Photographer: Brent Lewin / Bloomberg
Photographer: Brent Lewin / Bloomberg
Apple Inc. has had conversations with Hyundai Motor Co. and Kia Motors Corp. on building an electric vehicle, although the discussions recently ended, according to people familiar with the situation.
Apple has discussed similar plans with other automakers as well, the people said. They asked not to be identified when discussing private matters.
The secret project has stepped up in recent months. It has the potential to boost the auto industry and its supply chain in a similar way to Apple’s reinvention of the consumer equipment market.
Apple declined to comment. In January, Hyundai, which owns a majority stake in Kia, withdrew from a statement saying it was in talks with Apple.
That announcement, and other reports of conversations have upset Apple, which has kept development projects secret for years and monitors supplier relationships with relentless efficiency.
It’s unclear if – and when – talks between Apple and Hyundai can resume. There are only a handful of global automakers with the capacity and capability to mass-produce vehicles, and it’s unclear how many of them would be interested in partnering with Apple.
There are other problems too. One is a dispute within the Hyundai group over which of the two brands, Hyundai or Kia, may be allowed to produce a car for Apple, said one of those familiar with the situation. If talks eventually resume, Kia is considered more likely and will attempt to build an Apple car at its Georgia plant, the person said.
An important question for the industry is how seriously Apple is taking it Tesla Inc., General Motors Co. and other electric vehicle manufacturers, and whether it needs an established manufacturer to roll out its own product.
The Cupertino, California-based company has a small team of engineers who develop powertrain systems as well as designers, but as development work is in the early stages, a rollout is not likely to take place for another five years. That suggests Apple has more time to decide on potential auto industry partners.
Read more: Apple self-driving electric car is at least half a decade away
– With the help of Chester Dawson and Gabrielle Coppola