South Korean automaker Hyundai Motor Company is reportedly in early discussions with American multinational conglomerate Apple Inc. of teaming up for producing battery and electric vehicles. Hyundai shares also witnessed a 24% surge following the recent reports.
The Seoul-based automobile manufacturer stated in a regulatory filing to have received several requests for cooperation on joint development venture of autonomous electric vehicles from different companies. However, Hyundai did not identify any of them while Apple declined to comment on the recent developments.
For those uninitiated, Apple had recently disclosed that it is moving forward with its autonomous car technology and intends to produce a passenger vehicle by 2024, which would be equipped with its own advanced battery technology.
It is also worth noting that the Silicon Valley tech giant and Hyundai have been working together on developing as well as improving Apple CarPlay, a software for connecting iPhones to automobiles from several vehicle manufacturers.
Rumors have it that the South Korean automaker and Apple are in early talks of developing batteries for electric vehicles at U.S. factories which are operated by both Hyundai and its affiliate Kia Motors Corporation.
Experts tracking the development claimed that Apple outsourcing vehicle production to Hyundai is plausible, since the South Korean company is known for producing high quality automobiles.
Moreover, the partnership might also help Apple to reduce development costs since it would be using Hyundai’s production facilities as well as its electric car platform. Experts further claimed that other leading U.S. automakers are known to have a strong union as well as high labor costs, which often plays a key role when it comes to vehicle manufacturing.
Hyundai’s shares surged by 23.8%, reaching a seven-year high of USD 233 (255,000 won) following the alleged talks with Apple, sources confirmed. Shares of Hyundai Mobis Co. Ltd., a South Korean vehicle parts manufacturer, also jumped by 30% while Kia’s shares recorded a 14% surge.
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