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The reports about the Apple Car just don't seem to let up. Now a new forecast has been published that says Renault has the potential to become Apple's new partner.
We have already read many different reports regarding the Apple Car. Now JP Morgan has also commented on it. According to the analysts, Apple has other options to find a manufacturing partner for the Apple Car. To be precise, Renault is currently considered a potential partner. It was previously reported that Apple is looking for several car manufacturers to manufacture the Apple Car, including Hyundai and Kia. But here the negotiations broken off, as Hyundai has publicly acknowledged the talks. Back to Renault. The carmaker already has an alliance with Nissan, with the two having been strategic partners since 1999 and controlling ten major brands - according to JP Morgan.
Apple Car: “A key element is production capacity”
This theoretically makes Renault a partner that could be more willing to Apple to collaborate with than Hyundai. Analysts believe there are several reasons why Renault could be attractive to Apple, including its existing "excellent track record in contract manufacturing and industrial collaboration." A key element is Renault's production capacity, which reportedly has over 1 million units of excess capacity in Europe alone. This "could clearly be utilized if Apple comes on board." That would be far more than the capacity mentioned in reports about the Apple-Hyundai partnership. These talks mentioned an initial capacity of 100,000 cars per year, with a maximum of 400,000 units annually. Furthermore, there is Apple's famous need for control. JP Morgan states:
Which car manufacturers will Apple choose?
Renault would most likely grant Apple considerable flexibility in choosing the specific supply chain for the project.
According to the study, this could lead to greater flexibility than with other OEMs. Other manufacturers are "more interested in selling Apple a specific, dedicated architecture, which in turn could limit Apple's software design for the car." The partnership between Renault and Nissan would also open up the possibility of global vehicle production. The analysis explains that the company has production connections in the key regions of Europe, China, North America, Latin America, and the wider Asian region, giving it considerable reach. Which automakers Apple will ultimately choose remains to be seen. But Renault is certainly likely to be an attractive candidate. (Photo by kolesinidimitresku / Bigstockphoto)
