Apple should stay away from car-making, says former GM CEO Dan Akerson

Article by Christian A., on February 24, 2015

Retired General Motors chief executive Dan Akerson believes that Apple Inc. should not venture into car-making and instead get more involved in auto electronics. “I think somebody is kind of trying to cough up a hairball here,” Akerson told Bloomberg in a phone interview. He said that if he was an Apple shareholder, he would be highly suspect of the long-term prospect of “getting into a low-margin, heavy-manufacturing” business.

He remarked that the auto industry is harder than people realize because of the regulatory and safety requirements. He said those who were not operating in the auto industry have a tendency to underestimate.

He said that Apple could find more potential in working with carmakers in areas of electronic operating systems and entertainment equipment. He even remarked that he would have turned over the infotainment and interconnectivity of every GM car to Apple when was still GM’s CEO. Akerson was GM’s top honcho from 2010 to 2014, when he stepped down to care for his wife.

During his term, he was the main switch for GM’s faster implementation of new technologies in its vehicles, like 4G broadband cellular service and for the expansion of its electric-car offerings. He also remarked said that the margins associated with the iPhone should make Apple rethink plans to enter the auto industry with a car offering of its own.

Apple posted $18 billion for the fourth quarter of 2014 and a gross margin of 40 percent. On the other hand, GM posted $1.99 billion in profit before cash preferred dividends and a gross margin of 14 percent, according to data compiled by Bloomberg.

Topics: apple, gm, ceo, dan akerson

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries