Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      Netflix premieres first AI-generated scene

      18 July 2025

      MultiChoice: We can’t afford to compete without help

      17 July 2025

      The internet’s weakest link is under the ocean

      17 July 2025

      AI misuse shakes South African courtrooms

      17 July 2025

      Boom gates go hi-tech at South African malls

      17 July 2025
    • World

      Grok 4 arrives with bold claims and fresh controversy

      10 July 2025

      Samsung’s bet on folding phones faces major test

      10 July 2025

      Bitcoin pushes higher into record territory

      10 July 2025

      OpenAI to launch web browser in direct challenge to Google Chrome

      10 July 2025

      Cupertino vs Brussels: Apple challenges Big Tech crackdown

      7 July 2025
    • In-depth

      The 1940s visionary who imagined the Information Age

      14 July 2025

      MultiChoice is working on a wholesale overhaul of DStv

      10 July 2025

      Siemens is battling Big Tech for AI supremacy in factories

      24 June 2025

      The algorithm will sing now: why musicians should be worried about AI

      20 June 2025

      Meta bets $72-billion on AI – and investors love it

      17 June 2025
    • TCS

      TCS+ | Samsung unveils significant new safety feature for Galaxy A-series phones

      16 July 2025

      TCS+ | MVNX on the opportunities in South Africa’s booming MVNO market

      11 July 2025

      TCS | Connecting Saffas – Renier Lombard on The Lekker Network

      7 July 2025

      TechCentral Nexus S0E4: Takealot’s big Post Office jobs plan

      4 July 2025

      TCS | Tech, townships and tenacity: Spar’s plan to win with Spar2U

      3 July 2025
    • Opinion

      A smarter approach to digital transformation in ICT distribution

      15 July 2025

      In defence of equity alternatives for BEE

      30 June 2025

      E-commerce in ICT distribution: enabler or disruptor?

      30 June 2025

      South Africa pioneered drone laws a decade ago – now it must catch up

      17 June 2025

      AI and the future of ICT distribution

      16 June 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » News » Apple in talks with car maker McLaren

    Apple in talks with car maker McLaren

    By Agency Staff21 September 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    mclaren-640

    Apple, ramping up efforts to disrupt the transportation industry, is seeking a stake in luxury car maker McLaren and is in talks to buy Lit Motors, an electric motorbike start-up, people with knowledge of the matter said.

    The technology giant will probably make a large investment in UK-based McLaren rather than buy it outright, according to one of the people, who asked not to be identified because the matter is private.

    Apple wants to acquire Lit Motors because the San Francisco start-up has several international self-driving patents, said another person.

    BMW, Audi and a South Korean automaker are also actively pursuing a Lit deal, the person said.

    Eager for a new hit to replace the iPhone, Apple has hundreds of engineers working on car design and has been targeting a release as soon as 2020. While the company has been focusing more on self-driving software in recent months, it has never abandoned efforts to build its own vehicle or tie up with an established car maker, according to people familiar with Apple’s thinking. With sports cars starting at almost US$200 000, McLaren would bring brand strength, advanced engineering and a portfolio of patents to the equation.

    The Financial Times earlier reported that Apple was considering buying all of McLaren or taking a stake in the UK-based car maker. The New York Times earlier reported Apple’s talks with Lit Motors.

    “I can confirm that McLaren is not in discussion with Apple about any potential investment,” McLaren CEO Michael Flewitt said in a text. Apple and Lit Motors declined to comment.

    In a call with analysts earlier this year, Apple CEO Tim Cook suggested Apple would do more acquisitions and strategic investments. Apple had $232bn in cash at the end of June, about $215bn of that is kept outside of the US, Cook told investors in July.

    Many analysts have speculated that Apple would buy Tesla Motors, deemed a good fit because it sells electric cars with self-driving capabilities. Tesla shares gave up an early rally once the FT news broke.

    Buying a stake in McLaren is less obvious because the UK company is best known for luxury cars that go very fast. What’s more, the company lacks mass manufacturing capabilities. McLaren can make only a few thousand cars a year, compared with mainstream automakers with several factories each cranking out hundreds of thousands of autos each year.

    Dominic O’Brien, a London-based analyst at Exane BNP Paribas, said acquiring McLaren would be a “strange move” for Apple. “They wouldn’t gain manufacturing scale or much know-how about mass-produced cars,” he said. “McLaren isn’t known for electric cars or its autonomous driving capability.”

    Closely held McLaren is more than 55% owned by Bahrain Mumtalakat, the investment arm of the kingdom of Bahrain. The next two biggest shareholders are TAG Group, a Luxembourg-based holding company, with 11%, and McLaren chairman Ron Dennis, with 10%. Dennis also runs McLaren Racing.

    Apple is working on a self-driving project dubbed Project Titan, according to people familiar with the plan. The company recently hired the former head of BlackBerry’s automotive software division and has continued to raid auto companies for engineers with expertise in designing vehicle manufacturing systems.

    The question, said William Blair & Co analyst Anil Doradla, is whether Apple uses McLaren as a “tech incubator” or for “rolling out a car”.  — (c) 2016 Bloomberg LP



    Apple BMW Bob Mansfield Daimler McLaren McLaren Technology Group Tesla Tesla Motors
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleLack of spectrum keeping prices high: MTN
    Next Article Why Vodacom, MTN failed at mobile money

    Related Posts

    Mental wellness at scale: how Mac fuels October Health’s mission

    15 July 2025

    Apple plans product blitz to reignite growth

    11 July 2025

    AI gold rush propels Nvidia to record $4-trillion market cap

    9 July 2025
    Company News

    SA businesses embrace gen AI – but strategy and skills are lagging

    17 July 2025

    Ransomware in South Africa: the human factor behind the growing crisis

    16 July 2025

    Mental wellness at scale: how Mac fuels October Health’s mission

    15 July 2025
    Opinion

    A smarter approach to digital transformation in ICT distribution

    15 July 2025

    In defence of equity alternatives for BEE

    30 June 2025

    E-commerce in ICT distribution: enabler or disruptor?

    30 June 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.