Apple’s car liaison talk makes Kia Motors stock go up

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Shares of the carmaker closed 9.7% in Seoul on Wednesday, reaching 97,700 Korean won ($ 87.70) per share. That’s the highest level since August 1998, according to data from Refinitiv Eikon.

According to a report by the Dong-a Ilbo newspaper, Apple (AAPL) is about to invest 4 trillion won ($ 3.6 billion) in Kia for a partnership to build a new vehicle.

CNN Business was unable to verify the report. Kia and parent company Hyundai both declined to comment on Wednesday, while Apple did not immediately respond to a request for comment.

According to the newspaper, Kia would produce cars for Apple at its factory in the US state of Georgia, with an initial target of 100,000 cars per year. That capacity could reach 400,000 annually, he said.

The paper also reported that a deal could be signed on Feb. 17, aiming to roll out Apple cars by 2024.

Speculation about Apple’s interest in partnering with the South Korean auto industry has been mounting lately.

Last month, Hyundai (HYMTF) allegedly in talks with the iPhone maker to develop electric cars. News of the time also propelled Hyundai’s stock to their best day in at least two decades.

Hyundai has previously said it “received proposals for cooperation from several companies, but no decision has yet been taken”.

Hyundai's stock is skyrocketing to reports that it is in talks with Apple to build a car

If the deal does materialize, Apple’s multi-billion dollar investment would go into manufacturing and development of the new car, Dong-a said.

A partnership with the South Korean giant could make a lot of sense.

Of all automakers, analysts say Hyundai was the most open to joining forces with other companies – and even technology companies. In addition to being owned by Kia, Hyundai is also partnering with the Chinese search giant Baidu (GET STARTED) and American chip maker Nvidia (NVDA) about autonomous driving. The sheer number of existing partnerships could make the company a more attractive partner for Apple.
Hyundai has also already made significant strides in next-generation vehicles, including hydrogen fuel cell vehicles and an electric vehicle manufacturing platform it unveiled in December.
But Apple may also choose to enter into multiple partnerships, with analysts pushing other major automakers as possible options.

– CNN’s Jake Kwon, Jill Disis and Charles Riley contributed to this report.

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