Foxconn in talks with Vietnam’s VinFast on EV partnership: Sources

By Amirtha P S, Desk Reporter
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Vietnam’s largest conglomerate Vingroup’s car unit is in early-stage talks with the key iPhone assembler Foxconn to jointly work and form partnerships focusing on developing batteries and electric car parts.

According to the sources, Taiwan-based Foxconn has put forward a proposal for acquiring EV production lines owned by the unit VinFast, but the Vietnamese company prefers a partnership as it is aiming to brand itself as an eco-friendly automaker and wants to maintain its EV business.

“Vingroup has received proposals from Foxconn but nothing is concrete yet. The partnership, if any, will focus on developing the batteries and electric car parts,” a spokesman for Vingroup said. Foxconn declined to comment.

The Apple supplier has earlier mapped out plans to become a major provider of parts and services in the global EV market and any agreement with VinFast would follow deals with Fiat Chrysler and EV startups.

VinFast became Vietnam’s first fully-fledged domestic car manufacturer in 2019 when its first gasoline-powered models built under its own name hit the streets. Last year the company had sold about 30,000 vehicles and has predicted sales of more than 45,000 for 2021. It will begin delivery of EVs produced at its factory to domestic customers by the end of this year.

Foxconn following its aim to provide components or services to 10 percent of the world’s EVs as early as 2025, has moved quickly to secure several deals and one of the notable in it is the agreement with Zhejiang Geely Holding Group to provide contract manufacturing for other automakers.

The Taiwanese company had earlier said that it will work with US startup Fisker to produce more than 250,000 vehicles a year commencing in late 2023 and will start building SUVs for China’s Byton next year. With Fiat Chrysler, the company is setting up a venture to develop EVs and internet-connected cars.

Earlier this week, the Foxconn chairman Liu Young-way stated that the company may manufacture electric vehicles at its high-profile but troubled plant in the US state of Wisconsin, though it could decide on Mexico.

Related: Top iPhone assembler Foxconn’s 1st EV set to hit the road later this year