Apple has hired a ton of automotive engineers. It’s not like their job is to sit in meetings and say “let’s hire Hyundai to do the engineering.” And it’s not like the folks designing the iphone are going to be designing the drive train of the car.
Apple can certainly throw money at any project they desire, and hire the talent needed to bring it to fruition. The question for Apple is how long are they willing to take losses chasing a smaller margin than they are used to (Auto gross margins are ~16%, Operating around 4% and net profit 2.5%; hardly Apple numbers); Tesla has never made money as a car manufacturer on car sales alone.
A car is just a computer on wheels. Especially electric cars are very simple - almost no moving parts. It’s not rocket science.
However, it's a very different type of computer. An EV's motive source is certainly simpler than an ICE, but also presents some design challenges as well. Suspensions and drivetrains need to handle all that torque; battery systems need to trade off range for power (wait tell users find out Apple limited the total power output when the battery gets low to keep the range higher*), charging systems, etc. In some ways it is simpler, in others just as complex.
* Tesla's Model S (IIRC) 0-60 time diminished significantly as battery capacity lessened.
Having almost the same cars made by two brands never made any sense to me. I’d rather that Kia survived and Hyundai went away as a car brand, keeping Genesis as the premium brand made by Hyundai. But apparently Hyundai leadership believe they have a valuable car brand in Hyundai, so the only way to accommodate Apple is kill the Kia brand and make Kia a contract manufacturer for Apple.
Hyundai only owns part of Kia; and having a separate luxury brand lets a manufacturer move upscale and differentiate the brand from its mainstream brand, while sharing costs and platforms.
Or Apple should consider buying Kia. They have a great design studio with amazing designers and gorgeous vehicles. They have a plant in the US and a plant in Korea, which is perfect. No connection to China. No issues with the trade war between the US and China. Let Apple buy Kia and get down to business of making KiApple cars already.
I doubt Apple would do that, even though they easily could. Apple would own an asset that is hard to dump if they decide to pull the plug on the Apple Car, and requires a whole different management style. Shutting down Kia in Korea and the US would no doubt cause a lot of political fallout. Apple is a design company, not a manufacturing one; buying Kia would add aa low margin manufacturing operation and Apple is certainly not a low margin company.
Personally, I think Apple would be better off becoming a supplier of tech to the auto industry; where they can use their supply chain and design strengths, from software to chips, and keep their margins high. The Apple car could very well simply be a test bed to highlight what they offer.
Has been mentioned before, but current cars (future ones even more so) are pretty much computers wheels attached.
The general concept of a car hasn't changed much over the last decades. Frame & bodywork only improves in the materials used (crash optimization, lightweight but still strong) and aerodynamics (where improvement is quite limited as long as you expect the car to look familiar to what people are used to). Chassis/suspension won't see any major breakthrough on the mechanical side either. That's as good as it gets. It's just tuning to the desired characteristics. Drivetrain in EVs is no rocket science either.
While much of the change has been incremental and computers have played a big role in the latest improvements; there have been some significant changes over the last decades. Cars went from solid rear axles to IRS to turning suspensions, carbs to fuel injection, transmission design, etc. Yes, the car is still a box of sorts with 4 wheels (UsuallY) but there have been significant strides to the point where an econobox can be quicker, and handle as well or better, than a few decades old high end sports car.
Future innovation is in battery technology and software. And that's "not too far away" from what Apple's core business is.
While I agree that's the future, car battery tech is a lot different from computer battery tech. Apple certainly has the skills and resources to make strides there; but it's not a simple case of today iPhones, tomorrow iCars.
I'm genuinely more interested in why Hyundai, of all brands. I have nothing against Hyundai, but they are neither known for being a premium brand, nor are they known for being extremely reliable vehicles. Just curious what Apple sees/saw here to attempt the pursuit of a relationship in getting a vehicle to market together.
Hyundai is probably one of the few brands that would want to be a partner and has the needed manufacturing capability; I suspect many of the other highly regarded brands have no interest in being a contract manufacturer and letting Apple call the shots while they have to invest in capacity, that Apple may decide it doesn't need at some point, and possibly have to maintain the vehicles and create a unique Apple CarStore with their dealer networks. They take on a lot of risk for little upside.
Hyundai is a lot better quality than people on MR think; having driven them over the years a rentals they're a lot better today than 10 years ago and on par with Toyota/Nissan/etc. At any rate Apple will be defining the quality and design specs.
I still argue that in the US franchise dealership laws will create headaches Apple may not be used to.
I agree, and given Apple's desire to do things their way could be aa big stumbling block; especially if they make demands that require large cash outlays with no promise of returns. Dealers are big and politically connected and won't like Apple trying to tell them what to do.
BMW, Porsche, et. al. can demand dealers build new buildings because dealers know they will make money, but a new car company called Apple? I doubt many will want to make a large bet on its ability to make the dealer a profit.