Bloomberg: Kia reported to get $3.6 billion to build Apple cars in Georgia

From "Kia Motors Shares Jump After Report Apple to Invest $3.6 Billion" posted Tuesday evening:

Kia Motors Corp. jumped as much as 14.5% after a local media report that Apple Inc. will invest 4 trillion won ($3.6 billion) as part of a collaboration with the South Korean carmaker on making electric vehicles.

The iPhone maker plans to set up production with Kia and build Apple cars at the automaker’s facility in Georgia, U.S., DongA Ilbo reported, without citing anyone. The companies may sign a deal on Feb. 17 and aim to introduce Apple cars in 2024, according to the newspaper, which said they have an initial target to produce 100,000 autos a year.

Reports of Apple considering expanding into vehicles have led to speculation on potential manufacturing partners. The technology giant’s car-development work is still at an early stage, and the company will take at least half a decade to launch an autonomous EV, people with knowledge of the efforts have told Bloomberg News. That suggests the company isn’t in a hurry with partnership decisions.

My take: Does nobody in the South Korean car business know how to keep a secret?

3 Comments

  1. Jerry Doyle said:
    If these rumors prove true that Apple indeed is moving aggressively to partner with a key car manufacturer, then expect Apple’s multiple to climb going forward. Apple realizes the car is an extension of the home where Apple needs to be for connecting with its users who desire the continuity of Apple hardware, software and services seamlessly woven into their everyday lifestyle. 100,000 manufactured cars annually is the sweet starting spot. The car similar to all Apple products will be premium and carry solid GMs. I only can fathom the spectacular new Apple store showroom structural presentation of the car and the ease of consummating an online purchase from the comfort of your home. If and when Apple corroborates these rumors, then the stock price plows higher. 🙂

    1
    February 3, 2021
  2. Kia currently has 14 manufacturing facilities in 8 countries. Each geographic region served by these plants matches Apple’s key markets. Hyundai designs the robots used on Kia lines. A service network is still essential though Tesla does diagnostic work in the owner’s garage. Kia likely partners on Service work too. Used Apple cars, after lease period, may need a lot. There’ll be issues about 3rd party glass/display replacement too.

    0
    February 3, 2021
  3. Ah, Elmer-DeWittshi, you must consider Koreans live & work 1,300 to a square mile. 13th most densely populated place. Try keeping secrets in a sardine can. Buddha’s birthday occurred during my work in Seoul for MSFT. Whoa. I’d rarely seen that many people in one place, all peacefully eating indescribable food. They mostly love us too, we keep them safe. Gomawoyo.

    0
    February 3, 2021

Leave a Reply