Hyundai Executives Said to Be 'Divided' Over Prospect of Apple Car Partnership

Rumors that Apple is in negotiations with Hyundai about developing an Apple Car have been in the air over the last few weeks, and a new Reuters report today provides further details on the state of play between the two companies.

Apple and Hyundai feature
According to the report, the outlook for a deal has dimmed because Hyundai executives are divided over the prospect of working with Apple. Hyundai's main concern is that it could become a contract manufacturer for another brand.

"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."

According to the report, Apple and Hyundai first started talks over a car partnership in 2018, when Apple's car project was headed by Alexander Hitzinger, who now works for Volkswagen. However, progress in the talks has been hampered by Hyundai's historical reluctance to work with other companies.

"It is really difficult (for Hyundai) to open up," this person said, adding that the South Korean company would likely to have to replace some executives to avoid a culture clash under any partnership with Apple.

"Apple is the boss. They do their marketing, they do their products, they do their brand. Hyundai is also the boss. That does not really work," the person said.

Despite its reluctance, Hyundai is said to have excess capacity, therefore contract manufacturing would help it secure production volume.

Apple reportedly wants to source major components of its own design – frames, bodies, drive trains, and other parts – from a variety of places and rely on Hyundai or Kia, a Hyundai Motor Group affiliate, for a final assembly site. Previous reports also suggested that Kia's Georgia plant in the U.S. could become the production base, which would suit Apple better.

Rumors that Apple is in negotiations with Hyundai first surfaced earlier this month‌, suggesting that Apple is planning to work with the automaker to produce electric vehicles and develop batteries due to the high costs of the technology and the necessary production facilities.

Hyundai initially confirmed its electric vehicle discussions with Apple in a statement to CNBC, but the statement was revised hours later with no mention of Apple. Apple has not commented on reports of the negotiations.

Reuters last month reported that ‌‌‌Apple Car‌‌‌ production may begin around 2024. However, a report from Bloomberg last week said that the ‌‌‌Apple Car‌‌‌ is "nowhere near production stage" and could be ready in around five to seven years.

Apple and Hyundai reportedly want to reach a partnership agreement for the upcoming ‌Apple Car‌ by March, although today's report seems to cast doubt on any deal being signed off anytime soon.

Related Roundup: Apple Car
Tag: Hyundai

Top Rated Comments

deathcab Avatar
28 months ago

Apple is evil. Let them ruin WV. I hope Hyuindai will avoid the partnership and make the car with Samsung.
Why do you want to ruin the state of West Virginia and how is that state involved here?
Score: 19 Votes (Like | Disagree)
Whathappened Avatar
28 months ago

Yay Apple Car! 3x more expensive than its rivals and needs upgrading every 2-3 years!
Is that you, Steve Ballmer?
Score: 13 Votes (Like | Disagree)
CJM Avatar
28 months ago
Apple wants to have their cake and eat it in typical Apple fashion. They wanna make a car, they don't want to be involved with the hassle of making said car. They probably want Hyundai to organise servicing as well. But with Apple branding everywhere and next to no mention of Hyundai.

That's how Apple does business. We've heard time and time again of how Apple treats contractors. Doing the same for the business of car-making is going to be difficult but also 'optimal' for them. Max profits, max brand exposure, min costs and overhead.

Tesla, at least, built their company from the ground up.
Score: 10 Votes (Like | Disagree)
DBZmusicboy01 Avatar
28 months ago
What starts out bad. Will end up bad.
Score: 8 Votes (Like | Disagree)
djcerla Avatar
28 months ago
Sign me up for a preorder. I trust Apple.
Score: 6 Votes (Like | Disagree)
gnasher729 Avatar
28 months ago

Hyundai...I mean, it'd be nice if they partnered with a car company that made fun to drive vehicles like Audi or Infiniti.
Audi can be fun to watch. Some winters ago, roads full of snow, and I spotted an Audi R8 that had gone off the road, hit a lamp post, and hit it from the wrong side! I'm sure that Audi was fun to drive. Until the driver found out that he couldn't actually drive :-) Made me smile.

BTW. Kia hired the designer that built the Audi TT series.
Score: 6 Votes (Like | Disagree)

Popular Stories

iOS 16

Apple Releases iOS 16.4 With New Emoji, Safari Web Push Notifications, Beta Changes, Voice Isolation for Calls and More

Monday March 27, 2023 10:03 am PDT by
Apple today released iOS 16.4, the fourth major update to the iOS 16 operating system that initially came out last September. iOS 16.4 comes two months after the launch of iOS 16.3, an update that added Security Keys for Apple ID. iOS 16‌.4 and iPadOS 16.4 can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. It can take a few minutes...
iOS 16

iOS 16.4 Will Add These 8 New Features to Your iPhone

Sunday March 26, 2023 8:06 am PDT by
Following nearly six weeks of beta testing, iOS 16.4 is expected to be released to the public as soon as this week. The software update includes a handful of new features and changes for the iPhone 8 and newer. To install an iOS update, open the Settings app on the iPhone, tap General → Software Update, and follow the on-screen instructions. Below, we have recapped eight new features and...
apple mixed reality headset concept by david lewis and marcus kane

Some Apple Employees Seriously Concerned About Mixed-Reality Headset as Announcement Draws Closer

Sunday March 26, 2023 8:25 am PDT by
Some Apple employees are concerned about the usefulness and price point of the company's upcoming mixed-reality headset, The New York Times reports. Apple headset concept by David Lewis and Marcus Kane Initial enthusiasm around the device at the company has apparently become skepticism, according to eight current and former Apple employees speaking to The New York Times. The change of tone...
iOS 17 on Phone Feature

Gurman: iOS 17 to Provide Several 'Most Requested Features'

Sunday March 26, 2023 6:05 am PDT by
Apple changed the strategy for iOS 17 later in its development process to add several new features, suggesting that the update may be more significant than previously thought, Bloomberg's Mark Gurman reports. In January, Gurman said that iOS 17 could be a less significant update than iPhone updates in previous years due to the company's intense focus on its long-awaited mixed-reality...
apple tv 4k red image

Apple Releases tvOS 16.4 for Apple TV 4K and Apple TV HD

Monday March 27, 2023 10:00 am PDT by
Apple today released tvOS 16.4, the fourth major point update to the tvOS 16 operating system that came out last September. Available for the Apple TV 4K and Apple TV HD, tvOS 16.4 comes two months following the release of tvOS 16.3. The tvOS 16.4 update can be downloaded over the air through the Settings app on the ‌‌‌‌Apple TV‌‌‌‌ by going to System > Software Update....
Steve Jobs Theater dusk

Apple Reportedly Demoed Mixed-Reality Headset to Executives in the Steve Jobs Theater Last Week

Sunday March 26, 2023 5:53 am PDT by
Apple showcased its mixed-reality headset to the company's top 100 executives in the Steve Jobs Theater last week, according to Bloomberg's Mark Gurman. In the latest edition of his "Power On" newsletter, Gurman explained that the "momentous gathering" is a "key milestone" ahead of the headset's public announcement planned for June. The event was intended to rally Apple's top members of...
Apple Music Classical

Apple Explains Why It Launched an iPhone App Dedicated to Classical Music

Monday March 27, 2023 8:54 pm PDT by
Apple today published a support document explaining why it decided to release a standalone Apple Music Classical app for classical music. In short, Apple says the app was designed to support classical music's complex metadata:Classical music is different. It has longer and more detailed titles, multiple artists for each work, and hundreds of recordings of well-known pieces. The Apple Music...
iPhone 15 Pro Buttons CAD Leak

iPhone 15 Pro Low-Energy Chip to Allow Solid-State Buttons to Work When Device is Off or Out of Battery

Wednesday March 29, 2023 1:54 am PDT by
The iPhone 15 Pro and Pro Max will use a new ultra-low energy microprocessor allowing certain features like the new capacitive solid-state buttons to remain functional even when the handset is powered off or the battery has run out, according to a source that shared details on the MacRumors forums. CAD-based render of new solid-state buttons on iPhone 15 Pro models The source of this rumor is ...