Foxconn opens new perspective for stumbling e-car start-up Byton
There are increasing signs that Foxconn, the contract manufacturer best known for manufacturing various Apple devices, steers towards the promising e-car business. Recently, the company had unveiled a platform for software-defined vehicles. Now the electronics specialist from Taiwan announced that it intends to support Byton in setting up the production of its first series vehicle.
Byton had already planned to start production in China last year. So far, however, these plans had not materialised. Now, production is targeted to start by the first quarter of 2022, it said. To this end, Byton and Foxconn have concluded a strategic framework agreement, as Foxconn parent company Hon Hai announced.
Byton had been founded by former BMW managers and cooperates with the Chinese car company FAW, among others. The company’s first model, the SUV M-Byte, caused a sensation with, among other things, a huge display in the cockpit that practically reaches from door to door. A production-ready model was presented at the IAA trade show motor show in Frankfurt am Main in 2019 and, according to announcements at the time, was also to be launched in Europe in 2021.
But according to press reports, things have not been going well at Byton lately. Several top managers left and the company was sitting on a pile of debts. The cooperation partner FAW seems to be playing an unfavourable role, as the German Manager Magazin reported recently.
For a long time it looked as if Byton would be demoted to a mere technology supplier for an electric model of FAW’s premium brand Hongqi. The Foxconn cooperation, however, now seems to open up a new path for Byton towards becoming an independent brand.
Foxconn had already announced a cooperation with car company Fiat Chrysler for the Chinese market a year ago. But the status of this project is unclear. Foxconn also presented an open platform for electric cars some time ago, which includes both software and hardware components. Foxconn has already attracted 200 suppliers for the platform, it says.
In the medium term, Foxconn wants to establish itself as an electric car manufacturer for Apple and Amazon, according to media reports. Foxconn already manufactures conventional IT products for both tech companies. But insiders say the electric car manufacturing business offers higher gross margins of 10% compared to 6% for smartphone contract manufacturing. The latter currently accounts for about half of Foxconn’s revenue. The electric car segment is expected to contribute significantly to Foxconn’s revenue as early as next year. By 2025, Foxconn hopes to generate one-fifth of its total revenue from the electric car segment, according to media reports.
More information: https://www.foxconn.com/en-us/
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