HYUNDAI-APPLE PROJECT OFFICIALLY HALTED

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Next, we are going to have a follow-up to yesterday’s news in brief. The Hyundai Motor Group officially announced Monday that it is no longer in discussions with Apple over the joint development of an Apple car. However, industry observers predict cautiously that the two sides still may resume the talks.

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​“We are no longer working with Apple on developing a self-driving vehicle.” Hyundai Motor made the announcement in a public statement jointly issued by its sister company Kia Motors and auto parts subsidiary Hyundai Mobis. A month ago, Hyundai partly confirmed news reports about a potential partnership with Apple, saying the negotiations were in the initial stages and no decision had yet been made. Therefore, the latest announcement suggests that the two companies have hit the brakes on their discussions. Last weekend, Bloomberg also reported that Apple was upset with Hyundai’s disclosure. Following the formal denial, stocks of the Hyundai Motor Group family crashed on the market Monday. However, there are variables remaining. Auto companies usually clinch contracts with parts suppliers about two years before they roll out new models. And this is propelling optimistic views that there are chances for Hyundai and Apple to resume their talks on Apple car, which is expected to come out in three to four years.

[Soundbite] Im Eun-young(Samsung Securities Company) : "There is enough time for them to restart a partnership. This statement doesn’t necessarily imply a permanent end."

Noting Hyundai only mentioned a self-driving vehicle in yesterday’s statement, industry observers cautiously predict that the two companies may continue to work together to develop an electric car.

[Soundbite] Kim Jin-woo(Korea Investment and Securities) : "It seems that there still is room for interpretation. In a broader framework, collaboration with Apple will likely be suspended for the time being."

Global tech giants, like Google and Amazon, are striving to develop future smart cars. Despite the halted talks between Hyundai and Apple, it is possible that the global auto industry can be reorganized and revamped any time.