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Will Apple Become An Automaker? | DrivingSales News

Will Apple Become An Automaker?

February 16, 2015 3 Comments

Speculation has grown that Apple might get involved in the automotive industry. While nothing has been confirmed yet, several news outlets have reported on parts of this story that have given it traction. According to Bloomberg, Apple has over one hundred employees working on “Project Titan,” the codename for their automotive exploration project.

Forbes reported that Apple CEO Tim Cook has decided on Apple VP Steve Zadesky to lead Apple’s automotive research lab. Forbes is also reporting, Apple also hired Johann Jungwirth, the former President and Chief Executive of Mercedes-Benz Research and Development North America. Apple appears poised for a major automotive project, which may have already taken to the streets. Apple has reportedly leased a few vans that have specialized equipment on top of the vehicle. A photo that was found by a MacRumors website reader shows one of the vans Apple has been leasing as it drives around in the San Francisco area.

The major question surrounding this endeavor by Apple is why? Why would they get involved in automotive and what are they planning to do?

While what they are going to do is unknown, they might just be trying to make use of their immense cash on hand. Apple reportedly has $178 billion in cash. That’s seven times the cash that GM has. Erik Gordon, a University of Michigan Business professor, told Bloomberg that If Apple wants to build a car with some of that cash, they will have to compete with other “cool” players. Gordon said, “Shareholders and analysts will hate the margins and the distraction. They’re not even the cool, first player. They are following Tesla and Google.” Last week Elon Musk told Tesla investors that Apple is, “just running out of ways to spend money. They spend money like its water over there and they still can’t spend enough of it.”

Do you think that Apple will enter the automotive industry? Will the entrance of tech companies into the automotive realm continue? Do you think that an Apple vehicle would be sold at a dealership or directly-to-consumers?

**CORRECTION: We inaccurately reported that Apple has 178 Million in Cash. That was supposed to be $178 Billion. Apple is clearly doing well. We apologize for any confusion that this caused.

About the Author:

The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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    Dave Martinson
    Dave Martinson

    Jack, thank you! You are correct, that was supposed to be $178 billion. I’ve added that correction.
    -Dave Martinson

    Grace

    Go Apple!

    “Competition is not only the basis of protection to the consumer, but is the incentive to progress.”

    Herbert Hoover

    Jack Weinzierl

    Thank you for the reporting. Just a quick correction. You noted “Apple reportedly has $178 million in cash.” I believe that is $178 billion in cash… for the record.