What you need to know
- Apple and Hyundai/Kia reportedly signed a "memorandum of understanding (MOU) last year.
- The companies agreed to partner together in eight different sectors.
As reported by Reuters, online site Chosun Biz claims that Apple and Hyundai/Kia signed a "memorandum of understanding (MOU)" last year with an agreement to work on products together in eight different sectors, including work on electric vehicles.
"Even if the negotiations on electric vehicles fail, there are many items that can be negotiated in other fields, so we are still optimistic about the possibility of partnership between the two sides," Chosun cited an unnamed source familiar with negotiations between Hyundai and Apple as saying.
Kevin Yoo, an analyst at eBEST Investment & Securities, agrees with Chosun and believes that Apple and Kia are still open for plenty of other partnerships.
"The media report on Kia-Apple cooperation does not negate Hyundai's statement earlier this month, since the statement was limited to a certain item," said Kevin Yoo, an analyst at eBEST Investment & Securities.
In addition to the possibility of an actual electric vehicle partnership, the two companies are also reportedly talking about collaborating on solutions for "last mile" transportation methods.
Rumors have swirled about a potential partnership between Apple and Hyundai/Kia, going so far as to detail the company's plan to use the Kia plant in Georgia in the United States for production.
The iPhone maker plans to set up production with Kia and build Apple cars at the automaker's facility in Georgia, U.S., DongA Ilbo reported, without citing anyone. The companies may sign a deal on Feb. 17 and aim to introduce Apple cars in 2024, according to the newspaper, which said they have an initial target to produce 100,000 autos a year.
Neither Apple nor Hyundai/Kia responded to a request for comment for the report.