- Foxconn is eager to expand its footprint in the automotive manufacturing sector.
- After Nissan’s merger talks with Honda collapsed, Foxconn wants to invest in the former.
- This year, the Taiwanese company will also start producing two of its own EVs.
Just days after reports emerged that Taiwanese contract manufacturer Foxconn was close to finalizing deals with two Japanese automakers, unnamed sources report that Mitsubishi is one of the firms involved. If the deal goes through, it could mark a major shift, with Mitsubishi potentially outsourcing EVs production to Foxconn.
For several years, Foxconn has been trying to lower its dependence on consumer electronics and expand into the EV market, viewing it as an important growth driver. It wanted to take a 5% share of the global EV market by 2025 and has previously signed deals with Lordstown, Fisker, and China’s Byton. While it’s yet to achieve the growth it had hoped for, a deal with Mitsubishi could be a major breakthrough for the firm.
Read: Foxconn Gearing Up To Build Four New EVs, Including Two From Japanese Brands
According to Nikkei Asia, Foxconn has been in talks with Mitsubishi for over six months. The company views this partnership as an opportunity to prove its manufacturing capabilities, hoping it will help attract other established carmakers.
Details about which Mitsubishi EVs Foxconn might produce are still unclear. The Japanese automaker is expected to launch a new EV in the US next year, with little confirmed about the model. However, early reports suggest it could be a crossover coupe, which would add another option to the growing EV market.
Foxconn’s Broader EV Plan
Foxconn had expressed an interest in acquiring Nissan late last year, but Nissan would ultimately go on to have discussions with Honda about a potential merger. However, talks fell through in early February. The Taiwanese company is still said to be open to taking a stake in Nissan and will likely try to secure a deal to build the brand’s future EVs.
At this point, Foxconn has plenty on its plate as it looks to play an increasingly important role in the EV market. In addition to working with established brands, it will begin production of its in-house Model B, an all-electric hatchback similar in size to the VW ID.3. It also wants to start building the larger Model C in North America during the fourth quarter of this year.
