With an internal goal of 2020 to begin building its own car, Apple faces a number of roadblocks in automotive manufacturing, which could lead it to partnering with another company in its vehicular venture, a source has indicated to AppleInsider.
A person with knowledge of Apple's secretive "Project Titan" revealed to AppleInsider this week that the company is currently facing problems as it plans out a manufacturing site for the anticipated "Apple Car." They said the company's timeframe, in which it would like to begin manufacturing within five years, may result in Apple seeking out a partnership with another, already-established player in the automotive space.
Specifically, it was said that Apple is apparently eyeing new property it purchased in San Jose last month as a potential site for "Project Titan" development, and perhaps even eventual assembly. The company paid $138 million for a 43-acre building plot currently featuring nearly 2 million square feet of office space.
It was also suggested that the design and technology behind "Project Titan" remain very much in flux, with Apple reportedly still considering using BMW's i3 as the basis for its project. Apple and BMW have held talks about a potential partnership, though it's been said that the two parties are not close to an agreement.
Apple is said to have been particularly impressed that BMW "abandoned traditional approaches to car making" in developing the i3. Apple's top brass apparently indicated they are interested in taking a similar, fresh approach to the automobile with their own initiative.
The new San Jose property owned by Apple certainly has the space for an automotive research facility, though the company's intent with the site has not yet been publicly revealed. Records with the City of San Jose show that industrial park planned development permits for the land are inactive, suggesting Apple has not yet pulled any such permits.
Rumors have persisted throughout 2015 suggesting that an "Apple Car" is the Cupertino company's next major new product category. It's been speculated that Apple is looking to develop a self-driving automobile to compete with other projects currently in the works from traditional automakers, as well as Tesla, Google, and even Uber.
AppleInsider exclusively reported earlier this week that Apple has been poaching Tesla workers to push its "Project Titan" forward. The hiring has apparently been so extensive that it has negatively affected Tesla's own internal product development.
For now, well before manufacturing could begin, Apple is said to be working on its project largely at a secretive facility in Sunnyvale, Calif., known by the code-name "SG5." AppleInsider uncovered evidence earlier this year suggesting that a shell company known as SixtyEight Research may be a cover for Apple to help conceal its true operations at the Sunnyvale garage.
126 Comments
This is the kind of article I prefer to see here. I'd much rather read a good piece of investigative work than one more bit of speculative nonsense from DigiTimes, Gene Munster or Ming-Chi Kuo. In fact, if most of the commonly published analysts were never given a platform to manipulate Apple stock here again, it would be a good decision.
Basic car startup assembly plant is $300-$600 million.. and thats w/o research into new tech.. Within 5 years? meh.. So we have a speculative vehicle with even more speculative delays that is not even in prototype yet? umm.. Guess it's a good piece of writing.. on a something thats speculative.
SG5 huh? So Apple is developing a Stargate? ;) I always heard about Apple's reality distortion field, now I think I know what they meant! :D
Basic car startup assembly plant is $300-$600 million.. and thats w/o research into new tech.. Within 5 years? meh.. So we have a speculative vehicle with even more speculative delays that is not even in prototype yet? umm..
Guess it's a good piece of writing.. on a something thats speculative.
Basic car startup assembly plant cost is (in your mind) an archaic number based on how existing car manufacturers do things. Totally inefficient in my opinion. If Apple does move this direction (still nothing confirmed by Apple) then they will totally change the way cars are built. AND, how does anyone know that Apple doesn't have something in prototype yet?
wonder how they will retain their margins. one would imagine they will need to price their base cars at $35K or less to capture more than a niche portion of the market.