Kia Motors Corp. jumped to 14.5% after a local media reported Apple Inc. will invest 4 trillion won ($ 3.6 billion) as part of a collaboration with the South Korean vehicle manufacturer in the manufacture of electric vehicles.
The iPhone maker plans to set up production with Kia and build Apple cars at the carmaker’s facilities in Georgia, USA. DongA Ilbo reported, without citing anyone. The companies could sign an agreement on Feb. 17 and aim to introduce Apple cars by 2024, according to the newspaper, which claims they have the initial goal of producing 100,000 cars a year.
A representative of the vehicle manufacturer in Seoul and an Apple representative in California declined to comment.
Apple reports that they are considering expanding into vehicles have sparked speculation about potential manufacturing partners. The technology development work of the technology giant is still in an early stage and the company will do at least Half a decade to launch a stand-alone EV, people with knowledge of the efforts have told Bloomberg News. This suggests that the company is in no hurry with collaboration decisions.
Last month, Hyundai Motor Co., a subsidiary of Kia, withdrew from a statement saying it was in talks with Apple, reviewing it to say that it had only been contacted by potential partners for the development of autonomous electric vehicles. The news boosted Hyundai shares by almost 20% a day. Kia shares are now the highest since 1997.
An electric Apple car would rival the vehicles Tesla Inc. and companies such as Lucid Motors and China’s Novelty Nio Inc., as well as established manufacturers such as Daimler AG and Volkswagen AG. Installing a car plant can cost billions of dollars and can take years, probably the reason Apple talks to potential partners.
Other technology companies that want to expand into cars have also sought collaborations. Taiwanese iPhone assembler Foxconn Technology Group said last month it is establish a company with Chinese vehicle manufacturer Zhejiang Geely Holding Group Co. will provide production and consulting services to global automotive companies.
– With the assistance of Mark Gurman
(Updates with Kia’s response to the third paragraph.)