Apple Broke Off Talks With BMW to 'Explore Developing a Passenger Car on Its Own'

Apple broke off talks with BMW after a visit by executives to its headquarters to 'explore developing a passenger car on its own', according to a Reuters source.

It was recently reported that Apple CEO Tim Cook and other senior managers visited the i3 production facility in Leipzig to learn how it manufactures the i3 electric car.




During the visit, Apple executives asked BMW board members detailed questions about tooling and production, and BMW reportedly indicated it would be willing to license parts to Apple. However, as one would expect, the company was cautious about sharing manufacturing know-how as it wants to avoid becoming just a supplier to Apple.

Ultimately, Apple decided to explore making a car on its own; although, there is a possibility that talks could be revived at a later stage.

Reuters notes that it could make sense for Apple to seek a partner in developing its own vehicle. Demand for the vehicle could be high and so assistance with scale production, retail, and repair would be beneficial. If just 1% of Apple iPhone customers ordered a car, the company would need to manufacture 1.69 million vehicles. BMW made just over 2 million cars last year.

Apple's car project is codenamed 'Titan' and is believed to involve the creation of a self-driving electric car at a secret research lab.


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