On October 17, 2020, Foxconn introduced it had the intention to turn into an electrical automotive manufacturing provider with its MIH Open Platform. On December 12, Geely mentioned it had the identical intentions with its SEA (Sustainable Expertise Structure). You wouldn’t be unsuitable to call them as opponents to Magna Steyr till this January 13, when Foxconn and Geely introduced a three way partnership to produce electrical automotive manufacturing to 3rd events.
What occurred? We can’t reply however have our guesses. At first, the MIH Open Platform and its merchandise can be made with the assistance of Yulon, a Taiwanese automotive producer. For it to get began, maybe the idle capability of Yulon’s vegetation can be sufficient. However why spend money on new automotive vegetation when so many others might produce extra vehicles?
That is in all probability the place Geely suits. In keeping with Reuters, it might produce 2 million models per 12 months however offered only one.32 million vehicles in 2020. In different phrases, it might have produced and offered 680,000 autos extra. Tesla struggled to assemble 500,000 EVs in 2020.
In keeping with Hon Hai (Foxconn’s actual title) and Geely, they’ll produce complete vehicles and likewise supply “complete personalized consulting providers” to corporations that want to have the “Info and Communication Expertise (ICT) division of labor.”
The objective of ICT can be to assist legacy automakers to “transition to new modern and environment friendly manufacturing processes and enterprise fashions based mostly on CASE (Linked, Autonomous, Shared, and Electrified) applied sciences.” In different phrases, to guide these corporations into electrification.
Contemplating Foxconn already mentioned it could use mega castings in its MIH Open Platform, we don’t doubt one of many “environment friendly manufacturing processes” it’s going to recommend to those carmakers can be one thing Tesla already applies to the Mannequin Y.
Though Geely is the corporate with automotive manufacturing expertise and vegetation to hold on with manufacturing on this partnership, will probably be Foxconn that can have three of the 5 executives that can handle the still-unnamed three way partnership. Geely can have two executives on the board of administrators.
Does it imply that Foxconn is not going to work with the MIH anymore? Or that Geely is not going to supply the SEA to different carmakers? We’ll attempt to uncover extra about that with every of those corporations. In the event that they do, they are going to be opponents and companions concurrently to convey the automotive business to the subsequent stage: electrified mobility.
Sources: Foxconn, Geely, and Reuters