applicable to an EV. Battery management, camera AI, AI Neural Engine, software development, LiDAR, material science, and more. While it seems like a lofty goal, Apple is uniquely positioned to produce a viable, driverless EV. Most automakers are really good at making the mechanics of a car, they are lacking when it comes to the technology required. A strategic partnership between an automaker and Apple is a no brainer.


If APPLE wants to make an APPLE car, they shouldn't be going to "anybody" else.

Either license Tesla's platform and their network to build your car atop it, or build 100% of it yourself.

And the latter makes 0% sense due to the amount of R&D necessary.
 

negroplasty

Posts: 541   +33
Apple would have regretted it when half of their cars on the road have tail lights that don't work... I swear if I had a nickel for every Hyundai / Kia I've seen with either brake or tail lights out I'd probably have enough to buy a Rio.
 
Apple should have bought SAAB a few years ago. They could have bought it up for scraps when GM killed the brand. They would've got a strong and quirky brand (and followers), the manufacturing plants and a experienced workforce. It would have been a great match since SAAB was all about going environmentally friendly with their BioPower initiative and the current owners EV ambition.
Maybe they can still buy it from these new Chinese owners NEVS, since the project is going nowhere.
 

DaveBG

Posts: 559   +249
Oh the irony... just a few days ago I had an argument with someone who insisted that this will be the Tesla killer... I hope he did not bought Hyundai stock... LOL
 

Ludak021

Posts: 470   +340
Apple and Hyundai have complete opposite customers in mind, for starters. One would like to make an alternative, cheaper EV for the masses and the other would take the same product and slap it with 200% premium on top of the price, used apple logo, and charge Hyundai for the patents every day.
 

captaincranky

Posts: 16,939   +5,705
This was probably a mutual decision.

Apple most likely didn't want a car they couldn't sell at double the cost to build, while Hyundai didn't want its employees jumping out of windows trying to build it.

This just in from "the fly on the wall"

Hyundai CEO to Tim Cook, "Like dude, we're not f**king Foxconn you know, we have some work place ethics.and a moral obligation to our employees".

Tim Cook to Hyundai CEO, "not even if we spring for the suicide netting"? :confused:
 
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poohbear

Posts: 632   +549
Apple is making ungodly amounts of profit just selling smart phones, headphones, watches and computers. I see no reason for them to build a car considering the increased amount of liability. It took tesla a long time to become profitable selling Tesla cars: they really didn’t gain profit until they built the model 3 and the model Y.

Why is Apple trying to build a car when they already have entered everyone else’s cars using Apple CarPlay?
Well, as a publicly traded company they need new revenue streams. Smartphones and computers aren't gonna provide growth forever.

Also, Apple never invents things, they take a concept that hasn't taken hold and perfect it. EVs might very well be that concept, but Tesla already has it covered and with last year's stock valuation they have plenty of money to excel further, so it'd be a tough market for Apple.
 

mbrowne5061

Posts: 1,866   +1,088
Apple has a bunch of key technologies that’s applicable to an EV. Battery management, camera AI, AI Neural Engine, software development, LiDAR, material science, and more. While it seems like a lofty goal, Apple is uniquely positioned to produce a viable, driverless EV. Most automakers are really good at making the mechanics of a car, they are lacking when it comes to the technology required. A strategic partnership between an automaker and Apple is a no brainer.
None of those technologies is all that special or unique to Apple though. Why ink a deal with Apple to build a car for them (where Apple owns all the drawings), when Google just inked one with Ford where it is essentially 'you build the car, we build the electronics'?