Foxconn, the contract manufacturer of products including Apple’s iPhone, is determined to dominate the world’s automotive industry. Young Liu, the head of Foxconn, said that in 2015, the world’s electric vehicle (EV) production sector will design, Production and assembly of parts, production of equipment parts; He revealed that he is determined to achieve at least 5% of the market share by working on creating software for vehicles. Foxconn is the world’s largest contract manufacturer of home electronics.
It is also the largest contract business for Apple. Foxconn had the idea to produce cars, and it actually worked. Foxconn founder and former chairman Terry Gou used to exhort at company meetings, “We can make iPhones, so why can’t we make EVs [electric vehicles]?” In 2014, Gou backed an in-house project called the “A-Fu Initiative.” The project is to build a prototype of a pure electric car. The employees involved were promised that if the project was successful, they would be rewarded with shares in the company. The A-Fu initiative did not last long.
It turns out that making a car is a lot more complicated than you think. But I didn’t give up on the idea. Now, Foxconn says it’s about halfway there in reviving the car manufacturing idea. The automotive industry network is pyramid-shaped. In the lower part, there are businesses that produce vehicle parts and machine parts. There are layers and layers.
In the middle are the businesses that assemble the resulting parts and build them into a device. At the top end, there are businesses that are assembling a vehicle. A single car manufacturing industry does not produce and assemble everything a car needs. Obtained and installed from suppliers.
Foxconn will enter and work in places where the levels of the pyramid can be accessed. Beyond that, it’s true that Foxconn has bigger ambitions. Two years ago, Gou’s successor, Young Liu, took steps to expand into the EV industry. He announced plans to build factories in the United States and Thailand. He added that they are also looking for a location for a factory in Europe. Foxconn’s subsidiaries supply everything from dashboard displays to circuit boards to automakers from Tesla to BMW.
plastic Parts made of metal are also produced and supplied, so Foxconn is not just green for car production. It has also established joint ventures with some of the car manufacturing companies and has established a joint venture with Stellantis, the world’s fourth largest car company, which owns Fiat Chrysler. It has also established a joint venture with China’s leading car manufacturer, Geely.