Apple has discussed potential supply deals with at least half a dozen carmakers in Japan. Meanwhile, Kia has reportedly approached potential partners about a plan to assemble Apple's autonomous electric vehicle at its West Point plant in Georgia.
"At least six companies are in negotiations" with Apple, an executive at an automotive parts supplier told Nikkei, as relayed by Bloomberg.
Shares of Toyota, Mitsubishi, Mazda, and Nissan rose on the news.
The company's research facility in Yokohama should be tasked with materials, vehicle development, and safety features. It will reportedly double as the main hub for partnering with domestic vehicle manufacturers and components producers.
Jun Seki, the COO at Nidec, a Japanese supplier of electric motors, was quoted as saying:
Any new company entering into the realm of electric vehicles is a chance for us. Our expectations of Apple are quite high. Apple is our important customer in other fields as well.
Japanese carmakers are said to be concerned about being relegated to contract manufacturers for the Apple Car, especially due to any unforeseen brand and culture issues.
100,000 Apple Cars Per Year
Earlier reporting said Apple would soon finalize a $3.6 billion deal with Hyundai to secure access to its subsidiary Kia's plant in the US. As MUO recently reported, Apple may be looking to produce 100,000 cars annually in Kia's Georgia plant. Reliable analyst Ming-Chi Kuo has predicted the Apple Car will use Hyundai's E-GMP electric vehicle platform.
According to The Wall Street Journal, Kia has indeed discussed assembling the Apple Car with potential partners as soon as 2024. "Recently, Hyundai-Kia officials have been reaching out to potential partners in preparation for a deal going through," notes the newspaper.
Any potential deal would involve a multibillion-dollar investment.
But as a Japanese supply executive has confirmed to Nikkei, Apple hasn't reached any deals yet. "I don't know if it will be decided by the Korean manufacturer," said the executive. "We are in the process of negotiating where Apple will make it."
Outsourcing Apple Car Production
The Apple Car should use a third-party electric vehicle platform because Apple's leadership is reportedly keen on shortening development time and focusing on the interior, styling, software, chips, form factor, and user experiences. The company also outsources the production of phones, tablets, computers, and other gadgets to third-party manufacturers.
The Apple Car will reportedly have autonomous driving features, with the inaugural model designed to operate without a driver. As a result, the first Apple Car could be aimed at food delivery operations and firms that incorporate robotaxis before being sold to consumers.