Back in 2017, Apple announced a reorganization of its well-publicized plans to develop a self-driving vehicle, Project Titan. The New York Times stated then that its scale and the lack of a clearly established vision of what Apple wanted in a vehicle dogged the project.
Members of the team complained of changing goals and unreasonable or arbitrary deadlines. There was a debate on whether Apple was supposed to build a fully autonomous vehicle or a semi-autonomous vehicle that could drive for stretches but allow the driver to take over again.
The glide route for producing a viable and competitive autonomous electric vehicle is still far from visible, but Project Titan is back on track, according to a Reuters article. According to Reuters, Apple Inc is pushing ahead with self-driving car technology and is planning to manufacture a passenger vehicle in 2024 that could have its own breakthrough battery technology.
A Taiwanese newspaper, Economic Daily News, citing supply chain sources, said the car could potentially appear as early as late 2021, although this is highly speculative and would be extremely difficult given standard automotive lead times (plus Apple’s lack of expertise in the field). Nevertheless, a translated version of the story said, “In response to the demand for Apple Car sourcing, Taiwanese manufacturers…are busy. A full burst of orders.”
Possible Build Partner: Magna
Reuters said that with a manufacturing partner, Apple is likely to develop its vehicle, and also outsource some main parts as some lidar sensors. Magna International is one potential building applicant. The company has recently signed an agreement with electric vehicle parts supplier LG Electronics for a joint venture (tentatively named LG Magna e-Powertrain) and has had negotiations with Apple.
Analysts have their doubts about Apple’s venture. “Overall, I remain skeptical that Apple will introduce a complete vehicle,” said Sam Abuelsamid, principal analyst for e-mobility at Guidehouse Insights.
“If they do, it would almost certainly not be something that they sell to consumers, but instead a premium robo-taxi or subscription service available only in markets where there are more affluent customers that can afford it. This would allow them to bypass the challenges of dealer networks and service that have been problematic for Tesla and will be for every other EV startup.”
If Apple does go ahead with its own car, it will definitely need that partner, Abuelsamid said. “Manufacturing cars and managing the requisite supply chain is much more complex than manufacturing phones or computers, as Tesla has so painfully learned over the past decade,” he said.
“That said, Apple is far better at operations, and they will almost certainly partner with an established company like Magna, which already does contract auto manufacturing for numerous OEMs and supplies many of the components.”
A stumbling point in Apple’s previous flirtation with the car industry around 2017 was who would build the car and who would be in charge. Apple allegedly spoke about becoming the producer with both BMW and Daimler (Mercedes-Benz), but not one of the three wanted to be subservient to the other partner. Although Magna, headquartered in Ontario, is the largest automotive parts supplier in North America, it will be more likely to operate in the background.
Battery Would Incorporate Apple Technology
Projects like this add uncertainty to the marketplace. “The rumored Apple iCar project is a prime example of how the future of the auto industry is less clear than ever,” said Jessica Caldwell, executive director, Insights, at Edmunds.
“We are seeing startups, as well as established non-auto companies, investing to get a chunk of the massive transportation sector that is evolving due to electrification and autonomous technology.”
Exactly how Apple’s car would enter the marketplace is unclear, but Reuters said that under project director Doug Field the work has “progressed enough that it now aims to build a vehicle for consumers.”
It added a caveat that “Apple will decide to reduce the scope of its efforts to an autonomous driving system that would be incorporated with a traditional car manufacturer’s car.”
John Giannandrea, an Apple artificial intelligence operative, was given overall authority earlier this month over the self-driving car plans, with Field operating the program on the ground.
Apple may not build the car, but it is intending to use its own breakthrough battery technology, Reuters said. “Apple plans to use a unique ‘monocell’ design that bulks up the individual cells in the battery and frees up space inside the battery pack by eliminating pouches and modules that hold battery materials,” Reuters said, citing a source familiar with the company’s plans.
“Apple’s design means that more active material can be packed inside the battery, giving the car a potentially longer range.”
Lower battery costs may be convincing Apple to go ahead. According to David E. Cole, chair emeritus of the Center for Automotive Research and a former University of Michigan professor, “The Apple Car idea is totally based on the belief that they will have a battery that costs less than $100 per kilowatt-hour. That’s the magic number. Apple is not necessarily there, but it sees a pathway there in a reasonable amount of time.”
For automakers like General Motors, which says it’s close, the goal has long been a holy grail. And Tesla’s Elon Musk claims to have defeated the goal already.
Apple declines to comment on the proposals for commercial vehicles or a potential direction for Project Titan. Field came over from Tesla, and speculation about how Tesla might be affected by an Apple car was possibly a factor in sending down the stock of the latter on Monday.
Source: Forbes
