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Hyundai, Kia shares tumble after automakers say they’re not in talks with Apple to develop a car

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Hyundai, Kia shares tumble after automakers say they’re not in talks with Apple to develop a car

South Korean automakers Hyundai Motor and Kia Motors said Monday they are not in talks with Apple to develop an autonomous car.

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Hyundai Motor shares fell 6.21% in South Korea on Monday while Kia Motors shares plunged about 15%. Diverse affiliates including Hyundai Wia, Hyundai Mobis and Hyundai Glovis also fell sharply.

“Hyundai Motor is getting requests from a number of companies for cooperation in joint development of autonomous, electrical automobiles but nothing has been determined since it’s in early stage,” the company said, according to a CNBC translation of a regulatory filing.

“Hyundai Motor is not in talks with Apple on autonomous car development,” it added.

Its affiliate Kia Motors, which is the second-largest car manufacturer in South Korea behind Hyundai, made a similar filing. The company said it was reviewing prospects of cooperating with “a number of companies overseas” over autonomous electrical automobiles — but nothing has been determined.

Kia Motors also said it was not in talks with Apple.

Hyundai initially said last month it was in early-stage talks with Apple, but later revised the statement and made no mention of the iPhone maker. It led to a surge in shares of Hyundai and its affiliates, including Kia Motors, at that time.

This month, CNBC reported that Apple was stop to finalizing a deal with Hyundai-Kia to manufacture an Apple-branded autonomous electrical car at the Kia assembly plant in West Point, Georgia. Sources told CNBC’s Phil LeBeau that no agreement had yet been reached and that Apple may ultimately select to partner with another automaker separately, or in addition to working with Hyundai.

Shares may topple additional

Retail investors have sold Hyundai Motor and Kia shares price roughly 915.7 billion Korean obtained ($817 million) and 798.8 billion obtained (about $713 million), respectively, since the Jan. 8 speculation over a potential collaboration with Apple, according to Sung Yop Chung, regional head of automobiles and parts at Daiwa Capital Markets.

“Following the negative vibe from each (Hyundai Motor) and Kia’s filing this morning, highlighting that there is at the second no EV cooperation with Apple, worst-case suggests that Kia’s shares may probably accurate as powerful as 31%,” he told CNBC’s Chery Kang.  

Apple is acknowledged for putting a lot of top rate on secrecy but the news of a potential collaboration with Hyundai was unruffled leaked thru local and international press, Chung told CNBC’s “Avenue Signs Asia” on Monday. “I think Apple was probably not happy because of that.”

“From Hyundai’s standpoint and Kia’s standpoint, I mean, there may probably’ve been a little bit of a warfare of interest,” he said. “They form not really want to staunch turn out to be a subcontractor of Apple, I think they were looking to kind of gain from Apple’s stable capabilities in software.”

Chung explained that it was unruffled conceivable for all facets to revisit the deal at a later date as Hyundai said in its regulatory filing it was in talks with a number of companies.

“I would not say that right here’s the stop of it, I would say it’s a temporary halt in case you adore for the negotiation between the two teams,” he said.

Speculation about Apple getting into the auto business has been rife for several years but nothing concrete has materialized.

Some Wall Avenue analysts see the auto sector as a original market for Apple to grow into, but others caution against the reality of making an Apple-branded car as it may probably potentially mean heavy investments for low margins.

— CNBC’s Chery Kang contributed to this file.

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Hyundai, Kia shares tumble after automakers say they’re not in talks with Apple to develop a car