Apple’s plan to enter the auto trade is “a really logical step” because the iPhone maker combines its experience in software program, batteries and design with huge sources, in response to Volkswagen Group CEO Herbert Diess.

“Regardless of that, we aren’t scared,” Diess stated in an interview with Frankfurter Allgemeine Sonntagszeitung.

The automobile sector is completely different from the expertise trade, and Apple “is not going to handle to take it over in a single day,” he stated.

Diess dismissed issues that VW might be degraded to a contract producer for expertise companies.

Money-rich U.S. and Asian expertise giants are plotting inroads into the trade as automobiles progressively flip into software-intensive self-driving autos.

Apple’s challenge to construct an electrical self-driving car has gained momentum in latest months, including a number of former Tesla executives and ramping up highway checks. Foxconn Expertise Group, Magna Worldwide, Hyundai/Kia, Nissan/Renault and Stellantis has been touted as potential manufacturing partners.