Earlier this week, it came out that tech manufacturer and iPhone builder Foxconn was about to start building electric cars for a pair of Japanese automakers. The company has long wanted to reduce its dependence on the consumer electronics market and expand into some more serious manufacturing. The report couldn’t confirm the details about what car companies were involved, but now we have a pretty solid idea about one of them.
Mitsubishi
Mitsubishi is a Japanese automaker founded in 1870 and is part of the Mitsubishi Group and broader Renault-Nissan-Mitsubishi Alliance. Mitsubishi Motors officially started producing passenger vehicles in 1917, the Mitsubishi Model-A, before building a legacy as the manufacturer of off-roaders like the Pajero. Mitsubishi established a strong presence in motorsport, with models like the Lancer Evolution competing in WRC and the Pajero Evolution taking multiple wins in the Dakar Rally. Its best-ever sales year in the USA was 2002, when it sold 345,915 cars.
- Founded
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1870
- Founder
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Yatarō Iwasaki
- Headquarters
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Tokyo, Japan
- Owned By
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Mitsubishi Group
- Current CEO
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Takao Kato
Mitsubishi is one of the two, says Nikkei Asia. Its report says that Foxconn and Mitsubishi have been in talks for more than six months and that this could be Foxconn’s chance to show it can build cars.
Foxconn Wants To Make More Than Phones
According to the report, Foxconn has been in talks with multiple Japanese automakers lately. It was one of the parties that showed interest in partnering with Nissan to help that company’s woes, looking at purchasing some of Renault’s stake in Nissan to join the party. That seemed to fade when Nissan began talks with Honda, but with those talks broken off, it’s likely still on the table.
The Taiwanese company has also tried to gain a foothold using startups in recent years. It worked to collaborate with Lordstown Motors, Fisker, and Byton. Even VW and Scout were rumored, all to little result.
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Mitsubishi Thinks It Can Survive Without Honda’s Help
Mitsubishi reportedly wants to see if it can survive the coming years on its own steam, rejecting potential collaborations with Honda & Nissan.
Foxconn is also planning to build its own vehicles. It enlisted longtime auto design icon Pininfarina to help create its new models. Foxconn has worked with Pininfarina on multiple models this decade, but it is the Model B hatchback and Model D electric crossovers that are expected to make the jump to production. Foxconn also wants to start building its Model C in North America this year.
Tech Company Will Develop, Not Just Build
It’s not clear whose retail channel would sell the Foxconn EVs. Partnering with Mitsubishi could lead to it building EVs for Mitsubishi and possibly even Mitsubishi selling Foxconn models under its own name.
Foxconn had big plans, and had said it wanted five percent of the global EV market share by 2025. Chairman Young Liu noted in its 2024 earnings call that the company would miss the target due to increased competition and slowing sales. Its current share is zero percent, so anything would push it closer to the goal.
Related
What Honda Break-Up? Nissan Already Flirting With New Partners
After falling out with Honda, there are new reports of Tesla or others potentially coming to Nissan’s aid.
During the company’s earnings call last year, Liu said that its Japanese customers would use it for contract design and manufacturing services, meaning Foxconn would help develop and not just build cars. Expect a finalized deal to be announced in the next few weeks, but for now, neither entity will confirm anything.
Source: Nikkei Asia
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