Hyundai's public commentary about wrestling whether to work with Apple on Cars likely means that Apple ended talks long ago
If a company is in talks with Apple or going to work with them, Apple legal ensures that the parties sign a non-disclosure agreement. So a new report by Reuters is likely what might have transpired some time ago but failed to materialize with Apple moving on. While the Reuters report is mildly interesting, Apple has likely moved on to talks with others such as the new Foxconn/Zhejang Geely joint venture whose model would better fit with Apple.
With that said, Reuters reports that " Executives in Hyundai Motor Co Group are divided over a potential tie-up with Apple Inc, with some raising concerns about becoming a contract manufacturer for the U.S. tech giant, dimming the outlook for a deal."
A Hyundai executive aware of the internal discussions on the tie-up with Apple stated that "We are agonizing over how to do it, whether it is good to do it or not. We are not a company which manufactures cars for others. It is not like working with Apple would always produce great results."
Hyundai is traditionally known for its reluctance to work with outsiders, making engines, transmissions and even its own steel in-house under its vertically integrated supply chain as South Korea’s second-largest conglomerate.
Although shares in Kia and Hyundai have surged because of the talks, there is considerable opposition to becoming an Apple contract manufacturer, which could hold up any deal with the American giant.
While reporting on this matter, Reuters admits that "Apple has never acknowledged talks with the automaker about building vehicles, and it was unclear whether any such talks are still active. The iPhone maker typically insists on strict secrecy from its potential partners and suppliers about future plans or unreleased products."
Once again, Apple would never deal with a company airing such commentary publicly in an effort to boost their stock price as Hyundai did. At the end of the day, it's very difficult to take this report seriously. For those wanting to learn more about this "story" click here.