Hyundai/Kia : Apple Car :: Cingular/AT&T : iPhone
Forget smoke, the rumors are a ball of fire at this point
Several years ago, there was some smoke around the idea of an Apple Car. Then it dissipated. Then it came back. Then the smoke was blown away again. More recently, stronger smoke signals have started to emerge, starting just over a month ago. And then a fire broke out a couple days ago. Then the past 24-hours has seen a full-blown forest fire seemingly ablaze.
Specifically, yesterday came word that Apple might invest a very-specific $3.6B into Hyundai/Kia as part of the tie-up to help make the Apple Car. Today, Phil LeBeau and Meghan Reeder for CNBC got more:
After years of speculation that it will eventually get into the auto business with its own vehicle, Apple is close to finalizing a deal with Hyundai-Kia to manufacture an Apple-branded autonomous electric vehicle at the Kia assembly plant in West Point, Georgia according to multiple sources who briefed CNBC on the plan.
The so-called “Apple Car,” which is being developed by a team at Apple, is tentatively scheduled to go into production in 2024, though people familiar with the talks between Apple and Hyundai-Kia say the eventual rollout could be pushed back.
That’s a very specific plant with a fairly specific date. But why — why would Apple do this?
Sources familiar with Apple’s interest in working with Hyundai say the tech giant wants to build the “Apple Car” in North America with an established automaker willing to allow Apple to control the software and hardware that will go into the vehicle.
In other words, this will be an “Apple Car,” not a Kia model featuring Apple software.
Whereas I was a bit skeptical at first about the Hyundai/Kia partnership a few days ago, I eventually landed at why this makes sense. This is akin to Apple’s original AT&T partnership for the iPhone.
At the time AT&T wasn’t the AT&T we know today. Hell, it wasn’t even called AT&T. “Cingular” was struggling in the market against Verizon. And Apple needed a carrier partner. They couldn’t build an entire cellular network, as much as they might like to (and, in fact, they still haven’t). Verizon said ‘no’. So Cingular it was.
The iPhone changed many equations. But it was a leap of faith on both sides at the time. This is similar — well, both sides hope!¹
And, oh yeah, Hyundai/Kia, like Cingular back then, is going to let Apple do what they want to do branding-wise. This will absolutely be an ‘Apple Car’ if and when it arrives. Speaking of, another interesting tidbit:
“The first Apple Cars will not be designed to have a driver,” said one source with knowledge of the current plan. “These will be autonomous, electric vehicles designed to operate without a driver and focused on the last mile.” That could mean Apple cars, at least initially, could focus on package food delivery operations and firms incorporating robotaxis.
Again, that makes some sense if you’re trying to hit a timetable that is less than a decade from now to have something on the road.
Did I mention that Apple quietly hired the former Porsche chassis Vice President recently? What about the fact that the supply chains are also now corroborating Apple’s intention to use Hyundai’s E-GMP Battery Electric Platform for the car. Again, FIRE!!!
Update 2/7/21: Hyundai is now saying the talks with Apple are not happening. Well, that’s not exactly what they’re saying. Per Sohee Kim:
Hyundai’s statement comes a month after the company muddled its message around the highly anticipated Apple vehicle, first confirming local Korean media reports that it was in discussions with the tech giant, then revising its statement twice in a matter of hours. It finally said it had received requests for potential cooperation from a number of companies.
Which reads a lot like:
Apple: You need to shut up and issue a statement.Hyundai: But we already did and our our stock…Apple: Issue the statement.Hyundai issues the second statement.
¹ No, the analogy isn’t perfect, of course. For one thing, Cingular/AT&T didn’t have to make/assemble the iPhone, just provide it with wireless service. (In that regard, Hyundai/Kia may be more akin to Foxconn.) But I think it holds up in that these two partnerships are the single most important part of the equation for both products. There would be no iPhone without Cingular/AT&T (or which ever carrier they eventually convinced to partner with them). And there will be no Apple Car without Hyundai/Kia (or whatever carmaker they eventually convince to partner with them).
