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Apple To Invest $3.6 Billion In Kia Motors To Build An Apple Car: Report

by BuzzYoo
February 5, 2021
in News, Sci & Tech
2 min read
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Apple To Invest $3.6 Billion In Kia Motors To Build An Apple Car: Report

image: facebook

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Apple Inc. will invest 4 trillion won ($3.6 billion) in Kia Motors Corp. as part of a collaboration with the South Korean carmaker on making electric vehicles, the DongA Ilbo newspaper reported, without citing anyone.

The iPhone maker plans to set up production with Kia and build Apple cars at the automaker’s facility in Georgia, U.S., the newspaper said. 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.

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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.

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.

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.

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.

Other technology companies seeking to expand into cars have also sought partnerships. Taiwanese iPhone assembler Foxconn Technology Group said last month it is setting up a venture with Chinese carmaker Zhejiang Geely Holding Group Co. to provide production and consulting services to global automotive enterprises.

Source: Livemint

Also Read: Jeff Bezos to Step Down as Amazon CEO: Google CEO and Others Wish Him Luck

 

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