Apple may buy McLaren to provide an injection of expertise for its electric car project.
(CCM) — Apple is holding talks with British luxury sports car maker and Formula 1 team owner McLaren Technology with a view to buy the company, the Financial Times revealed today. According to the Financial Times' sources, Apple is considering an acquisition or a strategic investment in the company, and talks about a deal have been going on for several months. McLaren's expertise ranges from automotive engineering and on-board computer systems to chassis materials, including carbon fiber and aluminum. McLaren is currently loss-making, and an acquisition would likely cost Apple about $1.5 billion — considerably less than the $3 billion that it paid for headphone-maker Beats Electronics in 2014.
In January, Apple's car project, known as Project Titan, was plunged into doubt after the company reportedly ordered a hiring freeze. But the McLaren talks appear to confirm that Apple still intends to enter the automotive market and that Project Titan is very much alive and moving forward. In August, it was reported by an Apple analyst that the company had made an agreement with a South Korean battery developer, which has been taken as an indication that Apple is looking to compete with Tesla in the electric vehicle market.
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