Bob Lutz warns Apple

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Former GM and BMW executive Bob Lutz warns Apple: Your car will be a ‘gigantic money pit’

There is absolutely no reason to assume that Apple is going to be financially successful in the electric car business.

First of all, Apple has no expertise in batteries. They don’t make batteries. The specialized electrochemical companies make batteries and Apple is going to buy batteries like everyone else. And when it comes to actually making cars, there is no reason to assume that Apple, with no experience, will suddenly do a better job than General Motors, Ford, Volkswagen, Toyota or Hyundai.



https://www.yahoo.com/tech/s/former-gm-bmw-executive-warns-apple-car-gigantic-122010587.html
 
While I use apple computers and phones, I can't say I'd be that interested in an apple car. Well, unless it was like the extreme speed tesla awd version at less than half the tesla price.

But the battery thing to me isn't a big deal. You get a high end battery company like shaft or xalt or Kokam or of to make cells, there are plenty of knowledgable folks in the battery business, and you buy that expertise. Auto manufacturers all buy expertise... That's why any car will have parts from suppliers like Bosch in them. Those premier tier suppliers hold the ip and know how, and the sub components get integrated. Apple is an integrator at that point.
 
The existing car companies have historically resisted any competition. Example: Tucker.

IMO Apple should stick with what they are good at....
 
And Tesla had no expertise when they started and look what they managed to create.

The tech companies have rewritten the rules. They have extremely smart people working for them.

Lutz is from a bygone era.

And don't forget that Apple is never a first mover. They have a track record of getting into a market only once the technology and acceptance has been proven with a view to redefining the size and offerings in their chosen market.

And Apple has more cash to burn than any other corporation on Earth.
 
Their marketing will be simple. People will have to get Apple's permission to purchase an Apple car. Apple won't have to advertise. They'll just have to publish information on when cars will be available and if you want service you'll only be able to go to Apple outlets. And don't forget, they'll have to get in to other industries as well, like tires. They can make them an odd size just like everything else they produce.
 
Apple-Car.jpg
 
Originally Posted By: OneEyeJack
Their marketing will be simple. People will have to get Apple's permission to purchase an Apple car. Apple won't have to advertise. They'll just have to publish information on when cars will be available and if you want service you'll only be able to go to Apple outlets. And don't forget, they'll have to get in to other industries as well, like tires. They can make them an odd size just like everything else they produce.
And like the iPhone, if the battery goes dead you won't be able to replace it, you'll have to buy a complete new car!
 
There's a huge market waiting in the wings. People are longing for a self driving car so that they can stay online as much as possible. About 200 years from now, people will be online all the time because the chip will be hardwired into the brain. You won't need a mouse, trackpad or keyboard because you'll be controlling the computer with your thoughts. Instant access to information is what you'll have.
 
Originally Posted By: MikeHigg
Yep, I believe he's right.

Yes, he is. Even if the deniers want to close their eyes.
This is NOT the 1940s when Tucker was around, the manufacturing of vehicles today is nothing like it was back then the complications, complexities, cost, regulations are astounding and mystifying as well.
If it was the 1940s I might think Apple had a chance, but not today.
Even Tesla had the odds heavily stacked against them ever being even slightly profitable.
 
The Apple car, the iRoll, could be simply something commissioned and badge engineered.
 
Originally Posted By: BRZED
The Apple car, the iRoll, could be simply something commissioned and badge engineered.

It would be a good name but I understand it (iRoll) is taken. I was told several decades ago by a Swedish speaker that Volvo means "I Roll" in Swedish. Maybe he was kidding but I don't think so. We were taking about our Volvo 740s at the time.
 
The traditional large scale manufacturing barriers of entry into old line industrials have significantly changed over time. Especially in the car industry, the barriers are now heavily weighed to high tech design and manufacturing technology, systems and electronics, and of course marketing/support and regulatory compliance. That is why high tech companies like Tesla, Google, and Apple can now get into the car making business.
 
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