The Apple iCar – or whatever the company might or might not call the end result of rumors it’s creating an automobile – might not be such a great idea. Former General Motors CEO Dan Akerson recently told Bloomberg that Apple probably shouldn’t enter the market. Akerson also suggested Apple shareholders shouldn’t be pleased with the news, even though the rumors have sent its stock rocketing.
Akerson explained that companies don’t understand the strict regulations and safety requirements imposed on automakers and that, from the outside, it’s often easier said than done. “A lot of people who don’t ever operate in it don’t understand and have a tendency to underestimate,” Akerson told Bloomberg. “If I were an Apple shareholder, I wouldn’t be very happy. I would be highly suspect of the long-term business prospect of getting into a low-margin, heavy manufacturing business,” he added. “We take steel, raw steel, and turn it into car. They have no idea what they’re getting into if they get into that.”
Still, Akerson does believe there’s room for Apple in the auto industry, just not as an actual car manufacturer and, instead, as a provider of infotainment systems. Akerson told Bloomberg that, if he were still CEO of GM, he would have handed over responsibility of interconnectivity and infotainment in “every GM car,” to Apple. Akerson might be right, but if Apple’s really developing such a car, will it listen?