Apple Inc. recently hinted at plans to enter the automobile industry, but the former head of General Motors thinks that move would be a bad idea. Dan Akerson conducted a telephone interview to issue a word of caution for the computer company. Here is what he had to say: “If I were an Apple shareholder, I wouldn’t be very happy.” He went on to say that the move makes him “highly suspect” of the “long-term prospect.” Basically, Akerson’s opinion is that the car industry is far too complex for Apple to handle. He believes that the company would run into countless roadblocks, especially in the form of safety rules and regulations. Overall, GM’s former management says that Apple’s potential move indicates a widespread “tendency to underestimate” the difficulties involved with making cars.
On the other hand, he did provide some helpful advice. Ultimately, Akerson feels that the best pursuit for Apple would be in-car entertainment systems. Everyone wants to have technological interfaces embedded in their carriage, but Apple has been lagging behind in terms of integrating their product line-up with the transportation industry. Akerson also stated that he would have been on board with a partnership years ago: “I’d have turned over the infotainment and inter-connectivity of every GM car.” While Akerson wants Apple to enter the car manufacturing world as an ally, their maneuvering is actually positioning them as a competitor instead. GM’s retired CEO says automobile makers and recyclers are not feeling threatened in the slightest; in contrast, he claims to be truly worried about Apple’s risky future. Retirement and Recalls The 66-year old left GM last year after almost half a decade at the helm. His retirement was not spurred by professional reasons. The executive humbly vacated his post to care for his ailing wife. Still, Akerson’s abdication came on the heels of record breaking recalls. The worst offense was an ignition switch defect that caused 56 confirmed deaths. It appears that GM should be the one receiving criticisms about adhering to industry standards, but they are conveniently choosing to direct the blame towards another corporation.
The Power of Apple Inc.
Even if the company wants to, GM cannot create actual bad press for Apple, which boasted coffers of $178 billion to end 2014. This is just the cash they have on hand; meanwhile, their current market worth is approximately $745 billion. The company clearly has a little financial flexibility as they move forward with their secretive automobile development. Apple shares skyrocketed towards a record high when insiders revealed that a possible iCar was in the works. Investors are apparently happy after all. Apple CEO Tim Cook will not publicly address the car rumors, and neither will spokesman Tom Neumayr. Still, reputable outlets have confirmed that their electric vehicle has been given the code-name Titan. The prototype presently looks like a modern minivan. All other details are shrouded in secrecy, but the whole world is eagerly waiting for the next Apple unveiling!