Foxconn Chairman Young Liu recently revealed in an earnings call that the company would soon announce a partnership with a Japanese automaker. Following this, rumors quickly emerged suggesting that the automaker in question was Mitsubishi Motors. Foxconn has since declined to comment on the rumors.
Industry insiders reveal that if Foxconn's collaboration with Mitsubishi Motors is true, it would benefit Foxconn's advanced manufacturing services in expanding into the ASEAN and Oceania markets.
Sources noted that, aside from being a critical hub for fuel vehicle supply chains and production, Mitsubishi Motors has long placed a strong emphasis on the Southeast Asian market. The company has established production lines in Indonesia and Thailand for electric vehicles (EVs) and hybrid vehicles.
Overall, the ASEAN region not only has strong appeal in terms of automotive components and production capacity but also offers Mitsubishi Motors a solid local presence that aligns with the growing demand for electric vehicles.
Industry professionals suggest that if Foxconn and Mitsubishi Motors do indeed form a partnership, their focus would likely be on expanding in overseas markets, with ASEAN, Australia, and New Zealand as potential target markets.
Mitsubishi Motors has faced criticism in recent years for a slower pace of new car designs and launches. Foxconn's CDMS (Complete Digital Manufacturing System) model, which significantly shortens development timelines, could provide Mitsubishi with an opportunity to catch up in the electric vehicle sector.
Furthermore, industry experts highlight that Foxconn's long-term business strategy includes the CDMS model, specifically tailored to meet the demands of the electric vehicle market. The company has previously mentioned its commitment to deepening its presence in Taiwan and Southeast Asia while expanding its operational model globally to increase market share and avoid the risks associated with relying on a few markets.
Since its inception, Foxconn has focused on developing patent technologies for three major platforms: hardware, EEA (Electric-Electronic Architecture), and software. This has enhanced their vehicle design capabilities and led to collaboration with suppliers to develop key components and modular solutions.
These strategic advantages and ambitions of Foxconn make it an attractive partner for international brands. Additionally, with successful cases like the Luxgen N7, even traditionally closed Japanese automakers are now exploring new opportunities.
Most industry insiders believe that as Foxconn aggressively expands, it coincides with Japanese automakers seeking transformation, and possibly a chance to distance themselves from the threat of Chinese manufacturers. This bodes well for the prospects of Foxconn partnering with more automotive brands.
As for whether a collaboration between Foxconn and Mitsubishi Motors will bring new opportunities for domestic vehicles, the industry remains cautious and will continue to observe the situation.
Ultimately, the outcome of any partnership or agreement will depend on the official announcements from Foxconn and the involved automotive brands.
Article edited by Jack Wu
