The fact that there is a China connection to the Faraday/Apple automotive venture should come as no surprise. It is the obvious partial answer to the “how and why” question, as explained here:
http://www.technologyreview.com/news/542111/how-might-apple-manufacture-a-car/ In short, they use the iphone business model – design the product here, add features (or an entirely new concept) that the competition lacks, build it Asia, and sell the sizzle. The surprise is that they apparently didn’t steal any talent from Uber/Goggle, since the car itself will (eventually) be driverless - maybe not the first generation, but eventually. The second surprise is that the market they are going for in not the family car per se, but the 2nd car of a two-car family. Make that: the market is the elimination of the second car. In short, the target market is for that percentage of mostly urban consumers who do not care to own a vehicle, if it involves parking it on the street - but will contract with Faraday for (a portion of) their transportation needs ala Uber, but with no driver – and a net savings over actual ownership. This means instant guaranteed access to a ride, and at a cost much less than Uber is now. Many consumers will still have one car, but if they live in a big city – no car. In San Francisco, New York, and a growing number of other locales, the former car owner can convert the former garage into a studio apartment and rent it for $3000/mo. That is not a joke. From: Blaze Spinnaker i like the team: * Nick Sampson, Senior Vice President – Former Director of Vehicle & Chassis Engineering, Tesla Motors * Dag Reckhorn, Vice President of Global Manufacturing – Former Director of Manufacturing, Tesla Model S * Alan Cherry, Vice President of Human Resources - Former Senior Director, Human Resources, Tesla Motors * Tom Wessner, Vice President of Supply Chain - Former Director of Purchasing, Tesla Motors * Richard Kim, Head of Design – Founding member of BMW i Design and Lead Designer, i3 and i8 concepts.
