Foxconn, a Taiwanese multinational electronics contract manufacturer, has revealed it is nearing agreements with two Japanese automakers to collaboratively design and produce a pair of electric vehicles.
Hon Hai Precision Industry Company, widely known as Foxconn, declared its upcoming venture into electric vehicle (EV) production in collaboration with two unnamed Japanese automakers. The development closely follows the collapse of merger negotiations between Nissan and Honda, two of Japan’s leading car manufacturers, in which Foxconn was also rumored to have been involved.
Foxconn chairman Young Liu said last week the company intends to finalize agreements within the next two months for its design and manufacturing services, as reported by Focus Taiwan. In February, shortly before the Honda-Nissan merger talks fell through, Liu disclosed Foxconn’s interest in collaborating with Nissan. He clarified the company was interested in offering its services to Nissan rather than pursuing its acquisition.
Under the contract design and manufacturing services (CDMS) business model, Foxconn will handle the design and production of the electric vehicle, while the Japanese company will only concentrate on the product’s marketing and sales.
Foxconn is involved in various automotive projects, including acquiring a 50% stake in ZF Group’s axle system assembly unit and the German supplier’s chassis modules business. It has also established a 50-50 partnership with Stellantis to design and market automotive semiconductors starting in 2026. Additionally, Foxconn collaborates with German chipmaker Infineon to develop advanced silicon carbide semiconductors for electric vehicles.
Foxconn consistently showcased its determination to establish itself as an EV manufacturer. In addition to the forthcoming partnership with Japanese firms, the company is working on its own car projects.
Last week, chairman Liu disclosed the company plans to commence production of its Model C electric crossover in North America by the fourth quarter of the year. Initially introduced as a concept in October 2021, the Model C claimed a range of 435 miles (700 km). After nearly three and a half years since its concept’s debut, the production version will feature some updates or modifications.
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