Foxconn bullish on electric vehicle prospects as it shows off three prototypes (updated)

Pininfarina SpA

18/10/2021 09:28

(Repeats to fix technical glitch)
    By Yimou Lee
    TAIPEI, Oct 18 (Reuters) - Taiwan's Foxconn  2317.TW 
unveiled its first three electric vehicle prototypes on Monday,
underscoring ambitious plans to diversify away from its role of
building consumer electronics for Apple Inc  AAPL.O  and other
tech firms.
    The vehicles - an SUV, a sedan and a bus - were made by
Foxtron, a venture between Foxconn and Taiwanese car maker Yulon
Motor Co Ltd  2201.TW .
    Foxtron Vice Chairman Tso Chi-sen told reporters that he
hoped electric vehicles would be worth a trillion Taiwan dollars
to Foxconn in five years time - a figure equivalent to around
$35 billion.
    Formally called Hon Hai Precision Industry Co Ltd, the
world's biggest electronics contract manufacturer aims to become
a major player in the global EV market though it concedes it is
a novice in the car industry.
    It first mentioned its EV ambitions in November 2019 and has
moved relatively quickly, this year announcing deals to build
cars with U.S. startup Fisker Inc https://www.reuters.com/business/autos-transportation/fisker-finalizes-deal-with-foxconn-make-evs-us-starting-2023-2021-05-13
  FSR.N  and Thailand's energy group PTT Pcl https://www.reuters.com/article/foxconn-ptt-electric-idUSL3N2NI0LY
  PTT.BK .
    "Hon Hai is ready and no longer the new kid in town,"
Foxconn Chairman Liu Young-way told the event timed to mark the
birthday of the company's billionaire founder Terry Gou, who
drove the sedan onto the stage to the tune of "Happy Birthday".
    The sedan, which was jointly developed with Italian design
firm Pininfarina, will be sold by an unspecified carmaker
outside Taiwan in the coming years, while the SUV will be sold
under one of Yulon's brands and is scheduled to hit the market
in Taiwan in 2023.
    The bus, which will carry a Foxtron badge, will start
running in several cities in southern Taiwan next year in a
partnership with a local transportation service provider.
    "So far Foxconn has made a pretty good progress," said Daiwa
Capital Markets tech analyst Kylie Huang.
    Foxconn has also set itself a target of providing components
or services for 10% of the world's EVs by between 2025 and 2027.
    This month it bought a factory from U.S. startup Lordstown
Motors Corp  RIDE.O  to make electric cars. In August it bought
a chip plant in Taiwan, aiming to meet future demand for
automotive chips.  urn:newsml:reuters.com:*:nL1N2PC0AJ urn:newsml:reuters.com:*:nL1N2QX1DM
    A successful push by contract assemblers into the car
industry has the potential to bring in a slew of new players and
undermine the business models of traditional car companies.
Chinese automaker Geely this year also laid out plans https://www.reuters.com/article/us-geely-strategy-electric-focus-idUSKBN2AA2YI
 to be become a major contract manufacturer.
    Industry watchers are closely watching for clues of which
firms might build Apple's electric car. While sources have
previously said that the tech giant wants to launch a car by
2024, Apple has not disclosed specific plans.
    

     ($1 = 27.9880 Taiwan dollars)

 (Reporting by Yimou Lee; Editing by Edwina Gibbs)
 ((yimou.lee@thomsonreuters.com; +886-2-8729-5122;))