Car Claims: The Billion-Dollar Investment Question

Apple is investing $3.6 billion in Kia Motors to build an Apple Car, according to a report by Korean outlet DongA Ilbo. The report claims that the deal could be signed as soon as February 17, with the goal of having the first Apple Cars ready by 2024. The companies are eyeing a production run in 2024 with an initial capacity of 100,000 cars per year, though the plant can ramp up to a maximum of 400,000 units a year. Apple's funds will be used to build exclusive facilities for the production and development of Apple Car.

Apple to invest $3.6 billion in Kia Motors

Apple Inc. is reportedly planning to invest $3.6 billion in Kia Motors Corp., a South Korean carmaker, to collaborate on producing electric vehicles. This deal would involve Apple investing 4 trillion won ($3.6 billion) to secure access to Kia's facilities in Georgia, U.S., with the aim of launching the Apple Car in 2024 or 2025. The initial production target is set at 100,000 cars per year, with the potential to expand to 400,000 units. Apple's investment will be used to build exclusive facilities for the production and development of the Apple Car.

This partnership between Apple and Kia Motors comes after reports of Apple's discussions with Hyundai Motor Co., an affiliate of Kia, about Apple Car production. While Hyundai initially confirmed these talks, they later revised their statement to remove any mention of Apple, similar to their previous interaction with the media in January 2021.

The Apple Car is rumoured to have impressive specifications, including a range of over 300 miles on a full charge and the ability to gain 60 miles of range from a five-minute charge. It is also said to be able to accelerate from 0 to 60 mph in less than 3.5 seconds and have a top speed of 160 mph.

Kia Motors shares jumped as much as 14.5% following the report of Apple's planned investment, reflecting the market's positive reaction to the potential collaboration between the two companies.

Apple Car to be built in Kia's Georgia plant

Apple Inc. is reportedly planning to manufacture its Apple Car at Kia's assembly plant in West Point, Georgia. The iPhone maker has been working on a deal with Hyundai-Kia to produce its autonomous and electric vehicles at the Kia plant. The production of the Apple Car at the Georgia plant is expected to begin in 2024, according to sources.

The Kia plant in West Point, Georgia, is the only Kia manufacturing plant in the United States and the only major automaker in the state. The plant covers 2,200 acres and has a total investment of $2.8 billion. Kia has pumped over $1.1 billion into the plant, which currently manufactures the Optima, Sorento, and Telluride models, with a production capacity of 350,000 vehicles per year.

Apple's decision to partner with Kia for its car production is strategic. By leveraging Kia's established infrastructure and expertise in automotive manufacturing, Apple can focus on its core strengths in software, design, and branding. Additionally, Georgia offers a favourable business environment, with state incentives, a ready workforce, and a cluster of suppliers and partners in the automotive industry.

The Apple Car is rumoured to be a truly Apple-designed vehicle, with Apple supplying the software, battery technology, and design, while Kia handles engineering and mechanical issues. This collaboration aligns with Apple's approach to manufacturing its smartphones through similar partnerships.

The potential entry of Apple into the automotive market has energised the industry, particularly with the focus on electric and autonomous vehicles. Apple's involvement could further establish Georgia as a leader in technology, innovation, and manufacturing, bringing economic benefits, new jobs, and enhanced tax revenue to the state.

Apple Car to be launched in 2024

Apple has been working on its self-driving car project, Project Titan, since 2014. In December 2020, reports suggested that Apple was planning to launch its electric car in 2024. However, in February 2024, Apple executives cancelled their plans to release the autonomous electric vehicle, shifting resources to the company's generative artificial intelligence efforts.

The Apple Car project has undergone multiple design changes and leadership issues over the years. Initially, Apple aimed to design a fully autonomous vehicle without a steering wheel or pedals. However, due to the challenges and delays, the design was scaled back to a more traditional vehicle with a driver's seat, steering wheel, and pedals.

Apple's electric car was intended to be a mass-market vehicle, competing with other manufacturers such as Tesla. It was rumoured to feature a breakthrough in battery technology, with a "monocell" design that could increase capacity and reduce costs.

Despite the cancellation of the Apple Car project, the company continues to explore opportunities in the automotive space, focusing on its artificial intelligence and machine learning capabilities.

Apple Car to be an autonomous electric vehicle

Apple has been working on its Apple Car project, codenamed "Project Titan", since 2014. The project aimed to develop an autonomous electric vehicle with advanced features such as no steering wheel or pedals and an innovative interior design. However, in 2024, Apple made the decision to cancel its plans for a fully autonomous vehicle and shift its focus to a less ambitious design.

The development of the Apple Car has been characterised by leadership changes and internal strife. Initially, Apple aimed to create a fully autonomous vehicle with advanced features. However, the company faced challenges and was forced to scale back its plans. The car will now have a more traditional design with a driver's seat, steering wheel, and pedals, similar to a Tesla vehicle.

Apple's CEO, Tim Cook, has acknowledged the company's interest in entering the car market and has been testing autonomous driving technology for several years. Despite the setbacks, Apple remains committed to bringing an electric vehicle to market and is exploring potential partnerships in Europe. The launch of the Apple Car is now expected in 2028 or later, with a focus on driver-assistance features and a Level 2+ autonomous driving system.

The Apple Car project has been a significant investment for the company, costing over $1 billion per year. Apple has also faced challenges in finding the right partners for manufacturing and has held discussions with various car companies, including Hyundai, Volkswagen, and Mercedes-Benz. Despite the challenges, Apple remains committed to the project, and it is expected to be priced under $100,000.

Hyundai confirms talks with Apple

In January 2021, Hyundai Motor Co. confirmed that it was in early-stage talks with Apple Inc. to develop self-driving electric vehicles by 2027 and produce batteries at U.S. factories operated by Hyundai or its affiliate, Kia Motors Corp. However, just a month later, Hyundai and Kia stated that they were not in discussions with Apple regarding the development of an autonomous vehicle. This announcement caused Hyundai and Kia's shares to tumble, wiping off $8.5 billion in combined market value.

Hyundai Motor Co. and Kia Motors Corp. are South Korean automakers that have been approached by Apple to explore a potential partnership. Apple, a tech giant known for its iPhone, has been seeking to enter the automotive industry and develop its own electric vehicle (EV). The discussions between Apple, Hyundai, and Kia were surrounded by secrecy and speculation, with Apple being known for keeping its product plans under tight wraps.

The talks between the companies initially sparked excitement, with Hyundai and Kia's shares surging on the news. However, there were also internal divisions within Hyundai and Kia about the potential partnership. Some executives expressed concerns about becoming contract manufacturers for Apple, a role similar to Foxconn's position in producing devices for the company. There was also a dispute between Hyundai and its affiliate, Kia, over which brand would get to manufacture the Apple car.

Despite the initial confirmation of talks, Hyundai and Kia ultimately released statements denying any ongoing discussions with Apple. They asserted that they were in the early stages of exploring potential partnerships with multiple companies for the joint development of autonomous electric vehicles but that nothing had been decided.

While the specific reasons for the breakdown in talks are unclear, analysts speculate that it could be due to leaks of the partnership plans to the media or Apple's insistence on treating Hyundai and Kia as equipment manufacturers rather than strategic partners. The breakdown in talks between Apple and Hyundai-Kia highlights the challenges and complexities in the automotive industry as tech giants like Apple seek to enter the market and collaborate with established automakers.

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