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(Bloomberg) – Apple Inc.’s work on a car has highlighted several potential manufacturing partners capable of building an autonomous electric vehicle for the tech giant.
The secret project has gained momentum in recent months, adding several former executives from Tesla Inc., gaining oversight from Apple’s top artificial intelligence official and speeding up road tests. The initiative, known as Project Titan at Apple, is garnering great interest because of its potential to disrupt the auto industry and supply chains, much like the iPhone has done in the smartphone market. .
Read more: Apple’s car is at least half a decade away
If and when Apple commits to building a car, it’s likely that it will seek out multiple partners – including a major to assemble the vehicle and many more to supply key components. The following companies – whose representatives declined to comment – are possible candidates:
Foxconn
Foxconn Technology Group already has a close relationship with Apple. For more than a decade, it was the U.S. company’s largest production partner, assembling the majority of the world’s iPhones and much of its Macs and iPads from vast complexes employing over a million people. across China.
In October, Foxconn, whose main listed arm is Hon Hai Precision Industry Co., unveiled its first electric vehicle chassis and a software platform to help automakers get their models to market faster. The Taiwanese company, founded by billionaire Terry Gou, announced plans in early 2020 to form a joint venture with Fiat Chrysler to develop and manufacture electric vehicles in China, although Foxconn won. ” In January, Foxconn signed a manufacturing agreement with Chinese startup EV Byton Ltd. with the aim of starting mass production of its M-Byte model by the first quarter of 2022. It also announced a new venture with China Zhejiang Geely Holding Group Co. to provide production and consulting services.
Magna
Magna, based in Ontario, Canada, is the third largest auto supplier in the world by sales and owns a contract manufacturing company with years of experience in manufacturing entire car models for a variety of automobile brands.
Magna produces everything from chassis and car seats to sensors and software for driver assistance functions. Automakers such as BMW AG and Jaguar Land Rover have hired its Magna Steyr unit and outsourced production to its plant in Graz, Austria. Magna also offers its engineering and manufacturing services to electric vehicle startups. Last fall, it agreed to supply Fisker Inc. with an EV platform for its Ocean SUV and added autonomous driving features to the deal in January. In December, Magna invested around $ 450 million in a joint venture with Korean LG Electronics Inc. EV powertrains. It is also expanding its manufacturing footprint in China, the largest electric vehicle market, by building the ArcFox Alpha-T for Beijing Automotive Group Co. – the first vehicle assembled outside of Europe. Previous relationship with Apple: The two were in talks to build Apple’s car when the iPhone maker embarked on this route about five years ago.
Hyundai or kia
Hyundai Motor Co. and its subsidiary Kia Motors Corp. have garnered the most attention so far this year, in part thanks to Hyundai which initially confirmed reports in Korea last month that it was in talks with Apple. But the automaker quickly backed down and recently reiterated that it was not in talks.
Hyundai and Kia both have factories in the United States, Alabama and Georgia. Their dedicated EV platform will deliver a range of over 500 kilometers (311 miles) and be able to recharge car batteries up to 80% in 18 minutes. While both are selling EVs derived from existing models, they will start. to sell vehicles based on the EV Platform from March, helping to reduce costs and improve performance efficiency. They plan to introduce 23 new combined EV models and sell 1 million units globally by 2025.The big downside for Hyundai and Kia is the recent back-and-forth about whether they are developing a car for Apple, a notoriously secretive company. Although the two automakers have said talks are not taking place, it is possible that talks will resume if Apple sees them as the best possible partners.
Nissan
While this is seen as a long-term plan, Nissan Motor Co. is bringing several things to the table that could benefit Apple.
Nissan already has a common EV platform developed with its French partner Renault SA, which will be used for its Ariya compact SUV which will debut later this year. When asked if the Japanese company would be willing to build cars for Apple, CEO Makoto Uchida told a results press conference that Nissan “has the DNA to do things other people do. would not do. ” The automaker has been mired in a crisis, reporting its biggest loss in two decades in fiscal 2019, and could earn much-needed revenue helping Apple develop or manufacture its vehicle. It could also benefit from access to Apple’s technology. After pursuing a volume-at-any-cost strategy that has eaten away at profit, Nissan needs to attract higher paying customers largely with the technology inside its cars.
Stellantis
One factor determining the suitability of a partner for Apple may be the availability of production capacity. This could point to European automakers such as Stellantis NV, which has been hit by declining sales in the region and has free space in some factories.
Stellantis is under pressure to find synergies after forming last month through the merger of the PSA Group and Fiat Chrysler. as long as it does not create any technological dependence ”which would jeopardize the future of the automobile manufacturer. President John Elkann said in 2016 that the auto industry should work with “new players” like Google and Apple rather than trying to compete with them.
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