Ferrari Chairman Sergio Marchionne sat down for an interview with CNBC earlier this week. He made some interesting comments about Apple's upcoming Project Titan to CNBC's David Faber. When asked whether he thinks Apple will make a car, this is what Marchionne had to say...
Here is an excerpt from the interview...
Faber: And what about the threat that that represents. And by the way, let me go a step further, do you think Apple is going to make a car?
Faber: You do. Why?
Marchionne: Because I think the space in which they can exhibit their skills. I mean, it's something that – the question that you asked is not sure that I answered it properly. Are they going to get a car made or are they going to build a car? Those are two separate questions. I doubt it very much that they will set up infrastructure to manufacture cars. They will rely on somebody. They have not approached us in case you are wondering.
Faber: They haven't. But could Fiat conceivably become the Foxconn for cars?
Marchionne: Well, I’m not sure that I like the parallel with Foxconn given the margin distribution. But ignoring that issue, I think that this industry in general needs to open up to disrupters. Whether it's the Google car, the Apple car, this notion that we're seeing now with autonomous driving, assisted driving. It's going to change the traditional nature of car-making. It's going to change the nature of cars in the marketplace, and it's going to change the demand/supply equation. All these things will happen in the next five to ten years, and I think we need to be ready for that to happen.Apple has invested a lot of resources in its car project, codenamed Project Titan. While it is possible that Apple might shop for a manufacturer to make their car, it is also possible that they may manufacture a vehicle themselves.
The Apple car project is still a few years away. The testing process could take anywhere from 3-4 years. Recent rumors point towards a possible 2019-2020 timeline till we see an Apple car on city streets.