Illustration: Jordan Speer for Bloomberg Businessweek
The Big Take

How Apple Sank About $1 Billion a Year Into a Car It Never Built

Tim Cook shut down plans to acquire Tesla before cycling through a junkyard’s worth of self-driving designs over the past decade. The inside story is a case study in indecision.

Around the beginning of 2020, Apple Inc.’s top executives gathered at a former Chrysler testing track in Wittmann, Arizona, to try out the latest incarnation of the car the technology giant had been trying for years to make. The prototype, a white minivan with rounded sides, an all-glass roof, sliding doors and whitewall tires, was designed to comfortably seat four people and inspired by the classic flower-power Volkswagen microbus. The design was referred to within Apple, not always affectionately, as the Bread Loaf. The plan was for the vehicle to hit the market some five years later with a giant TV screen, a powerful audio system and windows that adjusted their own tint. The cabin would have club seating like a private plane, and passengers would be able to turn some of the seats into recliners and footrests.

Most important, the Bread Loaf would have what’s known in the industry as Level 5 autonomy, driving entirely on its own using a revolutionary onboard computer, a new operating system and cloud software developed in-house. There would be no steering wheel and no pedals, just a video-game-style controller or iPhone app for driving at low speed as a backup. Alternately, if the car found itself in a situation that it was unable to navigate, passengers would phone in to an Apple command center and ask to be driven remotely.

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