Report Claims Apple to Invest $3.6 Billion in Kia for Apple Car Production

The rumors about Apple partnering with Hyundai or its subsidiary Kia keep on coming thick and fast. The latest report from a Korean media outlet claims that Apple will be investing $3.6 billion in Kia Motors for Apple Car production.

Kia will be producing the Apple Car at its factory in Georgia, the United States from 2024. The deal between the two companies is expected to be signed on February 17, with the initial production target being set to 100,000 units yearly.

The iPhone maker plans to set up production with Kia and build Apple cars at the automaker’s facility in Georgia, U.S., DongA Ilbo reported, without citing anyone. The companies may sign a deal on Feb. 17 and aim to introduce Apple cars in 2024, according to the newspaper, which said they have an initial target to produce 100,000 autos a year.

Hyundai had initially confirmed that it was in talks with Apple over Apple Car production. However, reports soon emerged of Hyundai executives being in two minds about this collaboration with Apple as it could hurt the company’s brand image in the long term. It was then reported that Hyundai’s subsidiary Kia could end up manufacturing the Apple Car in the United States.

Apple will seemingly use Hyundai’s new E-GMP platform for its first electric vehicle that was unveiled in December last year. The same platform will also form the base of all upcoming EVs from Hyundai and Kia in the foreseeable future. The E-GMP platform is rated to offer a range of 310 miles and could charge from 0-80% in just 18 minutes.

Reputed Apple analyst Ming-Chi Kuo had also shared his thoughts on the Apple Car in an investor note yesterday. He claimed that Apple is unlikely to use Foxconn as an assembly partner due to the complexity involved in building a vehicle and the latter’s relative inexperience in this field. Apple also plans on using multiple suppliers for manufacturing and assembly of Apple Car so as to diversify its supply chain.

[Source DongA Ilbo, Via Bloomberg]

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