Foxconn races to become EV player and the clock is ticking | – #Foxconn #races #player #clock #ticking
TAIPEI/DETROIT, March 6 (Reuters) – Foxconn wants to do for electric vehicles (EVs) what it did with the iPhone, but first the next Applemust find – and fast.
Taiwanese contract manufacturer, large car whether it is a manufacturer or a delivery provider or any other company faces competition in the market to create white-label EVs that can be customized for customers.
While the electronics giant brings strengths to the largely hurting EV industry, Foxconn needs to win a major contract to prove it can withstand the wave of disruption, analysts said.
Foxconn, formally Hon Hai Precision Industry Co Ltd ( 2317.TW ), will provide an update on its EV manufacturing business when it reports results on March 15.
“The results of our many collaborations will be realized one after the other in 2023,” the company said in a statement to Reuters. “Demand for electric cars, outstanding traditional car is disrupting an industry where its manufacturers are finding and driving solutions for cleaner and smarter mobility.”
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The company’s proposition is simple: let’s build your next EV. It develops a specialized supply chain, including chips and batteries, and is headquartered in Lordstown, Ohio General Motor Co (GM.N) acquired the plant. It has also hired former Nissan ( 7201.T ) chief Jun Seki to lead its efforts.
Daiwa Capital Markets analyst Kylie Huang said that with construction in Ohio now, Foxconn is giving customers under the Inflation Reduction Act USA access to federal incentives offer can do. This is traditional car is a selling point as it juggles building gasoline-powered vehicles with its manufacturers’ plans to build their own EV capacity.
“If they don’t get it this year, it will be more difficult next year,” Huang said of Foxconn’s pursuit of an EV contract with a traditional automaker.
Huang said that “failing to catch this wave” could force Foxconn to compete with lower-end Chinese automakers, which could shift to EV contract manufacturing and compete on cost.
Canada’s Magna International ( MG.TO ), a top auto supplier, already builds cars for others, and China’s Geely ( 0175.HK ) has expressed interest. China’s Guangxi Automobile Group has begun manufacturing electric vehicles under a contract with Japanese delivery company Sagawa Express Co.
Foxconn is counting on its Mobility in Harmony EV platform, or MIH, to win over customers. He calls MIH the “Android system” for electric vehicles and looks to partners to standardize technologies to develop model variants quickly and cheaply.
“We want to create an ecosystem where anyone — like United Airlines — can say, ‘I want to make a car,'” Foxconn Chief Product Officer Jerry Hsiao told Reuters on a tour of the company’s sprawling Ohio factory.
“Sooner or later, maybe the top, traditional (automakers) will say, ‘Hey, I want to be a product marketing company.’ “Why should I carry so many workers?” he said.
Hsiao also Google worked on the first Android phone for and now sees EVs in a similar trade-off.
Foxconn’s ambitions are aggressive. Primary 5% of the global EV market and 33% of EV and component manufacturing by 2025. billion dollars Foxconn’s long-term goal is to produce about half of the world’s electric cars.
EV sales are on the rise, led by China. Five percent of the market, the adoption rate of electric vehicles by 2025 approx 20Assuming that %, market leader Tesla ( TSLA.O ) will sell about 900,000 vehicles in 2021.
‘NOT DOING IPHONES’
“Everyone’s eyes are bigger than their stomachs in the EV market,” said Sam Fiorani, vice president of AutoForecast Solutions.
His firm estimates Foxconn will produce about 65,000 vehicles in 2025 and 157,000 in 2026. “They don’t make iPhones here,” he said.
Goldman Sachs estimates that EV outsourcing will reach 36 in 2025 billion to the dollar and 144 in 2030 billion will reach $ 800,000 and 3.2 million EVs, respectively.
Key for Foxconn will be its first major customer, closing an Ohio plant that builds a small number of electric Endurance pickups for Lordstown Motors, which it currently owns. It has announced plans to build a car for EV startup Fisker ( FSR.N ).
Foxconn Chairman Liu Young-way told reporters last month that March or April in months USA told customers he plans to visit Foxconn’s Ohio plant and Mexico, where Foxconn has made significant investments in auto parts.
“There should be some related signing activities,” Liu said.
Foxconn already supplies Tesla with parts and makes camera modules for automakers and suppliers.
“They can probably buy things cheaper than anybody on earth,” Raymond Tsang, a Shanghai-based partner at consulting firm Bain & Company, said of Foxconn.
Tesla and other EV manufacturers prices The race for volume in the industry it has brought down increases the risks.
The former GM plant in Ohio, which Foxconn bought from Lordstown Motors, is one of the highest-volume single-line auto assembly plants in the world. It can produce about 320,000 cars a year, excluding overtime.
Ian Upton, director of production control at Foxconn Ohio, told Reuters that Foxconn wants to produce about 300,000 EVs at the plant.
“We’d love to find a customer base of 250,000 and then fill in some of the other products with niche items,” he said.
Reporting by Sarah Wu in Taipei and Ben Klayman in Detroit, additions by Kevin Krolicki in Singapore report; Edited by Sam Holmes
Our standards: Thomson Reuters Trust Principles.
2023-03-06 07:39:42
Source – reuters
Translation“24 HOURS”