Apple supplier Foxconn Technology Group has reached a tentative agreement with electric vehicle startup-turned-SPAC Fisker to develop and eventually manufacture an EV that will be sold in North America, Europe, China and India.
Fisker and Foxconn said Wednesday that a memorandum of understanding agreement has been signed. Discussions between the two companies will continue with the expectation that a formal partnership agreement will be reached during the second quarter of this year.
Under the agreement, Foxconn will begin production in the fourth quarter of 2023 with a projected annual volume of more than 250,000 vehicles. The electric vehicle will carry the Fisker brand.
Foxconn Technology Group Chairman Young-way Liu touted the company’s vertically integrated global supply chain and accumulated engineering capabilities, noting that it gives the company two major advantages in the development and manufacturing of the key elements of an EV, which includes the electric motor, electric control module and battery.
That supply chain and ability to scale engineering quickly will be critical for Foxconn if it hopes to meet its production target.
“The collaboration between our firms means that it will only take 24 months to produce the next Fisker vehicle — from research and development to production, reducing half of the traditional time required to bring a new vehicle to market,” Young-way Liu said in a statement.
Fisker said production of the Ocean SUV — its first EV and one that is supposed to be built by contract manufacturer Magna — will begin in the fourth quarter of 2022. The company said it plans to unveil a production-intent prototype of the Ocean later this year.
This is not Foxconn’s first foray into electric vehicle manufacturing.
Foxconn announced in January 2020 that it had formed a joint venture with Fiat Chrysler Automobiles to build electric vehicles in China. Under that agreement, each party will own 50% of the venture to develop and manufacture electric vehicles and engage in an IOV, what Foxconn parent company Hon Hai calls the “internet of vehicles” business.
Last month, Foxconn and Chinese automaker Zhejiang Geely Holding Group agreed to form a joint venture focused on contract manufacturing for automakers, with a specific focus on electrification, connectivity and autonomous driving technology as well as vehicles designed for sharing.
The joint venture between Foxconn and Geely will provide consulting services on whole vehicles, parts, intelligent drive systems and other automotive ecosystem platforms to automakers as well as ridesharing companies. Geely said it will bring its experience in the automotive fields of design, engineering, R&D, intelligent manufacturing, supply chain management and quality control while Foxconn will bring its manufacturing and information and communication technology (ICT) know-how.