Apple’s Hyundai partnership put on pause, new report says

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As early as just a few days ago, we reported that Apple had been in serious talks with Hyundai-Kia about a potential partnership to build the Apple Car. CNBC recently reported that Hyundai-Kia was willing to give Apple control over both the ‌Apple Car‌ software and the hardware, which was allegedly a key factor in Apple’s interest in the two companies.

Apple and Hyundai were reportedly close to a deal this week. However, a new report from Apple Insider says the partnership may have been put on pause. According to the publication, Apple was upset about Hyundai's public announcement that it was in talks to join Apple’s electric car project. It wasn’t clear when the talks with Hyundai would resume, the report said. A report from earlier in the year said that Hyundai executives were still contemplating whether it's worth the risks to bring Apple in as a customer. Apple is a notoriously secretive company, with one of the people referenced saying there was a "dispute" between the companies about whether they will get to produce the vehicle. Hyundai had been talking about a deal with Apple since at least 2018, a recent Reuters report said.

We are not a company which manufactures cars for others. It is not like working with Apple would always produce great results. - Quote from an unnamed Hyundai executive, published by Reuters last week

If the dispute is resolved and conversations resume, it will likely be only with Kia, Apple Insider said. Kia is a subsidiary of Hyundai, with Hyundai owning 33.8% of the company. Recently, a report from the Wall Street Journal said Kia is seeking partners to help build Apple vehicles in Georgia. It’s unclear whether the plans will still go ahead. Apple hasn’t publicly commented or acknowledged any of the recent reports about its conversations with auto manufacturers, but some significant details have leaked to the press. ‘Project Titan,” allegedly the vehicle's internal codename, has been making headlines for years. The company hired thousands to work on the project, before reportedly scaling back the project and laying some of them off in 2016. As recently as 2020, reports surfaced claiming that Apple had poached employees from rival electric car maker Tesla. Whatever the case, it’s clear that the company is still serious about building an electric car.

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Published to Apple Scoop on 7th February, 2021.