Former GM & BMW executive disses Apple car on CNBC! Bob Lutz declared Apple does not even have a fighting chance in the automotive industry.
On Monday the former executive to GM Inc. and BMW Bob Lutz appeared on CNBC. During the show Lutz dissed Apple on its effort to build the electric car. Lutz was asked if Apple is doing the right thing by entering the electric car market. Lutz replied in the negative, stating he does not think it is a good idea.
Lutz further explained if he was a shareholder in Apple, he would be very upset. According to Lutz Apple is already in a very lucrative and profitable business. Compared to that, the automotive business is a very low margin business.
According to Lutz, Apple has no experience about the automotive industry. The electric car project by Apple titled Titan will be a money pit in Lutz’s words. Lutz went on to say there isn’t a company present which has made even a nickel on electric cars.
Lutz further called electric car companies money losers. Lutz further declared the only reason electric cars are still being produced is due to regulations. Electric cars meet both the US and the European fuel economy regulations. Furthermore Lutz believes there is no substantial reason Apple will be financially successful in the endeavour.
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On the other hand, reports suggest Apple has redoubled its effort to produce an electric car. According to sources Apple is aiming to produce an electric car by 2019 or 2020. Lutz' declarations are not the first time Apple’s new products have been criticised. Two months before the iPhone was unveiled by Steve Jobs, the Palm’s Ed Colligan criticised Apple.