Apple Car expected to shake up auto industry in Asia and world - and other news

[TruckElectric]

An 'iPhone business model' would change traditional vertical integration

BEIJING -- Global information technology leader Apple is highly likely to break into the automobile sector. The American company is reportedly planning to create self-driving electric vehicles manufactured by an automaker under a tie-up agreement using a business model similar to its iPhone production.

A potential Apple Car, if realized, is thought certain to affect the competitive landscape of the auto industry.

Following year-end reports on Apple's possible entry into the auto market by Reuters and Taiwanese news media, share prices of U.S. and Chinese high-technology companies moved upward.


In the U.S., companies such as Velodyne LiDar, a maker of light detection and ranging (lidar) sensors that act as the "eyes" of self-driving cars, have aroused strong investor attention. In China, investors flocked to Contemporary Amperex Technology, the world's largest maker of batteries for electric vehicles, and other suppliers of EV-related components.

An Apple Car would be a "mass" of high technologies, analysts at American and European auto market research firms said, suggesting that suppliers of key automobile components may be changed.

The Apple EV project is expected to cause a more serious impact on the auto industry through the use of smartphone development and production know-how to design cars and through the horizontal division of production. Apple would likely focus entirely on designing cars while outsourcing production to companies like Hon Hai Precision Industry, a top Taiwanese electronics contract manufacturer.

Electric vehicles for Chinese ride-hailer Didi, unveiled late last year, are manufactured by BYD Auto. (Photo by Shunsuke Tabeta)
As in the case of iPhones, Apple is expected to devote itself to overall design work, including self-driving technology, while outsourcing production. The approach is likely to shake the auto industry's existing business model of vertical integration, in which carmakers engage in the entire process from designing to manufacturing.

The horizontal division of labor is already advancing in China's auto sector. Baidu, a top Chinese internet company leading the development of self-driving technology, announced Monday that it will produce EVs with Zhejiang Geely Holding Group, a major automaker in China, on an original-equipment-manufacturing basis.
In addition, Didi Chuxing Technology took the wraps off an EV developed for its service in November. China's biggest ride-hailing platform, used by 550 million people around the world, aims to put 1 million units into use by 2025. BYD Auto, a Chinese EV maker proud of its brand, will manufacture the EV for Didi.

Magna International, a top Canadian auto parts supplier that has advanced into production of cars on behalf of automakers, is seen as a leading candidate to manufacture the Apple Car. Taiwan's Foxconn, which has teamed up with Apple in smartphone production, also reportedly wants to win the order.

The Apple project has drawn interest from automakers as well. Hyundai Motor of South Korea said Friday that it is in early talks with Apple over a tie-up to develop an EV. A large order for production of the vehicle, if received, would likely enable Hyundai to raise its capacity utilization rate and stabilize earnings.

But the project may upset the superiority of carmakers at the top of the industry. Automakers may "become Apple's subcontractors and lose their originality," warned an executive at a major Japanese carmaker.
BYD decided to produce EVs on behalf of Didi because it can expect to profit through increasing output, an auto industry analyst said.

While Asian companies are starting to move in a bid to capitalize on the Apple Car project, a question is whether Japanese firms are prepared for it. There remains concern that Japanese companies will lose the initiative to Chinese and South Korean rivals, as in the case of smartphones and consumer electronics.

SOURCE: NIKKEI ASIA



Apple, Tesla supplier Foxconn will build Byton SUV

Byton and Foxconn aim to start mass production of the Byton M-Byte by the first quarter of 2022.


Apple supplier Foxconn Technology Group signed a strategic cooperation deal with embattled Chinese EV startup Byton in a transaction that could mark a large bet by the iPhone assembler on the auto industry.
The companies, aided by the Nanjing Economic and Technological Development Zone, aim to start mass production of the Byton M-Byte by the first quarter of 2022, according to a statement Monday.

Foxconn, whose main listed arm is Hon Hai Precision Industry, plans to invest around $200 million in the venture, a person familiar with the matter said earlier, declining to be identified discussing information that is not yet public.

The deal could represent a lifeline for Byton, which is struggling to produce its first vehicle having unveiled its M-Byte concept car several years ago.

Under the arrangement, Foxconn will supply Byton with its advanced manufacturing technology, operation management expertise and supply chain resources. The Taiwan-based company is however also talking to other Chinese EV makers on potential collaborations, another person familiar with the matter said.

Tech companies are increasingly pouring money into developing next-generation cars, including full-electric vehicles and the smart technologies that go with them like autonomous driving and car-to-car communication systems.

Foxconn is the single most important production partner for Apple, which is reportedly considering developing a self-driving car of its own. Foxconn also wants to diversify a business that depends on the U.S. smartphone giant for half its revenue.

Tesla supplier

In early 2020, Hon Hai announced a plan to form a joint venture with Fiat Chrysler Automobiles to develop and make EVs in China, though it won’t be involved in any assembly itself. In October, the Taiwanese company unveiled its first electric-vehicle chassis as well as an open software platform that’s aimed at helping EV makers deliver models to the market faster.

It will start shipping its first developer kit in April. The Foxconn group has been supplying parts to other major automakers including Tesla.

“The electric vehicle-related business will be very good in the first half of 2021,” Hon Hai Chairman Young Liu said at a company event in Taipei last month.

Tough year

Byton, one of the highest-profile Chinese EV startups, had a tough 2020. It suspended all domestic operations and furloughed staff in July after the coronavirus pandemic made it tougher to get its business off the ground. That suspension has been extended now until June. Even before COVID-19 the company had encountered difficulties meeting announced deadlines on producing and delivering its first model. The company’s website still accepts reservations for cars.

Founded by former BMW managers, Byton, initially named Future Mobility, had about 1,000 employees in China as of June and about 500 elsewhere, including the U.S. Its investors include state-owned China FAW Group and EV battery maker Contemporary Amperex Technology Co., which supplies batteries to Tesla.

Byton was planning to enter North America and Europe around mid-2020, former CEO Daniel Kirchert, also one of the company’s co-founders, said in early 2019. The company would consider an initial public offering after new financing and production begins, he said at the time.

The M-Byte SUV can reach 80 percent of a full charge in about 35 minutes and has a top speed of 190 kph (118 mph). It has a range of up to 550 km, according to information on Byton’s website.


SOURCE: Automotive News Europe



Alibaba launches electric car in tie-up with SAIC

Foxconn enters JV with Geely as tech companies forge links with China carmakers

Daniel Zhang, now chairman and CEO of Alibaba, at a 2016 launch event for an SAIC Motor model that featured the tech company's operating system. The two companies have been cooperating on development since 2014. © AP

NIKKI SUN and LAULY LI, Nikkei staff writersJanuary 13, 2021 20:55 JST
HONG KONG/TAIPEI -- Chinese e-commerce group Alibaba Group Holding has stepped up its involvement in China's electric vehicle sector, launching a sedan with wireless charging under a new brand formed together with SAIC Motor, the country's largest car company.

In another sign of the scramble for alliances in the fast-moving sector, Taiwanese iPhone assembler Foxconn Technology Group on Wednesday announced its own joint venture with Zhejiang Geely Holding Group, China's largest privately owned auto group.

The moves underscore the growing ambition of Asia's largest tech groups in the automobile industry as they rush to team up with established carmakers to accelerate market entry and compete with U.S. rival Tesla in the world's biggest vehicle market.

Alibaba, already a major investor in domestic EV startup Xpeng Motors, is increasing its bet on the future of smart vehicles at a time when investors are sending shares of Tesla and Chinese rivals soaring.

The sedan unveiled on Wednesday under the brand IM -- for "intelligence in motion" -- was developed by a joint venture between Alibaba, state-owned SAIC and Shanghai Zhangjiang Hi-Tech Park Development, an investment arm of the city government.

The trio formally launched the venture on Dec. 25. SAIC is the largest shareholder, with a stake of 54%, while Alibaba and Shanghai Zhangjiang each hold 18%. Alibaba and SAIC first connected on developing high-tech models in 2014.

The IM sedan features a new solid-state battery from Contemporary Amperex Technology, China's largest battery maker, with a higher energy density than those in use now, as well as chips from U.S. tech group Nvidia.

The vehicle will be able to self-park and include smartphone functions such as photo-shooting and social media sharing.

IM will start taking preorders in April during the annual Shanghai auto show. A second model, a sports unit vehicle, is targeted for delivery in 2022.

"The partnership will help SAIC add more premium models to its portfolio, thanks to Alibaba's reputation," said Ivan Su, an analyst with Morningstar in Hong Kong. Alibaba's expertise in customer analytics and distribution channels will help boost sales, he added.

Earlier this week, search engine company Baidu launched a new EV unit, also with support from Geely. Last November, ride-sharing company Didi Chuxing Technology launched an pure electric sedan with BYD, China's largest EV producer. The two aim to have produced 1 million cars by 2025.

"The tech companies already have so much consumer data: where we like to eat, what we buy, where we go... One area that is currently a 'black box' for tech companies is what we do when we are driving," said Le Tu, managing director of Beijing-based Sino Auto Insights. "If they get access to that, combine it with the data they already have, they can then anticipate what our needs are and develop services and products that they know we need."

Meanwhile, tech manufacturers like Foxconn are piling into the EV industry, hoping to find new growth areas where they can deploy their prowess in building devices.

Foxconn, the world's largest contract electronics maker, said that its JV with Geely will be able to provide a one-stop solution for automobile assembly, production of components and electronic control systems, and EV supply chain management,

"Geely and Foxconn's alliance could complement each other and provide a better service for customers," said Foxconn Chairman Young Liu in a news release. "This collaboration is not only in line with Foxconn's corporate transformation, but also will bring a massive change to the car industry,"

Daniel Li, CEO of Geely, said Foxconn's global footprint and IT expertise will play an important, symbolic role in the car industry's transformation.

Foxconn founder Terry Gou, center left, joined Chairman Young Liu, center right, and other company executives Wednesday to mark the new venture with Geely. (Courtesy Foxconn)

Foxconn and Geely will each hold 50% of the new JV. The Apple supplier will hold three of five board seats and have the right to appoint the chairman, according to Foxconn.

The announcement comes just weeks after Foxconn announced that it would work with embattled Chinese EV maker Byton to manufacture its first car. Though Foxconn has not built full vehicles, it has been supplying key components for carmakers like Tesla and BMW for years.

Underlying the rush into EV is Beijing's official target for electric vehicles to make up 20% of all car sales by 2025.
Sales of new-energy vehicles in China, including electric, plug-in hybrid and fuel-cell models, grew 11% to 1.36 million autos in 2020, the China Association of Automobile Manufacturers said on Wednesday. The subsector outshone total vehicle sales, which declined 2% to 25.3 million.

After three consecutive years of falling car sales, analysts expect to see gains this year.
"The impact of the pandemic has already disappeared," Paul Gong, China auto analyst at UBS, told reporters on Wednesday. He projects double-digit growth in overall sales, with volumes "possibly higher than the 2019 level" of 25.77 million vehicles.


SOURCE: NIKKEI ASIA

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[TruckElectric]

Foxconn Taps Nio Co-Founder Jack Cheng To Lead New Open EV Platform


Apple Inc (NASDAQ: AAPL) supplier Hon Hai Precision Industry Co., Ltd.-ADR(OTC: HNHPF), widely known as Foxconn, has announced a high-profile appointment for its newly created open electric vehicle platform.

What Happened: Foxconn has appointed Jack Cheng, co-founder of Chinese EV start-up Nio Inc – ADR (NYSE: NIO), as head of MIH, its open software and hardware platform for developing EVs, local Chinese media outlets reported.

William Wei, the unit's chief technology officer, will assume responsibility for software, the report said.

Cheng is an auto industry veteran, with over four decades of experience at companies such as Ford Motor Company (NYSE: F) and Fiat Chrysler Automobiles NV (NYSE: FCAU).

Cheng, along with William Li, was responsible for putting in place the core team at Nio in the second half of 2015.

After quitting Nio in 2019, Cheng worked for XPT, which develops core components for Nio.

Foxconn established the MIH platform in October to diversify into EV sector.

Earlier this week, Foxconn announced a 50-50 joint venture with Geely Automobile Holdings Ltd (OTC: GELYF) to provide OEM production and comprehensive, customized consulting services to global automakers.

Why It's Important: The appointment of Cheng suggests Foxconn is contemplating a big push into the EV market.

The company's relationship with Apple in iPhone manufacturing makes it a favored name for a potential partnership with the tech giant, if and when it decides to take the plunge.


SOURCE: YAHOO FINANCE

 

[Bond007]

There was some sort of news last week stating that Hyundai was officially going to be Apple's partner for its iCar. What happened to that?

 

[TruckElectric]

There was some sort of news last week stating that Hyundai was officially going to be Apple's partner for its iCar. What happened to that?

Apple’s strict approach to secrecy in the spotlight after Hyundai walks back Apple Car statement

Hyundai made a bold statement last week, confirming that it was in talks with Apple about a potential partnership for Apple Car. Shortly thereafter, the company backtracked and published a new statement without a mention of Apple.

This is yet another example of Apple’s strict approach to secrecy, and a new report from CNBC offers some more detail on Apple’s strategy.

For reference, here is Hyundai’s first statement on Apple Car:

“We understand that Apple is in discussion with a variety of global automakers, including Hyundai Motor. As the discussion is at its early stage, nothing has been decided.”

The subsequent statement released shortly after:

“We’ve been receiving requests of potential cooperation from diverse companies regarding development of autonomous driving EVs, but no decisions have been made as discussions are in early stage.”

The report explains that while nondisclosure agreements are common, Apple’s approach is even stricter. Citing “people familiar with the matter,” CNBC says that Apple instructs partners that they are not to mention Apple by name in public or to the media.

Apple’s strict approach confidentiality is described as a “lot of hoops to jump through” by one source in the story:

Apple tells partners they can’t mention Apple in public or to the media, according to people familiar with the matter who didn’t want to be identified to avoid risking their relationship with Apple. One person who has worked with Apple described its secrecy requirements as a lot of hoops to jump through.

The report goes on to point out one small piece of information that was gleaned from bankruptcy proceedings by GT Advanced Technologies. GT Advanced Technologies had entered into an agreement with Apple to provide sapphire for iPhone screens, but ultimately declared bankruptcy after manufacturing difficulties.

During bankruptcy proceedings, GT presented a contract labeled confidential that said GT would have to pay Apple $50 million per leak. The contract mentioned three separate confidentiality contracts to which the sapphire maker had agreed. GT also said the terms of its confidentiality agreements were required to be secret.

CNBC adds that Apple settled with GT Advanced after the fact, and condition of the settlement was that the “description of its relationship with Apple” would be kept private.

9to5Mac’s Take

As Apple enters new industries, it’s interesting to watch how its approach to secrecy evolves.

For instance, Apple TV+ content announcements are not as tightly controlled as other announcements from Apple. We often learn about upcoming TV shows and movies early in the process, and even learn details about Apple’s acquisition costs for specific content.

This is likely an instance of Apple adapting to the norms of the Hollywood industry, rather than trying to apply its usual approach to secrecy.

Nonetheless, the supply chain still remains one of the top sources for hardware rumors in regards to the iPhone, iPad, Mac, and other hardware products.

The full report at CNBC is well worth read and can be found here.

SOURCE: 9TO5Mac


CNBC report

Doing business with Apple means you probably can’t tell anyone about it, as Hyundai learned

• Apple insists on discretion from its suppliers or potential partners.
• Last week, Hyundai said it was in early talks with Apple about cars but then immediately backtracked.
• While nondisclosure agreements are common in the high-tech world, people who work with Apple say the iPhone maker takes confidential information more seriously than competitors.

Hyundai confirmed in a short statement last week it was in early talks with Apple about cars. Almost immediately, the Korean auto giant started to backtrack, releasing a subsequent statement that removed all mention of Apple.

Hyundai’s retreat is almost certainly the latest fallout from Apple’s insistence on secrecy and discretion from its suppliers or potential partners. Companies who deal with Apple are held to strict nondisclosure agreements, even if they are public companies and Apple is a major customer.

While nondisclosure agreements are common in high tech, people who work with Apple say it takes confidential information more seriously than competitors. Apple tells partners they can’t mention Apple in public or to the media, according to people familiar with the matter who didn’t want to be identified to avoid risking their relationship with Apple. One person who has worked with Apple described its secrecy requirements as a lot of hoops to jump through.

In at least one case, Apple has threatened to penalize suppliers $50 million for each individual leak, according to a contract that became public as part of a bankruptcy proceeding by supplier GT Advanced Technologies.

Some companies can engage in limited discussions of their business with Apple, especially if Apple has publicly talked about the relationship and approves. One example is Corning, which supplies glass for iPhones. Apple has paid the company at least $450 million since 2017 and has highlighted it in its own press releases as an example of an American manufacturing company it supports.

But its CEO said earlier this year he wasn’t comfortable talking about the relationship until Corning’s new stronger glass was mentioned during the recent iPhone 12 launch livestream.

“I have to tell you that it feels not quite right to use Apple’s name out loud. I still don’t think I’ve ever done that. Inside the company, we have a codename for Apple, we never even say ‘Apple’ inside the company,” Corning CEO Wendell Weeks said on an earnings call in October. “So, if you could see me, I sound like I’m turning a little pink and I am having an anxiety attack, if I read their name out loud.”


Why Apple loves secrecy
Apple’s obsession with secrecy is one of its defining aspects — some Silicon Valley insiders jokingly dub it the “Fruit Company.” In 2011, Apple even sold a shirt at its campus gift shop that said “I visited the Apple campus. But that’s all I’m allowed to say.”
Apple’s secrecy can be tied to its founder, Steve Jobs, who insisted on it. Jobs was a master marketer who perfected the product launch as spectacle, often relying on surprises to keep the show going when discussing new products.

Today, Apple still relies on “surprise and delight” during product launches, which remain a key marketing strategy — Apple held three separate launch livestreams this fall to release new Apple Watches, iPhones and Mac laptops. All three presentations drew millions of viewers, who tuned into YouTube to hear directly from Apple executives about its new products.

Apple considers details about unreleased products to be a “one of its greatest assets.” In Apple’s business conduct policy from October, it says employees should be “very selective” when disclosing Apple business information to vendors or suppliers, and they should only do so after a nondisclosure agreement is in place. The handbook also says suppliers should follow Apple principles such as confidentiality.

“When there is a business need to share confidential information with a supplier, vendor, or other third party, never volunteer more than what is necessary to address the business at hand,” according to the policy. “Any confidential information shared outside Apple should be covered by a non disclosure/confidentiality agreement.”

Double-edged sword
Even with layers of NDAs and a limited ability to publicize a customer win, many suppliers jump at the opportunity to sell to Apple.

Cirrus Logic, a maker of audio chips, said in an SEC filing in March that Apple accounted for 81% of its total sales in fiscal 2020, which were $1.28 billion.

Still, Cirrus executives rarely say Apple’s name, and for years they avoided it entirely. In 2017, an investor presentation included a slide with a variety of logos of their customers. Apple’s logo was nowhere to be found. Instead, the Cirrus slide included a picture of a brown box with the words ”#1 CUSTOMER.” Recent investor slide decks simply say that Cirrus Logic supplies the top seven smartphone makers.

“Before we begin the Q&A, I’d also like to note that while we understand this intense interest related to our largest customer, in accordance with our policy, we do not discuss specifics about our business relationship,” Cirrus Logic President John Forsyth said on a conference call with analysts in November, as the company regularly says before discussing its own earnings. A Cirrus spokesperson provided the same statement in response to a question for this article.

Other public companies also use euphemisms when they have to discuss the iPhone maker’s business. Last June, Broadcom CEO Hock Tan tipped that the iPhone 12 would be released later than usual when discussing its wireless revenue projections. However, he didn’t mention Apple — he spoke about “our large North American mobile phone customer,” even after a previous deal with Apple was big enough to merit an SEC filing, albeit with scant details.

In 2014, bankruptcy proceedings gave a peek into how Apple requires secrecy for its suppliers. In 2013, GT Advanced Technologies entered into a deal with Apple to provide raw sapphire balls to make scratch-resistant iPhone screens. GT was unable to manufacture the sapphire in its Apple-owned facility in Arizona, and declared bankruptcy, leaving Apple as a major creditor.
During bankruptcy proceedings, GT presented a contract labeled confidential that said GT would have to pay Apple $50 million per leak. The contract mentioned three separate confidentiality contracts to which the sapphire maker had agreed. GT also said the terms of its confidentiality agreements were required to be secret.

Another contract said any publicity involving Apple would require written approval.
Apple settled with GT shortly after the $50 million penalty for leaks was revealed. One condition of the settlement was that GT would keep a “description of its relationship with Apple” private.

Apple declined to comment for this story.

SOURCE: CNBC

 

[rr6013]

SHOW ME. This is all you got? Real car makers deliver cars.

There are cars or there are wannabe car makers right now. Apple can’t deliver a pair of headphones that don’t rain inside. How is it that anyone expects it to deliver a car — at all.

I read these PR pieces as gorilla chest thumping for Tesla sake. What else can they do? Voilā PR.

 

[Bond007]

SHOW ME. This is all you got? Real car makers deliver cars.

There are cars or there are wannabe car makers right now. Apple can’t deliver a pair of headphones that don’t rain inside. How is it that anyone expects it to deliver a car — at all.

I read these PR pieces as gorilla chest thumping for Tesla sake. What else can they do? Voilā PR.

I say, yes to this...

 

[TruckElectric]

Watch Out, Apple Car! Sony Is Testing Its Own EV Sedan
Given Japanese automakers’ hesitation toward EVs, this could be an opening Sony needs.

SONY

• Sony starts road trials of Vision S-EV prototype, first seen at CES 2020.
• Midsize EV sedan features tech from multiple companies including Magna Steyr.
• Sony has indicated it intends the car to be a demo for its in-car tech.

For an electric car that was supposedly just a technology demonstrator, unveiled in a surprise debut at the Consumer Electronics Show a year ago, the Sony car is sure doing road tests like a pre-production prototype. The sleek electric sedan dubbed Vision S-EV, which seemingly came out of nowhere, was a collaboration between electronics juggernaut Sony, supplier giant Magna Steyr (that regularly builds cars for other automakers), and a whole supporting cast of software companies and automotive suppliers including Nvidia, Qualcomm, ZF, Bosch, Continental, and others.

The resulting car, perhaps unsurprisingly, looks pretty much production-ready—like the product of an automaker that’s been building cars for decades. It certainly does not look like a Potemkin-style design study that would come apart if you yanked the door handle too fast.

What's more, the Sony Vision S-EVappears to be a direct strike against Tesla, being a midsize sedan positioned between the Model 3 and the Model S, and powered by two 268-hp motors, good for good for a combined 536 hp, a top speed of 149 mph, and 4.8-second launches from 0 to 62 mph. Just about the only major spec we don't have regards the battery underneath, even though it was shown. And just like Tesla, Sony showed off autonomous tech with 33 sensors along with a cabin featuring a wide, wraparound screen stretching across the entire dash. The ergonomic seats looked very cozy up front and in the back, where in addition to headrest-mounted screens the passengers also had a whole glass roof to look through.

To say that the Sony car stole the show in Las Vegas a year ago would be veryaccurate. But the electronics giant poured cold water on possible production plans, merely suggesting that the car was a technology demonstrator. That's right: Sony said that it had no plans to produce the car... but all the same it is now undergoing road trials.

"With the goal of contributing to the evolution of mobility, VISION-S development activity has reached the next stage," said Sony. "While continuing to advance vehicle development for safety and security, entertainment and adaptability, public road testing commenced in Austria in December 2020 for technical evaluation."

This mention of "stages" certainly suggests there will be other stages down the road.


At this point, we should perhaps highlight once again just what a remarkable moment the car represented when it debuted at CES a year ago: Several multi-billion dollar tech and automotive giants teamed up to create a completely working EV sedan prototype, but then said that they wouldn't produce it. Sony insisted that the car was a demonstration of the things that it wants to offer other established automakers, namely the wraparound screen and other multimedia systems, but that it wasn't about to cannonball into the deep end of the car biz. Likewise, Sony's supplier friends remained on script regarding the suspiciously production-ready sedan, reciting the exciting list of technical items that they had contributed while avoiding questions about its production chances.

Fast-forward a year later, and Sony has now shown off the car undergoing road testing, which is odd for a car that's not supposed to be going into production. But here it is anyway, in all of its glory, carving up wintery mountain roads.

If it seems to you at this point that an eye-watering amount of development money has been thrown at something that's not supposed to go into production, you're not alone, even though a couple of suppliers made some remarks that could be interpreted in different ways.



In sum, there have certainly been some conflicting signals from those involved with the Sony car, including the actual act of road testing something that Sony says it has not decided to build, but has obviously spent a lot of time thinking through. And there's also a notable disconnect in that there is now a lot more public evidence of a Sony car project, as opposed to an Apple car project. Yet one is believed by some to be headed into production, while the other has already been seen at CES and is now undergoing road tests, but is not something expected to reach production at all.

The concept of an Apple car seems like a slam dunk to some industry observers who want to believe in it, but the idea of a Sony car is being treated as some kind of a pie-in-the-sky fantasy by others. All the while, most of the established Japanese automakers are still in no hurry to field battery-electric cars, and some of them are still pouring cold water on EVs altogether.

Does Sony sense a gap in the car market, even if it doesn't want to admit it at the moment?

Let's not forget that a lot of Japanese industrial giants build many different things, from refrigerators to excavators to computers, so an electric car from Sony was never particularly farfetched if you've looked through a list of the types of things Honda or Mitsubishi currently produce.

Having noted this, there are still a number of barriers for Sony to overcome to get into the electric car business, the same barriers that Tesla overcame over the past decade while being on shakier financial footing. But the current hesitation of a number of Japanese automakers about EVs could provide it an opening.


SOURCE: Autoweek

 

[Bond007]

Yeah, it sounds like the project is more serious that they initially presented it as. I'm all for more EVs in the market. This somehow looks more like Japanese-European collaboration to take on Tesla since the existing legacy automakers seem unwilling or unable to match up to Tesla. Bring it on Sony, the more the merrier. I'd love to hear about the key metrics though, which they are not telling us.....the range and charging speeds.

 

[xodarap1]

SHOW ME. This is all you got? Real car makers deliver cars.

There are cars or there are wannabe car makers right now. Apple can’t deliver a pair of headphones that don’t rain inside. How is it that anyone expects it to deliver a car — at all.

I read these PR pieces as gorilla chest thumping for Tesla sake. What else can they do? Voilā PR.

To me, its not even about showing they can build it. The real challenge will be in building it in large numbers, after having it surpass tesla in ever category, including safety, software capabilities and price. That would be the only way that i would ever even consider purchasing one, and i'm sure i'm not alone. Until all that happens, this press is just fluff.

 

[rr6013]

Yeah, it sounds like the project is more serious that they initially presented it as. I'm all for more EVs in the market. This somehow looks more like Japanese-European collaboration to take on Tesla since the existing legacy automakers seem unwilling or unable to match up to Tesla. Bring it on Sony, the more the merrier. I'd love to hear about the key metrics though, which they are not telling us.....the range and charging speeds.

Your collaboration observation begs Apple’s famous Japanese-American sub-theme. SteveJobs admired Japanese philosophy in design aethetics. I’ll give you cred for seeing a link that has had a historical apotheosis. It may be the “tell” why Toyota has appeared to balk at the BEV and openly twiddled in Hydrogen R&D. An Apple collaboration would hedge Toyota’s risk in electronics development for a BEV. A partner of Toyota’s calibre would be a worthy match to Apple, Apple’s culture and shared design respectfully in each other’s domain of expertise.

Toyota would facilitate the pivot AAPL must make appliance electronics to automotive mass marketing. Apple would facilitate TM pivot from ICE vehicles to electronic vehicles, at which it is weakest. Together it overcomes each collaborator’s largest risk launching an EV. Toyota’s electrification and Apple’s lack of automotive infrastructure. On day one of a BEV launch every sale will have worldwide dealer network and world class electronics in each and every vehicle.

I am too far away from EU to see the connection if one is forming with Japanese automakers. Renault, Fiat, VW et. al. havelong history of european heritage. I don’t see that changing even with VW.

This has given me pause. Apple could pull off a win-win with Toyota. Both could claim #1 EV mfg’r worldwide and supercede Tesla in one move.

 

[flowerlandfilms]

...i think Apples attitude towards its products and customers is incompatible with automobiles...
...and customer safety...

 

[TruckElectric]

Foxconn, Apple interest in EVs point to dramatically different future for automakers

• Technology companies are partnering with automakers which will transform global supply chains ushering in sweeping change in the auto industry.
• Foxconn’s nascent automotive business recently inked partnerships to develop new electric cars with Chinese start-up Byton and Hong Kong-based automaker Geely to make electric vehicles.
• South Korea’s Hyundai Motors said in a recent statement it was in talks with Apple about a joint venture expected to begin producing EVs in 2024, but then backtracked.

For a new venture with little revenue, Foxconn’s nascent automotive business is off to a big start this year, inking partnerships to develop new electric cars with Chinese start-up Byton and Hong Kong-based automaker Geely to make electric vehicles. And in between came a headline related to Apple’s long-hyped and slow-developing EV initiative: a statement from South Korea’s Hyundai Motors about a joint venture expected to begin producing cars in 2024 that involved Apple, though the company later walked back the specific mention of Apple among its potential partners — Apple’s demands for secrecyfrom partners are well-known.

Deals like those are likely to be only the beginning of sweeping change sweeping the car business over the next decade, as electric vehicles move toward the 28% market share Bloomberg New Energy Finance projects for 2030 from around 3% now, and as self-driving, or autonomous, cars and trucks move toward long-promised fruition. The new technologies open the business to new players with different core skills than traditional leaders that excelled at physical manufacturing, as cars become more software-driven, even to the point of driving themselves.

Some of these changes will be obvious to consumers, while others will be more subtle, transforming global supply chains that only later deliver cars and trucks to suburban driveways. Analysts believe some alliances will mean cars coming from companies familiar from other industries, especially technology, with Alphabet’s Waymo division and perhaps Apple delivering cars that include their technology, and maybe their brand names.

Big deals have kept coming through the month. On Jan. 19, General Motorsannounced that it had invested or raised a fresh $2 billion for its Cruise autonomous-driving affiliate, including funds from Honda Motor and Microsoft, which will also provide cloud computing services to Cruise and its anticipated ride-hailing service competing with Uber and Lyft. And electric truck start-up Rivian, which expects to ship its first vehicles by this summer, raised $2.65 billion from investors including Amazon.com’s Climate Pledge Fund and from T. Rowe Price and Fidelity Investments, mutual fund firms whose presence could point to an upcoming initial public offering by Plymouth, Michigan-based Rivian.

Others will feature companies like Foxconn, which makes iPhones for Apple now, branching out into helping new carmakers master license basic software and hardware quickly, and use it as a platform for their own innovations.


Hyundai’s potential electric car tie-up with Apple could boost its growth: Analyst

“Apple would never get into it if it weren’t both an electric vehicle and an autonomous vehicle,” CFRA analyst Angelo Zino said. “Transportation will go through massive disruption.”

A new era for electric cars
So, how fast will it go, and how big can the change be for some of these companies? At press time, Foxconn and Apple had not responded to a CNBC.com request for comment on these reports.
In Foxconn’s case, the change will likely be gradual, Kuala Lumpur-based CFRA Research analyst Hazim Bahari said.

The core idea at Foxconn is to become to the car industry what the Android operating system has been for cell phones — a lower-cost platform of basic technologies that partners can add to to create new vehicles, Bahari said. Announced in October, Foxconn’s parent Hon Hai says as many as 200 automakers have expressed interest in partnering to use the company’s MIH platform, and that it hopes to provide components or services to 10% of the world’s EVs by 2027. MIH can include everything from autonomous-driving software to batteries to manufactured components, Foxconn’s parent Hon Hai said in an analyst presentation in October.

The MIH platform includes unibody chassis platforms, suspensions and battery pack designs that can be tailored to different automakers, Foxconn says. The company hopes to introduce solid-state batteries by 2024, which advocates say will eventually be safer, faster-charging and longer-lasting than today’s technology, but so far have been dauntingly expensive.

The company hopes that building a new market supporting automakers will help offset maturing unit sales of cell phones, but progress will be slow, Bahari said. He expects that the project will generate only about 1% of Foxconn revenue, currently about $175 billion from all sources, within three to five years.

“The names I’ve heard (that Foxconn is working with) are mostly lesser-known, especially in China,” Bahari said before the Geely deal was announced. “How fast it happens all depends on the extent of sharing done on the platform technology. They will not all be sharing every technology they have.”

The Hyundai headline about Apple remains uncertain — Apple CEO Tim Cook said this weekend when asked in a TV interview about an “Apple Car” that he does not comment on rumors — but analysts do expect several alliances, possibly including one with Volkswagen, and the Cupertino giant can develop an Apple-branded EV during this decade, Wedbush analyst Dan Ives says.
“I’d expect it to be something like [Apple’s] wearables business,” Ives said, referring to the growing business that includes the AirPod headphones and the Apple Watch. “Over the next five to seven years, EVs could be 5% to 10% of total revenue.″

A new profit center for Apple
The usual skepticism about Apple entering the car business is that making autos produces much lower profit margins than Apple is used to — General Motors’ profit last year was about 4.4% of sales, compared with almost 24% for Apple. But financial concerns about Apple’s car bet may be mistaken or just outdated, analysts said.

Zino points out that EV makers like Tesla command much higher stock prices, relative to their profits, than do even well-run phone and services companies like Apple, whose stock is trading at 32 times earnings estimates for this year versus more than 200 times for Tesla. Letting investors think of Apple as an EV maker can boost its price-to-earnings multiple by an amount the market will determine, Zino said.

GM recently hit a record stock price as Wall Street and investors become more confident in its EV investment strategy.

People look at a Tesla Model Y car at a Tesla showroom in Beijing on January 5, 2021.
Wang Zhao | AFP | Getty Images

And Morgan Stanley’s Apple expert, Katy Huberty, argues that Apple’s familiar pattern of vertical integration, controlling the software and design of all of its products even as it typically farms out actual manufacturing, can likely pull its profit margins in the auto business above 10%. She says the company has already invested heavily in batteries and other components of an Apple-branded electric vehicle.

“A noticeable percentage of Apple’s revenue comes from products and services that didn’t exist three to five years ago,” Morgan Stanley analyst Katy Huberty said on a webcast with other Morgan analysts. “Smartphones are a $500 billion annual [market]. Apple has one-third. The mobility market is $10 trillion, so Apple would need only 2% to be the size of their iPhone business.″
But focusing on a handful of big consumer-facing names underplays the changes about to sweep through automaking over the next decade, says Brett Smith, director of technology at the Center for Automotive Research in Ann Arbor, Mich.

CAR’s research shows that companies from fields as diverse as semiconductors to consulting, as well as existing auto giants like General Motors and Ford, are re-evaluating how they work together in the vehicle industry, in a pattern the research firm calls Industry X. Indeed, Ford’s recently-introduced electric Mustang has won praise as the first true competitor for Tesla’s Model Y crossover, and GM made a series of announcements at the Consumer Electronics show, saying it would begin selling electric delivery vans later this year and floating plans for a flying taxi that would carry the Cadillac brand.

All-Electric Mustang Mach-E 1400 Prototype By Ford Performance And RTR
Source: Ford

But CAR’s report emphasizes how early-stage and uncertain the transformation is. After studying nearly 50 companies, the think tank says the industry does not yet have a consistent approach to strategy for digital transformation, or to coordinating information technology with technology used on the factory floor.

The one industry-wide point of agreement is that the data generated in car production and harvested from monitoring cars as they’re driven will become as valuable as cars themselves, Smith said. This can happen in lots of ways, from using data to streamline supply chains and production itself, or by following Tesla’s lead toward developing services based on data gleaned from individuals’ cars and how they’re used, he said.

“It’s too complex for any one company to be the expert,″ Smith said.
The pace of change will likely be more noticeable in Asia than in North America, because existing car companies are less entrenched, outside of Japan, and there’s more room for start-ups to grow, said Bahari.

But it’s coming. Some changes will be more obvious than others, but within a few years the roster of cars and car makers dominating the market may be barely recognizable. And that’s before you get to the point where car owners question whether to chuck having their own ride entirely, in favor of services like Lyft and Uber.


SOURCE: CNBC

 

[Ehninger1212]

I HOPE apple makes a car, I would buy it. I feel like they are being way to timid about it though.. they definitely have the money and resources to make it happen.

 

[TruckElectric]

Hyundai said to be 'agonizing' over Apple's electric car



Jon Fingas
·Associate Editor
Sat, January 30, 2021, 1:04 PM·1 min read

Hyundai might not be in a rush to make Apple’s electric car despite reports of a tentative deal. Reuters sources claim Hyundai executives are “agonizing” over how the company will cooperate with Apple, or whether or not it’s a wise idea in the first place.The Korean automaker is reportedly hesitant to work with outside firms, and might even replace higher-ups to prevent a conflict between the two fiercely independent companies.

The company might have Kia team up with Apple to avoid associating the core Hyundai brand (and the upscale Genesis badge) with contract manufacturing. It would be “just like Foxconn,” one executive told Reuters. Apple is rumored to want Hyundai primarily for final assembly in the US. The chassis, drivetrain and other components would come from other companies, the sources said.

Apple declined to comment. Hyundai didn’t mention talks with Apple when discussing its latest earnings.


There could be incentives for Hyundai to cooperate. It might get access to some of Apple’s self-driving hardware and software. More importantly, Hyundai could use the business. It currently has unused manufacturing capacity, and an Apple car could make better use of those production lines. It may just be a question of whether or not Hyundai is willing to swallow its pride to strike a deal that might help its bottom line.


SOURCE: Yahoo Finance

 

[Crissa]

Nothing new here, kinda clickbaity here. Of course they would be; every bulk manufacturer salivates at a good license deal.

-Crissa