Kia Shares Surge on Rumors of Apple Tie-up
04 February, 2021
Kia shares are surging on rumors that parent Hyundai and Apple are in talks to co-develop electric cars and Kia will handle the project.
A media survey on Jan. 20 claimed Kia will oversee the creation of Apple's first electrical car, and another report on Wednesday explained the U.S. giant wants to invest W4 trillion in Kia's plant in America to roll it out (US$1=W1,115).
Kia's stock selling price surged 9.65 percent on Wednesday, but Hyundai stated "nothing has been chose."
An unofficial artist's impression of Apple's electric strategy car /Courtesy of Aristomenis Tribas
One reason Kia uses the prize is that Hyundai is busy accumulating its premium Genesis manufacturer and will not be able to produce EVs for Apple. Another can be that Kia puts higher priority on EVs in long term strategy than Hyundai does.
Kia developed an idea in 2019 to stage out combustion motors and roll out 500,000 EVs a yr starting in 2025. In addition, it plans to improve the proportion of EVs in its total lineup from the present seven percent to 40 percent by 2030.
Hyundai chairman Chung Eui-sun is a strong proponent of Kia's EV target.
But industry insiders usually do not eliminate that the Apple tie-up could fall through because they doubt that Hyundai's complete production program, from metal panels to last assembly, will be compatible with Apple.
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