German Manager Magazin: Hyundai share rises sharply – Alleged discussions with Apple about e-car partnership but possibly price maintenance PR000458

The US technology company Applecould partner with the South Korean automaker Hyundai in the development and construction of a self-driving one Electric cars and choose from batteries for such vehicles. Talks about a cooperation are at an early stage and nothing has yet been decided, the South Korean company initially announced to the Bloomberg news agency. In recent statements to Bloomberg Hyundai then removed any reference to Apple and only spoke of various potential partners with whom they were talking about the development of autonomous e-cars.

Previously, the business newspaper Korea Economic Daily without giving sources in their TV station reports that Apple wants to work with Hyundai on the development and construction of a self-driving electric car. According to the report, development should take place in US factories. Apple is targeting the launch of the car in 2027.

In a registration application, Hyundai announced that there were “requests for cooperation in the joint development of autonomous electric vehicles from different companies”. Apple declined to comment. The IT group attaches great importance to secrecy for new products. It therefore seems questionable whether there will actually be a collaboration between the Koreans and Apple after Hyundai’s announcement.

Measurable effect on the stock market

However, the message had a measurable effect: the news on the stock exchange that Hyundai could be the partner in the possible Apple car project caused the share price to jump Hyundai share. The stock market value of the South Korean car maker recently increased by almost a quarter to the equivalent of around 42 billion euros.

For Apple, Hyundai would be an ideal partner because labor costs are lower than those of US manufacturers, said analyst Kevin Yoo from the financial services provider eBest. According to the assessment of automotive industry experts, however, it is unclear why the mass manufacturer Hyundai should produce Apple’s electric car, which will probably be more in the premium segment. Hyundai’s own luxury brand, Genesis, is achieving initial successes in the US market, but the Korean answer to Mercedes is only planning to start larger in Europe.

In the past few weeks there had been more rumors and speculation about an Apple car. In December it was said Apple wants to launch an autonomous vehicle as early as 2024. In this context there was also talk of a breakthrough in battery technology. The development of our own vehicle, which began a few years ago as part of the “Titan” project, has progressed accordingly.

Should Apple put such a car on the road with Hyundai, it would not only be a challenge for the US electric car maker Tesla. All major automakers are currently working on self-driving vehicles. Volkswagen, Daimler & Co. must fear that big technology companies like Apple, Google and Amazon getting left behind if they don’t succeed.

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