Apple to Invest $3,6 Billion in Kia for Apple Car

by Feb 3, 2021All News, Kia, Slider0 comments

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Apple’s car soap opera were around for a few years, but after the year started with some informations that said Apple and Hyundai were in conversations to cooperate and built the Apple car. Now we have noticed thanks to DongA Ilbo south korean newspaper that Apple will invest $3,6 Billion finally in Kia to partner with them and built Apple’s Car in Kia Motors Manufacturing Georgia plant by 2024.

Rumours about Apple’s joint venture with Hyundai Motor Group began earlier 2021, and according to the source, what Apple have seen in Hyundai is the best partner for making its electric vehicle. They have analyzed it and discover that it has its own electric vehicle platform (E-GMP), has a production facility in the United States, and has both the ability and requirements to actually produce new cars in accordance with the planned period (2024).

But not all were happy as some executives were concerned that Hyundai Motor Group’s role as a subcontractor (originally Hyundai was the selected brand and the executives were concerned about the launch of Ioniq sub-brand and Apple car will turn Hyundai in a subcontractor, that could be the reason on why the project was transferred to Kia).

However, weight is placed on the opinion that it will have a positive impact on preoccupying the future electric vehicle market and securing leadership. It is analyzed that collaboration with Apple, which has a large number of loyal customers, can have a positive effect on the image of Hyundai Motor Group in terms of symbolism, and that the image of Hyundai Motor Group’s electric vehicle brand can be changed depending on the completeness of Apple car products.

Hyundai Motor Group’s E-GMP modular platform, to be used by Apple’s car

Overall, Kia and Apple plan to sign a formal contract for Apple car production this month. Practical coordination for a formal contract has been underway since last month, and a specific contract schedule has been set. Initially, the contract date was set at the beginning of February, but it was delayed once and the schedule was changed to February 17. However, it is reported that the contract signature may change depending on the internal circumstances of each company. It is said that Hyundai Motor Group Chairman Eui-Sun Chung, will attend the contract ceremony. Recently, Chairman Chung was in Singapore and could have met a senior Apple official, but it’s not confirmed.

Apple is planning to invest 4 trillion won in Kia. With the aim of launching in 2024, the number of Apple cars produced by Kia is initially around 100,000 units per year and can be expanded to a maximum of 400,000 units. With Kia leading vehicle production in the Apple Car Project, attention is also being drawn to the role of Hyundai Glovis. An industry official said, “Glovis, which has several subsidiaries in the US, will play a significant role in the Apple Car business.”

Glovis operates 4 subsidiaries and 4 offices in the United States, including Glovis America and Kia Motors Manufacturing Georgia, Hyundai Motor Alabama subsidiaries, and GET subsidiary of local land transportation. In addition to the main business, logistics, there is a possibility of promoting electric vehicle related businesses.

Written by Jose Antonio López

Passionated about Korean cars from Hyundai, Kia & Genesis. Photographer. I love being in nature, hiking. Tech lover.

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