Can Apple Build A Car Inside Of 5 Years?

We reported previously that Apple is working on an electric car. We also told you that some in the automotive space think they are working on a platform to sell to various automakers rather than their own unique vehicle. Apple is reportedly also poaching employees from Tesla Motors, Samsung and A123 systems, among others. Now that a few weeks have gone by, we explored the latest developments from this ever-evolving story.

As far as the lawsuit between Apple and A123 systems, Apple is accused of poaching A123 Systems engineers to work on electric battery projects. Court filings released on March 3rd, show Apple is asking for more time because they are exploring a potential resolution.

One quote on the subject of the Apple car saga comes from the Chief Executive Officer of Volkswagen, Martin WInterkorn. During the Geneva International Motor Show, he talked to Bloomberg about the possibility of Google as well as Apple producing their own electric cars. Speaking about the timetables the two companies may be working with he said, “we are also very interested in the technologies of Google and Apple, and I think that we, as the Volkswagen Company, can bring together the digital and mobile world.”

Both Google and Apple have the resources to throw towards an automotive production to achieve their goal in a short amount of time. Apple has $178 billion in cash, to Google’s $64 billion.

Speculation has increased that major automakers such as GM and Ford are preparing to compete with a possible Apple Electric car. If that happens, neither Ford nor Chevrolet has anywhere near as much cash as Apple. GM has $25.2 billion in cash to Ford’s $21.7 billion.

However, Apple’s market capitalization is $759 billion, which the Detroit Free Press writes is greater than the combined value of Toyota, Honda, GM, Ford, FCA US and General Electric. Erik Gordon, a University of Michigan Business Professor spoke recently about this subject and how tech companies are impacting the traditional automakers in Detroit. In an interview with the DFP Gordon said, “We don’t know whether it will be electric cars from Apple or Tesla or self-driving cars from Google … But it will require huge capital investment by GM or Ford to get through it.”

Another large point of speculation is the potential launch date for Apple of 2020. Five years is a relatively short amount of time for an automaker to create a new model, especially for the first time ever. Some analysts feel if Apple intends to build a car, they will do so with a partner. Recent talks between Apple and luxury automaker BMW caused some to think that they might be working on a car together, however, BMW has refuted that report. A BMW spokesman told Reuters, “We are in regular talks with companies from the IT and telecommunications sector, including Apple, concerning topics like connected vehicles. Developing or building a car is not a topic of these discussions.”