Noted TF Securities analyst Ming-Chi Kuo weighed in on the ongoing “Apple Car” rumor mill on Monday, saying Apple to work in close cooperation with Hyundai on an initial model that could lead to new vehicles built in association with General Motors and European manufacturer PSA.
In a note to investors, Kuo corroborated recent reports of a potential partnership with Hyundai, saying the first “Apple Car” will be built on that company’s E-GMP electric vehicle platform. Hyundai Mobis is taking the lead in component design and production, while Hyundai offshoot Kia will handle production in the U.S.Like past rumors, Kuo believes Apple will farm out parts manufacturing and assembly to established automakers. EVs contain about 40 to 50 times more parts than a smartphone, the analyst points out, suggesting Apple will need to rely on existing automaker resources to create a functional car in a timely manner. The tech giant will not be able to build out its own automotive supply chain — as it does for devices like iPhone, iPad and Apple Watch — without incurring significant delays.