Apple Inc. is teaming up with auto giant Volkswagen AG to build self-driving shuttles, according to a report published in the New York Times Wednesday.

The partnership signals a major change of direction for the tech giant’s autonomous vehicle program. The sources who spoke with the Times said that the company’s original vision was to build “the automotive version of the iPhone” in-house. However, engineering a vehicle from scratch apparently proved too big a challenge.

According to the report, Apple shifted gears a few years ago and approached established automakers with a proposal to jointly develop a self-driving vehicle. That strategy proved to have challenges as well. The tipsters said that the iPhone maker had unsuccessfully tried to strike an agreement with Daimler AG’s BMW and Mercedes-Benz groups, as well as Japan’s Nissan Motor Co. Ltd., before finally convincing Volkswagen to come aboard.

The alliance is reportedly set to focus on the automaker’s T6 Transporter (pictured). The van, which is currently sold only in Europe for the equivalent of more than $100,000, features numerous amenities, including a stove and a sink.

Volkswagen will reportedly manufacture a customized version of the T6 tailored for Apple’s requirements. The iPhone maker plans to replace much of the van’s interior, including the dashboard, as well as make several bigger modifications. It will add “computers, sensors and a large electric car battery” to the modified T6s as part of the project.

The Times’ sources said Apple expects to begin fielding the vehicles sometime next year as part of the shuttle service it provides to Silicon Valley-based employees. The vans are set to steer themselves, but a human safety driver will be present behind the wheels.

Apple has a lot of catching up to do if it wishes to mount a serious challenge to the other big-name contenders in the autonomous vehicle segment. Alphabet Inc.’s Waymo subsidiary, which is perceived by some as the frontrunner in this market, plans to start piloting a commercial self-driving taxi service later this year. General Motors Co., in turn, is working on a fully autonomous car with no steering wheel or brakes.

Image: Volkswagen