A rumored Apple-Kia partnership regarding the Apple Car is still possible, according to a new Korean report claiming the companies signed a memorandum of understanding last year that covers several potential technology partnerships in the automotive sector.
There’s Still Hope for an Apple Car Tie-Up
Apparently, negotiations with Apple “are not completely canceled,” meaning there’s a theoretical potential here for these talks to possibly resume at some point. At least that’s according to a new report by the South Korean news site Chosun Biz, cited by Reuters.
The source report cites an unnamed source familiar with the negotiations as saying:
Even if the negotiations on electric vehicles fail, there are many items that can be negotiated in other fields, so we are still optimistic about the possibility of partnership between the two sides.
Kia shares rose today following the report.
The story corroborates earlier reports asserting the companies might partner on other areas aside from an Apple-branded electric vehicle. Like, for example, “last mile” mobility.
Last-Mile Mobility
“Last mile” mobility refers to completing a final short distance to a destination after using another means of transportation. In the context of the Apple-Kia talks, “last mile” mobility would entail using a vehicle such as Kia’s electric scooters rather than a full-out vehicle.
“The last mile mobility mentioned in the article is similar to Kia’s plan to strengthen its purpose-built vehicle business, which Kia said during its investor day event earlier this month,” said Kevin Yoo, an analyst at eBEST Investment & Securities.
The Apple Car speculation has reached new levels in the past few weeks, and it all began with a story claiming that Apple and Hyundai subsidiary Kia could announce a domestic multi-billion dollar Apple Car production deal. The report sent Hyundai shares up 21 percent while Kia shares climbed a whopping 61 percent on the news.
Stock Trade Investigation
Soon after, however, Hyundai executives backtracked from their earlier statements and claimed that Apple was discussing the development of autonomous electric vehicles with many other companies. That one wiped $8.5 billion off Hyundai and Kia’s market value.
Hyundai and Kia have even explicitly stated in regulatory filings that the companies are not in discussions with Apple on autonomous car development. However, South Korean authorities are now investigating whether Hyundai executives may have used undisclosed information to profit from stock trading before confirming the Apple Car talks have ended.
With all kinds of Apple Car rumors flying around, nothing is set in stone until Apple itself publicly confirms Project Titan, the internal code-name for an autonomously-driven electric vehicle of its own. Analysts believe that the Apple Car is a few years away from launching publicly, with estimates ranging from 2024 to 2028.