[Source/Observation Network by Zhang Jiadong, edited by Gao Shen]
According to Bloomberg, the parent company of Foxconn, Hon Hai Precision Industry Co., Ltd., is still seeking to manufacture electric vehicles for Japanese automakers and is expected to officially announce its partners in the near future.
Jun Seki, Chief Strategy Officer of Foxconn's electric vehicle business, said that Foxconn still needs to do more work to enhance its image as a qualified automobile manufacturer. "Foxconn is known as a smartphone manufacturer and for acquiring Sharp, but besides that, there is nothing else. We want to increase our visibility in Japan," he said.
Jun Seki, who previously served as an executive at Nissan and Nidec Corporation, is also attempting to attract clients willing to outsource electric vehicle manufacturing through his own influence.
Foxconn believes that over the next few years, many clients will need to adopt contract manufacturing forms to cope with the huge costs and risks brought about by the electrification transformation.
Bloomberg stated that although most parts come from suppliers, car manufacturers mostly still use the traditional self-assembly production model, which has been regarded as a key lever to maintain profitability and competitive advantage. However, maintaining such advantages may become increasingly difficult as the transition is made to electric vehicles with fewer components and shorter development cycles.
Foxconn's press conference held in Tokyo on April 9, Bloomberg
On April 9, Foxconn detailed some of its R&D products and outlined its broader strategy during a press conference held in Tokyo.
The turnout of media and industry representatives exceeded expectations, reflecting the strong interest shown by Japan’s automotive industry in Foxconn amid its transformation towards electrification and automation.
Jun Seki stated that Foxconn’s electric passenger cars and buses will appear on roads in the United States, Japan, and other countries within the next few years. One crossover model equipped with a powerful electric motor and long wheelbase will debut in the Oceania market next year.
As reported earlier, Foxconn has reached an agreement with Mitsubishi Motors last month to help produce electric vehicles. Meanwhile, in February, Chairman Liu Yangwei of Foxconn also mentioned that they had contacted Nissan and Honda to discuss the possibility of cooperation.
Jun Seki, Chief Strategy Officer of Foxconn’s electric vehicle business, Bloomberg
Jun Seki also said that Foxconn intends to expand electric vehicle production by utilizing existing factories of Japanese automakers. In response to tariffs imposed by the Trump administration, more production may be transferred to the U.S. in the future, and some car manufacturers may face overcapacity. However, he did not rule out the possibility of building new factories in Japan.
Jun Seki also admitted that winning support from automakers who still consider manufacturing technology as the core of their business is no easy task. The top priority for Foxconn currently is to demonstrate its ability to efficiently produce cars for other companies at low cost.
He also emphasized one of Foxconn’s advantages: "We have obtained highly confidential information from our clients, yet no incidents have ever occurred. It is precisely because of this that companies like Apple and Sony trust us and entrust us to build factories for them."
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Original source: https://www.toutiao.com/article/7491501714063868450/
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