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Renowned TF Securities analyst Ming-Chi Kuo has once again spoken out on the subject of the Apple Car, stating that Apple will work closely with Hyundai on an initial model that could lead to new vehicles built in collaboration with General Motors and European manufacturer PSA.
In a note to investors, Kuo confirmed recent reports of a potential partnership with Hyundai, stating that the first Apple Car will be built on the company's E-GMP electric vehicle platform. Hyundai Mobis will take the lead in designing and producing the components, while Hyundai subsidiary Kia will handle production in the US.
Apple Car: Up to 500 KM range?
Unveiled in December, the E-GMP is a dedicated platform for battery-electric vehicles (BEVs) that consists of up to two motors, a five-link rear suspension, an integrated drive axle, battery cells, a charging system, and other chassis components. According to the company, the system has a maximum range of about 310 miles (almost 500 KM) on a full charge and can be charged to 80 % within 18 minutes. Acceleration for a high-performance configuration is specified as 0-60 mph (0-100 km/h) in under 3.5 seconds. The top speed is said to be 160 mph (almost 260 km/h). Hyundai intends to use the E-GMP as the basis for a range of models to be launched this year under the two flagship brands. As in the past, Kuo suspects that Apple will outsource the manufacturing of parts and assembly to established automakers.
Apple is dependent on other car manufacturers
EVs contain about 40 to 50 times more parts than a smartphone, the analyst said, suggesting that Apple rely on the resources of existing automakers. The tech giant will not be able to build its own automotive supply chain - as it has done for devices such as the iPhone, iPad and Apple Watch - without suffering significant delays. Kuo explains:
Apple's close collaboration with current automakers (Hyundai Group, GM and PSA), who have extensive experience in development, production and qualification, will significantly shorten the development time of the Apple Car and create a time-to-market advantage. We believe Apple will leverage the resources of current automakers and focus on self-driving hardware and software, semiconductors, battery-related technologies, form factor and interior designs, innovative user experience and integration with the existing Apple ecosystem.
Given a longer development time, higher validation requirements, a more complex supply chain, and "very different" sales and customer service, Kuo doesn't expect a so-called "Apple Car" to hit the streets until 2025 at the earliest. That date is still considered aggressive for a technology company making its first foray into a new industry.
Apple Car: Kuo contradicts rumors surrounding Foxconn
Apple will likely market the vehicle as a "very high-end" model, meaning "significantly higher" than a standard electric vehicle. If the first Apple Car proves successful, Apple could seek regional partners with GM and PSA, which produce cars under a variety of brands such as Peugeot, Citroen, and Opel. Kuo refuted rumors that long-time manufacturing partner Hon Hai (Foxconn), which is entering the electric car business with its MIH platform, will secure Apple Car orders for assembly or chassis. It is also unlikely that Pan-International, Eson, Long Time Tech, and G-Tech will enter the supply chain, the analyst said. Since the beginning of January, reports surrounding the Apple Car have increased significantly. Most of the rumors contradict each other. However, because Ming-Chi Kuo has a strong track record, his statements regarding the Apple Car are taken more seriously. Nevertheless, as always, the whole thing should be viewed with a healthy dose of skepticism. (Photo by Andrey Suslov / Bigstockphoto)
