By Heekyong Yang and Stephen Nellis
SEOUL/SAN FRANCISCO (Reuters) – South Korea’s Hyundai Motor Co stated on Friday it was in early, unspecified talks with Apple (NASDAQ:) after a neighborhood broadcaster stated the pair had been discussing an electrical automotive and battery tieup, sending Hyundai shares surging 24%.
“Apple and Hyundai are in discussions however they’re at an early stage and nothing has been determined,” Hyundai stated in a press release with out saying what the talks had been about.
Apple declined to remark.
In a regulatory submitting issued later, the automaker stated it was “getting requests for cooperation on joint improvement of autonomous electrical automobiles from varied corporations”, with out figuring out any of them.
The feedback got here after Hyundai shares surged following a report by Korea Financial Each day TV that the U.S. tech big and Hyundai had been negotiating, and anticipated to develop batteries at U.S. factories operated by both Hyundai or its affiliate Kia Motors Corp. The broadcaster did not cite sources for its report.
Hyundai and Apple already work collectively on CarPlay, Apple’s software program for connecting iPhones to automobiles from a wide range of automakers.
In December, Reuters reported that the Apple is shifting ahead with self-driving automotive know-how and is aiming to as early as 2024 produce a passenger car that would embody its personal breakthrough battery know-how.
“Apple outsourcing automotive manufacturing to Hyundai is smart, as a result of (the Korean agency) is understood for high quality,” stated Jeong Yun-woo, a former designer at Hyundai.
“However, I am undecided whether or not it’s a good technique for automakers to be just like the Foxconn of Apple as automakers face dangers of shedding management to tech companies,” he added, referring to the Taiwanese contract producer’s provide contract with the iPhone maker.
Analysts stated a Hyundai-Apple partnership would assist Apple reduce prices to develop and make automobiles as a result of it will be capable of use Hyundai’s electrical automotive platform and amenities.
“Apple may see Hyundai as a great accomplice, as a result of in terms of legacy U.S. automakers, all of them have robust union, which Apple want to keep away from,” stated Kevin Yoo, an analyst at eBEST Funding & Securities.
“Furthermore, their (legacy U.S. automakers) labour price is far larger than that of Hyundai, which frequently performs a giant position in terms of automotive manufacturing.”
Shares in Hyundai Motor jumped as a lot as 23.8%, hitting a greater than seven-year excessive of 255,000 received, whereas auto elements maker Hyundai Mobis Co Ltd jumped practically 30%. Kia shares jumped some 14%.
The broader market was up 2.8% as of 0336 GMT.
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