Avoid mentioning cooperation with Apple on car production, Hyundai updates statement.

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Yesterday, there was a new development in the news about Apple’s car-making project. According to Korean media reports, Apple is teaming up with Hyundai, but Hyundai later changed its statement twice, proving that Apple’s car project is still in its early stages.

Yesterday morning, a TV program of The Korea Economic Daily reported that Hyundai had completed discussions with Apple on cooperation in automatic driving cars and was waiting for the chairman’s approval. Shortly afterwards, Hyundai issued a statement saying that “Hyundai is one of several automakers that Apple has approached in the early stages.” Several hours later, Hyundai removed Apple’s name from the statement.

In the latest version of the statement, Hyundai said that many companies have expressed their intention to cooperate with Hyundai in developing automatic electric cars, but as discussions are still in the preliminary stage, no decision has been made yet.

(Image source: AP)

After the news that Hyundai will collaborate with Apple was reported by Korean media, Hyundai’s stock price soared by 19%, marking the largest intraday surge in 33 years.

Apple has always had strict confidentiality requirements for its product plans. Regarding the car-making project, Lee Han-Joon, an analyst at KTB Investment&Securities Co., believes that Apple needs to cooperate with car manufacturers because it does not have the ability to manufacture cars and does not have a network for car sales. These are not achievable overnight, so Apple needs partners.

Bloomberg previously reported that although Apple has poached various executives and technical personnel from Tesla and other traditional car companies, its project is still in its early stages. It will take at least five years to launch a real car.

At the same time, considering the cost of car-making, Apple is likely to focus on developing the automatic driving system, abandon the vehicle production, and entrust it to partners. Hyundai’s move may further confirm this message.

🔗 Source: Bloomberg

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.