“We are not having talks with Apple on developing autonomous vehicles.”
With that, Hyundai Motor Group ended months of rumors and knocked $3 billion off its market value…but probably didn’t do much to affect the future of transportation. We’ll explain.
Last month, rumors emerged that Hyundai (or, more precisely, its Kia division) was in talks with Apple about developing autonomous, electric cars with the tech giant. The news sent Hyundai’s stock price soaring, and led to suggestions that Apple might make its self-imposed deadline of putting a so-called iCar on the road by 2024.
But this morning, in regulatory filings meant to help sort through rumors, Hyundai said the talks were dead.
“We are receiving requests for cooperation in joint development of autonomous electric vehicles from various companies, but they are at an early stage and nothing has been decided. We are not having talks with Apple on developing autonomous vehicles,” the statement read.
Hyundai Partnerships Rare
If you know Hyundai, the news is not terribly surprising. The company rarely partners with anyone, building in-house the sort of components most automakers buy from suppliers. It even makes its own steel.
Maintaining unusually tight control over its supply chain has paid dividends for the company. Even as a global shortage of microchips has forced automakers to shutter factories on several continents, Hyundai’s supply is ample. It expects no effect on production.
Strict business practices may also keep Hyundai from the potential distractions of an Apple deal. Apple’s Project Titan car effort is an on-again, off-again affair. It looked dead with nearly 200 staff on furlough before the Hyundai rumors.
Meanwhile, Hyundai has proceeded steadily with its electric car efforts, planning to release 23 electric car models in just the next four years.
To be clear, we do expect to see the automotive and technology worlds converge more in the near future. Car ownership could become a lot more like phone ownership, with car owners paying monthly subscription fees for car features they turn on and off through phone apps.
But Hyundai remains well-positioned even if today’s announcements deflated investor hopes for the quick appearance of an Apple car.
