Over the last couple of weeks, several news reports gave one an idea about the direction in which Apple’s discussion with Hyundai for the development of ‘Apple Cars’ was heading towards. According to these reports, the two companies were negotiating the terms of the agreement which Apple had put across and it was a matter of time before a deal was formalized between them. Now, it has been heard that the possibility of a partnership is ‘on hold’.
In the year 2014, Apple started toying with the idea of getting into the automobile manufacturing business. The first step in this direction would have been the development of an ‘Apple Car’. The company started working on developing a design for an electric vehicle. While a dedicated team at Apple was working diligently towards developing this vehicle, things weren’t happening as fast as the company would have liked. That’s when an idea occurred to them.
Since Apple didn’t have any prior experience in automobile manufacturing processes, it thought of partnering up with an established automobile brand that would help in accelerating the process of producing the ‘Apple Car’. Because of its experience in this sector and well-established production units, Apple approached Hyundai with a proposal to produce the electric vehicle in joint collaboration.
The developments, as reported by the media, were quite positive. In fact, just two days back, reports indicated towards the two companies on the verge of formalizing a deal. Now, according to the most recent reports, things are not going in a direction which at least Apple would have hoped for.
While the two companies were in talks with each other and discussing the details of the probable partnership quite regularly, they stumbled upon a few roadblocks at different points. A couple of days back, it was reported that the senior executives were slightly apprehensive about collaborating with Apple on this project as they believed it might project them as ‘contract manufacturers’ and not equal partners.
Apple, on the other hand, was quite positive about this partnership and assured Hyundai and its subsidiary Kia Motors that it would give them a good amount of control over the manufacturing process.
While talks between the two companies are on hold at the moment, it definitely doesn’t signify the end of discussions for the two global giants. There is a pause and discussions might resume sometime in the near future.