Toyota chief's caution to Apple: The automobile business isn't easy

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Toyota Engine President Akio Toyoda offered a caution to Apple, which is normally plotting a foray into the auto industry: There’s additional to the business enterprise of selling cars than simply having the technology to create them.

The automotive industry welcomes new entrants, “but after making a car, I’d like them to anticipate to deal with customers and various changes for some 40 years,” Toyoda said at a news conference placed Thursday by the Japan Automobile Producers Association, where he's the chairman.

Although it will most likely take Apple at least half of a decade to start its planned autonomous, electrical vehicle, the technology giant has been creating waves within the automobile industry recently since it approaches a variety of automakers that have emerged as potential contenders for a car partnership.

The Cupertino, California-based company’s entry in to the car industry has sparked fear among some legacy automakers worried about the potential disruptiveness of an Apple-branded vehicle. These concerns could be one of the causes discussions between Apple plus some firms have seemingly fizzled lately, with Hyundai Motor Co. and others backtracking after declaring they were in talks.

The world’s greatest and second-most significant automakers, Toyota and Volkswagen AG appear less concerned.

Volkswagen chief Herbert Diess said that he wasn’t scared of Apple’s entry within an interview with German newspaper Frankfurter Allgemeine Sonntagszeitung found in February. The car sector differs from the technology sector, and Apple “won’t manage to have it over overnight,” he stated.

New tech firms joining “gets the potential to breathe new lease of life into the auto industry and present customers a wider range of choices,” Toyoda said. But their access must be “fair” to consumers, for the reason that they need to anticipate to take responsibility for the entire life cycle of their cars, from maintenance to eventual scrapping, he said.

This isn’t the 1st time Toyoda has been dismissive of new entrants. In a briefing in November, Toyoda explained that Tesla Inc. isn’t making “real goods.” Tesla, which overtook Toyota as the world’s most effective automaker last year, could be winning in conditions of market benefit, Toyoda said. But Toyota possesses what the Fremont, California-established automaker doesn’t: experience making more than 100 million cars.
Source: https://www.news-journal.com

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