Kia shares rise after report says nonetheless scope for Apple partnership By Reuters

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© Reuters. FILE PHOTO: The brand of Kia Motors is seen on a wheel on the India Auto Expo 2020

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By Joyce Lee and Heekyong Yang

SEOUL (Reuters) – Shares in Kia Corp rose as a lot as 8.1% on Friday after a South Korean on-line information web site mentioned there was nonetheless potential for the automaker to type a partnership with Apple Inc (NASDAQ:).

Shares in Hyundai Motor Co and its affiliate Kia have been roiled earlier this 12 months after Hyundai initially confirmed early stage talks with the tech-giant on autonomous electrical vehicles, however later mentioned they have been now not in talks.

On-line web site Chosun Biz mentioned on Friday that Apple and Kia had signed a memorandum of understanding (MOU) final 12 months and had agreed to pursue cooperation in eight sectors, together with electrical autos. It mentioned negotiations on electrical autos had not been utterly cancelled.

“Even when the negotiations on electrical autos fail, there are various objects that may be negotiated in different fields, so we’re nonetheless optimistic about the opportunity of partnership between the 2 sides,” Chosun cited an unnamed supply accustomed to negotiations between Hyundai and Apple as saying.

Other than electrical autos, Kia and Apple are additionally discussing cooperation in “final mile” mobility, or transport to finish a ultimate brief distance to a vacation spot after utilizing one other technique of transportation, Chosun mentioned.

A Hyundai Motor Group spokesperson and Apple had no quick remark.

Analysts mentioned the wording of Hyundai’s assertion earlier this month, that it was not in discussions with Apple about growing “autonomous autos”, had left open potentialities of cooperation in different fields.

“The media report on Kia-Apple cooperation doesn’t negate Hyundai’s assertion earlier this month, for the reason that assertion was restricted to a sure merchandise,” mentioned Kevin Yoo, an analyst at eBEST Funding & Securities.

“The ‘final mile’ mobility talked about within the article is much like Kia’s plan to strengthen its purpose-built car enterprise, which Kia mentioned throughout its investor day occasion earlier this month,” he added.

The rise in Kia shares was in sharp distinction to the broader market’s 2.6% drop as of 0221 GMT. Kia was amongst solely about 90 gainers, versus practically 800 losers, on the .

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