Apple Car rendering 001

The Apple Car rumor just took a more interesting twist with news that Samsung is acquiring Canadian auto supplier Magna International Inc. for an undisclosed sum.

Samsung SDI, the South Korean firm’s material and energy solution providing arm, itself confirmed the acquisition in a media release Monday, saying it was acquiring Magna International’s battery pack unit.

Magna, which has its headquarters in Aurora, Ontario, Canada, sells its vehicle battery technology to Tesla and other car makers and has recently been linked to Apple’s secret electric car project.

The transaction is expected to close during the first half of 2015, pending customary approvals.

All 264 employees of Magna International, including its production and development sites and existing business contracts, will be owned by Samsung SDI. The deal will bolster Samsung SDI’s prowess in automotive batteries.

Specifically, the acquisition will “enhance Samsung SDI’s capabilities in batteries for electric vehicles” by marrying its expertise in battery cells and modules to Magna’s experience in battery packs, reads the release.

What’s that got to do with Apple?

Well, in detailing the Cupertino firm’s alleged electric car research dubbed Project Titan, The Wall Street Journal said last week that Apple executives had flown to Austria to meet with contract manufacturers for high-end cars, “including the Magna Steyr unit of Canadian auto supplier Magna International Inc.”

Another lead came into light with this morning’s claim that Apple’s been offering raises and competitive benefits to lure Samsung’s expert who specialize in ”next-generation technology” related to battery packs for electric vehicles.

Samsung SDI image 001

Surprisingly, The Korea Times newspaper, which published the article, quoted unnamed Samsung executives who say Samsung will actually strengthen its strategic partnership with Apple “in futuristic business projects, as they need each other,” despite Apple poaching Samsung SDI’s experts.

“As the electric vehicle business is a new one, Apple needs patents and experts in battery technology. Top human resources firms have been approaching Samsung’s battery experts, individually, and I think such human exchange moves are a win-win for both,” said one unnamed official.

Whether Samsung’s Magna move signals the Galaxy maker is working on its own electric car or if it’s simply an indication that the firm will continue providing battery packs to car vendors, possibly including Apple, is anyone’s guess at this point.

For what it’s worth, President and CEO of Samsung SDI, Namseong Cho, called the Magna deal “a key strategic step” for the company which will help “expand our business and customer base.”

Research firms B3 and IHS estimate that the global market for electric vehicles, including hybrid and plug-in hybrid models, will reach 7.7 million car units by 2020 versus just 2.1 million vehicles shipped in 2014.

Samsung SDI is one of the few major battery suppliers of BMW and other leading car makers.

Source: Samsung

  • igorsky

    I don’t know if I’ve ever seen one company so attached to another’s tit like Samsung is to Apple’s.

    • Save Earth, not ignore it lady

      Open up any Apple product, you will find Samsung chips.

      Open up Samsung products, you find Samsung chips.

      Who is needing whom ?

      Can you imagine an AMD iPhone ?

  • …the company will strengthen its strategic partnership with Apple “in futuristic business projects, as they need each other,”

    Lol. They don’t need each other but Samsung needs Apple…

    Apple could easily manage without Samsung if they really had to given the amount of money they have stockpiled away.

    • singhay559

      If this is true then why does apple rely on them to manufacture their “a” chips?

      • It’s cheaper to pay Samsung. Doing it themselves would mean dipping into their rainy-day fund 😛

      • singhay559

        Cut the bs. Its all about supply and demand. You realy think a billion dollar company gonna worry about cash flow. Samsung is able to mass produce.

    • ck125

      Apple needs Samsung more than Samsung needs Apple.

    • Samsung needs Apple for what? Samsung is already doing fine in the Car, Smart TV, Refrigerator, Virtual-Reality and many other technology spaces. Apple is focused on just a fraction of what Samsung is doing and are slowly joining the markets Samsung is already in.

      Without Apple, Samsung’s technology would slow down in rate of development, but that’s nothing special about Apple, that’s just the fact behind competition. Same thing would happen to Apple if Samsung didn’t exist.

      • Rowan09

        Samsung does need Apple and Apple need them as well, but let’s not act as if we didn’t just see what happened to Samsung last quarter due to Apple using TMSC.

      • Samsung’s profits went down, they didn’t vanish. Also last quarter, TSMC alone couldn’t meet Apple’s demands, so, without Samsung, Apple won’t have made the same profits either and probably won’t have met the investor targets, thus their shares would take yet another slight dip.

      • Rowan09

        I said they need each other but Apple went with another supplier for most of its A8 chips and affected Samsung significantly. There’s a reason why Samsung knows Apple seems to be interested in a car and they bought this company, which is a smart move on their part.

      • Save Earth, not ignore it lady

        use some Samsung Appls on a Galaxy phone,
        note how they are not integrated & clunky…
        compare it to iOS apps.

        Consumers don’t care about the tech in their shiny toys.
        Tjey just want it to work, easy, smoothly, and make it Shiney !

      • “use some Samsung Appls on a Galaxy phone, note how they are not integrated & clunky…
        compare it to iOS apps.

        Consumers don’t care about the tech in their shiny toys. Tjey just want it to work, easy, smoothly, and make it Shiney !”

        All subjective claims there. Regardless, how does that make Samsung need Apple? Stick to the topic dude, no need for the asinine bait switch game.

  • yolo

  • Rowan09

    Smart move Samsung.

  • SMFH

    This is what you’d call a cockblock in the tech world. Bitch move by Samsung lol

    • Just sayin

      This is fair play actually considering that Apple is poaching Samsung employees.

  • Charlie_Lewis

    Samsung is smart, they know they will always make money from being Apple’s supplier

  • Matt

    I’m just gonna wait for BMW to make a phone now.

    • @dongiuj

      Here you go

  • Bugs Bunnay

    Samsung will always lurk around behind the shadows.

  • Dante Arellano

    gradyyyyyy! Samesung

  • George

    Apple isn’t making a car you guys can stop now

  • Mark Kramer

    Breaking news Apple has just bought Samsung and has fired everyone. Goodbye Samsung your petty annoyances won’t be missed.

    • Save Earth, not ignore it lady

      Apple builds ??? what ? nothing.

      Foxconn & Samsung make all of their iCrap

  • VanquishedMC

    Might want to fix the article Samsung didn’t buy Magna International Inc they only bought the battery pack division.