The logo of Hyundai Motor can be seen on a glass door at a company branch in Seoul on July 23, 2015
Jung Yeon-Je | AFP | Getty Images
South Korean manufacturers Hyundai Motor and Kia Motors said Monday they are not in talks with Apple to develop an autonomous vehicle.
Hyundai Motor shares fell 4.41% in South Korea on Monday while Kia Motors shares fell around 12%. Other affiliates including Hyundai Wia, Hyundai Mobis and Hyundai Glovis were also down heavily.
“Hyundai Motor is receiving requests from multiple companies to collaborate in the joint development of autonomous, electric vehicles but nothing has been decided since it is at an early stage,” the company said, according to CNBC’s translation of regulatory filtering.
“Hyundai Motor is not in talks with Apple about the development of autonomous vehicles,” he said.
His relative Kia Motors, South Korea’s second-largest car manufacturer behind Hyundai, filed a similar filing. The company said it was reviewing its prospects for cooperating with “overseas multi-companies” over autonomous electric vehicles – but nothing has been decided.
Kia Motors also said it was not in talks with Apple.
Hyundai initially said last month that it was in early talks with Apple, but later reconsidered the statement and made no mention of the iPhone maker. Shares of Hyundai and its allies, including Kia Motors, rose during that time.
This month, CNBC reported that Apple was close to finalizing a contract with Hyundai-Kia to make an Apple-branded autonomous electric vehicle at Kia’s West Point, Georgia. Sources told CNBC’s Phil LeBeau that an agreement has not yet been reached and that Apple may eventually decide to partner with another separate automaker, or in addition to work with Hyundai.
Sections can fall further
Retail investors have earned Korean Hyundai Motor and Kia shares worth approximately 915.7 billion ($ 817 million) and earned 798.8 billion (approximately $ 713 million), respectively, from Jan’s profitability. 8 over a possible collaboration with Apple, according to Sung Yop Chung, regional head of cars and parts at Daiwa Capital Markets.
“After the negative outburst from both (Hyundai Motor) and Kia filing this morning, clarifying that there is currently no EV collaboration with Apple, the worst case scenario suggests that shares may Kia corrected as much as 31%, “he told CNBC’s Chery Kang.
Apple is notorious for imposing a lot of price on secrecy but the news of a possible collaboration with Hyundai has yet to be released through local and international media, Chung told ” Street Signs Asia ”at CNBC on Monday. “I think Apple may not have been happy because of that.”
“From Hyundai’s perspective and Kia’s perspective, I mean, there could have been some conflict of interest,” he said. “They don’t really want to be just a subcontractor at Apple, I think they were looking to take advantage of Apple’s strong capabilities in software.”
Chung explained that it was still possible for both sides to revisit the deal later because Hyundai said in its regulatory filing that it was in talks with multiple companies.
“I wouldn’t say this is the end of it, I would say it’s a temporary stop if you want for the compromise between the two groups,” he said.
Profitability about Apple getting into the automotive industry has been plentiful for several years but nothing concrete came of it.
Some Wall Street analysts see the automotive sector as a new market for Apple to grow into, while others warn against making an Apple-branded car because could mean heavy investments for low margins.
– CNBC’s Chery Kang contributed to this report.