Foxconn is investing in manufacture of electric vehicles (EVs) according to some of the leading news agencies. It is exploring the white-label manufacturing of electric vehicles for automakers or delivery providers.
Foxconn is looking into the entire supply chain of chips, batteries, assembly plant and industry experts. For this, it has acquired an earlier General Motor assembly plant in Ohio from Lordstown Motors. This assembly plant is one of the highest by volume assembly plant in world, with capacity to assemble 320,000 units a year. Foxconn has also hired a former Nissan Motors senior executive, Jun Seki as its Chief Strategy Officer.
“The results of many of our collaborations will be realised one after the other in 2023. The demand for EVs is driving industry disruption where prominent traditional automakers have and are pivoting to finding solutions for mobility that are cleaner and smarter.”
Foxconn representative mentioned in a statement to Reuters.
Foxconn does bring strength in contract manufacturing. While many of the industry experts are of the view that EV industry is not a profit making industry largely, and with competition building up and leading to price cuts off-late, it may be a difficult space to enter. But, Foxconn may be entering the EV manufacturing with a disruptive white-label manufacturing at right time.
Foxconn has been working on its EV white-label manufacturing strategy for quite some time. It established Mobility in Harmony Alliance in October 2020. This Alliance is a global open platform for electric vehicles that aims to accelerate the development of EV technologies and promote innovation in the automotive industry. The alliance is open to companies in the automotive and technology industries, including automakers, parts suppliers, software developers, and other stakeholders. The MIH Alliance aims to create a standardized platform for EVs that will enable faster development of new models and reduce costs for automakers.
Mobility in Harmony EV platform, which Foxconn calls “the Android system” for EVs may help it win client.
Canada’s Magna International, a top auto supplier, already builds cars for others, and China’s Geely has expressed interest. China’s Guangxi Automobile Group has started to make EVs on contract for Japanese delivery company, Sagawa Express.
ABP Live
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