Kia Motors Corp. jumped to 14.5% after a local press reported that Apple Inc. will invest 4 trillion won ($ 3.6 billion) as part of a collaboration with the South Korean carmaker to manufacture electric vehicles.
The iPhone maker plans to set up production with Kia and build Apple cars at the carmaker’s unit in Georgia, USA. DongA Ilbo reported, without citing anyone. The companies could sign an agreement on February 17 and aim to introduce Apple cars in 2024, according to the newspaper, which said they have an initial goal of producing 100,000 cars a year.
A representative of the car manufacturer in Seoul and an Apple representative in California declined to comment.
Reports about Apple planning to expand into vehicles have led to speculation about potential production partners. The development of the technology giant’s cars is still in its infancy, and the company will take at least Half a decade to launch a standalone EV, Bloomberg News told people with knowledge of the effort. This suggests that the company is not in a hurry with partnership decisions.
Last month, Hyundai Motor Co., a Kia affiliate, dropped a statement saying it was in talks with Apple. reviewing it to say only that she was contacted by potential partners for the development of autonomous EVs. The news put Hyundai shares up nearly 20% that day. Kia shares are now at their highest level since 1997.
An Apple electric car would rival the vehicles from Tesla Inc. and companies such as the upcoming Lucid Motors and China Nio Inc., as well as well-known manufacturers such as Daimler AG and Volkswagen AG. Setting up a car factory can cost billions of dollars and take years, probably the reason Apple is talking to potential partners.
Other technology companies looking to expand into automobiles have also sought partnerships. Taiwanese iPhone assembler Foxconn Technology Group said last month that it is setting up a business with the Chinese car 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 in the third paragraph.)