Lutz dubious of Apple’s electric car ambitions [Video]
Apple will reportedly launch its rumored electric vehicle in 2019, but a former General Motors executive isn’t too high on the prospects of an Apple Car.
In a recent interview with CNBC, former GM vice chairman Bob Lutz commented that the Apple Car could be a huge money loser for the tech giant.
“There is absolutely no reason to assume that Apple is going to be financially successful in the electric car business,” Lutz said on CNBC’s “Closing Bell.”
Lutz explained that unlike Apple’s bread-and-butter consumer electronics products, the car business is typically very low margin. Moreover, Lutz added that the electric car business, which is rumored to be Apple’s intended target, is generally a money loser.
“You can’t show me one company in the world that, to date, has ever made a nickel on electric cars,” Lutz said.
Lutz also dismissed the idea of Apple having a leg up on the auto industry because of its background in electronics. Lutz noted that Apple purchases its battery tech from outside suppliers like most automakers and he also questioned the company’s auto manufacturing abilities.
“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,” he said.
Despite being labeled by Lutz as a “gigantic money pit” that could loose billions of dollars, Apple will reportedly launch its take on the electric car in 2019.