According to former General Motors executive, Bob Lutz, Apple is foolish to try and enter the automotive foray with the rumored Apple Car, assumed to be an all-electric vehicle.
Lutz made the comments during a CNBC interview this past Monday, responding to reports Apple has doubled-down on its automotive efforts to introduce an electric-vehicle by 2019.
“Apple has no experience,” Lutz said. “There’s no reason to assume Apple will do a better job than General Motors, Ford, Volkswagen, Toyota or Hyundai. I think this is going to be a gigantic money pit.”
This comes after Lutz previously commented on the future of transport, stating Google and Apple were poised to be top dogs.
Lutz also stated no one has actually made a profit on their electric vehicle programs just yet, and dismissed the success of such a project.
As Fortune points out, Apple has heard similar comments before, specifically before the unveiling of the first iPhone. We all know how that turned out.
If Apple does follow through, the competition will be more fierce than ever. Chevrolet is quickly approaching Bolt production, Tesla is working to introduce its Model 3 and other competitors continue to eye up a portion of the EV market.
Could the Apple Car be the kind of disruption the industry needs? Or, is Apple wasting its capital on such a project. By 2019, we’ll know.