Apple's Decade-Long Car Project Comes to an End After $1B Annual Investment: Report

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ICARO Media Group
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07/03/2024 20h04

's ambitious venture into the automotive industry has been abruptly cancelled after a decade of work and billions of dollars invested. The project, codenamed "Titan," faced numerous challenges and internal disagreements, ultimately leading to its demise in February, according to a report by Bloomberg.

The brainchild of Apple co-founder Steve Jobs, the car project aimed to revolutionize the industry and create "this generation's Volkswagen Beetle." Jobs, driven by his vision of dominating every aspect of consumer experience, even explored the possibility of acquiring General Motors during the aftermath of the 2008 financial crisis. Although Jobs' initial spark ignited Apple's journey into the automotive world, he passed away before witnessing the project's progress.

Apple's commitment to the project was nothing short of extraordinary. The company poured a staggering $1 billion annually into Project Titan for the past 10 years, accounting for nearly a fifth of its Research and Development budget a decade ago. Despite this significant financial investment, the project failed to yield a commercially viable product.

Disagreements among Apple's leadership played a significant role in hampering the project's progress. While CEO Tim Cook initially supported the idea of a fully autonomous car, his enthusiasm waned as technical and economic challenges became apparent. Project leader Doug Field advocated for a Level 5 autonomous vehicle, requiring no human input, while others, such as Kevin Lynch, argued for a more realistic Level 2 system with driver assistance. The lack of a unified vision and constant pivoting hindered decisive action.

In an attempt to accelerate development, Apple sought partnerships or acquisitions with established players in the industry. Collaborations with Tesla, Mercedes-Benz, and BMW were contemplated, and even the acquisition of high-end British automaker McLaren was considered. However, none of these efforts materialized.

Apple's vision for the car underwent various iterations, led by renowned designer Jony Ive. Designs like the self-driving "Bread Loaf" minivan, inspired by the classic Volkswagen microbus, and the pod-shaped "I-Beam" with gull-wing doors were envisioned but eventually deemed impractical. The project eventually scaled back to a more conventional design with a steering wheel and pedals, but this prototype never progressed beyond the initial stages.

As the project advanced, Apple encountered significant technical challenges in developing reliable and safe self-driving technology. Additionally, the estimated production cost of $120,000 far exceeded the target price of $85,000, raising concerns about profitability. These hurdles, combined with the lack of a clear path forward, ultimately led to the decision to cancel the project.

The cancellation of Project Titan is expected to impact around 2,000 employees, with some being transferred to other divisions within Apple and others facing layoffs. As a result, Apple is now considering selling its Arizona car testing track, which served as a physical reminder of the project's ambitious aspirations.

Despite the years of investment and the hopes of revolutionizing the automotive industry, a long-time Apple executive defined the project as an "ill-conceived product that needed to be put out of its misery." Apple's foray into the car market may have come to an end, but the company's innovative spirit remains undeterred as it shifts its focus towards other ventures.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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