Will Apple Inc. And BMW Resumed Vehicle Collaboration Talks Affect Tesla Motors Inc

Will Apple Inc. And BMW Resumed Vehicle Collaboration Talks Affect Tesla Motors Inc
Apple and BMW talks on vehicle collaboration may resume; Business Finance News analyzes how it could affect Tesla

Apple Inc. (NASDAQ:AAPL) and BMW may revive the very old talks on vehicle collaboration followed by a meet-up, according to a report published by Reuters.

Two sources close to the matter told Reuters that Apple CEO Tim Cook along with senior executives visited BMW headquarters in 2014, and explored BMW Plant Leipzig to study the making methods of i3 electric vehicle (EV). The talks ended without conclusion, as Apple seems to explore designing an automobile on its own, the sources said.

Moreover, BMW is also reluctant to share its manufacturing expertise, which indicates that it does not want to become an auto supplier for the tech giant.

"Apple executives were impressed with the fact that we abandoned traditional approaches to car making and started afresh. It chimed with the way they do things too," said a senior BMW executive.

The company said that there are no talks with the tech giant on jointly designing a passenger car and refused to comment further on the matter. However, exploratory talks between the two giants are expected to revive in the coming future.

The believes that next-generation automobile cannot be manufactured without software exerts and telecom assistance. Conversely, Apple has been learning ways to build an automated EV, as it intends to enter a new emerging market beyond smartphones.

Last week, The Wall Street Journal reported that Apple has recruited Doug Betts, former Fiat Chrysler NV (NYSE:FCAU) executive, to facilitate its ambition making an EV. Mr. Betts expertise shows that he could help the company construct an automobile that could challenge the technologically advanced automobile of Tesla Motors Inc. (NASDAQ:TSLA), which is striving to change the dynamics of the market.

Tesla, which is known for its unique zero-emission vehicles, is gradually spreading its global footprints, with operations already in Europe, Asia Pacific, and North America.

The EV maker donnes the cap of being the only producer of full-electric vehicle. However, with Apple gearing up plans to unveil an automated EV, shows that it would directly compete against the EV giant. Furthermore, it is pretty apparent that no one can be better than Apple when it comes to innovation.

Nevertheless, it appears that Apple has a competitor to the EV giant doesn’t make much of a difference in its operations, as CEO Elon Musk has publicly said: “I want Apple to enter the industry. We believe that Apple could help Tesla in boosting the EV market, but in return, it is expected to only receive a chunk of the market.”