Apple pausing ‘Apple Car’ discussions with Hyundai and Kia, says Bloomberg
Apple has reportedly paused discussions with South Korean vehicle manufacturer Hyundai Motor and its subsidiary Kia Motors following several recent reports that suggested Apple is looking to work with the manufacturer to produce its long-rumored electric autonomous vehicle, the “Apple Car,” according to Bloomberg.
Apple is said to be planning on launching its first self-driving car within the next 5-8 years, with Hyundai Motor reported to be handling the production of the vehicle at a plant in the US. Hyundai Motor confirmed it was in discussions with Apple in January, saying it was one of several automobile companies speaking with the iPhone maker over handling the production of the top-secret vehicle before quickly retracting its statement, likely after a warning from Apple’s legal team for discussing unannounced plans.
Since alluding to Apple’s plans to release a car in the near future, Hyundai sent rumors flying, with the latest saying the two companies would sign a $3.6 billion contract in two weeks to lock-in production of the vehicle Kia’s U.S. facility located in Georgia.
Now, Bloomberg on Friday published a report claiming Apple is “upset” over Hyundai’s pre-announcement of the deal and for discussing unannounced plans, saying that talks are “paused” as of right now, with it unknown if Apple will now look elsewhere for a supplier to handle manufacturing.
That announcement, and other reports of talks, have upset Apple, which keeps development projects secret for years and controls relationships with suppliers with ruthless efficiency. It’s unclear if — or when — discussions between Apple and Hyundai might resume. There are only a handful of global automakers with the capacity and capability to mass manufacture vehicles, and it’s unclear how many of them would be interested in collaborating with Apple.
Apple is known for its secrecy, especially when it comes to unannounced products. Undoubtedly the premature statement from Hyundai Motor will have caused friction between the two companies and broken the non-disclosure agreements that would have been in place to prevent information from leaking to the media.
Reuters reported in January that Apple was putting its foot down on the secret Apple Car program after years of development, claiming the company has successfully developed a new battery design that would “radically” reduce the cost of the electric car batteries as well as increasing the vehicle’s range, calling the car technology “next level,” and likening it to “the first time you saw the iPhone.”