Foxconn, a Taiwanese electronic device manufacturer that commissions Apple iPhones, makes an electric car for Fisker, an electric vehicle start-up in the US. Just as Foxconn takes orders from Apple and assembles the iPhone instead, Foxconn is commissioned to produce electric vehicles designed by Ficker. On the 24th of last month, the two companies announced a joint venture, code-named’Project PEAR (personal electric automotive revolution)’. Foxconn is in charge of producing the second electric vehicle designed by Fisker.
Fisker is a California electric car company that was founded in 2016 and has not yet launched a car. The first electric vehicle’Ocean’ SUV will be produced by Canadian auto parts company Magna International and will be released in the fourth quarter of next year. Vehicles manufactured by Foxconn will begin production in the fourth quarter of 2023. The estimated annual production volume is 250,000 units and is sold in North America, Europe, China and India.
“Foxcon is not just a contract manufacturer in this partnership,” said Fisker founder Henrik Fisker, “We will develop electric vehicles together from scratch.”
Foxconn unveiled its electric vehicle manufacturing platform on October 16, 2020. / Foxconn
The combination of Foxconn and Fisker clearly shows the structural change of the automobile industry. Previously, automakers did everything from design to manufacturing and sales. Both factories and production facilities had to be established. Now, companies that want to make and sell automobiles can focus on design and branding, and leave the production to an outside professional manufacturer. Whether made by Foxconn or Magna, cars are sold under the Pisker brand.
Foxconn unveiled its own EV manufacturing platform (frame or skeleton) last October and went deeper into the electric vehicle market. Whether an automobile company or an information and communication technology (ICT) company, the Foxconn platform enabled electric vehicles to be built. Foxconn named it’MIH’ to this software and hardware open platform for electric vehicle manufacturing. Foxconn announced that it will also manufacture core parts for electric vehicles.
An image of an electric vehicle platform released by Foxconn. / Foxconn
It is observed that the collaboration with Fisker will be the first example of Foxconn using this platform to make a real electric vehicle. Foxconn has stated its goal to make 10% of global electric vehicles manufactured on this platform by 2025-2027.
Foxconn said that using an electric vehicle platform can cut the time it takes to launch a new car in half. It usually takes about 4 years from R&D to production, and this period can be shortened to 2 years. Liu Yangwei, CEO of Foxconn, said, “Foxcon has built a global vertical integrated supply chain and built up supply chain management capabilities in the ICT industry for more than 40 years.” “If we combine the engineering capabilities we have accumulated so far, we can innovate the electric vehicle industry.”
An electric car Ocean SUV that Fisker is scheduled to launch in the fourth quarter of 2022 /Pisker
It is observed that Foxconn’s entry into the electric vehicle market may become a’game changer’ that will shake the structure of the automobile industry. This is because anyone who has no experience in making automobiles can enter the electric vehicle industry using specialized manufacturers such as Foxconn. The barrier to entry into the EV market is lowering. For this reason, some analysts say that Foxconn’s entry into the electric vehicle market may pose a threat to existing traditional automobile companies.
On January 13th, Foxconn and Geely Motors of China signed an agreement to establish a joint venture. / Foxconn
Foxconn has already signed joint production contracts with several automakers. On January 13 this year, Foxconn announced that it had formed a joint venture with China’s Geely Motors. The two companies provide car production and consulting services to other automakers through this joint venture, which holds 50% each. Cars manufactured in this way are sold under the brand of the car company that commissioned the production.
On January 4, Foxconn also announced a partnership with Chinese electric vehicle company Viton. Foxconn is in charge of producing Viton’s first electric car,’M-Byte’. The car is expected to be produced in the first quarter of next year.
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