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| The Apple Car project is making rapid progress behind the scenes |
Apple is silent about the electric vehicle effort, but the Apple Car Project appears to be moving fast behind the scenes.
After rumors that it has a manufacturing deal with Hyundai and Kia, a report in the Korea Times said the iPhone maker has found a new goal: producing the first prototype vehicle as early as 2024.
Apple is about to sign an agreement with LG Magna e-Powertrain to build a first prototype electric vehicle.
According to this report, the joint car project between South Korean company LG and Canadian car maker Magna, named LG Magna e-Powertrain, is to produce a prototype of the Apple Car project.
LG Magna e-Powertrain is about to sign a contract with Apple under which it can handle the initial production volume of cars.
The volume of production the joint venture could handle would not be very large, given that Apple's primary goal is to use the first generation of electric vehicles as an opportunity to evaluate their commercialization.
With LG group companies (including LG Display, LG Chem, LG Energy Solution, and LG Innotek) included in the Apple parts supply chain, you don't have to worry about chain issues.
LG Group subsidiaries can guarantee faster production returns and faster parts delivery for Apple vehicles.
After the official abandonment of the cellular business, LG is urgently trying to respond to investor demand to increase performance in the auto parts business.
LG's withdrawal from the smartphone business could increase profit margins, and the money saved could be invested in the auto parts business.
Given LG's lack of strength in the global electric vehicle industry, it takes a competitive standard to demonstrate its transformative work.
Hence, LG’s bet on Apple is beneficial to him and Apple in the opposite way, and financing the partnership will not be important.
Once the deal is sealed, the two sides will work on details related to car production and demonstrate their prototype in early 2024.
LG Magna e-Powertrain is valued at $ 1 billion and is specifically used to make electronic motors, inverters and embedded chargers.
LG has a 51% stake in the new company. The deal is expected to close in July and Apple will be acquired as the main customer.
In the past, LG supplied engines, batteries, and other components to companies such as Tesla, General Motors, Ford and BMW.
Apple has been searching for autonomous technology under the codename Project Titan since 2015. According to reports, the car's design was suspended in 2017 and the division focused on the core technology for autonomous driving.
There are many signs that Apple has restarted its auto business. Tim Cook recently said: Apple is interested in standardizing hardware, software and services for electric cars, which means they are still widely used in cars.