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After several gear changes, it appears that talks between Apple and Hyundai Motor Co. have now come to a halt.
It was speculated in early January that Hyundai Motor Co. was in talks with the iPhone giant over an electric car and battery joint venture. Apple is said to be aiming for 2024 to produce a self-driving car that could include its own battery technology.
Last week, a report from South Korean online media DongA.com indicated that Kia Motors, a subsidiary of Hyundai, was on the verge of signing a 4 trillion won ($ 3.59 billion) deal with Apple for the construction of electric vehicles. It has been suggested that an agreement would be signed on February 17.
However, Hyundai Motor Co. and Kia have reportedly issued statements indicating that they are not in discussions with Apple about developing autonomous vehicles.
According to Reuters, the news wiped out $ 3 billion from Hyundai Motor Co.’s market value while Kia was hit by $ 5.5 billion. CNBC said other subsidiaries, including Hyundai Wia, Hyundai Mobis and Hyundai Glovis, also fell sharply.
Discussions could resume
The talks certainly seemed to have entered on rugged terrain. In January, it was reported that Hyundai may have incurred the wrath of the famous secret Apple by jumping the gun while announcing talks.
The automaker revised its first statement within hours, removing all reference to Apple and saying only that it had been contacted by potential partners for the development of autonomous electric vehicles. However, the damage may already have been done.
The automaker was also apparently distressed over whether or not to build cars for someone else. Reuters said Hyundai has traditionally been known for its reluctance to work with outsiders, making engines, transmissions and its own steel in-house in a vertically integrated supply chain.
Sung Yop Chung, regional head of automobiles and components at Daiwa Capital Markets, told CNBC that it was still possible for both sides to reconsider the deal at a later date, as Hyundai said in its regulatory filing that he was in talks with several companies.
“I wouldn’t say it’s the end, I would say it’s a temporary stop if you like negotiating between the two groups,” he told the outlet.
Apple has of course been silent on its plans so far. According to a December report from Reuters, Apple’s auto bet in Project Titan had started to gain traction after years of uncertainty over the future of the project.
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?? Anne Morris, Editor-in-Chief, Special at Light Reading
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