Hyundai is fighting the dangers of Apple electric cars
Hyundai is fighting the dangers of Apple electric cars

Hyundai executives disagree about the potential partnership with Apple and its significance.

Some fear Microsoft will become a contract manufacturer with the US tech giant, dwarfing the deal's prospects.

Hyundai Motor said earlier last month that it was in preliminary negotiations with Apple, but did not disclose any details. And local media said: The two companies are discussing cooperation between electric vehicles and batteries.

Apple has never admitted to negotiating with the automakers to make cars, and it is not clear if these negotiations are ongoing.

IPhone manufacturers generally insist on the strict confidentiality of their partners and potential suppliers in order to protect any unannounced future plans or products.

We don't see how to do this, said a recent executive who understands the internal debate about partnering with Apple.

"We are not a company that makes cars for others, and working with Apple will not always lead to fruitful results," he added.

Little is known about the dialogue between the two companies. However, options discussed include Hyundai or Kia, automakers designed by Apple and sold under its strong branding everywhere.

Traditionally, Hyundai Motor was famous for its reluctance to cooperate with the outside world as it manufactures engines and transmissions, and even manufactures its own internal steel. As part of a vertically integrated supply chain, it is the second largest conglomerate in South Korea.

Although Kia and Hyundai stocks have increased due to negotiations, people are fiercely opposed to the idea of ​​becoming a contractor to Apple, which could derail any deal with the US giant.

Apple and Hyundai Motor began discussing the auto partnership in 2018 when Volkswagen CEO Alexander Hitzinger took over the management of Apple's auto business.

The reluctance of South Korean automakers to partner with third parties has hindered this progress as it is difficult for Hyundai to get up and running.

The South Korean company may need to replace some executives to avoid cultural conflicts by partnering with Apple.

Apple prefers to sour the key parts of its design - tires, chassis and other parts - from various locations and relies on Hyundai or Kia for final assembly. Apple hopes to manufacture it in the United States.

The organization is concerned Hyundai will simply become the maker of Apple's contracts, which will not help Hyundai create a more distinctive image of its Genesis brand.

Kia's development of electric vehicles is also growing rapidly, and the Georgia plant in the USA has manufacturing capacity.

Both companies can play a role in a variety of areas, including access to advanced EV platforms and their suppliers (such as battery manufacturers), as well as access to autonomous vehicles and software from Apple.

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