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Apple’s iPhone maker Foxconn says it wants to make cars for Tesla




Young Liu, chairman of Foxconn Technology Group, speaks in front of a Model C electric vehicle during an event in Taipei, Taiwan, Tuesday, Oct. 18, 2022. Liu said he hopes one day Foxconn can make cars for Tesla.

I-Hwa Cheng | Bloomberg | Getty Images

Foxconnthe greatest collector of Apple’s iPhones, want to one day build cars for Teslasaid the company’s CEO, as it pushes further into electric vehicle production.

Hon Hai Technology Group, Foxconn’s official name, launched two electric vehicle prototypes on Tuesday – the Model V pickup truck and the Model B sports crossover hatchback.

But Foxconn does not want to sell its own cars. Instead, it wants to design and manufacture vehicles for other car manufacturers. The company claims it can cut the design time of a car in half and cut development costs by a third for an automaker looking to use its services.

The Taiwanese company has big ambitions. Young Liu, CEO and chairman of Foxconn, said on Tuesday that the company is aiming for a 5% market share globally of electric vehicle production by 2025, adding that he hopes Tesla will be a customer.

“I hope one day we can make Tesla cars for Tesla,” Liu said.

Tesla currently manufactures its own cars at its factories around the world – at its US locations and in Berlin and Shanghai.

Elon Musk’s Tesla was not immediately available for comment when contacted by CNBC.

Over the past two years, Foxconn has increased its electric car business.

Last year, the company unveiled three prototype cars. Two of them are currently on the roads. The Model T electric bus is part of the public transportation system in Taiwan, and the Model C is a production vehicle branded as the Luxgen n7 by Taiwanese automaker Yulon Motor.

Liu said he wants Foxconn’s customers to sell “a lot of electric cars.”

Foxconn has built its business over the past few decades in the manufacturing and assembly of consumer electronics. But the company is now trying to diversify into new areas, with electric cars a central focus.

The five concept cars show that Foxconn “can design and build electric cars that are good-looking and can withstand safety,” Liu said.

Part of the current strategy is to showcase its capabilities in the electric vehicle space at a time when many companies, especially firms that have not traditionally been in the automotive industry, are jumping into the market.

In China, for example, a smartphone manufacturer Xiaomi and internet company Baiduhave launched electric car companies with a goal of mass producing vehicles.

Foxconn can be an alternative for companies that want to launch electric car ventures without having to sink large investments in their own design and production ventures.



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