Kia Corp. Regarded as a Better Apple Partner
Skepticism is spreading over cooperation between Hyundai Motor Co. and Apple in the latter’s electric vehicle project. Hyundai Motor is concerned that it may lose its lead in self-driving electric vehicles by becoming a subcontractor for Apple.
According to foreign media reports, voices were raised within Hyundai Motor's management about whether cooperation with Apple is the right direction for the Korean carmaker. "Cooperation with Apple does not always produce good results," a Hyundai Motor executive was quoted as saying.
Hyundai Motor and Apple recently discussed cooperation in the electric vehicle sector. Their discussion on forging a partnership dates back to 2018 when Apple restarted the Titan Project to develop self-driving cars. However, the discussion failed to make progress as Hyundai Motor hesitated.
Hyundai Motor’s concern is that its own brand may be undermined by the Apple car. Hyundai Motor is highly likely to become Apple's original equipment manufacturing (OEM) company. This is because Apple's brand power is that big in the world. Yet Hyundai Motor has to promote the Genesis and Ioniq brands.
Some industry sources say that it is impossible for the two companies to cooperate as confusion can arise over Hyundai Motor's brand positioning and pricing.
Many experts forecast that cooperation between the two companies will create synergies. The combination of Hyundai's electric vehicle platform and Apple's self-driving technology will enhance the competitiveness of not only the Apple Car but Hyundai's electric vehicles.
Against this backdrop, Hyundai Motor Group is thinking of matching Kia Corp., not Hyundai Motor, as a partner for Apple. That is to say, Kia's Georgia plant can produce the Apple car for the U.S. market. If it becomes a reality, Hyundai Motor Group will be able to kill two birds with one stone. It will be able to promote Hyundai Motor brands without worrying about the Apple car eclipsing them.