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Big shifts are everywhere on this day before the leap year day as Apple cuts the bait on the AppleCar, BYD has announced they will not be pursuing the US market, and Jag-Land Rover are ditching their agency model plans.
CarPlay may be the best iPhone users can hope for in their car as Apple is officially shutting down its EV program Project Titan, reallocating resources to developing its AI capabilities.
- Billions invested and numerous strategy shifts later, Apple acknowledges the complex challenges of the automotive sector, choosing to focus on its strengths in AI.
- Some developers from the car project are transitioning to AI roles, while those who work on hardware will likely be facing layoffs
- "Apple canceling this project is a sigh of relief for us," shares Dan Morgan from Synovus Trust, highlighting the challenging fit of automotive projects within Apple's portfolio.
- Jeff Schuster, global vice president of automotive research at consultant GlobalData said “They (Apple) certainly had the most downside,” he said. “Tesla benefits big time from being a status vehicle. And an Apple EV definitely would be a status vehicle.”
- Elon Musk on Tuesday sent a post on X with a saluting emoji and a cigarette.
Chinese EV maker BYD has decided against launching its electric vehicles in the US, citing the market's complexity and political entanglements as major deterrents as the company's focus turns to strengthening its presence in Mexico with a new manufacturing facility.
- Stella Li, BYD Americas' CEO, highlights the US EV market's intricate landscape, discouraging the Chinese automaker's entry.
- Li criticizes the US's slower electrification pace and the confusing political climate, contrasting sharply with China's robust EV adoption and clear policies.
- "If you are not investing for electric car, you are out. You will die. You have no future," Li asserts, emphasizing the stark difference in EV market dynamics between the US and China.
In the first of possibly many about-faces, Jaguar Land Rover is abandoning its agency model plans in the UK as it opts to maintain its traditional franchised sales model amidst retail partner consultations.
- JLR is backing away from its fixed-price, no-haggle sales strategy, opting instead to stick with its current dealership model rather than moving to direct sales.
- Influenced by feedback from partners, JLR's decision is showcasing its commitment to a "client-centric retail experience" while maintaining the foundation of the franchise model.
- "The franchise model is a tried and trusted model," Darren Edwards, CEO of Sytner Group, is stating, applauding JLR's flexibility and its response to the evolving market dynamics.
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