While the announcements were more and more official regarding the arrival of an agreement between Hyundai and its subsidiary Kia, the discussions suddenly stopped, and Apple is therefore forced to look elsewhere.
The disagreement with the Korean group would be largely linked to the role that the latter would have played in this partnership. Hyundai did not want to become an Apple subcontractor “like Foxconn,” one of the company's executives announced to Reuters.This role of second knife did not please Hyundaiwhich seems to have preferred to withdraw from this affair and not to affiliate with Apple, while the Apple brand was on the verge of making a very substantial investment in Kia's capital to seal the agreement.
Ultimately, nothing went as planned for the Cupertino firm which, faced with repeated reluctance from Hyundai executives and negotiators, decided to end negotiations with the Korean manufacturer.
Apple therefore no longer has much choice,the apple brand must start from the beginning and find a new manufacturerwith whom to team up to make the car of tomorrow. While discussions with Hyundai had announced a date of 2024 for the production of the first model of this car, the end of negotiations and the return to square one could slow down a little more the production of the Apple car which could have a few years of delays.
And according to the latest information we have, Apple could turn to a long-time ally, BMW. The German manufacturer indeed maintains excellent relations with Apple, and it is today the only automobile brand to usethe digital key system offered by Apple in its iPhones.
Une Apple Car by Apple ?
The other idea that has gained ground since the end of negotiations with Hyundai is that Apple ends up producing its vehicle alone. The brand could in fact use subcontractors like Magna, which already works with Mercedes, BMW or other major automotive brands like Jaguar. The latter would have the advantage of being very content with this role of second hill which a leading manufacturer would have much more difficulty accepting.
The car manufacturers were not ready to welcome a new competitor into their factories, the latter could simply create its own, even if this strategy risks costing Apple very dearly, which on top of that, loses expertise and knowledge very important in this area, which significantly increases the percentage of risk of this project which could well turn into a fiasco.
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By : Keleops AG
