I’m sure by now that you’ve all heard about how Apple is working on its own electric vehicle which could enter production as early as 2020. Why these seems like a great idea at first, retired General Motors CEO Dan Akerson thinks that the company is biting off much more than it can chew and is vastly underestimating how difficult the automotive market is.
Dan Akerson, retired chief executive officer of General Motors Co., said Apple Inc. should steer clear of the business of making cars, though a push into automobile electronics would be a better move for the iPhone maker. Apple shares rose to a record on Tuesday after people familiar with the matter last week said the Cupertino, California-based technology company is working to develop its own electric car, rocking the automotive industry. “I think somebody is kind of trying to cough up a hairball here,” Akerson said in a telephone interview. “If I were an Apple shareholder, I wouldn’t be very happy. I would be highly suspect of the long-term prospect of getting into a low-margin, heavy-manufacturing” business. The car industry, with regulatory and safety requirements, is harder than people realize, Akerson said. “A lot of people who don’t ever operate in it don’t understand and have a tendency to underestimate,” he said.