According to the announcement, South Korea's Kia and Hyundai said they were not in contact withAppleDiscuss the development of self-driving electric vehicles.
Hyundai's decline widened to 7% after the news, while Kia tumbled 12.5%.
Apple Inc had discussed the production of electric cars with Hyundai and Kia, but discussions have been suspended recently, according to foreign media reports citing people familiar with the matter. Apple Inc is also discussing similar plans with other automakers, said people familiar with the matter, who spoke on condition of anonymity when discussing private matters.
The secret project has accelerated in recent months. Just as Apple Inc reshaped the consumer electronics market, Apple Inc's electric car project has the potential to upend the auto industry and its supply chain.
Apple Inc declined to comment. In January, Hyundai, which holds a controlling stake in Kia, withdrew a statement that it was in talks with Apple Inc.
Hyundai's statement, coupled with other reports of the negotiations, made Apple Inc quite dissatisfied. Apple Inc not only keeps its development projects secret, but also controls its relationship with suppliers with an iron fist.
It is not clear whether and when Apple Inc may resume negotiations with Hyundai. Only a few carmakers in the world have the ability to produce cars in large quantities, and it is not clear how many of them are interested in working with Apple Inc.
There are other obstacles. One is a dispute within Hyundai: there are disagreements within the group over who makes cars for Apple Inc, Hyundai and Kia, according to a person familiar with the matter. If negotiations eventually resume, Kia seems to have a better chance of winning, and is seeking to produce Apple Inc cars at its plant in Georgia, the person familiar with the matter said.
For the industry, a key issue is Apple Inc's challenge.Tesla、General Motors CoAnd how willing other electric car makers are, and whether they need an established manufacturer to launch their own products.
Apple Inc has a team of engineers developing the drive system and a design team, but as the development work is still in its early stages, it will not launch any products for five years. This shows that Apple Inc still has a lot of time to decide on potential auto industry partners.