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Report: Apple’s negotiations with Daimler & BMW for ‘Titan’ car project fall apart

It’s been long rumored that Apple has been in negotiations with BMW and Daimler for its electric car project, with Apple perhaps considering using parts from either of the carmakers. Now, German news outlet Handelsblatt reports that talks between Apple, Daimler, and BMW have ended, citing “industry sources.”

According to the report, talks broke down when trying to decide “who would lead the project” and which company would ultimately have control and ownership of the user data obtained from the car. Apple, of course, wants its car to be heavily integrated into its own iCloud services, while companies like BMW and Daimler want to handle data themselves in an effort to make “customer data protection a key element” of its offerings.

Apple apparently ended talks with BMW last year, while talks with Daimler only recently broke down. A report from last July claimed that talks between Apple and BMW had already fallen apart because Apple wanted to explore doing the project by itself. That report noted, however, that talks could potentially resume, but it’s now unclear if they ever actually did.

Furthermore, Apple is said to be interested in working with Austrian-based automotive contract manufacturer Magna to manufacture its electric car. Originally reported earlier this week, it was also said that Apple has created a “secret lab” in Berlin where it is head-hunting a team of 15-20 engineers from a number of German car companies.

Finally, we reported exclusively this week that Apple has hired former Tesla VP and Aston Martin engineer Chris Porritt to work on “special projects,” which refers to the company’s Project Titan car initiative. At Tesla, Porritt worked on both the Model S and Model X, as well as the Model 3 chassis.

Tesla CEO Elon Musk once remarked that it is an “open secret” Apple is developing an electric car. What effects the breakdown of talks with Daimler and BMW will have on the project remain to be seen, but Apple is reportedly aiming for a 2019 launch for its electric car.

We cover the electric car and green energy industry on Electrek.co.

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Comments

  1. viciosodiego - 9 years ago

    I would not look to BMW for this project.
    I wonder if they have the concept of the car ready?
    Are they already in talks for manufacturing?

  2. iali87 - 9 years ago

    And also maybe because Apple wants the big chunk of profit to be in their pocket just like what happens with the iPhone parts where the suppliers almost make no profit.

  3. rogifan - 9 years ago

    So is Apple building their own car or partnering with BMW and Mercedes? I get the feeling all of these stories are 3rd hand BS at this point.

    • taoprophet420 - 9 years ago

      Magna Steyr is currently the front runner to assemble the car. Apple started off wanting to build a car based of the i3 or at least the type of body panels it uses. If Apple wants to reach its internal goal of a 2020 release it is going to have to partner with several companies.One example is Magna Powertrain that makes a very good electric drivetrain.

      • Oflife - 9 years ago

        Every time Apple partners with another firm, it ends badly. Consider the original music phone – remember, with Motorola? Same with licensing MacOS to 3rd party ‘PC’ manufacturers. A bit like LeEco, the upstart Chinese company that everyone in the West will have heard of a year from now, if Apple know what they are doing, and have something ground breaking (equivalent to the smooth pinch to zoom US on the original iPhone), then they will need to go it alone.

      • taoprophet420 - 9 years ago

        iPod +HP was not a bad deal or products. Apple makes partnership all the time that work out fine. It’ currently has thousands of partnerships and deals.

        Apple can not build all the parts of their car and assemble them alone. You do relize Apple has 3 main assemblers for the iPhone?

        You think Ford, GM, BMW, VW , Tesla or other top auto companies make their cars alone? All the companies I listed use parts from one of Magna International companies in their cars. Some use Magna Steyr to assemble the cars.

        Just because Apple designs products it does not mean they make them themselves.

    • cdm283813 - 9 years ago

      Apple can’t build their own phone let alone a car. Just ask Samsung.

  4. taoprophet420 - 9 years ago

    Magna Steyr assembles cars and the other Magna companies make parts for the big 3 in the US, Tesla, BMW and VW.

  5. rnc - 9 years ago

    I call this BS.

    I don’t believe BMW or Mercedes would even consider partering with Apple for manufacturing.

    Doesn’t matter, Apple doesn’t need them. Car design and manufacturing hasn’t improved much in the past 10 years, there’s nothing new coming from anyone really, just restyling bodies for the sake of being visually distinguishable from the old ones.

    Just look at Tesla Model 3 launch.

    They could electrify an Hyundai and they would still sell like hot cakes. Not that they presented an ugly or unrefined car, but in case they would do that, wouldn’t affect their bottom line, their car only needed to have the running gear that it has to sell like it did.

    • timwux - 9 years ago

      “Car design and manufacturing hasn’t improved much in the past 10 years, there’s nothing new coming from anyone really, just restyling bodies for the sake of being visually distinguishable from the old ones.”

      There’s so much cluelessness oozing in that one comment alone that it made me look for a sarcasm tag hidden somewhere…

      • rnc - 9 years ago

        What happened then?

        No big imporvement in safety, engines, interior, exterior, nothing.

      • therazorpit - 9 years ago

        @rnc I guess if you exclude things such as Eyesite that Subaru has been working on, and the others like it. The increased horsepower per liter most engines can now generate. The increased fuel economy from the smallest of cars to the largest of trucks. The ability to add all of this technology and keep the vehicle weight and price relatively low.

        Nothing much has changed because the cars still have four wheels right?

    • Oflife - 9 years ago

      Agreed.

  6. Gabriel Sória - 9 years ago

    Apple needs a big partner for this project, like foxconn or pegatron. There is no way to proceed this project without a huge manufacturer with experience in this market.

  7. Lawrence Krupp - 9 years ago

    So Apple is Doomed™?

    • Charlypollo - 9 years ago

      People that keep making fun of this phrase are getting more annoying than the people that truly meant it. Shut up already.

  8. I can’t say how I know this, but this is someone creating news for attention.

  9. Benjamin (@NSbenjamins) - 9 years ago

    If Apple wants to make a car they’ll have to do it themselves, otherwise they’ll risk running into another Motorola Rokr situation.

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Avatar for Chance Miller Chance Miller

Chance is the editor-in-chief of 9to5Mac, overseeing the entire site’s operations. He also hosts the 9to5Mac Daily and 9to5Mac Happy Hour podcasts.

You can send tips, questions, and typos to chance@9to5mac.com.

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