• Ex-GEM CEO Dan Akerson Says Apple Making a Car May Not Be Worth It

    The longtime telecom executive, Dan Akerson, who has overseen General Motors for a five-year run in Detroit, recently chose to weigh in on Apple’s possible entry into the carmaking arena stating that Apple has “no idea what they’re getting into.” He continued by stating the following regarding the matter:

    I think somebody is kind of trying to cough up a hairball here. If I were an Apple shareholder, I wouldn't be very happy. I would be highly suspect of the long-term prospect of getting into a low-margin, heavy-manufacturing business.
    To shed more light on the situation, GM’s gross margin for the fourth quarter of 2014 was just a little over 11% compared to nearly 40% for Apple. Not only did Akerson point this out but he was even more harsh in his assessment of Apple’s expertise in manufacturing:

    [Apple] better think carefully if they want to get into the hard-core manufacturing. We take steel, raw steel, and turn it into car. They have no idea what they're getting into if they get into that.
    The comments as a whole were seen as strange given that Apple has quite the reputation when it comes to diving deeply into the development of materials and processes used to manufacture its devices. Apple’s upcoming Apple Watch Sport is the perfect example of this as it uses ion-strengthened glass that has been said to be developed in-house. Furthermore, GM is no longer a vertically integrated company either. The “raw steel” that Akerson was referring to is reportedly supplied by European materials giant ArcelorMittal.

    To an extent, players in the auto manufacturing industry bashing Apple isn’t a surprise given the rumors of an Apple-manufactured car being afloat. The rumors all started when Apple was outed as the operator of a fleet of sensor-covered minivans that have been caught driving around. This coupled with other reports, such as news of a “top secret search lab,” and Jony Ive personally recruiting automotive executives have led the rumors to run rampant.

    We’ll have to wait for more concrete evidence to see if Apple really is working on an electric car and to see what else is said by others in the industry.

    Source: Bloomberg
    This article was originally published in forum thread: Ex-GEM CEO Dan Akerson Says Apple Making a Car May Not Be Worth It started by Akshay Masand View original post
    Comments 3 Comments
    1. hitman10's Avatar
      hitman10 -
      I mean, back when i got my first mac my told my parents this company will be big buy into. Once they became big i told my family apple will expand on to other things bigger and better. I mean ****, do the math, like richest company in the world basically, the cash flow is comin in. Why not make a car or a tv or a spaceship, I'm sure it will be better then whats offered today, with a competitive price tag I'm sure of also haha.
    1. luvmytj's Avatar
      luvmytj -
      Seems like sour grapes to me. They know whatever Apple gets into they turn the market on it's ear and control it, thats what worries them.
    1. rabbit70's Avatar
      rabbit70 -
      These are the words from a man, who's industry has squashed smaller automotive properties because they posed a threat to their way of doing business. But the "Big 3" can't squash Apple that easy. Apple has the means to do develop products within any industry they want: electronics, architecture, power, automotive, etc... When they decide to make a move into that industry, no companies in that industry will be able to stop them. Does anyone remember when RIM/Blackberry said the same thing before the iPhone was announced? I would think that companies that are worried should reach out to Apple to become a part of the plan or wait until Apple actually releases a product. But at that point it may be too late to jump on the band wagon.
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