As a leading contender for Apple Inc.’s hidden automotive project, Foxconn launched its first electric vehicles, an important milestone for the Taiwanese electronics manufacturer.
Foxconn, the maker of contract products such as the iPhone, announced plans to sell electric vehicles on a live stream on Monday, announcing the Model C SUV and Model E saloon, along with the Model T bus. These vehicles are built on Hon Hai’s new EV platform.
Foxconn EV Models:
A range of 595km might be possible for the Model E.
Yulon’s new Model C is scheduled to launch by 2023. It measures 4,640mm long with a wheelbase of 2,860mm and can accommodate seven passengers. With its large interior space, it would make urban travel easy.
According to the car manufacturer, the Model C comes with a 134hp electric motor coupled with a 58kWh battery pack that accelerates it from 0-100kph in just 3.8 sec and offers a driving range of 372 miles (around 595km).
The Pininfarina-designed Model E is aimed at the luxury car market, and it has a rear seat that can function as a mobile office, as well as advanced technology like face recognition and smart windows.
This electric vehicle has a range of around 713km (446 miles) and is powered by a 96kWh battery. Two electric motors power the vehicle; the front motor has 201 horsepower, and the rear motor has 536 horsepower. Its total power output is 750 horsepower, and its sprint time is just 2.8 seconds.
A Model T electric bus concept was also announced by Foxconn, which has a maximum speed of 120kph and a driving range of 248 miles (around 397km).
The Future Plan:
Over the next five years, the company expects its electric car business to be worth a trillion Taiwanese dollars (£25 billion). Taiwanese carmaker Yulon will debut its Model C under its brand in 2023, while the Model E may be sold under another, existing brand in the years to come.
Rather than sell by its own brand, the manufacturer plans to build the SUV and sedan models for automotive customers. The vehicles were unveiled by Foxconn’s Hon Hai Precision Industry Co. chairman Young Liu at the company’s Technology Day event in Taiwan.
Lilian Chen, chairwoman of Yulon Motor Co. in Taiwan, said Foxconn will be its first electric-car customer. The price of Yulon’s electric sedan, created by Foxconn, is likely to be in the region of NT$1 million ($35,700). The company also showed off an electric bus for a local transport provider that will be delivered next year.
Honor Hai shares dropped 1.8% and Yulon shares fell 4.8% in Taipei.
In addition to low-margin electronics assembly, Foxconn is targeting EVs as a source of growth. Citigroup analyst Carrie Liu recently wrote in a note that Foxconn benefits from the Ohio deal by gaining assembly capacity, equipment, and talent. In Europe, the company is about to decide the location of its auto plant, Liu said.
Apple and Foxconn:
Since Foxconn assembles the majority of iPhones, it has a competitive advantage as a carmaker partner for Apple, which is contemplating expanding into vehicles. In late September, Foxconn agreed to spend $280 million on the acquisition of an auto plant in Ohio from embattled startup Lordstown Motors Corporation as part of its aggressive push into cars.
Every aspiring electric vehicle manufacturer would want to own an Apple car. A strong relationship between Foxconn and the U.S. consumer electronics giant is to Foxconn’s benefit. Apple has added more product categories over the years, and Foxconn now accounts for about 50% of its annual sales.
While Apple has been working on its car project for years, the company has suffered setbacks, including the recent departure of the project’s head to Ford Motor Company. Apple cars have long been viewed by many as a paradox because the company hasn’t publicly confirmed its existence despite them being one of the company’s most hotly anticipated products.
Last Words:
In the year since Foxconn debuted its EV platform, it has yet to sell any vehicles. A person familiar with the company’s schedule said it will begin mass production of Lordstown’s Endurance electric pickup in Ohio in April.
The automotive industry is already churning out EVs, and car companies such as Tesla Inc., Volkswagen AG, and Hyundai Motor Co. are spending lots of bucks on product development.
Although Foxconn has made some progress, it is still a long way off from the goal. They have a partnership with Thailand’s state-owned conglomerate PTT PCL, and the company has an agreement with Fisker Inc, Stellantis NV, and Zhejiang Geely Holding.
