This is a clear sign that Apple wants to be in the auto business. Find out more about the rumored Apple and Kia deal to build an Apple Car.
Elon Musk claimed that he tried selling his auto company, Tesla, to Apple. But Tim Cook wasn’t interested. It’s probably because he has plans for Apple to enter the auto business.
It’s not confirmed yet but Apple is reportedly finalizing a deal with Kia to make an electric vehicle. It will be branded as Apple Car and assembled in Kia’s plant in West Point, Georgia.
A team at Apple is said to be developing this automobile and will go into production in 2024. However, the rollout could still be delayed.
Currently, there’s no agreement reached between Apple and Kia. Although Apple is in talks with Kia, it might still partner with another automaker.
The deal, if it will be finalized, will allow Apple to invest $3.6 billion into this deal. A production deal might be coming on February 27.
Kia will also produce 100,000 cars a year. Its plant in Georgia can produce cars up to 400,000 units a year.
The Apple Car will be using Hyundai’s E-GMP platform. Mobis will assist with design and production.
Kia will produce the cars in the US while Apple will control the self-driving hardware and software, as well as semiconductors, battery tech, and form factor.
The so-called Apple car will be fully autonomous as CNBC reported. It means that there’s no driver required. The report added that the first Apple Cars will be used for food delivery operations and robotaxis.
In China, robotaxis are already available. In the US, some companies have been testing robotaxi programs. Car companies are also investing in autonomous technology and they might offer robotaxi services.
You might be skeptical about the autonomous vehicle. However, if you’re one of those people who can’t drive for some reason, it’ll give you freedom and independence.
Tesla and Apple Car
If this deal would be finalized, Apple will be competing directly with Tesla. Elon Musk’s car company is introducing self-driving features and Elon wants to make a self-driving robotaxis to justify his company’s valuation.
But why do car and tech companies are racing to produce autonomous vehicles?
One reason is to eliminate human errors on the road. And it also enhances safety.
Furthermore, fully autonomous cars can increase transportation efficiency as they don’t have to be parked. Society can use it constantly.
In theory, the self-driving car will drop you off at your destination and continue to find another passenger. It will continue to run all day until you recharge it.
Because you don’t need to park it somewhere, the parking spaces and garages will be used for outdoor events. They can also be converted into outdoor space.
Then, we don’t have to worry about drunk driving since the driver is a robot. It can significantly lower the number of serious accidents on the road.