Apple Car Project: $1B Venture That Never Hit the Road
In a report by Bloomberg, it has been revealed that tech giant Apple Inc. invested a staggering $1 billion annually in its secretive endeavor dubbed "Project Titan," aiming to revolutionize the automotive industry with a self-driving car. Despite fervent efforts and significant expenditures, the project ultimately met its demise last month, marking the end of an ambitious but ultimately unfulfilled venture.
According to sources familiar with the matter, Apple engaged in discussions with prominent automotive manufacturers including Mercedes-Benz, Ford Motor Co., BMW, Volkswagen, Tesla, Canoo, and even luxury sports car maker McLaren, at various stages of its project development. These conversations shed light on the intricate web of negotiations and collaborations that Apple sought in its pursuit of automotive innovation.
Project Titan, as it was internally termed, commenced nearly a decade ago with Apple's strategic hiring of hundreds of automotive engineers. The initial vision was bold: to unveil a self-driving car and commence sales by 2020. However, despite years of intensive research and development, the project never advanced to the stage of road-testing full-scale prototypes.
One of the most intriguing revelations from Bloomberg's report is the involvement of Apple co-founder Steve Jobs in exploring partnerships, including a proposition to acquire General Motors in the aftermath of the 2008 financial crisis. Such insights underscore the magnitude of Apple's ambitions in the automotive realm.
Furthermore, the report delves into Apple's interactions with industry titans such as Tesla. Surprisingly, Apple contemplated purchasing Tesla during its nascent stages when the electric vehicle company's valuation was below $30 billion. However, Apple's CEO Tim Cook ultimately vetoed the idea, opting instead for discussions regarding potential collaboration, which ultimately failed to materialize.
Apple mulled over various partnership models, including proposals with Mercedes-Benz, BMW, and Volkswagen. While some negotiations faltered, Apple came tantalizingly close to striking a deal with McLaren. The intricacies of these negotiations shed light on Apple's strategic maneuvers and its quest for automotive excellence.
However, despite the extensive groundwork and financial investments, Project Titan faced insurmountable challenges. Internal estimates revealed a stark disparity between Apple's desired selling price of $85,000 and the projected production costs, estimated at a hefty $120,000 per vehicle. Additionally, logistical hurdles and shifting market dynamics contributed to the project's eventual demise.
Apple's acquisition of the former Chrysler proving ground in Arizona in 2021, intended for automotive testing, now stands as a testament to the ambitious vision that never materialized. With the property now slated for sale, it symbolizes the end of an era for Apple's foray into the automotive industry.
