Should Mercedes-Benz Be Worried About the Apple Car?
Giancarlo Perlas September 17, 2015
Quoting the statement of Dr. Dieter Zetsche at the Frankfurt Motor Show, he commented, “We do not plan to become the Foxconn of Apple.” These words of the Daimler boss were in response to the questions raised by the press of whether Mercedes-Benz will be making the platform of Apple’s heavily-rumored electric self-driving car.
Despite not having a prototype car in the international car show, tech giants Apple and Google became the center of attention when it came to self-driving and electric cars, according to New York Times. The report claimed the mere knowledge that Apple had aggressively employed several hundred people to work in car designs has been putting big automakers on the edge of their seats.
The Threat Posed by Apple to Mercedes
It should be reminded that one of the people who is now working on Apple’s first car is Johann Jungwirth, who used to be the head of the Mercedes R&D division. Jungwirth was particularly instrumental in the development of the Mercedes-Benz F015 Luxury in Motion concept car. The knowledge of the former Mercedes employee will certainly play a big role in the future car of the smartphone firm.
When it comes to finances, Apple definitely has a lot of money to spend in its ventures. Based on the report, the Cupertino firm was valued eight times the assets of Mercedes and its rivals in 2009. To guarantee advantage in the market, a company must always be one step ahead of its competition. But innovation could only come from a well-funded Research and Development department. Apple clearly has the advantage here.
Then as time goes, the landscape of the automotive industry has been changing to answer to the high demand for connectivity from customers and environmental regulations from various markets. This kind of environment in the market is slowly paving a favorable place for Apple’s rumored self-driving, electric car.
Dr. Zetsche was right in his past interview that he only worries about an Apple Car as much as Apple should be concerned about Mercedes making its own smartphone. However, while Apple may not be a threat when it comes to making luxury cars because Mercedes has the expertise when it comes to their architecture, engineering, and performance, the real risk would be the technology Apple promises.
The source pointed out that the shifting focus of more customers to connectivity rather than the engine specs might reduce automotive companies such as Mercedes to mere hardware manufacturers which will house Apple’s technologically advanced car. That would be likened to Foxconn’s function as the manufacturer of the iPhone. In the end, most slice of the profits will be left for the giant tech firm.
Should Mercedes be Worried?
Judging these factors, Mercedes should be on a close look out for these new players from the mobile phone world, especially Apple. On the other hand, its new tie-up with Nokia, the former leader in mobile phones, and its more than a century experience in making cars, Mercedes is still looking to put up a great fight against these potential challengers.
We don’t see the three-pointed star brand getting relieved from its glory that easy. However, it will surely be a tough war and a bumpy road ahead for Mercedes with the impending arrival of the Apple Car.
