Hon Hai Precision Industry Co (鴻海精密) has secured an agreement to make Mitsubishi Motors Corp electric vehicles (EV), scoring the first major customer for its fledging EV contract manufacturing business.
Hon Hai would begin building vehicles for Mitsubishi in Taiwan, a person familiar with the matter said.
It was unclear when production would actually start, but the first vehicles to roll off the assembly line would target Australia and New Zealand, the person said, asking to remain anonymous discussing a non-public matter.
Photo: Ritchie B. Tongo, EPA-EFE
Hon Hai representatives declined to comment on Thursday, while a Mitsubishi spokesperson said the automaker is always open to collaboration.
Hon Hai, known also as Foxconn, is trying to develop businesses from artificial intelligence (AI) servers to EV outsourcing to reduce its reliance on iPhones and consumer electronics.
However, it has made little headway on plans to assemble cars for the world’s biggest auto names, much as it does for smartphone and computer brands. It has introduced several model vehicles to show off its design and production capabilities.
However, building up the automotive arm would take years, Hon Hai’s EV business chief Jun Seki told Bloomberg TV in an interview in October last year.
Hon Hai has previously engaged in discussions to buy a slice of Nissan Motor Co, Mitsubishi Motors’ largest shareholder, to further its own ambitions.
Hon Hai chairman Young Liu (劉揚偉) told analysts on an earnings call last week that he expected to sign an auto contract with a Japanese client within months.
Last month, Liu also said that the company approached Nissan and Honda Motor Co about potential cooperation.
The news about Mitsubishi was first reported by Kyodo News.
Hon Hai’s potential deal to produce outsourced EVs for Mitsubishi Motors could advance its automotive ambitions by building credentials in vehicle manufacturing via an alliance with an established Japanese brand, analysts Steven Tseng (曾緒良) and Sean Chen said.
This could potentially pave the way for future pacts, they added.
Mitsubishi last year ranked as Japan’s eighth-largest automaker, with Nissan as its largest shareholder.
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