Top Secret Priority 'Mystery Obsession'... Hyundai Motor and Kia's Apple Car Sudden Halt

Extensive Coverage of Electric Vehicle Partnership Rumors
Seems to Have Led to a Burden and Declaration of Suspension
Discussions with Other Automakers Also Played a Role
Final Agreement on OEM Production Not Reached
Possibility of Resuming Negotiations Still Remains

[Asia Economy reporters Changhwan Lee and Gimin Lee] The main reason behind the breakdown of negotiations between Hyundai Motor Group and Apple over the production of autonomous vehicles (Apple Car) is analyzed to be a combination of Apple's insistence on secrecy and Hyundai Motor and Kia's concerns about becoming mere subcontractors. However, since there are not many automakers worldwide capable of producing Apple Cars, it is evaluated that cooperation between the two companies could resume at any time.

Apple, Whose Secrecy Was Broken, Seems to Have Declared Suspension of Negotiations First

According to the automotive industry on the 8th, the suspension of negotiations is understood to have been requested by Apple, which felt burdened by the widespread reports of electric vehicle cooperation. It is analyzed that Apple, which strictly adheres to secrecy and mystique, could not tolerate the continuous leaks about the electric vehicle cooperation details.

Earlier, Bloomberg News reported on the 5th that Apple recently halted discussions with Hyundai Motor and Kia for electric vehicle development. Bloomberg predicted that Apple, which had kept information about development projects and suppliers secret for years, was likely upset when news about electric vehicle discussions leaked, making it unclear when talks between the two companies would resume. It is said that Apple's characteristic 'secrecy' led to the breakdown of 'Apple Car' cooperation talks with Hyundai Motor Group. In particular, as cooperation rumors between Apple and Kia were widely reported mainly by Korean media recently, it is seen that Apple abruptly left the negotiation table.

Another reason for the breakdown is believed to be that Apple was discussing electric vehicle production cooperation not only with Hyundai Motor and Kia but also with several other automakers. The Japanese Nihon Keizai Shimbun reported on the 5th, citing an Apple parts supplier, that "Apple is conducting discussions with at least six companies within Japan regarding electric vehicle production." Besides Japanese automakers, Apple is also said to be in contact with American companies such as Tesla and General Motors (GM).

From Hyundai Motor and Kia's perspective, there was significant concern that producing Apple Cars could reduce the companies to mere subcontractors for Apple. It is speculated that Apple demanded a production method similar to how it manufactures iPhones?controlling design, parts supply, and production lines, and outsourcing manufacturing through Foxconn as an original equipment manufacturer (OEM). Hyundai Motor and Kia, who do not want to become simple subcontractors, likely found it difficult to accept Apple's demands. Ultimately, the failure to reach a final agreement on OEM terms between Apple and Hyundai Motor Group is also analyzed as a cause for the suspension of negotiations. In fact, it is known that skepticism about cooperation with Apple recently arose among key executives at Hyundai Motor.

Possibility of Resuming Negotiations Still Remains

Although negotiations between the two companies have temporarily broken down, the possibility of resumption still remains. Globally, there are only a few automakers with the capability and production facilities to mass-produce Apple Cars on an OEM basis, and there are not many automakers willing to accept Apple's unilateral demands, supporting this outlook. Currently, companies with dedicated platforms capable of producing electric vehicles include Hyundai Motor, Kia, GM, and Volkswagen. Hyundai Motor recently announced its dedicated electric vehicle platform, ‘E-GMP (Electric-Global Modular Platform).’ Only companies with dedicated electric vehicle platforms can produce the high-spec electric vehicles demanded by IT companies.

The fact that Hyundai Motor and Kia stated in their disclosure that the subject of stalled discussions is ‘autonomous vehicles’ can be interpreted as negotiations continuing in areas such as electric vehicle production. Hyundai Motor disclosed that it received a request for joint development cooperation on ‘autonomous electric vehicles’ but emphasized that it is not currently negotiating with Apple on ‘autonomous vehicles.’ Since Hyundai Motor and Apple are each developing their own autonomous driving technologies, it is analyzed that cooperation may be possible only in the electric vehicle sector, not autonomous driving.

Professor Pilsoo Kim of the Department of Automotive Studies at Daelim University said, "Among companies with factories in the U.S. that can meet Apple's requirements for dedicated electric vehicle platforms, Kia is the most optimal." He added, "However, recent reports have become overheated, so it is possible that negotiations were temporarily suspended."

This content was produced with the assistance of AI translation services.