Taiwanese iPhone maker Foxconn sets sights on increasingly crowded EV market

BANGKOK (AP) — Auto industry newcomers such as Taiwan's iPhone maker Foxconn and China's Huawei Technologies are seeking to gain an edge in electric vehicles, prompting automakers such as Japan's Nissan and Honda to announce plans to join forces to fend off a host of ambitious competition. opponent.

Foxconn, also known as Hon Hai Precision Industry, has been grabbing links in the automotive supply chain and is one of a growing number of technology companies leveraging its electronics and communications expertise.

Foxtron, Foxconn's automotive joint venture with Taiwanese automaker and importer Yulon Motors, showcased its Model B, a stylish electric hatchback, and automotive electronics at the Consumer Electronics Show in Las Vegas last week.

Honda and Nissan announced plans in December to pursue a merger, with reports suggesting the move could be partly due to Foxconn's interest in Nissan.

Here's the latest update on Foxconn's automotive ambitions.

From iPhone to electric cars

Whether Foxconn wants to bid for Nissan or not, it has big ambitions and has said it ultimately intends to produce four out of every 10 electric cars sold globally. The contract manufacturer has invested nearly $1.3 billion in auto-related acquisitions over the past decade, according to mergers and acquisitions research firm Mergermarket.

In addition to its automotive manufacturing joint venture Foxtron with Taiwan's Yulon Motors, the company has a 50% joint venture with Stellantis NV to design and sell automotive semiconductors, and a 50% joint venture with major automotive supplier ZF Friedrichshafen AG of Germany. Joint venture to produce passenger cars. Car chassis. It invested in Indigo Technologies, which is commercializing a road-sensing system developed at MIT. It has also signed a cooperation agreement with Blue Solutions to develop solid-state batteries and is working with Italian car designer Pininfarina.

Foxconn holds a 34% stake in Japanese electronics company Sharp, which has been making inroads into the automotive industry. This year, Foxconn and Sharp unveiled an LDK+ (Live, Dining, Kitchen) concept vehicle, a boxy minivan that converts into a living space with solar power and batteries and a large LCD screen.

“Foxconn is leveraging a plug-and-play strategy similar to its electronics business to enter the electric vehicle space, a pre-emptive move in anticipation of the growing convergence of electronics and automotive technologies,” said Vivian Wong, head of M&A analysis at Mergermarkets Asia Pacific, in emailed comments. .

Other new technology companies transform into automakers

As cars become increasingly computerized, China's Huawei Technologies Co., smartphone and appliance maker Xiaomi and e-commerce giants Alibaba and Baidu are also relying on their scale and strength in advanced technology to expand their electric vehicle operations. .

Huawei has several electric vehicle joint ventures in what it calls the “Harmonious Smart Mobility Alliance”, including its Luxeed-branded electric vehicles with Chery Automobile and Aito-branded electric vehicles with Seres Group. Its joint venture with automaker JAC Motors in eastern China's Anhui province has announced plans to compete with luxury brands such as Rolls-Royce and Mercedes-Benz.

Some Japanese electronics companies have also jumped on the bandwagon. In addition to Sharp's cooperation with Foxconn, entertainment and technology giant Sony Corporation has established an electric vehicle joint venture with Honda and plans to launch a pre-sale electric vehicle Afeela sedan this year.

Increasing reliance on connections between cars, phones, laptops and TVs has lured the companies into a market that is rapidly being transformed by electrification, although advances have stalled in some markets due to tariffs and other factors.

What about Nissan?

Nissan launched its first mass-market electric vehicle, the Leaf, in 2010 and has strong EV technology, vehicle platforms and sales capabilities that make it attractive to newcomers like Foxconn.

Japanese media and Taiwan's Central News Agency reported that Jun Seki, chief strategy officer of Hon Hai Group and senior executive of Nissan, visited France to hold talks with French Renault. Renault owns 15% of Nissan and holds more shares in a French trust. Mr. Guan is the former chief operating officer of Nissan Motor Co. and former president of the Chinese joint venture Dongfeng Nissan.

As Nissan Motor Co. CEO Makoto Uchida formally announced plans to attempt a merger with Honda, he said Foxconn has not yet approached his company directly about a possible merger. Foxconn did not respond to a request for comment.

Tesla's rise has created greater challenges for all major automakers, and Nissan's internal woes are just a small part of the story. Tesla makes more than half of its electric vehicles in China, and Chinese automakers such as BYD operate in an industry so competitive that more than a dozen Chinese electric vehicles are produced there. Manufacturers have gone out of business, beaten by bigger and stronger companies that got into the game before them.

The road has not been smooth so far

Things have been tough as sales growth slows and car buyers question the affordability and convenience of switching to electric vehicles, and Foxconn still has a long way to go to compete with industry leaders like BYD and Tesla.

The company had planned to build the Endurance battery-electric truck at a former General Motors plant in Lordstown, Ohio, which it acquired in 2023. Lordstown Motors subsequently filed for bankruptcy. Foxconn also formed a partnership with Ocean EV truck maker Fisker Inc. in 2021, calling for the production of up to 250,000 vehicles. Fisker filed for Chapter 11 bankruptcy protection in June.

But the company seems undaunted.

Foxconn lists six electric vehicles on its website, including the Model T bus, Model V pickup truck, Moden N van, Model B and the “luxury flagship” Model E sedan.