SEOUL (SOUTH KOREA) – After a South Korean online news site said there was still potential for the automaker to form a partnership with Apple Inc., shares in Kia Corp spiked as much as 8.1% on Friday.
After Hyundai initially confirmed early stage talks this year with the tech-giant on autonomous electric cars, shares in Hyundai Motor Co and its affiliate Kia were roiled , but later said they were no longer in talks.
An Online site reported on Friday that Apple and Kia had signed a memorandum of understanding (MOU) last year and had agreed to pursue cooperation in eight sectors, including electric vehicles. It said negotiations on electric vehicles had not been completely cancelled.
“Even if the negotiations on electric vehicles fail, there are many items that can be negotiated in other fields, so we are still optimistic about the possibility of partnership between the two sides,” the report cited an unnamed source familiar with negotiations between Hyundai and Apple as saying.
Kevin Yoo, an analyst at eBEST Investment & Securities said “The media report on Kia-Apple cooperation does not negate Hyundai’s statement earlier this month, since the statement was limited to a certain item,”
“The ‘last mile’ mobility mentioned in the article is similar to Kia’s plan to strengthen its purpose-built vehicle business, which Kia said during its investor day event earlier this month,” he added.
The rise in Kia shares was in sharp contrast to the wider market’s 2.6% drop as of 0221 GMT. Kia was among only about 90 gainers, versus nearly 800 losers, on the KOSPI.