Electric vehicle startup Fisker seeks U.S. production to build subsidized cars

October 19, 2022 by Ram Sahoo

Fisker Inc. is accelerating its search of US production sites for Ocean SUVs.

Fisker Inc. is spurring a US production site search for Ocean SUVs after the White House announced plans to focus on subsidizing electric vehicles produced in North America.

CEO Henrik Fisker said at the Paris Motor Show on Monday that “the company is considering a number of options, including purchasing a plant or extending its partnership with Magna International Inc.” He said the electric vehicle startup will start Ocean production next month at its Magna plant in Austria.

“I’m considering bringing Ocean production to the US and looking for opportunities as early as 2024,” Fisker said in an interview. The policy change in the United States “made me think we should accelerate because we think this could give us an advantage.”

The United States recently passed new laws limiting eligibility for a tax credit of up to $7,500 per vehicle for cars assembled in North America as part of sweeping reforms to strengthen regional supply chains. The measure will start next year at the 50% threshold and expand to critical battery components and locally sourced minerals. Made in Austria, Fisker’s Oceans is powered by batteries supplied in China.

In the US, Fisker could work with Magna, who in September outlined plans for an electric vehicle plant in the US. The EV manufacturer has already signed a contract with Foxconn, also known as Hon Hai Precision Industry Co., to make the upcoming Pear model at its factory in Lordstown, Ohio. Foxconn was formerly a struggling startup Lordstown Motors Corp. formerly General Motors Co. I bought the site.

In Austria, Fisker expects Magna to produce up to 50,000 Oceans next year with around 7,000 SUVs per week. Negotiations are underway with Magna to increase the plant’s capacity to 150,000 units. Fisker said it will depend in part on how demand is shaped, especially in Europe’s darkening economic environment.

More than 61,000 vehicles are currently reserved, he said.

Foxconn Tesla? Taiwan tech giant to target 5% of EV manufacturing by 2025

October 19, 2022 by Ram Sahoo

Taiwanese tech giant Foxconn, best known for assembling Apple’s iPhones, said Tuesday it hopes to build a car for Tesla.

Taiwanese tech giant Foxconn, best known for assembling Apple’s iPhones, said Tuesday it hopes to one day build cars for Tesla as it ramps up electric vehicle (EV) manufacturing as a strategy to diversify its business.

At the company’s annual Tech Day, Chairman Liu Young-way said he wants to replicate the level of success in consumer device assembly as Foxconn, the world’s largest contract electronics manufacturer, expands into building EVs for car brands.

“According to historical records for the PC and mobile phone markets … we have around 40-45% of the total market share. So from an ambitious perspective, hopefully we are the Information and Communication Technology (ICT) industry, but by 2025 it will be around 5%. We’ll start small,” he said.

“I hope one day we can build a Tesla car for Tesla.”

Tesla, which did not immediately respond to requests for comment, is producing all electric vehicles in-house and is rapidly expanding its production capacity.

Tesla CEO Elon Musk upset many in Taiwan this month by suggesting that tensions between China and Taiwan could be resolved by transferring some control over Taiwan to Beijing this month.

Liu said Foxconn isn’t in the business of selling its own EV brand, but rather that customers want to sell “many” EVs that will be manufactured in Taiwan, Thailand and the United States. Foxconn is negotiating with partners in Indonesia and India, Liu added.

The company has expanded into electric vehicles and semiconductors in recent years, announcing deals with US startup Fisker Inc and Indian conglomerate Vedanta Ltd.

Foxconn is leveraging its “48-year roots in ICT manufacturing” to cut EV design time in half and cut development costs by a third, Liu said.

The Luxgen n7, an EV built by Foxtron, a joint venture between Foxconn and Taiwanese automaker Yulon Motor Co Ltd, took 15,000 pre-orders in just two days, Liu added.

“Despite the European conflict and the global coronavirus problem, Foxconn has maintained our EV strategy,” said Liu.

“Supply chain resilience has always been Foxconn’s DNA. Our global presence in 24 countries gives us a huge advantage in meeting the needs of the EV industry.”

The annual tech showcase takes place on the birthday of the company’s billionaire founder, Terry Gou. Introduced as a special guest, Gou drove on stage in a Model B sporty crossover hatchback, one of two prototypes unveiled this year.

Another prototype revealed was the Model V, an all-terrain pickup. Three prototypes of SUVs, sedans and buses were unveiled last year, and Foxtron’s electric buses are already in service in select cities in Taiwan.

“Our sincere hope is for Taiwan to seize this once-in-a-century EV business opportunity,” said Liu.

Foxconn shares fell 1.4% on Tuesday, beating the benchmark, which rose 1.2%. The stock has fallen 0.5% this year to a market cap of $45.5 billion.

Renault and Nissan hold daily debate as EVs reshape alliance

October 19, 2022 by Ram Sahoo

The chairman of Renault SA said he was optimistic about the Japanese automaker’s partnership with Nissan Motor.

Renault SA’s chairman said he is optimistic about the alliance with Japan’s Nissan Motor Co. as negotiations to reshape the 20-year partnership strained by the disproportionate ownership structure intensify.

“We talk every day,” Jean-Dominique Senard said at the Paris Auto Show on Monday, adding that representatives of Nissan and smaller partner Mitsubishi Motors Corp. are now in France. “We have an incredibly close relationship.”

Renault’s drive to split its electric vehicle and internal combustion engine businesses (a plan that requires Nissan’s consent) has prompted negotiations on a joint project. The bid also provided an opportunity to update the alliance’s cross-stakes structure, a measure that could alleviate the imbalance that has been a source of friction for years.

Nissan is willing to invest $750 million in Renault’s electric vehicle business, Bloomberg reported last week. In return, the French manufacturer could reduce Nissan’s ownership to 15% over time. Renault currently owns a 43% stake in its larger voting partner, while Nissan owns a 15% stake in Renault with no voting rights.

Renault was up 3.4% in Paris as of 1:34pm.

The discussion has intensified in recent weeks as Renault draws closer to November 8th Capital Markets Day. On this day, CEO Luca de Meo will briefly explain the strategy to investors. Management discussed Renault’s carveout plans and the future of the alliance at meetings in France and Japan starting in February. Senard said representatives from Renault will return to Japan soon.

Renault, Nissan and Mitsubishi announced their €23 billion ($22.4 billion) electrification plan in January, suggesting that the partnership could be sustainable in the face of a costly and complex transition in internal combustion engines.

All decisions Renault makes must also be approved by the French government, which owns about 15% of the car company.

“We are very close and transparent with the French government,” Senard told reporters about the alliance talks.

Foxconn unveils pickup and crossover models to expand EV lineup

October 19, 2022 by Ram Sahoo

Foxconn has unveiled two new electric vehicles, prototypes that embody the iPhone maker’s ambitions.

Foxconn Technology Group on Tuesday unveiled two new electric vehicles, prototypes that embody the iPhone maker’s ambitions to carve out part of the market led by Tesla Inc.

Hon Hai Precision Industry Co., a major publicly traded company, unveiled its Model B crossover SUV and Model V pickup truck at an event in Taipei. Foxconn founder Terry Gou, 72, drove the Model B to the stage. Hon Hai Chairman Young Liu said the pickups will be produced in Taiwan, Thailand and the United States.

Foxconn is an Apple Inc. and other global brands hope to replicate the way they assemble electronic components to become the largest manufacturing partners. With no plans to sell the vehicle under its own brand, we aim to build our customers’ electric vehicles from the chassis.

“After announcing plans to produce EVs in 2020, many people have questioned whether Foxconn can make cars,” Liu said. Could we have developed three models in a matter of minutes?’ That’s the speed at which we operate.”

None of the cars Foxconn has unveiled so far are meant to be sold to consumers, but rather a reference design to show off the company’s capabilities to potential big-brand customers. The previously introduced Model C prototype is now a production vehicle branded Luxgen n7 by Taiwanese automaker Yulon Group.

Liu said Foxconn’s expertise in supply chain management has the advantage of developing new models faster than its competitors. When asked when Foxconn’s output will surpass Tesla’s, Liu said he hopes Foxconn will one day produce cars for the American giant.

Using the same platform as Model C, Model B was designed with Italian house Pininfarina SpA. The crossover SUV has a full-length glass roof and can travel 450 km (280 miles) on a single charge.

Foxconn also said it is developing its own solid-state battery.

The Taiwanese company established Foxtron Vehicle Technologies in 2020 as a venture with Yulon. It then took over Lordstown Motors Corp.’s Ohio plant to build a U.S. base, launch an open EV platform, and enter into manufacturing deals with startup Fisker Inc.

Demand for electric vehicles is surging as consumers and governments embrace the technology, triggering a global shift in technology and the automotive industry. But Foxconn is looking to break into an already crowded sector with aggressive rivals from Tesla to China’s Nio Inc., BYD Co., and Xpeng Inc. It is also attracting new entrants, including Xiaomi Corp.

One major point of uncertainty is how the Biden administration’s recently unveiled restrictions on chip exports to China will shake up the global EV industry. Xpeng warned that regulations on chips could potentially hurt Chinese EV manufacturers.

Electric vehicle startup Fisker seeks U.S. production to build subsidized cars

Foxconn Tesla? Taiwan tech giant to target 5% of EV manufacturing by 2025

Renault and Nissan hold daily debate as EVs reshape alliance

Foxconn unveils pickup and crossover models to expand EV lineup

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