Apple to invest $3.6 billion in Kia Motors for production of the Apple Car: Report

Kia Motors Corp. jumped as much as 14.5 percent after rumours surfaced that Apple is planning to invest $3.6 billion in Kia Motors as part of a planned manufacturing collaboration between the two companies. The two companies are said to partner to help the iPhone maker launch its first electronic vehicles.

According to a Bloomberg report, Korean website DongA Ilbo claimed that Apple and Kia Motors (Affiliate of Hyundai) has plans to set up production to build Apple cards at the automaker's facility in Georgia. However, the Korean website doesn't cite anyone as a source for the news and only suggests that the company may sign a deal on February 17, 2020, with an aim to introduce Apple cars in 2024. Additionally, the initial production target is set at 100,000 a year.

Neither Apple nor Kia Motors have commented on the report, although Apple considering expanding into automobiles has led many to speculate about potential manufacturing partners. When the first rumours of a partnership between Kia and Apple surfaced, auto giant Hyundai confirmed that it was in talks with Apple but recanted its statement later.

As per MacRumors report, Apple analyst Ming-Chi Kuo said that Apple is planning to partner with Hyundai and will use Hyundai's E-GMP battery electric vehicle platform for its first vehicle chassis. Kuo also believes that the Apple Car will arrive in 2025 "at the earliest".