Apple should work with carmakers instead of building vehicle on its own, Fiat Chrysler CEO says
Apple should collaborate with existing carmakers, tapping their experience, instead of trying to build its own car single-handedly, the CEO of Fiat Chrysler said at this week's Geneva International Motor Show.
Carmakers already have the capacity to deal with Apple's needs, and turning to them would make more sense in such a "complex business," Sergio Marchionne told journalists at the show, according to Reuters. The executive further compared the idea of a self-made "Apple Car" to an illness.
"If they have any urges to make a car, I'd advise them to lie down and wait until the feeling passes," he said. "Illnesses like this come and go, you will recover from them, they're not lethal."
Apple is believed to be working on an electric car for launch in 2019 or 2020. The company may need to partner up for manufacturing -- given the cost, scale, and complexity involved -- but is thought to be handling design without outside help, at least so far. One possible manufacturing partner could be BMW, which has allegedly been in talks.
In a recent interview, Apple CEO Tim Cook wouldn't directly acknowledge car development (believed to be underway as "Project Titan"), and suggested that even if the company has hundreds of people working on a concept, that could still constitute exploration rather than commitment.
Carmakers already have the capacity to deal with Apple's needs, and turning to them would make more sense in such a "complex business," Sergio Marchionne told journalists at the show, according to Reuters. The executive further compared the idea of a self-made "Apple Car" to an illness.
"If they have any urges to make a car, I'd advise them to lie down and wait until the feeling passes," he said. "Illnesses like this come and go, you will recover from them, they're not lethal."
Apple is believed to be working on an electric car for launch in 2019 or 2020. The company may need to partner up for manufacturing -- given the cost, scale, and complexity involved -- but is thought to be handling design without outside help, at least so far. One possible manufacturing partner could be BMW, which has allegedly been in talks.
In a recent interview, Apple CEO Tim Cook wouldn't directly acknowledge car development (believed to be underway as "Project Titan"), and suggested that even if the company has hundreds of people working on a concept, that could still constitute exploration rather than commitment.
Comments
An electric engine, chassis, wheels, brakes and steering seem like the issues they may need outside help with. But they can buy these intellectual sets on the market.
Manufacturing will be a non-issue as this will be contracted out as usual.
Without labor costs, a bloated executive class and legacy retirement funds to worry about, Apple will do fine.
Of course there's labor cost - it's just part of the manufacturing outsourcing you speak of. But who would they outsource assembly to? It's not like there are generic "car assembly" plants around - the ones that exist belong to existing car manufacturers who would hardly agree to manufacture a competitor's car!
I doubt Apple will ever build a car - the margins aren't anywhere near what it currently gets. I think they'll simply expand CarPlay to include options such as "driverless car".
Partnering with Toyota/Lexus would be preferable to any US company short of Tesla itself.
Why do they keep going if it's so bad and so complex that it's not even worth a try form someone like Apple?
I mean, there's no way Apple could make a car right? They just don't have the skills, knowledge, or money to make such a thing.... wait, they actually do have all of that.
Here we go again.
The auto industry is terrified of a potential game-changing disruption by Apple.
Imagine Apple, one day, taking the lion's share of profits in THAT area as well.
Maybe Marchionne doesn't "Think Different" like Apple does... with everything!