Apple’s work on a self-driving electric vehicle is gaining momentum. It is known that recently the company has been actively negotiating with potential automakers on the assembly of Apple Car. However, more and more often there are reports of unsuccessful attempts by the American corporation to negotiate with car companies.
According to Bloomber, manufacturers are reluctant to become contract collectors, as this type of partnership can completely destroy the business. Especially if Apple Car takes the lead in the international market. Major automakers are ready to work with Apple only in the “position” of developers.
Bloomber believes that Apple will soon turn to existing component suppliers and assembly partners to build a self-driving electric vehicle. For example, it could be Foxconn, which is the main assembler of Apple’s iPhone, or Magna, an automobile corporation, which has already worked on the Apple Car project.
As Bloomber assures, the main problem of the American corporation is that it did not take into account the intricacies of the automotive industry when looking for automakers. Apple is used to making huge profits by focusing on product and development while outsourcing manufacturing. This type of work allows the company to avoid the multi-million dollar costs of building its own factories.
However, the auto industry has a very different business model, in which automakers have tight control over each supply chain. Therefore, contract manufacturing for car companies is completely unprofitable. Insiders believe that if Foxconn and Magna refuse to cooperate, then Apple will think about its own production, since there is already information about finding a senior process engineer for a group of special projects.
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