Consolidating Expertise
With the automotive industry at its most competitive, we’re seeing major manufacturers partner with other big suppliers to stay profitable. Some partnerships are made to stay alive, and others to capitalize on emerging market trends.
Two major manufacturers are banding together to combine each other’s expertise and take part in what they see as a global EV boom.
Foxconn and Mitsubishi
Foxconn is one of the biggest manufacturers in the Technology sector; they’re actually responsible for building the world’s favorite phone, the iPhone. The company itself is based in Taiwan and also does other tech-related manufacturing, and it’s now turning its sights to the automotive side. Announced by Nikkei Asia, Foxconn is getting into business with Mitsubishi Electric to become a builder and supplier of electric vehicles. Specifically, the 50-50 joint venture plans to create the base platform for EVs, which it will then supply to manufacturers to build new EV models on.
The joint venture will be called Mitsubishi Electric Mobility, currently wholly owned by Mitsubishi Electric, but Foxconn’s entry will add its scale and speed to Mitsubishi’s in-house technology and manufacturing skills. To get the ball rolling, Mitsubishi will sell Foxconn a 50% stake in the company. Mitsubishi and Foxconn’s partnership comes at a time when Chinese competitors like BYD are making massive strides in an industry once dominated by German and Japanese manufacturers.
Foxconn
Indispensable EV Future
Kazunori Tanaka, President of Mitsubishi Electric, said that the new partnership reflects both companies’ convictions that electric vehicles represent the future of the automotive industry. Tanaka also believes another emerging, soon-to-be indispensable EV feature is autonomous driving technology. Meanwhile, Jun Seki, Foxconn’s Chief Strategy Officer for EVs, believes that electric cars will likely account for 80% of the future market. Both he and Tanaka agree that the spread of self-driving technologies will accelerate EV adoption globally.
Mitsubishi Electric Executive Vice President Kunihiko Kaga hopes the partnership can produce a global EV platform from Japan. He notes that Mitsubishi aligns with Foxconn’s vision of achieving quality and speed at the same time. Across the globe, EV adoption seems to be rising, but the story is different in the U.S., where EV sales are still stagnating. Time will tell whether this partnership’s optimism is grounded in solid principles or a risky gamble in a volatile market.
Foxconn
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