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Summary
- Japanese auto major Nissan announced that it is not in talks with Apple Inc, after news surfaced that both the companies are in talks for developing autonomous cars.
- A Financial Times report stated that the talks did not materialise due to Nissan’s unwillingness to tie up for Apple’s cars.
- A week before South Korean carmakers Hyundai and Kia denied being in collaboration talks with the technology giant.
Japanese automobile company Nissan (TYO: 7201) announced that it was not in talks with technology major Apple (NASDAQ:AAPL) for developing its a self-driving electric car.
According to a Financial Times report, the companies had held brief talks which ended before progressing to the senior management level. The talks collapsed as the Japanese company was unwilling to be just a hardware supplier since the iPhone company wanted to make Apple-branded cars.
Almost a decade ago Nissan forayed into electric vehicle sector with its Nissan Leaf.
Nissan denies talks
Ashwani Gupta, Nissan COO, said it was open to collaborating with technology companies to drive industry innovation. However, with the caveat that the companies’ services be adapted to the carmaker’s offerings and not vice versa.
Talks with Hyundai, Kia
The Apple Inc has been trying to get into the self-driving vehicle segment since 2014. But a California regulatory filing stated the company does not have a strong technology and has done far less testing than other carmakers already in the league.
About a week ago, news came in that early stage partnership talks between Apple and South Korean car manufacturers Hyundai (KRX: 005380)and Kia (KRX: 000270) were put on hold. The iPhone maker company was previously said to be exploring collaboration opportunities with the South Korean companies; however, the talks didn’t materialise.
Want to know more? Do read: Hyundai, Kia Deny EV Collaboration Reports with Apple
The companies had planned to sign a deal by March for the first-generation version of an Apple electric vehicle set to be launched by 2024. The technology giant had planned to invest US $3.6 billion in Hyundai’s affiliate company, Kia Motors, to build the autonomous cars. Hyundai reportedly turned down the deal as its role was of a mere contract manufacturer, sources said.
Want to know more? Do read: Apple to reportedly invest USD 3.6B in Kia for EVs production
Copyright © 2021 Kalkine Media Pty Ltd.
Focus on EV sector
Apple Inc. has been eyeing the electric vehicle (EV) space for some time; however, it has faced several roadblocks in finding the right manufacturing partner for its autonomous car production. The company has patented several car features in the last few years.
The EV sector has been heating up following a flurry of recent news by several companies. Elon Musk’s company Tesla (NASDAQ:TSLA) has recently shown strong growth. Besides, several automakers have also announced a major EV production push in the last few months, signalling a growing momentum within the sector.
Stock market reaction
Nissan Motors (TYO: 7201) stock prices stood at JPY 602, down by 1.21 per cent on 16 February at 3:00 PM GMT+9, whereas Apple (NASDAQ:AAPL) shares closed at USD 135.37, up by 0.24 per cent on 15 February.
