Browse By

Apple and KIA love story ended before it even started

Apple was negotiating with Kia to produce the car it plans to sell soon. But the negotiations did not succeed and they got divorced. Apple claims that Kia talked too much.

Apple, one of the companies with the highest value on the market, bases its strategy on the design of attractive and sophisticated products, whether they are mobile phones, iPad or computers, but then moves production to others to avoid large investments and maximize profits. Usually for China, in order to benefit from low wages and reduced manufacturing costs. Now the Apple Car, the car that has been promising since 2014, has accelerated again and the Californian giant is looking for someone to produce it, preferably with facilities in the USA and also in Europe. The Hyundai-Kia group emerged as the biggest candidate, but something went wrong.

For more than a week, it was practically taken for granted a marriage to Kia, as a representative of the South Korean group, but suddenly everything collapsed and the divorce was confirmed, although there are those who suggest that it is just a sham . Kia is one of the manufacturers capable of meeting Apple’s needs, due to the low costs and location of factories, and it remains to be seen whether it is loose in terms of production capacity. Apple would invest 3.6 billion in Kia, with production starting first at the brand’s factory in Georgia, USA.

The reasons for the split could be several, ranging from disagreement over the amount to be paid by Apple or the scale of its requirements, but sources close to Apple reported that Tim Cook and other executives decided to suspend negotiations due to the way Hyundai Kia handled with the business perspective, commenting too much on the possibility of the agreement with Apple. As soon as the divorce transpired to the market, Hyundai’s value fell by 3 billion dollars (about 6.2%) and Kia by more than 5.5 billion (almost 15%).

Leave a Reply

Your email address will not be published. Required fields are marked *