LG Magna e-Powertrain is the latest company to be linked with Apple to potentially build an electric car.
According to a Tuesday report, the two parties are “very near” to signing a deal, although contract fine print is still being discussed.
The Korea Times says LG Magna e-Powertrain, a company founded by LG Electronics and automotive supplier Magna International, likely could handle the low initial manufacturing capacity required for an Apple car.
“The production volume the joint venture could handle won’t be that huge as Apple is mostly intending to use its first-generation EVs as an opportunity to evaluate their marketability,” according to the report. It cited an anonymous source saying that “because LG Group affiliates including LG Display, LG Chem, LG Energy Solution and LG Innotek are already included in Apple’s parts supply chain, Apple doesn’t have to worry about any supply chain issues. These LG affiliate are qualified to guarantee production yields and faster delivery of parts needed for Apple EVs.”
LG declined to comment on the potential deal.
Once an agreement is signed, the report suggests a prototype could be developed and “teased” sometime in early 2024.
Possible Apple Car in the works
This isn’t the first report of such a deal. However, in the other cases, hopes were seemingly dashed. Reports earlier this year suggested that Apple and Hyundai could sign a deal by March, and start producing vehicles by 2024 in the United States. However, that deal supposedly fell through.
In other words, don’t assume any Apple car deal is done until the ink is dry on the paper — and maybe not even then.
One of the sticking points for Apple deals with big-name automotive companies appears to be who would get credit for the car. Automakers don’t want to become mere manufacturing partners for Apple the way Foxconn is on the iPhone.
In this way, LG Magna e-Powertrain may be a better fit, according to Tuesday’s report:
“‘As the LG brand is not that strong in the global EV industry, it needs a pretty competitive reference to show off its transformation efforts. From that standpoint, LG’s bet on the Apple EV is not that bad, and vice versa for Apple,’ [one] source said.”
An Apple Car has been rumored for around half a decade. However, Apple has yet to pull the trigger on manufacturing one, despite having thousands of engineers on the project. In a recent interview, Tim Cook said: “We’ll see what Apple does. We investigate so many things internally. Many of them never see the light of day.”
Are you excited at the prospect of an Apple Car? Let us know your thoughts in the comments below.
Source: Korea Times