Foxconn to Build Fisker's Next EV: Apple Supplier Deal

Foxconn and Fisker Announce EV Development Partnership

Foxconn Technology Group, a major Apple supplier, has reached a preliminary agreement with Fisker, an electric vehicle (EV) company that went public via a SPAC, to jointly develop and manufacture a new EV model.

Agreement Details and Production Timeline

A memorandum of understanding was signed by both Fisker and Foxconn on Wednesday. Further discussions are ongoing, with a formal partnership agreement anticipated in the second quarter of the current year.

Production is slated to commence in the fourth quarter of 2023, with an initial target of exceeding 250,000 vehicles annually. The vehicle will be marketed under the Fisker brand.

Foxconn’s Capabilities and Advantages

Young-way Liu, Chairman of Foxconn Technology Group, highlighted the company’s comprehensive, vertically integrated global supply chain.

He also emphasized Foxconn’s substantial engineering expertise, which provides key advantages in the production of essential EV components, including the electric motor, electric control module, and battery.

The ability to rapidly scale engineering and leverage its supply chain will be crucial for Foxconn to achieve its ambitious production goals.

Accelerated Development Cycle

“This collaboration will enable the production of the next Fisker vehicle in just 24 months – encompassing research, development, and manufacturing,” stated Young-way Liu. “This significantly reduces the typical timeframe for bringing a new vehicle to market by half.”

Fisker’s Existing Plans

Fisker has previously announced that production of its first EV, the Ocean SUV, which is contracted to Magna for manufacturing, is scheduled to begin in the fourth quarter of 2022.

The company intends to showcase a production-ready prototype of the Ocean later this year.

Foxconn’s Expanding EV Involvement

This venture represents Foxconn’s continued expansion into the electric vehicle manufacturing sector.

Previous Joint Ventures

In January 2020, Foxconn established a joint venture with Fiat Chrysler Automobiles to produce EVs in China. This partnership involves a 50/50 ownership split, focusing on EV development and manufacturing, as well as the “internet of vehicles” (IOV) business, as defined by Hon Hai, Foxconn’s parent company.

Furthermore, last month, Foxconn and Zhejiang Geely Holding Group agreed to form another joint venture centered on contract manufacturing for automakers.

Focus on Emerging Automotive Technologies

This new joint venture will specifically concentrate on electrification, connectivity, autonomous driving technology, and vehicles designed for shared mobility services.

The Foxconn-Geely partnership will offer consulting services encompassing complete vehicles, components, intelligent drive systems, and other automotive ecosystem platforms to both automakers and ridesharing companies.

Geely will contribute its expertise in automotive design, engineering, R&D, intelligent manufacturing, supply chain management, and quality control, while Foxconn will leverage its manufacturing and information and communication technology (ICT) capabilities.