Apple eyeing $3.6 billion investment in Kia to make electric vehicles

Shawn Knight

Posts: 13,177   +132
Staff member
Why it matters: A Korean newspaper has pushed share value in Kia Corporation to new heights after reporting of a potential partnership with Apple. It's little more than rumor mill material at this point but this isn't the first time we've heard that Apple is talking to various automakers about a partnership. When there's smoke, there is usually fire.

According to the report (via Bloomberg), Apple may bring as much as 4 trillion won ($3.6 billion) to the table as part of a collaboration with Kia to build electric vehicles. The paper, which doesn’t name any sources, said a deal could be signed on February 17, adding that Apple wants to start making vehicles in Georgia in 2024 at a rate of 100,000 per year.

Both companies declined to comment on the matter when reached by Bloomberg.

Last month, a spokesperson for Hyundai confirmed that it had been in contact with Apple. It just so happens that Hyundai is the parent company of Kia, perhaps lending some validity to the latest rumors.

Just yesterday, respected Apple analyst Ming-Chi Kuo said in a note to investors that Apple could work with General Motors and PSA, one of the largest automakers in Europe, to launch subsequent models or to bring a standard design to other markets. Kuo even said he believes that Apple’s first vehicle will be based on the E-GMP battery electric vehicle (BEV) platform from Hyundai.

Share value in Kia is up nearly 10 percent as of writing while Hyundai is trading up almost three percent. Apple stock is down about half a percent today.

Masthead courtesy withGod

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Burty117

Posts: 4,085   +2,080
I'm curious as to why Apple would get into the car industry? IBM, Microsoft, HP, Xerox, Google, none of the other large tech companies have dabbled into the car industry except for the software side of things.

It's not like Hyundai and Kia are known as high end brands either.

If they really are planning on releasing some kind of car though, more power to them I guess...
 

Uncle Al

Posts: 8,014   +6,783
A minimal investment to get in with a well known brand (non-American) that has a growing following. It's starting to appear that the big tech companies are slowly but surely getting involved in electric cars so their products might be the backbone electronics' and further their reach into a growing market. Interesting to hear last night that the administration is considering another "buy back" program to get people to give up their gas vehicle's for electric. This was VERY popular in Europe and the way things are moving, it could be just the enticement to get a lot of people off the fence. This combined with the new study that indicates it is about 1% cheaper to buy and operate an electric vehicle over 10 years vs. fossil fuel. Combine that with the new batteries that are claiming they will be 25% the cost of current batteries, this could be a successful program.