The Taiwan electronics giant is forging alliances to enter the automotive industry and plans to sell its first models
On the Hon Hai Technology Day 2021, held last Monday, Foxconn presented three prototypes of its future Foxtron Model C (compact), Model E (saloon) and Model T (city bus), all electric.
The exhibition is related to the decision of the Taiwan consumer electronics giant, which it is forging alliances to enter the automotive industry and planning the production and sales of its first models.
Liu Young-way, Head of Hon Hai Precision Industry, spoke to the press at a Taipei business forum, superficially revealing its plans for global expansion. They will have a presence in Europe “a little faster”, but it is not known where. It did reveal that there will be cooperation with German manufacturers indirectly. Second will be the assault on India, finally in Latin America, which includes Mexico.
This is the new Foxconn platform.
The electric vehicle brand Foxtron will use what they call BOL, that is: build, operate and locate. In other words, Foxconn will invest in industrial partners that allow it to produce its vehicles locally, with existing factories, and be closer to its customers. This model makes more sense from a ROI point of view than building on the ground without building new factories.
The Model C will be manufactured in collaboration with Yulon Motor, thus saving time and money in designing and industrializing it. The Model E will be made with the support of Pininfarina. Lordstown Motors sells them its factory and will have productive capacity in the US, there is also an alliance with Fisker. An agreement was signed with Stellantis in May to create a joint venture to supply connectivity and infotainment technology. And there will be more.
Foxconn works with different technology companies.
In 2025-2027, Foxconn aspires to have a presence of 10% of the world electric vehicle market in terms of components or services, thus diversifying its lines of business from consumer electronics. In the future we may see more than one spin-off (or spin-off, if you prefer) of start-up car companies that are part of large corporations, as has happened with Kawasaki, Saab or Mitsubishi.
Foxconn has an important strategic advantage – and now it would come to the hair – which is to have great control in the microchip and semiconductor industry. On the other hand, it is noteworthy how the new manufacturers are taking advantage of the fall from grace of the traditional industry, which has been closing – and selling – factories that were left with nothing to do to accumulate excess capacity.
The electric car market is growing around the world. The brands that were traditionally car manufacturers know that they have to migrate to those models and the same happens with the new technologies that are looking for a way to get into this business that seems to be key in the future of the global automotive industry.
Brands such as Nissan, Ford, Chevrolet, and all those of the Stellantis group already have projects developed in the category and it is expected that more and more proposals exist.