In his interview with CNBC in Barcelona this morning Nissan Motor Co Ltd (ADR) (OTCMKTS:NSANY) CEO, Carlos Ghosn expressed electric cars are the way of the future. He welcomes Apple Inc. (NASDAQ:AAPL)‘s announcement and said it would be only good for the automobile business. Ghosn said Nissan Motor Co Ltd (ADR) (OTCMKTS:NSANY) were the first ones to market the idea of electric cars almost eight years ago and he sees the entry of Apple Inc. (NASDAQ:AAPL) as a support of his own strategies. Nissan Motor Co Ltd (ADR) (OTCMKTS:NSANY) is on its way to launching its autonomous car by the end of the decade. Ghosn’s comments on Apple Inc. (NASDAQ:AAPL)’s venture did not reflect he expected Apple Inc. (NASDAQ:AAPL) to steal the market from established automakers – at least right away.
“I don’t think they will enter the car industry as such. They are entering more technological evolution into the car industry […]. Generally when you diversify, you move to areas which are much more profitable than yours because your capital. Your investment is competing between your core business and your new business – car industry unfortunately is not a profitable industry. It’s an industry which requires a lot of investment and unfortunately it does not have so much high return. I don’t think it is an are which is extremely attractive […]. Classic car industry is an area not very attractive for people in the high tech who are making very interesting margin,” Ghosn said.
While commenting on the dashboard battle between Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOGL), Ghosn stayed away from picking favorites but admitted the competition was tough and it was not clear at the moment. Ghosn did not break any news on a possible joint venture with any of the tech giants and rather reiterated the market knowledge of established automakers would have an impact in the future.
“We work with a lot of tech companies already. So, I think it is a question of what is the mutual benefit. Obviously Apple, Google, Microsoft, Intel – a lot of tech companies are interested into cars because, they see it as an object where a lot of technology can be put in. But I think car makers will continue to be a part of important games. Dealing with the product is going to change a lot for the years to come,” Ghosn said.
Apple Inc. (NASDAQ:AAPL) has an extremely commanding position in the smartphone industry, and Apple’s Watch is already expected to give Swiss watchmakers a run for their money. Apple Inc. (NASDAQ:AAPL) is making winning a habit. It would be nothing but interesting to see how Apple Inc. (NASDAQ:AAPL) plans to revolutionize the car industry where stakes are high and where the price for failing could be enormous.
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