Monitoring Desk
ISLAMABAD/TAIPEI: Foxconn wants to do for electric vehicles (EVs) what it has done with the iPhone, but first, it is required to find the next Apple – and fast.
The Taiwanese contract producer faces competition in the world market for producing white-label electric cars that can be tailor-made for clients, whether that’s a main automaker and a delivery provider, or any other company.
Foxconn needs to win big contract
Analysts said that the electronics giant brings established strengths to the loss-making electric cars industry, and Foxconn needs to win the big contract to prove it can ride the wave of disruption.
Foxconn company, formally called Hon Hai Precision Industry Co Ltd, will provide an update on its electric vehicles manufacturing business when it reports results on March 15.
“The results of several of our collaborations will be realised one after the other in 2023,” the Foxconn company told Reuters. “The demand for electric cars is driving industry disruption where prominent traditional automakers have and are pivoting to discovery solutions for mobility that are cleaner and smarter.”
The Foxconn company’s proposition is simple: let us build your next electric cars. It is developing a specialised supply chain, including chips and batteries, and has acquired the ex-General Motor Co plant in Lordstown, Ohio. It has hired a former Nissan executive, Jun Seki, to lead its efforts.
For now, by building in Ohio, Foxconn company can offer customers access to United States (US) federal incentives under the Inflation Reduction Act, Daiwa Capital Markets analyst Kylie Huang said. That’s a selling point as traditional automakers juggle building gasoline-powered vehicles with plans to construct their own electric vehicles capacity.
