Huge ramp-up and yield risk, much like the manufacturing hell for Tesla's Model 3.Why isn't Apple producing it itself? They have the cash.
Contrary to the belief here that Apple "designs" things, Apple has no experience in actually manufacturing anything. They take reference designs from the manufacturer, do a few worthless customizations so that they can legally say it's "custom designed" and then roll with it. They're just terrible at actually developing the technology they use in their products.
Why take on the risk of designing a new tech and run the risk of manufacturing hell when you can let the manufacturers do that?
I have a post describing the process in detail:
You're funny if you think Kia is taking on just a simple assembly manufacturing role. If that was all that it was, then wouldn't Apple go with lower-cost Chinese assemblers, you know, like the ones assembling Nio, XPENG, and Geely vehicles?
Moreover, our favorite Apple analyst Ming Chi-Kuo even said the E-GMP platform will be used, so I'm not sure where you're getting that Apple will be designing everything from scratch, unless you think they're going to sell a Model 3-specced car at $5 million at a huge risk that the new manufacturing process may not even ramp-up successfully.
I'll repeat - Anytime you make a brand new design that's non-derivative from what the manufacturer has, an entirely new manufacturing process has to be made. Apple can make very, very slight modifications to the manufacturing process to call it "custom-designed", but the underlying technology comes from the manufacturer.
With a new manufacturing process, you run the huge risk of low yields and poor ramp-up times. Apple is not going to risk that. They will take what the manufacturer already designed and do very slight and minor changes to call it "Apple-designed" or whatever. That way, they can pretend they designed everything and they don't run into yield problems.
In high-level manufacturing (Not assembly manufacturing), with the exception of Tesla (Because Elon is a crazy genius, and Tesla is their own manufacturer), literally no one goes to a manufacturer and tells them to build a new manufacturing process for a completely new custom part or product. NO ONE. That is not how the business world runs. In fact, Tesla tried doing this before they started manufacturing things themselves, and all the suppliers told them to take a hike. Their current processes couldn't accommodate Tesla's design requests, and they would have to come up with an entirely new process for all of Tesla's demands.
In any high-level or advanced product development, the manufacturer is responsible for product development and creating a reference design, and any "custom designs" from customers like Apple are derivatives of the this reference design so that much of the manufacturing process can be maintained and ramp-up and yield risks are reduced (Ex. Model Y shares most of its parts and has very similar manufacturing processes as Model 3. Only differences are the potential structural 4680 battery packs and new aluminum die-cast for the rear body). Why do you think Apple and Samsung phones have very similar quality panels despite Apple claiming they "custom designed" their displays? It's because the underlying technology of the panels are the same (Same Samsung diamond-pentile with Y-OCTA tech, etc.).
So why is high-level manufacturing more stringent with design rules than low-level assembly manufacturing? Because the former relies more on precise mechanical movements while the other relies on humans putting parts together. The manufacturing process in high-level manufacturing has to be engineered so that the machines coordinate well together, but any changes to the process can screw up yields.
With low-level assembly manufacturing, a person can just stuff a component in the right socket. Doesn't have to be exact on the first try.
I don't really care if you want to pay $150k for a Hyundai or Kia. Go for it. There's nothing wrong with them. They make very high quality cars and are underappreciated by people who love branding.
I'd rather buy a Model S Plaid. At least I know I'm paying $150k for unique technology actually created by Tesla and not by some 3rd party.