Apple car could lose big money: Former GM exec

Apple car a 'gigantic money pit': Lutz
Apple car a 'gigantic money pit': Lutz

Apple would burn through cash if it enters the electric car business, with little hope of turning a profit, former General Motors Vice Chairman Bob Lutz contended Monday.

"There is absolutely no reason to assume that Apple is going to be financially successful in the electric car business," Lutz said on CNBC's "Closing Bell."

Read MoreApple speeds up electric car effort: Report

His comments came after a Wall Street Journal report Monday that the tech giant has ramped up its efforts to enter the electric car business and targeted a shipment date of 2019. Apple has even met with California officials to determine if the venture is realistic, sources told the newspaper.

Bob Lutz
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Lutz believes Apple would face significant hurdles in making money in the business. He noted its current devices boast much higher profit margins than automobiles can bring.

He added that electric cars are "generally money losers."

"If I were a shareholder I'd be very upset," Lutz said.

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He contended that established automakers have struggled to turn a profit on electric cars, and for Apple the task would likely prove just as daunting.

Apple declined CNBC's request to comment on the Journal report earlier Monday.