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After several years of uncertainty, it appears that Hyundai and Kia are making serious strides toward producing the Apple car. According to a report from the Wall Street Journal, the automaker duo is actively seeking partners to manufacture Apple cars at Kia’s facility in Georgia, with plans to produce up to 100,000 vehicles annually.
The journey of the Apple car has been tumultuous in 2021, characterized by uncertainty and speculation regarding its collaboration with Hyundai. By December 2020, the stalled Project Titan was revived, and by January, Hyundai showed interest. Discussions turned to the production of Apple cars at Kia’s West Point Assembly Plant in Georgia, but by early February, Hyundai expressed concerns that the project could negatively impact its reputation.
The report from the Wall Street Journal indicates that the ongoing negotiations, which are not final yet, could reach a value of $3 billion, with the aim of commencing production by 2024—three years earlier than the previously estimated 2027 start date.
While Hyundai-Kia isn’t the only option Apple has explored for car production, they seem to be the most committed. Hyundai has tried to reduce expectations regarding a potential agreement, and Apple has yet to officially confirm any discussions; however, the necessity for a partner remains clear as Apple moves forward, and Hyundai’s stock has surged by 23 percent since the rumors began. Despite some executive hesitation about the partnership, there are evident advantages.
By delegating the project to its subsidiary Kia, Hyundai may be lessening its exposure to reputation risk while also alleviating pressure on its Alabama plant. Should the technology from Apple prove to be as revolutionary as suggested, aligning with the “iPhone of cars” narrative, it could propel Hyundai-Kia into fully electric production using innovative skateboard-like platforms.
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