Apple Negotiating with Hyundai for Apple Car Production [Updated x2]

[rp2011]

Agree with your points, but should it be Hyundai?

Absolutely. Why not? They are a diverse conglomerate that manufactures cars, ships, railway vehicles, factory equipment, defense systems, electronics. among other things.
They are also in petroleum refining so they may see the writing on the wall and a need for further diversification.
I can also see how some of their expertise in some of these other industries could benefit Apple.

 

[sirozha]

Removed

 

[0423MAC]

"Due to the enormous cost?"

Apple is worth 25 Hyundai!

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It goes beyond the enormous costs involved with starting an endeavor like this on your own. It took Tesla nearly 18 years to get to this point and faced enormous challenges to scale. Apple has a 2+ trillion dollar market cap because they have a refined process without enormous unnecessary risks involved.

If "AppleCar by Hyundai" is successful I would assume Apple will re-evaluate a few generations down the line to start slowly taking more control of every aspect of building the vehicles. It's just smart business to do it this way and proven to be effective in pretty much the entire history of the company. Dating back to the beginning to where we currently are with Apple Silicon Macs and iOS/iPad devices.

Those questioning "Why Hyundai" are simply either out of touch with what it takes to make cars or put way too much of an emphasis on perceived image of the company behind the process.

 

[sideshowuniqueuser]

I already stated in my comment that VW Group has the manufacturing capacity. Same for BMW and Merc. Not really sure why you're restating it. I also further clarified that those three would probably be less likely than Hyundai to agree to low margin contract manufacturing.

Hyundai used to have that reputation. True. Not so much anymore. Doesn't matter anyway because Apple doesn't care about a contract manufacturers' prestige. Foxconn pumps out commodity $250 laptops just like pump out $2500 Macs for Apple. Hyundai, in this instance would be nothing more than a contract manufacturer. Apple would need a low cost, high quality, high dependability contract manufacturer, not a co-branding partner. Hyundai fit's that bill better than any of the others. Their quality and dependability numbers are higher than all 3 of the others.

People don't view Macs as "Foxconns", Foxconn is just a factory. But people do view Hyundais as Hyundais, and the only people who don't view Hyundais as cheap, are people hunting for a bargain and trying to pretend to themselves that the stigma has gone.

But maybe you are right, and people will still see Apple cars as Apple cars and won't care which factory they are made in.

 

[Toratek]

Hyundai has the most vertically integrated car plant in the world in Busan. They literally make everything in the cars, from carpet and seat coverings to engines and transmissions. It is a five mile long behemoth which has literal raw materials coming in the west end, and puts out a car from three lines about every 15 seconds from the east end. (at least when I toured it a few years ago). Hundreds of people drive the cars into massive parking lots and stage them for transport.

They even build the massive RoRo ships that transport the cars across oceans.

In a lot of ways they are the diametric opposite of Apple, which makes virtually nothing itself.

 

[Xnykr35]

If it is anything like the Genesis- I am in!

 

[v3rlon]

This is absolute baloney. Why post this garbage?

Kia cars have much more premium materials than their sister models made by Hyundai.

Genesis is a premium brand for Hyundai, but Kia is a completely different company and their cars are superior to those made by Hyundai. Kia is not a Hyundai brand or Hyundai subsidiary even though Hyundai owns a percentage of Kia and the leadership of both companies are related.

Hyundai and Kia have two different design teams that have completely independent design philosophies. Kia uses Hyundai’s drivetrains (while tuning them differently), but the rest of the car is completely different, including infotainment. If anything, you can consider Kia a more premium brand based on Hyundai. For example, Kia K900 is a direct competitor of the Genesis sedan, and is a luxury car, much more premium than anything branded as Hyundai.

More different than I thought, but less different than you think. I'd read they were the same company, but you are correct that this is not true.

That said, they share platforms and parts, so you can understand (or should be able to) how that would be easy to believe.

Kia may have premium parts, but the Stinger doesn't seem to hold up as well in the "after a year" reviews as other premium brands.

 

[v3rlon]

One of our software engineers has a first year Stinger. So far, 58,000 miles in, he likes it. My brother's 3 series BMW was a huge disappointment at year 4.

Everyone makes both good and bad. One data point is not enough. I love my 3-series. It is popular for a reason.
I read multiple reviews on the Stinger as it was one of the few cars that met my criteria at the time. The long term reviews I read were all the same with regard to it developing squeaks and rattles faster than it should.

 

[jlc1978]

More different than I thought, but less different than you think. I'd read they were the same company, but you are correct that this is not true.

That said, they share platforms and parts, so you can understand (or should be able to) how that would be easy to believe.

Kia may have premium parts, but the Stinger doesn't seem to hold up as well in the "after a year" reviews as other premium brands.

A lot depends on what you consider to be the same company, as many brands are technically separate companies but under one corporate umbrella, such as BMW/Rolls Royce/Mini and thus often share platforms or components although they are technically all the same company. Other times they may share components but are separate companies, such as the Supra/Z4 from Toyota/BMW; which are actually assembled by Manga Steyr in Austria.

 

[Mr.PT]

No premium brand will agree to become Apple’s OEM because that signals the end of the brand. Foxconn is not a premium brand and neither is TSMC. Samsung doesn’t manufacture Apple gear even though they could make some serious cash doing so. They do supply parts, but they don’t assemble Apple products.

Neither Mercedes nor BMW or VW is ready to cease to exist as a brand. For Hyundai to make Apple cars would only boost their sales as well as prestige. Additionally, Hyundai is not a very attractive brand in the US. They could easily convert to an OEM and let Kia continue building on the Hyundai drivetrain while maintaining the Genesis brand for themselves. Personally, I think that the coexistence of Hyundai and Kia vehicles only hurts the combined sales. I would OEM Hyundai as a car brand (at least in the US). Kia still has bad rap in the US, but those who have test driven their cars and SUVs(especially higher-end trims) realize what excellent vehicles Kias are and what tremendous value they provide with the upper-trims

Absolutely. Why not? They are a diverse conglomerate that manufactures cars, ships, railway vehicles, factory equipment, defense systems, electronics. among other things.
They are also in petroleum refining so they may see the writing on the wall and a need for further diversification.
I can also see how some of their expertise in some of these other industries could benefit Apple.

This rumor and statement alone is already benefiting Hyundai...Not so good for Apple brand, bear in mind this seems to be a manufacturing contract not an component supply, like we have currently on many Apple’s products. This is to bear a “designed by Apple” seal (without the “and assembled by”). Imho Apple should look for more “au pair” premium brands (Even Tesla started with Lotus...).

 

[H3LL5P4WN]

I guess you haven’t sat in a Hyundai recently.

I never will again, either. I refuse to touch garbage, whether it’s my ex or any of her family’s kias or hyundais.

 

[sirozha]

More different than I thought, but less different than you think. I'd read they were the same company, but you are correct that this is not true.

That said, they share platforms and parts, so you can understand (or should be able to) how that would be easy to believe.

Kia may have premium parts, but the Stinger doesn't seem to hold up as well in the "after a year" reviews as other premium brands.

I never said that Stinger was a luxury car. However, K900 is.

 

[macquest1]

Hyundai would be a GREAT partner . . . The Santa Fe I bought this year is wonderful, comfortable, reliable, and very well made . . . An electric version with Apple intelligence would be incredible.

 

[FlyBry]

Everyone makes both good and bad. One data point is not enough. I love my 3-series. It is popular for a reason.
I read multiple reviews on the Stinger as it was one of the few cars that met my criteria at the time. The long term reviews I read were all the same with regard to it developing squeaks and rattles faster than it should.

Here's more data points: https://www.whatcar.com/bmw/3-series/saloon/used-review/n801/advice

 

[HandITOVER]

SMH.

 

[Nütztjanix]

Exactly. Tim Cook vision and direction for Apple is a mounting disaster in the future.

Qualcomm is innovating for the technology industry with breakthrough achievements in the second generation of 3D biometric sonic sensor that will be used in the smartphones.

View attachment 1711233

Not quite relevant here, is it?

 

[0423MAC]

Not quite relevant here, is it?

Anything goes to try and discourage users from supporting such blasphemy about Hyundai.

 

[Ateam043]

Got to hand it to Hyundai. SK continues to be a very innovative and technologically aggressive country. Hyundai has continually improved their cars and gone from a low tier brand to high quality. My guess is they will soon release a high tier brand like Lexus or Infinity. It will be that high end that Apple will use.

Don’t they own the Genesis brand?

 

[Nütztjanix]

Anything goes to try and discourage users from supporting such blasphemy about Hyundai.

Looks more like a personal obsession with Tim Cook to me.

 

[UBS28]

lul. No one's paying Apple's premium markup for a rebranded Hyundai. foh.

Your iPhone is from Asia with an Apple sticker on it. So why can't they not do the same with the Apple car?

 

[Mr.PT]

Your iPhone is from Asia with an Apple sticker on it. So why can't they not do the same with the Apple car?

Maybe: because it costs 50/100 times more? Because if it fails consequences could be serious?
Perceived Reliability is a well known key factor in car buying decisions, and brand origins and place of manufacturing usually play a role.
Ironically I bought a specific engine configuration so my car model was built in Germany. I got water infiltration issues...the brand covered it though, nonetheless...

 

[UBS28]

Maybe: because it costs 50/100 times more? Because if it fails consequences could be serious?
Perceived Reliability is a well known key factor in car buying decisions, and brand origins and place of manufacturing usually play a role.
Ironically I bought a specific engine configuration so my car model was built in Germany. I got water infiltration issues...the brand covered it though, nonetheless...

Yeah, well, you know Apple. They will not build their car in Germany, not a chance. Apple is all about producing it cheaply in Asia and using their branding / marketing to sell it at crazy prices.

If you want a high quality electric car, this will not be it. Even Tesla gets beaten on the quality department by the established car manufacturers.

 

[Mr.PT]

Yeah, well, you know Apple. They will not build their car in Germany, not a chance. Apple is all about producing it cheaply in Asia and using their branding / marketing to sell it at crazy prices.

If you want a high quality electric car, this will not be it. Even Tesla gets beaten on the quality department by the established car manufacturers.

Tesla experience is, I suspect, one of the reasons Apple is looking for manufacturing partner, amongst other plausible reasons.
Apple brand is powerful on electronic world; in car world it will be a newcomer (with high expectations though) so partner could help on perceived quality. I pay “Apple crazy prices”, because I feel products are worth it (built; use/functionality, reliability and aesthetics). Car made in Korea is not necessarily worst than one made in Germany (and probably both are built with “made in China” components, anyway...), more importantly to me is if this will be a totally new built or if it will use some existing/preconceived platform.
Tesla will be making cars (assemble more likely) in Germany. For Fiscal reasons if you want to be a global players you’ll have to have assembly lines worldwide. Local Taxes on car industry can easily displace your price tag, making your product miss the targeted customers.

 

[Nütztjanix]

It will be interesting to see how the fit and finish of the German built Teslas turns out.