Apple’s talks with McLaren, Lit Motors roads to car product

Bloomberg

As it firms up plans to upend the auto industry, Apple Inc. is looking toward British carmaker McLaren and San Francisco-based startup Lit Motors for help. Both would give Apple some of the know-how needed to compete head to head against or forge a meaningful partnership with automakers. Yet the two companies exist on opposite ends of the spectrum: McLaren designs million-dollar race cars that mostly run on gas for its affluent customer base, while Lit Motors is developing an electric vehicle that looks like a mashup of a Smart Car and a motorcycle.
McLaren is known for its expensive cars, design aesthetic and focus on customer service. None of those features would immediately benefit Apple’s work on a car. The Cupertino, California-based company already has hundreds of car engineers in a special projects group called Project Titan and its Jony Ive-led industrial design team has a former Lamborghini designer on staff. What McLaren would bring to a partnership is a top brand name, high-end buyers and a research-and-development strategy.
“McLaren has experience dealing with high-end customers, customers who discriminate between good and really good,” said Anil Doradla, an analyst at William Blair & Co. “In that context, I believe they will be very supportive of an Apple experience in the car.” Apple is exploring a strategic investment in the British carmaker, people familiar with the matter said. Even so, the company denied any current discussions.
Apple also is in active talks to acquire Lit Motors, another person familiar with the matter said. Through its work on a small vehicle known as the C-1, the startup would provide the expertise to develop the components for an electric car or a platform for other automakers. The company, which has 10 technology patents involving a self-driving platform and has applied for 82 patents internationally, is positioning its portfolio as central to an acquisition, according to a person briefed on the startup’s business. It currently employs 13 engineers with car platform experience, he said.