This is the same self-destructive tunnel vision that CEO’s from Legacy companies have been operating with and why most of them will go bankrupt.
Apple, the worlds most valuable and profitable company (with $200 Billion in cash reserves) still relies on Foxconn to build their hardware. Why doesnt the wealthiest company in the world manufacture its own hardware in Cupertino if its so easy to build hardware?
Think about the Smartphone landscape from just 12 years ago. The biggest incumbents Blackberry, Nokia, Motorola, Ericsson, HTC are literally non existent in this space - completely been displaced by Chinese manufacturers. The same Chinese manufacturers that everyone scoffed at in the late 2000s. The exact same thing has been happening in the EV space over the last 5 years And the Chinese are just about to pull The rug from underneath the feet of Legacy carmakers.
Ponder on this for just a moment:
VW has a joint venture with
JAC Automotive
Ford has a joint venture with
Changan Automotive
Mercedes Benz has a 49% / 51% joint venture
BAIC Motor
BMW has a joint venture with
BBA (Brilliance Automotive)
What do all these
joint ventures have in common with one another?
Yup, same owner (Chinese government). All the legacy carmakers have given up decades of intellectual property in favour of profits to get access to the juicy Chinese car market. What does BBA manufacture for BMW? The all electric iX3 (which is only manufactured in China)
A quote from Foxconn CEO Terry Gou in 2014:
“If we can make iPhones, why can’t we make electric vehicles? It is an iPhone with four wheels,”
What happens next? China pulls the wraps off several Foxconn style manufacturers who will make better looking cars than the Mercedes EQS and the BMW iX at half the price. World domination ensues just like the smartphone market.
“Check-Mate“