Apple’s entry into the auto industry doesn’t scare the VW CEO

Apple’s plan to enter the automation industry is “a very logical step” as the iPhone maker combines its expertise in software, batteries and design with huge resources, which according to Volkswagen Group CEO Herbert Diess.

“Nevertheless, we are not afraid,” Diess said in an interview with Frankfurter Allgemeine Sonntagszeitung.

The automotive sector is different from the tech industry, and Apple will not be able to “take over it overnight,” he said.

Diess allayed concerns that VW could be reduced to a contract maker for technology companies.

Money-rich U.S. and Asian technology giants are planning moves into the industry as cars turn into software-driven self-driving vehicles.

Apple’s project to build an electric self-driving vehicle has gained momentum in recent months, putting several Tesla executives ahead and ramping up road tests. Foxconn Technology Group, Magna International, Hyundai / Kia, Nissan / Renault and Stellantis have been contacted as manufacturing partners.

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