Hyundai and Apple: Why a partnership makes sense, and why it doesn’t
By Phil Royle – Jan. 8, 2020
Hyundai and Apple are in talks. About what? The details are murky at best. But from what can be gleaned, it’s likely to do with autonomous driving or EV battery technology. Or both. Or a complete car. Or none of the above. Like I said, it’s murky.
While details are few and rumors plenty, this latest chatter is ultimately another piece in the Apple “Project Titan” EV puzzle that has equally befuddled and excited the automotive and tech press for quite some time.
So does an Apple and Hyundai partnership make sense?
The argument for “yes”
As Tesla habitually discovers, vehicle production is hard, so a partnership would ease Apple’s transition into becoming a trusted automotive brand if the goal is for Apple to create an EV. Hyundai Motor Group, via its brand triplets Hyundai, Kia, and Genesis, sells roughly 4,000,000 cars annually worldwide, and thus would be an excellent partner for Apple to step onto the automotive world without having to sweat details like crash structures, seatbelt webbing, and rear bumpers that shouldn’t fall off.
Hyundai is known for producing affordable vehicles that punch well above their weight, leaving Apple ample room to do what it does, which is produce quality, high margin products. In essence, Hyundai could manufacture an EV Stinger for Apple, with Apple then charging Genesis G80 prices.
Then there’s the market to consider. Premium manufacturers like Audi and Jaguar stepping into the EV space have discovered that they’re not actually competing with Tesla. Rather, their EV sales are conversions from their existing ICE lineup or ICE lineups of other luxury brands. Apple, with a fanbase arguably stronger than Tesla’s – and undoubtedly with a lot of Apple/Tesla overlap – could certainly lure buyers from the Tesla store through offering full Apple product integration.
Apple also already operates a series of stores around the world that could instantly showcase their cars. In fact, at approximately 270 Apple Stores in North America alone, Apple already has twice the “gallery” potential of Tesla from day one.
Could the Genesis Suji showroom be a preview of what’s to come should Apple and Hyundai Motor Group partner?
However...
According to a CNBC report, a Hyundai Motor representative noted, “We understand that Apple is in discussion with a variety of global automakers, including Hyundai Motor. As the discussion is at its early stage, nothing has been decided.”
If Apple is going to partner with an automotive supplier, the company is certainly going to shop around before committing. To that end, there’s an argument to be made that if Apple signed a deal with any single automaker, a premium EV startup like Lucid Motors makes more sense.
Yet why pick one partnership? Apple likely learned its lesson when it pigeonholed itself with one cellphone carrier back in 2007. Back then, Apple had to wheel and deal to break into the mobile phone market with the iPhone; In 2021, dealership-free auto sales is a path that has been (or is currently being) blazed. Apple can reap those benefits without the heavy lifting, and do so with multiple partners.
Perhaps GM produces Apple’s truck, Hyundai is Apple’s luxury sedan supplier, and Foxconn makes a bite-size compact city solution – and all utilize Apple’s infamous Cupertino design aesthetic, CarPlay infotainment, autonomous driving software, and battery technologies.
Still, all of this flies in the face of Apple’s latest technology play, where the company yearns to control nearly every aspect of its software and hardware, most recently designing its own M1 silicon. Is Apple going to be happy with a Stinger or Hummer EV variant, or will it want to micromanage everything right down to suspension geometry?
While we know nothing concrete about the Apple car at this moment, of all the rumors, it’s unlikely that a 2025 release date will come to fruition, especially if Apple is only just beginning partnership talks. But technology being what it is, and legacy auto manufacturers being desperate to enter the EV market, an Apple car preview prior to 2025 is a true possibility, with a full vehicle launch coming prior to 2030.
Certainly, if this is going to happen at all, Apple will have Project Titan on the road well before California’s 2035 EV sales mandate. It’s just that right now, we have no idea what “Project Titan” actually means.
(Images courtesy Genesis)
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