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Reuters/Yonhap News

Analysts are divided on the prospects of electric vehicle (EV) cooperation between the Hyundai Motor Group and Apple.

While most are expecting a contract to be finalized shortly, more pessimistic predictions have also been gaining ground recently. Many are now focusing on the possibility of a breakdown in negotiations, which would be a serious blow for Hyundai.

A Bloomberg report on Feb. 5 quoted multiple sources as saying that Apple and the Hyundai Motor Group had recently paused their discussions. The report explained that Apple, which prioritizes secrecy, was upset with the group for speaking publicly about the talks.

The sources said there was no way of knowing whether the two companies would resume their discussions, adding that Apple was also discussing cooperation with other automakers.

The report tells a very different story from other recent reports indicating that the talks had entered their final stages. The same day, the Wall Street Journal reported that Kia was seeking partners for the assembly of Apple EVs in the US state of Georgia. On Feb. 3, CNBC reported that Apple and Hyundai/Kia were poised to conclude their contract shortly.

But even those media were cautious about the prospects of a final deal actually emerging from the talks. CNBC quoted sources as “stress[ing] that Apple may ultimately decide to partner with another automaker.” The Wall Street Journal also quoted sources as emphasizing that the contract had not yet been concluded.

This had prompted speculation that the two companies — both highly insular and vertically integrated — might have hit a rough patch in their talks.

The Hyundai Motor Group’s “cooperation vacuum” has prompted various analyses among industry observers. That stands in sharp contrast with other automakers’ exploration of technology cooperation as they prepare for the era of EVs and autonomous vehicles (AVs).

Volkswagen and General Motors (GM) have actively partnered not only with other automakers but also with tech and IT companies like Amazon and Microsoft. In contrast, the establishment of the AV joint venture Motional with the US-based parts company Aptiv has been effectively the Hyundai Motor Group’s sole collaborative effort to date.

The Kia headquarters in Seoul’s Yangjae neighborhood. (provided by Kia)

An auto industry source explained, “Hyundai Motor still has something of a high-handed approach toward other companies in areas like electronics or communications because of its conservative culture, which places the greatest emphasis on automobile mass-production capabilities.”

“Apple isn’t exactly the most open either, so it’s very likely that the two companies are in conflict,” the source added.

The Hyundai Motor Group stands to suffer a significant blow if the talks do fall apart. Its share prices have risen substantially since the possibility of producing Apple Cars was first raised — but a breakdown in the talks is likely to put a major damper on them.

Kia has been drawing even more attention, amid predictions that it would serve as an Apple Car production base.

Previously in the 60,000-70,000-won range, Kia’s share prices have steadily risen, reaching 101,500 won at closing on Feb. 5. That’s a 61.1% increase in less than a month since Jan. 7, when the price was 63,000 won. Hyundai Motor and Hyundai Mobis also rose by 21.1% and 15.8% over the same period, respectively.

The share prices of the Hyundai Motor Group will be a key industry focus on Feb. 8, when the company is scheduled to make another announcement on its Apple Car talks.

Kia is also gearing up for another announcement on Feb. 19.

By Lee Jae-yeon, staff reporter

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