Hyundai Motor Co Group executives are split in their relationship with Apple Inc., some raising concerns about becoming a contract manufacturer for the U.S. tech giant and lowering prospects for a deal. Hyundai said earlier this month it was preliminary talk with Apple, but gave no details.
“We’re thinking about how to do it, whether it’s okay to do it or not,” the Hyundai chief said, aware of internal discussions with Apple about the relationship. “We are not a car manufacturer for others. Working with Apple doesn’t always seem to work. ”
Several details are known about the negotiations between the two companies. But people close to the debate point out that Hyundai or Kia is operating as a carmaker that is manufactured by Apple and sold under its strong, ubiquitous brand.
The iPhone maker typically insists on strict secrecy from its potential partners and suppliers about future plans or unreleased products.
Apple and Hyundai first started talks over a car partnership in 2018, when Apple’s effort, known as “Project Titan,” was headed by Alexander Hitzinger, who is now a Volkswagen executive, said a person familiar with the matter. But progress was hampered by the South Korean automaker’s reluctance to work with outsiders, a local source said.
Nevertheless, there are broad areas where the two companies could benefit, including access to Hyundai’s electric car platform and its suppliers, such as battery makers, as well as access to Apple’s autonomous vehicle stack and software, said Park Chul-wan, a South Korean battery expert and a professor at Seojeong University. “Hyundai would be more than just a Foxconn,” he added.
