Apple Car May Initially Be Made in Small Numbers by LG Magna e-Powertrain

[MacRumors]

Apple is "very near" to signing an agreement with LG and Magna to build its long-rumored electric vehicle, according to The Korea Times.

LG Electronics has publicly undertaken a joint venture with the Canada-based automotive supplier Magna International, in a collaboration preliminarily titled "LG Magna e-Powertrain."

LG Magna e-Powertrain is currently valued at $1 billion and will manufacture electric motors, inverters and onboard chargers, following approval from LG shareholders. LG has previously supplied motors, battery packs, and other components for General Motors' Bolt EV and to Tesla, while Magna already produces automotive electronics.

Sources familiar with the matter, speaking to The Korea Times, said "LG Magna e-Powertrain is very near to signing contracts with Apple under which they could handle the initial volume production of Apple EVs. Contract details are still being discussed."

Although the joint venture lacks the production volume to manufacture a vehicle on a mass-scale comparable to other major automakers, Apple is apparently comfortable with LG Magna e-Powertrain's smaller capacity, from which it may be inferred that the company does not intend to produce the vehicle on the same large scale as other major automakers.

Apple's first-generation of electric vehicles is reportedly seen as an opportunity to evaluate the project's marketability, rather than a true mass-market vehicle, rendering it a more niche brand within the industry, at least initially. This is seemingly supported by Apple's ease with LG Magna e-Powertrain's smaller manufacturing capacity.

LG is already heavily integrated into Apple's supply chain for crucial products such as the iPhone, so the two companies are already very familiar with working with each other for production purposes and have an intertwined supply operation.

Because LG Group affiliates including LG Display, LG Chem, LG Energy Solution and LG Innotek are already included in Apple's parts supply chain, Apple doesn't have to worry about any supply chain issues. These LG affiliates are qualified to guarantee production yields and faster delivery of parts needed for Apple EVs.

Following LG's decision to shut down its unprofitable smartphone business, the company is said to be urgently responding to investors' growing calls to produce results from its vehicle components business. LG's exit from the smartphone industry is expected to boost its margins and it could re-invest the salvaged funds into its vehicle component businesses.

As the LG brand is not that strong in the global EV industry, it needs a pretty competitive reference to show off its transformation efforts. From that standpoint, LG's bet on the Apple EV is not that bad, and vice versa for Apple.

The monetary value of the partnership would purportedly not be significant for LG, but would rather yield benefits in establishing the reputation of LG Magna e-Powertrain as a contract auto manufacturer and vindicating the formation of LG Magna e-Powertrain.

Magna is based in Canada, but has previously said that it would be able to manufacture vehicles at a facility in the United States if contracted to do so, which may be a provision Apple is looking to include in its proposed agreement.

If the agreement is reached, the two parties will then jointly establish the precise details for the production of the Apple car, and a prototype will apparently be teased in early 2024.

Magna has been floated as a potential contractor for Apple's vehicle in the past, but this appears to be the most well-reasoned rumor surrounding a contract manufacturer for the project to date.

Article Link: Apple Car May Initially Be Made in Small Numbers by LG Magna e-Powertrain

 

[BvizioN]

I have the feeling this would end up like the rumoured Apple Television. By the time the product is finalised/manufactured could be early 30's and that would be very late, even by Apple's standards. Unless they bring some "Alien" technology to the table.

 

[nwcs]

While I’m curious about what kind of vehicle Apple will actually produce I don’t expect to see it in reality for years to come. If anything, it will probably be a California exclusive for a while to keep problems more under control. Regardless, though, I don’t anticipate buying an Apple Car at any point. Too much competition, lots of other price points, and very few will replace their cars every other year.

 

[Spock]

Maybe I will regret this like the old Apple MP3 player rumors but I don’t care.. Apple is not releasing a car.

 

[appleguy123]

This seems like a weird move. It seems like Apple gains little by giving up manufacturing control when the entire company and everything it owns is worth less than 1/1000 of Apple.

 

[jrath1]

Apple car rumored to be made by Tonka.

 

[DelayedGratificationGene]

Here we go....this one makes absolute perfect sense not like Kia etc....Apple Car!

 

[Mick-Mac]

The AppleCar will be a total game changer and Apple will have redefined the driving experience as only Apple can:
* When you turn the car on it'll make a really loud chime guaranteed to wake up the entire household at night.
* The windscreen will have a big notch right at eye level - it does reduce visibility a little, however you will be able to take selfies and FaceTime while driving!
* In a revolutionary departure, there won't be a steering wheel or accelerator pedal, instead you'll interact with an intuitive iPad-like touch-display. Just use natural scrolling to move in any direction. To get anywhere you simply scroll and scroll and scroll and scroll ... just like you're already used to on the iPad!
* The entire console will consist of just four poorly labeled, black buttons on a black background with no backlighting (taking cues from their highly successful AppleTV remote). This minimalist design philosophy makes for tremendous ease of use e.g. to turn on the heater you simultaneously depress the first and third buttons while shaking the fist on your other hand rapidly back and forth (sensors will successfully detect everything).
* The onboard display will use no color - it'll all be a low-contrast gray text on a gray background theme, just like in MacOS, because Apple believe old people shouldn't be driving (or using computers).
* The seatbelts will attach using magsafe connectors.
* The rims will be rectangular and attached using pentalobe nuts. Note however that the wheels themselves won't be included by default - they will cost an additional $4k. Alternatively, you should be able to buy rim adapters for most other tires out there.
* It will run carOS 1.0 - future versions will enable additional features like opening/closing passenger doors and windows, however Apple are particularly excited to announce carOS will ship with over a billion emojis.
* If you want to pop the hood to add wiper fluid you'll need to take the car to an authorized AppleCar repair shop, although intrepid road warriors may be able to get the job done with a heat gun and really big suction cup.
* Having your car keyed by vandals will be a thing of the past - the complete exterior of AppleCar will be made of the latest version of Gorilla Glass! You can also purchase from a vast array of 3rd party AppleCar protectors if you have any remaining concerns.
* It'll only be available to purchase on the AppleCar Store, where you can NOT test drive it - you can only buy it.
* And it'll cost you the full suite of all your redundant systems, specifically a kidney, a lung and a testicle/ovary (not sure if your first born also qualifies as redundant, Apple marketing will confirm at release time).

 

[DanTSX]

Maybe I will regret this like the old Apple MP3 player rumors but I don’t care.. Apple is not releasing a car.

I agree.

They will go down many paths. But it’s not happening.

Sorry folks. That’s just my $0.02 prediction, and I’m sticking to it.

 

[DanTSX]

Here we go....this one makes absolute perfect sense not like Kia etc....Apple Car!

How so? It’s a Korean (With some shared Austrian?) company with even less passenger owned and driven EV experience.

 

[now i see it]

LG Chem is well known around the world for producing some of the best 18650 lithium ion battery cells.
But other EV components? Not so much

 

[newyorksole]

LG >>>

Love that Apple has such a good relationship with them.

 

[DelayedGratificationGene]

Maybe I will regret this like the old Apple MP3 player rumors but I don’t care.. Apple is not releasing a car.

Do you look at all at the car related patents that have been granted to Apple for the last 8 years or so? I mean what better evidence is there? What is your reasoning sir?

 

[tubular]

The car stuff strikes me as the most far-from-their-mission exercise Apple does, except maybe for film production.

 

[whichweather]

There is an overall glut of OEMs trying to get into this space. Established firms are now realizing the threat of Tesla and the problem that may come from banning sales of new ICEs by 2030+. As such, there is a great deal of activity going on right now in the sector where a huge amount of customization exists already. I doubt that Apple will go into the heavy-duty hardware market that is literal, physical vehicles that need to survive snow, ice, heat and crashes. Look at any Apple product so far and you will see that what the company excels at is the experience of the product, even if, objectively, the product is the same or inferior to a competitor's. Yes, there are some symbiotic advantages of moving towards electric vehicles (ever increasing needs/opportunities/consumer expectations for software to make better use of the hardware, AR vision, mapping, appointment scheduling and battery management, to name a few), but Apple's added value will be best placed by working together with an OEM to create a special version of that car. Think of Nike+. Apple didn't start making its own shoes but rather helped make that shoe's experience better/fuller. So too will Apple work with another company or, á la Apple Watch, with multiple companies that customers would like to have relationships with.

 

[SuprUsrStan]

Finally, a rumor that actually makes sense. LG to supply the batteries while Magna Steyr is an actual third party car manufacturer. Magna Steyr is known to make good luxury cars, including the G Wagon, Z4/Supra, and BMW 5 series to name a few. It's the idea place to make an Apple Car IMO.

EDIT: Actually not Magna Steyr but Magna, the parent company apparlently. Additionally, there's apparently a JV in place between LG & Magna for electrified cars so at least that's already in place. https://www.globenewswire.com/news-...and-in-Powertrain-Electrification-Market.html

 

[chfilm]

I can't wait. The current offerings of electric cars are still way too flawed in some ways. Either it's the range, the design, the price or the autonomous driving. There is room for Apple to disrupt this industry and to offer a meaningful solution that does all these things right in one swift move. They need to hurry though, the competition is not as asleep as the phone competition was back in 2007, Tesla is way ahead, VW woke up and even Mercedes seems to have finally done a great job with the new EQS.
From Apple I want a Honda E design with better range and full autonomous driving in an affordable leasing model.

 

[longofest]

The AppleCar will be a total game changer and Apple will have redefined the driving experience as only Apple can:
* When you turn the car on it'll make a really loud chime guaranteed to wake up the entire household at night.
* The windscreen will have a big notch right at eye level - it does reduce visibility a little, however you will be able to take selfies and FaceTime while driving!
* In a revolutionary departure, there won't be a steering wheel or accelerator pedal, instead you'll interact with an intuitive iPad-like touch-display. Just use natural scrolling to move in any direction. To get anywhere you simply scroll and scroll and scroll and scroll ... just like you're already used to on the iPad!
* The entire console will consist of just four poorly labeled, black buttons on a black background with no backlighting (taking cues from their highly successful AppleTV remote). This minimalist design philosophy makes for tremendous ease of use e.g. to turn on the heater you simultaneously depress the first and third buttons while shaking the fist on your other hand rapidly back and forth (sensors will successfully detect everything).
* The onboard display will use no color - it'll all be a low-contrast gray text on a gray background theme, just like in MacOS, because Apple believe old people shouldn't be driving (or using computers).
* The seatbelts will attach using magsafe connectors.
* The rims will be rectangular and attached using pentalobe nuts. Note however that the wheels themselves won't be included by default - they will cost an additional $4k. Alternatively, you should be able to buy rim adapters for most other tires out there.
* It will run carOS 1.0 - future versions will enable additional features like opening/closing passenger doors and windows, however Apple are particularly excited to announce carOS will ship with over a billion emojis.
* If you want to pop the hood to add wiper fluid you'll need to take the car to an authorized AppleCar repair shop, although intrepid road warriors may be able to get the job done with a heat gun and really big suction cup.
* Having your car keyed by vandals will be a thing of the past - the complete exterior of AppleCar will be made of the latest version of Gorilla Glass! You can also purchase from a vast array of 3rd party AppleCar protectors if you have any remaining concerns.
* It'll only be available to purchase on the AppleCar Store, where you can NOT test drive it - you can only buy it.
* And it'll cost you the full suite of all your redundant systems, specifically a kidney, a lung and a testicle/ovary (not sure if your first born also qualifies as redundant, Apple marketing will confirm at release time).

You're forgetting the way you charge it.

 

[69Mustang]

This seems like a weird move. It seems like Apple gains little by giving up manufacturing control when the entire company and everything it owns is worth less than 1/1000 of Apple.

I don't understand what you're implying. Apple has never manufactured any products. Why would you think they'd manufacture a car? Manufacturing is cost intensive and usually low margin and volume dependent. Apple always contracts out the manufacturing process. Design and specification is their bailiwick. More curiously, what does the value of the contractor have to do with anything?

Finally, a rumor that actually makes sense. LG to supply the batteries while Magna Steyr is an actual third party car manufacturer. Magna Steyr is known to make good luxury cars, including the G Wagon, Z4/Supra, and BMW 5 series to name a few. It's the idea place to make an Apple Car IMO.

EDIT: Actually not Magna Steyr but Magna, the parent company apparlently. Additionally, there's apparently a JV in place between LG & Magna for electrified cars so at least that's already in place. https://www.globenewswire.com/news-...and-in-Powertrain-Electrification-Market.html

Did you not read the article? I ask because you're literally repeating everything that's already in the article. The article specifically details the joint venture from the second sentence and continues on throughout.

 

[macsimcon]

I don't think Apple will sell this car. I think they'll set up an autonomous fleet that you can call from your iPhone like an Uber. And I think Apple has the lobbying muscle to insure that Congress won't legalize autonomous vehicles until Apple's car is ready...and then miraculously Congress will change its mind. Of course, that's going to mean Elon has been lying to his customers for years about having a robotaxi...but they're used to being lied to

 

[69Mustang]

I don't think Apple will sell this car. I think they'll set up an autonomous fleet that you can call from your iPhone like an Uber. And I think Apple has the lobbying muscle to insure that Congress won't legalize autonomous vehicles until Apple's car is ready...and then miraculously Congress will change its mind. Of course, that's going to mean Elon has been lying to his customers for years about having a robotaxi...but they're used to being lied to

What's this lobbying muscle you speak of? Apple's lobbying efforts, though increased as of late, are miniscule in comparison to other industries like the automotive industry. Apple doesn't spend enough lobbying yet to be considered having muscle. It takes a lot to feed the beast we call Congress. I know you might be thinking, "well Apple has a lot, more than everybody else actually." Having a lot and giving a lot are two different things.

 

[Spock]

I agree.

They will go down many paths. But it’s not happening.

Sorry folks. That’s just my $0.02 prediction, and I’m sticking to it.

Do you look at all at the car related patents that have been granted to Apple for the last 8 years or so? I mean what better evidence is there? What is your reasoning sir?

Apple patents inventions that never see the light of day, just because they hold a patent on something doesn’t mean they will use it. I just don’t think Apple will dedicate the resources needed for car manufacturing, maintenance and sales. Not to mention the various regulations that they have to follow from state to state, country to country. They may be working on a proof of concept vehicle but I just can’t see an actual product. It doesn’t make sense to me. They won’t even be able to sell them direct to customers in most states.

 

[_Spinn_]

So that's why LG decided to exit the smartphone business 🤣

If this is true hopefully the car is more reliable than appliances from LG.

 

[Mr.PT]

So that's why LG decided to exit the smartphone business 🤣

If this is true hopefully the car is more reliable than appliances from LG.

It will have very predictable and reliable planned obsolescence...

 

[xnu]

Just a guess, but probably limited to ride sharing/taxi service on Apples campus and select urban areas to begin with. Apple will concentrate on that market before consumer purchases. Apple probably sees the best way to improve the automobile is to get rid of the human driver, that would be very Apple like.