Foxconn plans to enter the electric vehicle manufacturing biz by 2023

TAIPEI: The Taiwanese company that manufactures smartphones for Apple Inc. and other global brands announced plans Monday to produce electric cars for auto brands under a similar contract model.

As part of its own 30 billion euro ($34.7 billion) electrification plan Stellantis—born out of a merger of PSA and Fiat Chrysler earlier this year—said it had entered a preliminary agreement with battery maker LG Energy Solution to produce battery cells and modules for North America, where the world’s No. 4 automaker expects more than 40% of its US sales will be electric vehicles (EVs) by 2030.

Foxconn Technology Group will produce cars and buses for brands in China, North America, Europe and other markets, said its chairman, Young Liu. He said the clients can modify their appearance and features for their markets.

Foxconn, also known as Hon Hai Precision Industry Co., enters a crowded global market with electrics being offered by almost every established automaker and dozens of ambitious startups.

The flagship Model E sedan, developed with Italian design house Pininfarina, is due to be launched in 2023, the company said. It said the Model E will seat five and have a range of 750 kilometres on one charge.

Liu mentioned automakers Fisker Inc. and Taiwan’s Yulong Group as clients.

The newspaper Taiwan News said last week other potential customers include Stellantis, the automaker formed by the merger of FIAT Chrysler and Peugeot, but Liu did not confirm that.

Foxconn said its first electric bus, the Model T, will have a range of less than 400 kilometres on one charge.