The list of car manufacturers that may partner with Apple to work on electric cars is shrinking. Hyundai and Kia reportedly canceled their agreement to develop the electric and autonomous vehicle owned by Apple, iCar.
Quoting from CNN, Tuesday (9/2/2021) when asked for confirmation, Apple refused to provide information. It was not immediately clear to what extent the company was developing the so-called Project Titan, which was billed as a covert attempt to get into the auto business.
The refusal from Hyundai and Kia followed media reports suggesting the two were close to signing a deal to produce electric cars for Apple, which is likely in the US state of Georgia. However, shares of Hyundai and Kia fell by 6% and 15%, respectively.
Though the goal of Hyundai and Kia is to enhance their reputation by partnering with Apple. So that their factory will also produce more cars. However, it is unclear whether the cooperation will place the two car manufacturers at the top of the automotive industry.
Apple Needs Strong Partners
Automotive experts say if Apple wants to enter the auto industry, it needs a strong partner. Getting into the world of the auto industry the investment costs, expertise and labor required to produce millions of cars a year would be difficult for any company. Even for wealthy companies like Apple.
Recently, Ford (F), General Motors (GM), Tesla (TSLA), Honda (HMC), Nissan, Stellantis, Fiat Chrysler (FCAU) and PSA (PUGOY) were predicted by analysts as potential partners of Apple.
However, the question is whether Apple is willing to share its technological expertise with car manufacturers. Where car manufacturers will provide a big advantage in producing electric and autonomous vehicles. Of course, it integrates seamlessly with 5G technology and cloud computing.
Analysts predict that Apple will not share its technological expertise or profits with carmakers.
This is already the case with Pegatron and Foxconn, which assembled iPhones for Apple however, did not reap huge financial benefits. Given that, it is certainly a matter of concern for car manufacturers if they will cooperate with Apple.
Read now: Hyundai Calls off Tie-Up With Apple