Technology giant, Apple bets on Kia Motors for its first car.
Apple recently announced a sterling quarter revenue of USD64.7 billion and quarterly earnings per diluted share of USD0.73. International sales accounted for 59 percent of the quarter’s revenue. This was Apple’s most profitable quarter ever. Total profit for 2020 was USD28.7 Billion which was a high 29 percent more than in 2019. Flushed with cash, they now want to move into the automotive sector.
Just hours ago, Apple announced a 4 Trillion Won (USD3.6 Billion) investment in Korean car manufacturer Kia Motors to build electric vehicles. This announcement pushed Kia Motors Corporation shares to jump by 14.5 percent today.
Apple have been in talks with Hyundai Motor (owns Kia Motors) on an electric vehicle with full autonomous driving capabilities since early last year and at the time it was rumored that Hyundai’s E-GMP electric vehicle platform will be the preferred starting point for the Apple collaboration. At the time it was also mentioned that the software and services for this new electric vehicles will be powered by Apple designed chips from the Taiwan Semiconductor Manufacturing Company (TSMC).
Project Kia Motors
Reports in early 2021 hinted that Apple and Hyundai were in talks to produce the “Apple Car,” the first commercial self-driving vehicle in the United States. In a new report, the talks have apparently progressed to a point where it may not be Hyundai itself making the vehicle but another brand it owns.
Now, this week the tides have changed and the long-rumored ‘Apple Car’ will now be produced in the United States by Kia Motors. Yes, Kia Motors is owned by the Hyundai Motor Group and it seems that the management at Hyundai are assigning the manufacturing duties of this Apple EV to its subsidiary, Kia.
Project Targets
This new electric car from the maker of the iPhone is targeting production to start by 2024 and Kia’s current factory in Georgia, America will be the production location. Setting a target of 100,000 cars a year with a possible 400,000 cars in the following 3-4 years, Apple has ambitious targets to take a slice of the growing electric car segment and slicing some of Tesla’s success in America and China.
Apple and Kia Motors are also targeting new electric vehicles coming from Daimler AG and Volkswagen AG who are leading right now in electric vehicle model release and Chinese owned Lucid Motors and BYD Motors who both have an advantage in battery technology for added range and charging time.
