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05/14/2024 09:15:33 pm

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Ex-GM CEO Claims Apple Has "No Idea" When it Comes to Cars

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(Photo : Reuters) Dan Akerson does not see Apple's venture into cars as a fruitful one.

Ex-General Motors CEO Dan Akerson has expressed distaste for Apple's reported move into electric cars, claiming "they have no idea what they're getting into."

It follows several reports Apple is hiring staff to work on an electric car with self-driving functionality that could compete with Tesla Motors and other premium car brands.

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Apple has been steadily picking up talent from various car firms over the past few years, including workers from General Motors, Ford and Tesla Motors. On top of the recent photos of minivans licensed to Apple.

Akerson claims due to regulations and the variety of parts that go into a car, it's not a good sign Apple is investing in the industry, claiming the company should instead sell entertainment services and car accessory products.

That isn't the Apple way since its motto for over 30 years has been "hardware, software and services all in the same package". The current CarPlay service being sold to manufacturers looks to be merely a stepping stone for the company's grand announcement.

The comments from Akerson came after Apple's stock shot up following news of a new car project. The company has $180 billion in the bank, meaning it has enough capital to acquire any talent or company in the automotive industry, making Akerson's comments a little irrelevant.

Apple reportedly thought about acquiring Tesla Motors for $75 billion, but Elon Musk is against the idea of selling the car company.

Given Apple's huge brand recognition, it's surprising Musk would be against the idea since one of the key goals of Tesla is to push the advent of electric car mainstream adoption.

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