Apple and Hyundai-Kia are working on a deal to build an Apple autonomous and electric vehicle at a Kia assembly plant in West Point, Georgia, according to unnamed sources that spoke to CNBC recently. Apple would design and develop the vehicle.
The discussion of an Apple car has accelerated in recent months but Apple hasn’t spoken. CNBC reporter Phil LeBeau made it clear on Thursday that his sources said the car will be truly an Apple car and not just a Kia car filled with Apple software features. Reuters had reported in December that sources said an Apple car was in the works using next-level battery technology.
RELATED: Apple wants to make cars by 2024 (Really?)
Hyundai and Kia are both headquartered in South Korea and Hyundai owns 33.8% of Kia Motors. CNBC said it is possible Apple may decide to work with another car company. The production of an Apple Car at the Georgia Kia assembly plant would tentatively begin in 2024.
On air, LeBeau said leaders at Hyundai-Kia want to work with Apple to speed up development of their autonomous and electric vehicle plans. Hyundai has a partnership with Aptiv to develop AV technology such as robotaxis.
From Apple’s point of view, the smartphone king would be able to tap into a $10 trillion global mobility market, much bigger than the smartphone market, valued about $500 billion.
An Apple Car would intentionally be designed to not include a driver, according to sources that spoke to CNBC. That might mean it would initially be a food delivery or robotaxi design.
Apple’s potential entry has helped energize the auto market, which has a series of new players alongside of Tesla, which dominates the EV market. Electric and autonomous technologies are driving the interest.
“We’re seeing competitors like never before, including companies that never made cars,” including Rivian, said Matt DeLorenzo, senior managing editor at Kelley Blue Book in a recent interview with Fierce Electronics. “It’s the first time in 100 years [of vehicles] that there is new tech. The barriers are lowered to get into the auto industry, compared to the last 30 years when we saw car brands going away.”
RELATED: The future of EVs is solid – as in solid-state batteries