Foxconn & Yulon Motor Form Joint Venture on Developing EV

Foxconn Technology Group and Yulon Motor Co signed a cooperation agreement on February 7. In the future, a joint venture will be established with a total capital of NT$15.576 billion. Foxconn would invest NT$7.944 billion in cash, accounting for 51% of the ownership while Yulon would invest NT$7.632 billion in open platform assets, accounting for 49%. The new joint venture will combine the vehicle technology of Hua-Chuang Automobile Information Technical Center Co. (HAITEC), a subsidiary of Yulon, and Foxconn's manufacturing and design capabilities in electronic components, to leverage their complementary advantages in vehicle research and development and the telecommunications industrial resources, jointly developing new automotive businesses. 


Foxconn emphasized that Yulon is the second major manufacturer they team up with this year after cooperating with Fiat Chrysler Automobiles (FCA) in the field of EV. The two collaborations will create a crossover automotive alliance from brands to platforms. 


Young-Way Liu, Chairman of Foxconn, said that the automotive market and its industry have entered the fast-track of transformation. It is a trend to make vehicle designs through the platform models. Foxconn hopes to use its successful experience in the ICT industry to create a new IDM operation model for the automotive industry. It will also leverage on HAITEC's solid foundation in automotive research and development technology to help the Group accelerate its entry into the field of EV. 


Yulon said that it has years of experience and resources in automotive R&D design, production and manufacturing, and has invested in open platforms and future automotive industries such as new energy vehicles, Internet of Vehicle (IoV), and autonomous driving. Last year, it promoted the transformation of the value chain strategy. The automotive R&D platform adopted an open model. The past strategy of "single customer, heavy assets" has been transformed into "open and diversified customers", providing total solutions for customers. Since the open platform transformation strategy, it has continued the operation of Luxgen and attracted more diverse customers. 


Yulon emphasized that both sides will jointly form a managing team. Foxconn provides its advantageous ICT industry supply management and talents, while Yulon will mainly focus on the R&D engineering team from HAITEC. This cooperation also represents the official launch of the synergy from the two groups in transformation and upgrade.