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VW chief 'not afraid' of 'Apple Car' entering the market

Apple's entry into the electric vehicle market with the rumored "Apple Car" won't be a problem for VW, its CEO claims, with the well-established car producer "not afraid" of what the Cupertino tech giant can bring to the auto industry.

Apple has long been rumored to have a self-driving electric car in development, and recent reports claim Apple is looking to make it a reality by partnering with an existing car producer. In spite of Apple's size and potential innovation it can introduce to the sector, VW chief executive Herbert Diess doesn't believe Apple will pose a risk to the car producer.

"The car industry is not a typical tech-sector that you could take over at a single stroke," Deiss told Frankfurter Allgemeine Sonntagzeitung in an interview picked up by Reuters. "Apple will not manage that overnight."

While many rumors have hinted at the different ways the "Apple Car" could differentiate itself from other vehicles, Apple has so far been characteristically tight-lipped about its intentions. Still, Deiss believes the car is on the way, as it is a "logical" progression for Apple to take.

This includes its extensive experience in batteries and power management, software, and hardware design that it can draw on for the vehicle. It also has a considerable amount of resources and a hefty war chest to put the car into production in the future.

Even knowing this, Deiss is unrepentant. "Still, we are not afraid," the chief declared.

Though undaunted by Apple, Deiss previously offered comments welcoming firms like Apple that could disrupt the auto industry. In December, he said "We look forward to new competitors who will certainly accelerate the transformation of our industry and bring in new skills."

At the time, Deiss referred to Apple's "incredible valuation and thus the virtually unlimited access to resources," which "instills a lot of respect in us."

Though his stance is defiant in Apple's potential entry into the car market, VW is still a potential partner for Apple to work with on the car, according to a note to investors at Wedbush. VW was alongside Hyundai as the top two choices of automaker for Apple, but it is also reportedly looking into other avenues as well.

VW has also been linked to PAIL, the Palo Alto to Infinite Loop pilot program for ferrying Apple employees between offices. The project allegedly intended to use Volkswagen's T6 Transporter vans, modified to run on electric instead of gas and to use Apple's self-driving system.



53 Comments

oberpongo 19 Years · 188 comments

These statements from VW CEO are very similar to what the CEOs of Nokia, Blackberry and Microsoft said about the iPhone when it was unveiled in 2007. time will tell if VW will be as forgotten as Nokia and Blackberry. 

sdbryan 17 Years · 351 comments

oberpongo said:
These statements from VW CEO are very similar to what the CEOs of Nokia, Blackberry and Microsoft said about the iPhone when it was unveiled in 2007. time will tell if VW will be as forgotten as Nokia and Blackberry. 

It almost seems like he must be aware of the history of similar comments and is just trolling us to watch the reaction.

MassiveAttack 4 Years · 20 comments

oberpongo said:
These statements from VW CEO are very similar to what the CEOs of Nokia, Blackberry and Microsoft said about the iPhone when it was unveiled in 2007. time will tell if VW will be as forgotten as Nokia and Blackberry. 

Actually, VW has the best potential to be the best on the market if VW could rule their software issue and could generate a competitive OS system.

Just imagine, VW could bring out an OS system, which work for VW, Audi, Skoda and other subsidiaries like Apple is doing with iPhone, iPad, Mac, watch etc. 

This network effect will bring VW to the No. 1. 

If you sell your VW and buy Audi, your data still exists and you do not have to start from zero because their OS system work for all subsidiaries. 

In this case, Apple must speed up to make a common agreement with any other OEMs or Magna. 
Apple has no time and time is ticking. 

The automotive area is the most conservative sector, where you will never see another Foxconn. 

Apple will have a difficulty to finde one car maker, who is willing to make cars for Apple. I highly doubt it. 

dk49 9 Years · 284 comments

oberpongo said:
These statements from VW CEO are very similar to what the CEOs of Nokia, Blackberry and Microsoft said about the iPhone when it was unveiled in 2007. time will tell if VW will be as forgotten as Nokia and Blackberry. 
Actually, VW has the best potential to be the best on the market if VW could rule their software issue and could generate a competitive OS system.

Just imagine, VW could bring out an OS system, which work for VW, Audi, Skoda and other subsidiaries like Apple is doing with iPhone, iPad, Mac, watch etc. 

This network effect will bring VW to the No. 1. 

If you sell your VW and buy Audi, your data still exists and you do not have to start from zero because their OS system work for all subsidiaries. 

In this case, Apple must speed up to make a common agreement with any other OEMs or Magna. 
Apple has no time and time is ticking. 

The automotive area is the most conservative sector, where you will never see another Foxconn. 

Apple will have a difficulty to finde one car maker, who is willing to make cars for Apple. I highly doubt it. 

That's the thing. Creating a brand new OS from scratch isn't a joke. It's even more difficult than building a car from scratch. So many companies have tried this and failed. All of the custom OS that you see like Huawei's Harmony OS are just forked versions of Android. The OS ecosystem is so matured and integrated that even Microsoft failed to make a dent in the mobile market and had to eventually close it's mobile plans. And platform (OS) is really everything. Even tech giants like Facebook had to bow down in front of the platform (iOS). That's why Apple and Google are in a very unique and lucrative position in the tech industry, that's unmatched.

MassiveAttack 4 Years · 20 comments

dk49 said:
oberpongo said:
These statements from VW CEO are very similar to what the CEOs of Nokia, Blackberry and Microsoft said about the iPhone when it was unveiled in 2007. time will tell if VW will be as forgotten as Nokia and Blackberry. 
Actually, VW has the best potential to be the best on the market if VW could rule their software issue and could generate a competitive OS system.

Just imagine, VW could bring out an OS system, which work for VW, Audi, Skoda and other subsidiaries like Apple is doing with iPhone, iPad, Mac, watch etc. 

This network effect will bring VW to the No. 1. 

If you sell your VW and buy Audi, your data still exists and you do not have to start from zero because their OS system work for all subsidiaries. 

In this case, Apple must speed up to make a common agreement with any other OEMs or Magna. 
Apple has no time and time is ticking. 

The automotive area is the most conservative sector, where you will never see another Foxconn. 

Apple will have a difficulty to finde one car maker, who is willing to make cars for Apple. I highly doubt it. 
That's the thing. Creating a brand new OS from scratch isn't a joke. It's even more difficult than building a car from scratch. So many companies have tried this and failed. All of the custom OS that you see like Huawei's Harmony OS are just forked versions of Android. The OS ecosystem is so matured and integrated that even Microsoft failed to make a dent in the mobile market and had to eventually close it's mobile plans. And platform (OS) is really everything. Even tech giants like Facebook had to bow down in front of the platform (iOS). That's why Apple and Google are in a very unique and lucrative position in the tech industry, that's unmatched.

Totally agree with you.
However, the strategy of OEMs would be to reject Apple as long as Apple gives up. 
If they are not willing to make Apple cars, Apple would be out of the competition by assuming that Apple will not buy an OEM. 

As I said, time is running and ticking at the moment. The time is against Apple. 

I currently work in the automotive area and I cannot imagine that Apple will find one OEM, which is willing to make cars for Apple. 

The automotive market is a completely different animal and there will be no next Foxconn. 

I am excited to get some "official" news in the future how Apple would handle this challenge.