A emblem of Hyundai Motor is seen on a glass door at an organization department in Seoul on July 23, 2015
Jung Yeon-Je | AFP | Getty Photographs
South Korean automakers Hyundai Motor and Kia Motors mentioned Monday they aren’t in talks with Apple to develop an autonomous car.
Hyundai Motor shares fell 6.41% in South Korea on Monday morning whereas Kia Motors shares dropped 13.2%. Different associates together with Hyundai Wia, Hyundai Mobis and Hyundai Glovis have been additionally down sharply.
“Hyundai Motor is getting requests from a number of firms for cooperation in joint improvement of autonomous, electrical autos however nothing has been determined because it’s in early stage,” the corporate mentioned, in response to a CNBC translation of a regulatory submitting.
“Hyundai Motor shouldn’t be in talks with Apple on autonomous car improvement,” it added.
Its affiliate Kia Motors, which is the second-largest automotive producer in South Korea behind Hyundai, made the same submitting. The corporate mentioned it was reviewing prospects of cooperating with “a number of firms abroad” over autonomous electrical autos — however nothing has been determined.
Kia Motors additionally mentioned it was not in talks with Apple.
Hyundai initially said last month it was in early-stage talks with Apple, however later revised the assertion and made no point out of the iPhone maker. It led to a surge in shares of Hyundai and its associates, together with Kia Motors, at the moment.
This month, CNBC reported that Apple was close to finalizing a deal with Hyundai-Kia to fabricate an Apple-branded autonomous electrical car on the Kia meeting plant in West Level, Georgia. Sources advised CNBC’s Phil LeBeau that no settlement had but been reached and that Apple might finally determine to associate with one other automaker individually, or along with working with Hyundai.
Shares might drop additional
Retail buyers have purchased Hyundai Motor and Kia shares value roughly 915.7 billion Korean gained ($817 million) and 798.8 billion gained (about $713 million), respectively, because the Jan. 8 hypothesis over a possible collaboration with Apple, in response to Sung Yop Chung, regional head of vehicles and elements at Daiwa Capital Markets.
“Following the destructive vibe from each (Hyundai Motor) and Kia’s submitting this morning, highlighting that there’s at the moment no EV cooperation with Apple, worst-case means that Kia’s shares may right as a lot as 31%,” he advised CNBC’s Chery Kang.
Hypothesis about Apple moving into the auto enterprise has been rife for a number of years however nothing concrete has materialized.
Some Wall Street analysts see the auto sector as a brand new marketplace for Apple to develop into, however others warning towards the fact of constructing an Apple-branded automotive because it may probably imply heavy investments for low margins.
— CNBC’s Chery Kang contributed to this report.
