Market Overview

Would Fiat Build An Apple Car?


It's been reported for months now that Apple Inc. (NASDAQ: AAPL) is diving into the automobile arena.

Not only does the company have an electric car project code-named "Titan," but the company recently filed for a car-related patent. Add to that, reports have been circulating of ramped up motivation through colossal facility leasings and hirings of personnel with experience necessary for electric car development.

Now, the talks have shifted into a new environment, as Fiat Chrysler Automobiles NV (NYSE: FCAU)'s CEO Sergio Marchionne has expressed explicit interest in building a car with Apple.

Related Link: Report: Apple Expanding Electric Car Facilities

A Fiat-Apple Partnership Proposal

According to Bloomberg, self-proclaimed "Apple freak" Marchionne "is keen to partner with the tech giant on building a car."

During the Geneva International Motor Show, Marchionne commented on his credibility as a worthy partner, "I would assume that we have the credibility to be one of the players they have looked at." He continued, noting that while there are likely others just as keen to help Apple in this endeavor, Fiat and Marchionne in particular could provide some needed expertise.

"Marchionne says he understands Apple's ‘syntax' and is ready to work on their terms, putting Fiat Chrysler in better position than rivals," the Bloomberg report explained.

Marchionne elaborated, "Apple has a language, and you have to be able to speak that language."

"Usually the industry comes into that dialogue with a high degree of arrogance and we [Fiat Chrysler] know how to make cars. That's not very helpful as their syntax is worth more than our ability to build cars."

By proposing that he is willing to concede to Apple's terms, Marchionne hopes that with his level of dedication to the innovation, experience with building cars and his openness to brushing off the company's arrogance, he could help Apple achieve their car-making goals.

At The Time Of This Writing…

Apple was seen trading up 0.75 percent on the day at $101.51, while Fiat Chrysler was up a substantial 2.41 percent on the day and trading at $7.65.

Posted-In: Apple CarLong Ideas News Rumors Markets Movers Tech Trading Ideas


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