Hyundai executives unsure creating car for Apple would be beneficial

Executives in Hyundai Motor Co Group are unsure of the benefits a tie-up with Apple Inc would bring, with some concerned about just becoming a contract manufacturer for the iPhone maker, dimming the outlook for a deal.

According to a Hyundai executive, they are agonizing over how to do it and whether it is beneficial or not, as they are not a company that manufactures cars for others.

The executive pointed out that working with Apple would not always guarantee great results.

Another executive at Hyundai said that tech firms like Apple and Google want them to be like Foxconn, a contract phone maker.

He added that while an Apple deal would initially raise Hyundai or Kia's brand image, they would end up just providing shells for the cars, with the US tech giant doing the brains.

Hyundai revealed earlier this month that it was in preliminary talks with Apple, which local media believes was about a tie-up on electric cars and batteries.

Few details are known. People close to the discussions said the options included Hyundai or Kia acting as a manufacturer for Apple-designed vehicles and sold under the Apple brand.

Apple has never acknowledged such talks. The iPhone maker usually demands strict secrecy about plans or unreleased products.

Hyundai, which reported its best quarterly profit in over three years, did not give any updates in earnings call on Tuesday.