Hyundai Executives Reportedly ‘Agonizing’ Over Potential Tie-Up in Apple EV Deal
Hyundai executives are reportedly concerned about a potential issue with Apple in developing an electric vehicle.
A new report from Reuters explains that Hyundai executives are divided over a potential tie-up with Apple, with some raising concerns about becoming a contract manufacturer for the US tech giant, potentially dimming the outlook for a deal.
In an earnings call on Tuesday in which it reported its best quarterly profit in over three years, Hyundai did not give any updates on talks with Apple or indicate whether they remain active.
“We are agonizing over how to do it, whether it is good to do it or not,” said a Hyundai executive aware of the internal discussions on the tie-up with Apple. “We are not a company which manufactures cars for others. It is not like working with Apple would always produce great results.”
Few details are known about the talks between the two companies, but previous reports have said the options considered include Kia acting as a manufacturer for vehicles designed by Apple.
Hyundai is traditionally known for its reluctance to work with outsiders, making engines, transmissions and even its own steel in-house under its vertically integrated supply chain as South Korea’s second-largest conglomerate, notes the report.
One person familiar with the matter reportedly noted that Apple “would prefer to source major components of its own design” including the frame, body, drive train, and more, relying on Hyundai or Kia simply for final assembly. Apple has reportedly further stated that it wants the final assembly to be done in the United States.