We've heard rumours that Apple is in talks with Hyundai about developing its yet-to-be-confirmed Apple Car. And a new report from Reuters focuses on reluctance from the Korean car manufacturer's side. The report claims that Hyundai's executives are divided over the idea of collaborating with Apple. The primary concern is that the deal might turn Hyundai into a contract manufacturer for another brand, which an unnamed Hyundai executive claims they don't really do.
Their discussions reportedly began back in 2018 when Apple's car initiative was headed by Alexander Hitzinger. Hitzinger now works for Volkswagen. The talks stalled supposedly because of Hyundai's reluctance to work with other companies. The carmaker doesn't want to be like Foxconn for Apple's vehicles. But Hyundai has excess capacity, and contract manufacturing will help it secure production volume.
Another person familiar with the matter claims Apple wants to source major parts of its own design (like frames, bodies, drive trains, etc.) from different places and rely on the carmakers for final assembly. Apple would want this to happen in the US.
With talks in the early stage, Hyundai Motor Group supposedly "tentatively decided" that Kia will partner with Apple and not Hyundai. The report claims Kia is already moving quickly in the electric car segment, and it even has production capacity as it has a factory in Georgia, US.
For now, these will all be speculation as Apple isn't commenting on the topic. Hyundai initially said it was in preliminary talks with Apple, but it didn't' give details after that.