“We are not having discussions with Apple on the development of autonomous vehicles.”
With that, Hyundai Motor Group put an end to months of rumors and reduced its market value by $ 3 billion … but probably hasn’t done much to affect the future of transportation. We will explain.
Last month, rumors circulated that Hyundai (or, more precisely, its Kia division) was in talks with Apple on the development of autonomous electric cars with the tech giant. The news skyrocketed Hyundai’s stock price and hinted Apple could meet its self-imposed deadline to put on a so-called iCar on the road by 2024.
But this morning, in regulatory documents meant to help unravel the rumors, Hyundai said the talks were dead.
“We are receiving requests for cooperation for the joint development of autonomous electric vehicles from various companies, but they are at an early stage and nothing has been decided. We have no discussions with Apple on the development of autonomous vehicles, ”the statement said.
Rare Hyundai partnerships
If you are familiar with Hyundai, the news is not very surprising. The company rarely partners with anyone, building in-house the kind of components most automakers buy from their suppliers. He even makes his own steel.
Maintaining unusually tight control over its supply chain has paid off for the company. Even though a global shortage of microchips has forced automakers to close factories on several continents, Hyundai’s supply is plentiful. He does not expect any effect on production.
Strict business practices can also prevent Hyundai from potential distractions from a deal with Apple. Apple’s Project Titan car effort is a recurring affair. He appeared dead with nearly 200 employees on leave before Hyundai rumors.
Meanwhile, Hyundai continued its efforts on electric cars, planning to release 23 electric car models in the next four years.
To be clear, we expect the automotive and tech worlds to converge more in the near future. Owning a car could be a lot more like owning a phone, with car owners paying a monthly subscription fee for the car features they turn on and off through phone apps.
But Hyundai remains well positioned even as today’s announcements have deflated investors’ hopes for the early appearance of an Apple car.