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

I’d always been led to believe Korean cars weren’t up to much , then my brother in law took me for a spin in his Kia

I was quite impressed, more than a match for any Far East manufacturer imo
 
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AppleFeller said:
I think the Apple Car is gonna be something I skip, unless they actually improve car fundamentals. Apple products usually take existing tech and make it better in lot of ways, often profoundly. So I would expect the same in a car. Apple needs to fix wind/road noise there's gotta be more they could think of compared to others simply adding thicker glass... there's so many little annoyances with any car and driving that I think Apple should look at and say how can we change the experience of driving a car....and more then just oh autopilot I mean every aspect of a car, the comfort, noise level, audio, interior climate control system....you know and with this timeline of 5+ years out I wonder if Apple is trying to do exactly that.
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But it will be white, come with lightning cable, but without door handles and have an Apple logo! How's that not a guaranteed buy?
 
I'm sure any car factory can build any level quality of car. It just depends on the spec and quality control. No different to foxconn making cheap $200 laptops and $2000 macbooks at the same time.

The only thing I dont get about this is that the car business is a low margin labour intensive business with the need for huge after sales care. Is that really an Apple type of business?

Adding apple car control to established vehicles seems more of an Apple thing than actually making cars.
Is Telsa even profitable yet? Apple like to see profits from the jump on every product. Its such an unapple business making cars.
 
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Flow39 said:
There's a 0% chance this will work out well for Apple. Of all brands, I'd never partner with Hyundai to make me a car. I wouldn't want to pay the Apple Tax on a rebranded Hyundai. If they partnered with Toyota or Honda, I'd be much more willing to fork that over (not that I could afford an Apple Car in the first place, but still).
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In what universe would Toyota ever need this partnership when they have Lexus, Subaru and Mazda in addition to selling their cars like hot cake. Honda maybe because they don't have many partnerships going on.
 
BeefCake 15 said:
In what universe would Toyota ever need this partnership when they have Lexus, Subaru and Mazda in addition to selling their cars like hot cake. Honda maybe because they don't have many partnerships going on.
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Actually, they would be a great fit from a quality standpoint. Hyundai - meh. (I had a 2011 Tucson)

What company would ever turn away the potential of making more money? Bigger market share, regardless of what badge is on the car, yep, Toyota would be all over that.

Apple needs this to be a quality vehicle, but they won't be able to put much markup on the more expensive brands (and the German makers are too far out of reach from a pricing standpoint).

Yes, Tesla would have been ideal...but there's so much animosity between the companies, can't see that ever happening.
 
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moabal said:
I have a 2019 Kia Stinger GT2. I love it. I give Kia/Hyundai/Genesis high praise for the strides they made over the last decade. I will be the first to admit that their dealership network in the US leaves a lot to be desired. However, they make quality (as good or better than many brands) and good looking cars now.

They are only perceived to be cheap because of the past. In Korea, Hyundai Motor Group has much more vertical integration (they supply their own steel etc.) than GM for example. Hence, they can get their prices down (barring any sort of tariffs or unfavorable currency exchange rates).

Regardless if it is Hyundai that helps Apple manufacture their car. The fact that Hyundai is admitting that they are in discussions with Apple basically proves that Apple is serious about building a car. That is the most exciting part. Before, I thought it did not make much sense.
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If you honestly think that Hyundai makes quality vehicles, then you have no idea what quality is, with all due respect. Those cars are rattling, plastic-y pieces of trash compared to a Mercedes, any Mercedes. This is not subjective, this is fact. Asian and American vehicles cannot compare to German vehicles when it comes to build quality alone. I'd rather buy American, but they are junk by comparison. Nothing in heaven or on earth would ever get me to buy an Apple car that has anything to do with Hyundai.
 
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Kierkegaarden said:
Some people obviously don’t know that the Genesis brand is part of Hyundai. Hyundai has a wide range of quality levels, but that doesn’t mean they aren’t capable of engineering a quality product. Samsung as well has a wide range of quality levels in their products, and yet their display and storage tech seems to have the perception as the best and/or most reliable.

Any partner would have to have the ability to scale quickly and efficiently. Samsung seems to have that ability, and that’s why they continue to have a relationship with Apple. Hyundai could as well, and it probably makes sense to have the partner in that area of the world since the components would come from there anyways.
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That is because they clearly try to hide Hyundai behind Genesis. I don't blame them.
 
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Mac Prodigy said:
If you honestly think that Hyundai makes quality vehicles, then you have no idea what quality is, with all due respect. Those cars are rattling, plastic-y pieces of trash compared to a Mercedes, any Mercedes. This is not subjective, this is fact. Asian and American vehicles cannot compare when it comes to build quality alone. I'd rather buy American, but they are junk by comparison. Nothing in heaven or on earth would ever get me to buy an Apple car that has anything to do with Hyundai.
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Um, Hyundai is more vertically integrated than Apple. They're a country unto themselves and are known worldwide for quality. If you're not interested in their automobiles, they would be happy to sell you a super tanker.
 

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Mike_Trivisonno said:
Um, Hyundai is more vertically integrated than Apple. They're a country unto themselves and are known worldwide for quality. If you're not interested in their automobiles, they would be happy to sell you a super tanker.
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Who cares about super tankers? We are talking about cars here. Stay on topic please. If you are going to outsource car manufacturing, it would be best to use a company that actually builds quality vehicles.
 
Mac Prodigy said:
If you honestly think that Hyundai makes quality vehicles, then you have no idea what quality is, with all due respect. Those cars are rattling, plastic-y pieces of trash compared to a Mercedes, any Mercedes. This is not subjective, this is fact. Asian and American vehicles cannot compare to German vehicles when it comes to build quality alone. I'd rather buy American, but they are junk by comparison. Nothing in heaven or on earth would ever get me to buy an Apple car that has anything to do with Hyundai.
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Lol German cars are vastly overrated on build quality. Over engineered and way too expensive maintenance costs. I’d take a toyota/Lexus over any German car without question.
 
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Mike_Trivisonno said:
Um, Hyundai is more vertically integrated than Apple. They're a country unto themselves and are known worldwide for quality. If you're not interested in their automobiles, they would be happy to sell you a super tanker.
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www.autoblog.com

Hyundai quality issues hammer quarterly profit report

South Korea's Hyundai Motor Co said on Monday it swung to a net loss for July-September, missing market estimates by a wide margin, as costs related to engine quality issues and recalls smashed what would otherwise have been strong earnings. Hyundai, the world's fifth-biggest automaker when...
www.autoblog.com www.autoblog.com

But yeah, go with Hyundai for Apple cars 🤣
 
Mac Prodigy said:
Who cares about super tankers? We are talking about cars here. Stay on topic please. If you are going to outsource car manufacturing, it would be best to use a company that actually builds quality vehicles.
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Hyundai does build quality vehicles. Way better than Mercedes whose build-quality is a shadow of it's former self. Plus, Hyundai has a global infrastructure that puts Mercedes to shame.
 
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Mike_Trivisonno said:
Hyundai does build quality vehicles. Way better than Mercedes whose build-quality is a shadow of it's former self. Plus, Hyundai has a global infrastructure that puts Mercedes to shame.
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Buah ha haha. Joke of the day right here! 🤣 You don't own a Mercedes, and I'm sure you never have. Talk about something you have first hand knowledge of for once. And don't give me that "well my cousin had a friend who said..." garbage.
 
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fischersd said:
What company would ever turn away the potential of making more money? Bigger market share, regardless of what badge is on the car, yep, Toyota would be all over that.
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The question is not "can we make more money" but "what will be the return on our investment vs. other opportunities?" If they can get a better return elsewhere an Apple car is not where to put money. I would guess Apple is looking ta it the same way; the return on the investment required to build a car company from scratch is far too small to be a worthwhile investment. Partnering takes away a huge chunk of cost as well as risk, so is an attractive way to get into the car market.

There are several other reasons I think Toyota might pass:

1. Car manufacturers are very protective of their brand image. Being seen as merely an OEM for Apple is not part of their image.
2. Even when they do partner they are careful to ensure the resultant vehicle is clearly theirs - such as Toyota and BMW did with the Supra/Z4. They gain benefits of scale while having a car that shows their heritage. I doubt Apple would be willing to let Toyota design the car and Apple be merely a tech supplier.
3. Toyota's would probably wind up handling warranty work, which means any teething problems would be seen as Toyota's problems, not Apple's; so would take the blame for Apple caused issues.
4. Apple, no doubt, would either insist on separate showrooms within the existing dealer network, meaning dealers would have to shoulder the costs of building and operating them, probably at a loss for a while; or,
5. Apple would do a Tesla model and thus Toyota would be competing with it's own dealers; either way dealers would not be happy.

I'm guessing Toyota (and BMW, Mercedes, etc...) know far more about the car business and where it is heading and feel they can move forward better on their own than with an Apple partnership.

One problem I see for Apple with the car industry is, unlike a phone or computer, there are very few switching costs when replacing a car. Just because I have a BMW doesn't mean if replace it with another brand I lose a whole lot of investment in apps or need to relearn how to drive. Unless Apple has a big hit they could find themselves stuck with a whole lot of off lease vehicles to move, hurting their brand as well as sales.
 
threesixty360 said:
The only thing I dont get about this is that the car business is a low margin labour intensive business with the need for huge after sales care. Is that really an Apple type of business?
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I wouldn't worry about that. Apple will simply declare the car to be "vintage" and out of service after 6 years!
 
MacRumors said:


Apple is planning to work with Hyundai on the upcoming Apple Car, according to a report from Korean site Korea Economic Daily.

Apple-and-Hyundai-feature.jpg

The report suggests that Apple is in negotiations with Hyundai Motor Group to manufacture an Apple Car. Apple is said to be planning to work with Hyundai to produce electric vehicles and develop batteries due to the "enormous costs" of the technology and the necessary production facilities.

Multiple prior rumors have suggested that Apple will work with a manufacturing partner to produce the Apple Car, but until now, there hasn't been word on which manufacturer Apple might team up with. Since the report mentions "negotiations," a deal may not be established as of yet, so Apple's plans could change.

An Apple Car report earlier today from Bloomberg said that work on the project is still in the early stages and "nowhere near production stage," nor was there a mention of Hyundai. According to Bloomberg, it will be at least five to seven years before an Apple Car is ready to launch.

Update: In a statement to CNBC, Hyundai confirmed that it is in discussions with Apple. "We understand that Apple is in discussion with a variety of global automakers, including Hyundai Motor. As the discussion is at its early stage, nothing has been decided."

Update 2: Bloomberg reports that Hyundai again revised its statement, removing the reference to other automakers. A few hours after that, it issued another revision that omits Apple completely: "We've been receiving requests for potential cooperation from various companies regarding development of autonomous EVs," reads the latest version. "No decisions have been made as discussions are in early stage."

Article Link: Apple Negotiating with Hyundai for Apple Car Production [Updated x2]
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Hyundai is a joke of a car manufacturer. If Apple is going with an affordable brand, how about Toyota? I would never buy anything associated with Hyundai.
 
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bluespark said:
Interesting story, but I'm not sure it's relevant to the use of CarPlay by particular manufacturers. In the case of CarPlay, car manufacturers are allowing a foreign OS to essentially take over a limited part of their system. Apple gives them some options as to how to do that.
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I was just voicing my frustration at companies that allow for crippled tech for some of their customers. It ends up hurting the entire ecosystem. I could have been more coherent.
 
CLS9 said:
Hyundai is a joke of a car manufacturer. If Apple is going with an affordable brand, how about Toyota? I would never buy anything associated with Hyundai.
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You should educate yourself by reading a bit about the Genesis.

“It is better to remain silent at the risk of being thought a fool, than to talk and remove all doubt of it.”
— Maurice Switzer
 
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