Bloomberg: Apple Car project is shutting down

Ten years, billions of dollars, numerous management changes and dozens of rumours have all been for nothing. The Apple Car project is officially cancelled. Even recently Apple planned to postpone the release of the car to 2028, but in the end it was decided to close the project.

Here's What We Know

As reported by Bloomberg, Apple has officially cancelled the release of the car, informing the nearly 2,000 employees who worked on it on Tuesday. Sources said the decision was made by Chief Operating Officer Jeff Williams and Kevin Lynch, the vice president in charge. As part of the changes, Apple will move "many employees working on the car" to the company's artificial intelligence division, where they will focus on generative AI projects, which have become an increasing priority for the company.

But the automotive team also includes hundreds of hardware engineers and automotive designers, some of whom, Bloomberg reports, will be able to apply for jobs in other parts of the company. The rest will likely be laid off. The company itself declined to comment on the situation.

Flashback

Apple once planned to create a car without a steering wheel and pedals, but later abandoned the idea. The company also spent time working on a remote command centre that could take over the driver's duties. Apple employees from across the automotive industry worked on the project, including designers from Aston Martin, Lamborghini, BMW and Porsche.

But as Bloomberg analysts believe, Apple's decision to abandon electric cars and shift resources to generative AI is a good strategic move, given the long-term profitability potential of AI revenue streams compared to cars.

Source: Bloomberg