Automotive executives feel that Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) will be serious competitive threats even as they consider teaming up with them. A Bloomberg article reported on the news and discussed the prospects being considered by auto executives concerning Google Inc (NASDAQ:GOOGL) and Apple Inc. (NASDAQ:AAPL).
“If these two companies intend to solely produce electric vehicles, it could go fast. We are also very interested in the technologies of Google and Apple, and I think that we, as the Volkswagen company, can bring together the digital and mobile world,” said Martin Winterkorn, Volkswagen AG Chief Executive Officer at the Geneva International Motor Show.
Automotive executives are planning to benefit from the innovative and more advanced technological approach used by Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) for their car manufacturing business, but they still have to consider these two as serious competitors. People having knowledge of the matter said that Apple Inc. (NASDAQ:AAPL) has been working on an electric car and is pushing its team to start manufacturing as early as the year 2020, and according to Google Inc (NASDAQ:GOOGL), it is aiming to bring its self-driving car on the roads within the next 5 years.
“The competition certainly needs to be taken seriously. The closer we get to autonomous driving, the weaker the connection becomes between the customer and the car. And Google and Apple aren’t burdened with old technology but can start fresh,” said Stefan Bratzel, Director of the Center of Automotive Management at the University of Applied Sciences in Bergisch Gladbach, Germany.
Being technology icons and having strong positions in their sectors, Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) could be big challenges to Tesla Motors Inc (NASDAQ:TSLA) and General Motors Company (NYSE:GM) which are targeting to release their newest electric vehicles in 2017, which will be able to go more than 200 miles on a single charge and cost less than $40,000. An experienced auto manufacturer typically takes 5 to 7 years in building a new vehicle right from the start with often three years of testing phase needed to get regulatory approval. Analysts assume for companies like Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL) who are from outside the industry, it could take a decade to build a car.
Automotive executives might not only be impressed with Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL)’s name in the technology industry but they might be considering what benefits these two companies could offer them. The car makers will be interested in working with them only if they could add value to their auto businesses. Even if the auto makers are planning to get possible benefits from Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL)’s car manufacturing, they still might consider these two as serious threats in their business territory.
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