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2021-02-03

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Apple to Invest $3.6 Billion in Kia to Make EVs, DongA Says

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The companies may sign a deal on Feb. 17 and aim to introduce Apple cars in 2024, according to the report, which said they have an initial target to produce 100,000 autos a year.</p>\n<p>Reports of Apple considering expanding into vehicles have led to speculation on potential manufacturing partners. The technology giant’s car-development work is still at an early stage, and the company will take at least half a decade to launch an autonomous EV, people with knowledge of the efforts have told Bloomberg News. That suggests the company isn’t in a hurry with partnership decisions.</p>\n<p>Shares of Kia jumped as much as 14% Wednesday and are trading at the highest since 1997. A representative for the carmaker in Seoul and an Apple representative in California declined to comment on the report.</p>\n<p>Last month, Hyundai Motor Co., an affiliate of Kia, backed away from a statement that said it was in talks with Apple, revising it to say only it had been contacted by potential partners for the development of autonomous EVs.</p>\n<p>An electric Apple car would rival vehicles from Tesla Inc. and companies such as upstart Lucid Motors and established manufacturers Daimler AG and Volkswagen AG. Setting up a car plant can cost billions of dollars and take years, likely the reason why Apple is talking to potential partners.</p>\n<p>Other technology companies seeking to expand into cars have also sought partnerships. 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The companies may sign a deal on Feb. 17 and aim to introduce Apple cars in 2024, according to the report, which said they have an initial target to produce 100,000 autos a year.\nReports of Apple considering expanding into vehicles have led to speculation on potential manufacturing partners. The technology giant’s car-development work is still at an early stage, and the company will take at least half a decade to launch an autonomous EV, people with knowledge of the efforts have told Bloomberg News. That suggests the company isn’t in a hurry with partnership decisions.\nShares of Kia jumped as much as 14% Wednesday and are trading at the highest since 1997. A representative for the carmaker in Seoul and an Apple representative in California declined to comment on the report.\nLast month, Hyundai Motor Co., an affiliate of Kia, backed away from a statement that said it was in talks with Apple, revising it to say only it had been contacted by potential partners for the development of autonomous EVs.\nAn electric Apple car would rival vehicles from Tesla Inc. and companies such as upstart Lucid Motors and established manufacturers Daimler AG and Volkswagen AG. Setting up a car plant can cost billions of dollars and take years, likely the reason why Apple is talking to potential partners.\nOther technology companies seeking to expand into cars have also sought partnerships. 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