- Shares of Hyundai Motor and Kia Motors fell 6.41% and 13.2% respectively in morning trade.
- In regulatory filings on Monday, equally organizations stated they had been not in talks with Apple to acquire a automobile, following media experiences that the Apple iphone maker was looking to the South Korean automakers to create a self-driving automobile.
- Hyundai and Kia claimed they ended up getting requests from “numerous firms” for cooperation to jointly acquire autonomous, electric automobiles but that practically nothing has been decided given that the conversations are in early phase.
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A brand of Hyundai Motor is seen on a glass doorway at a firm branch in Seoul on July 23, 2015
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South Korean automakers Hyundai Motor and Kia Motors reported Monday they are not in talks with Apple to establish an autonomous vehicle.
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Hyundai Motor shares fell 6.41% in South Korea on Monday morning although Kia Motors shares dropped 13.2%. Other affiliate marketers including Hyundai Wia, Hyundai Mobis and Hyundai Glovis were also down sharply.
“Hyundai Motor is finding requests from multiple businesses for cooperation in joint advancement of autonomous, electric cars but very little has been decided since it can be in early phase,” the corporation mentioned, in accordance to a CNBC translation of a regulatory submitting.
“Hyundai Motor is not in talks with Apple on autonomous motor vehicle improvement,” it added.
Its affiliate Kia Motors, which is the second-greatest auto company in South Korea behind Hyundai, manufactured a similar submitting. The corporation said it was examining potential clients of cooperating with “multiple corporations overseas” over autonomous electric powered automobiles — but nothing at all has been made the decision.
Kia Motors also stated it was not in talks with Apple.
Hyundai to begin with explained final month it was in early-phase talks with Apple, but later on revised the statement and manufactured no point out of the Apple iphone maker. It led to a surge in shares of Hyundai and its affiliate marketers, which includes Kia Motors, at that time.
This thirty day period, CNBC claimed that Apple was close to finalizing a deal with Hyundai-Kia to manufacture an Apple-branded autonomous electric car at the Kia assembly plant in West Place, Georgia. Sources instructed CNBC’s Phil LeBeau that no agreement experienced yet been achieved and that Apple may eventually choose to partner with one more automaker independently, or in addition to doing work with Hyundai.
Shares might drop further more
Retail investors have purchased Hyundai Motor and Kia shares truly worth around 915.7 billion Korean received ($817 million) and 798.8 billion gained (about $713 million), respectively, due to the fact the Jan. 8 speculation about a possible collaboration with Apple, according to Sung Yop Chung, regional head of cars and elements at Daiwa Funds Markets.
“Following the adverse vibe from each (Hyundai Motor) and Kia’s filing this early morning, highlighting that there is at the moment no EV cooperation with Apple, worst-scenario implies that Kia’s shares could correct as a lot as 31%,” he told CNBC’s Chery Kang.
Speculation about Apple obtaining into the automobile enterprise has been rife for a number of many years but almost nothing concrete has materialized.
Some Wall Street analysts see the auto sector as a new sector for Apple to increase into, but other folks caution versus the truth of generating an Apple-branded automobile as it could possibly signify large investments for reduced margins.
— CNBC’s Chery Kang contributed to this report.