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Rumors that the Apple Car could be developed in collaboration with Hyundai Motor have been documented several times. But the car manufacturer does not seem to be entirely convinced about the deal.
According to a new Reuters report, Hyundai executives are divided over the prospect of an Apple Car deal. In fact, they fear that the company could become a contract manufacturer for another brand. report highlighted:
Hyundai Motor Group executives are divided over a possible tie-up with Apple Inc., with some raising concerns about becoming a contract manufacturer for the U.S. tech giant, clouding prospects of a deal.
Apple Car: Hyundai is not Foxconn
According to the report, Hyundai recently announced that it is in talks with Apple about a possible collaboration. Recent reports have suggested that Hyundai may hand over the Apple Car to Kia to manufacture the vehicle in the US. However, some executives are not convinced:
We're racking our brains over how to do it—whether it's even a good idea to do it or not," explained a Hyundai executive who is familiar with the internal discussions about the collaboration with Apple. "We're not a company that makes cars for others. It's not as if collaborating with Apple would always produce great results.
The report notes that Hyundai is "traditionally known for its reluctance to collaborate with outsiders" and keeps much of its production in-house. Talks were originally said to have begun in 2018, but Hyundai's philosophy is hampering the project. It continues:
Apple Car: Main components to come from Apple
Apple is the boss. They do their marketing, they make their products, they make their brand. Hyundai is also the boss. That doesn't really work. However, the South Korean carmaker has excess capacity. Contract manufacturing would help it secure production volumes.
A person familiar with the matter reportedly noted that Apple would prefer to source the major components of its own design, including the frame, body, powertrain and more, with only final assembly being done by Kia or Hyundai in the United States - not a particularly attractive deal for the automaker. (Photo by Rawpixel.com / Bigstockphoto)
