Apple’s assembly partner Foxconn Technology Group is setting up a vehicle venture, strengthening its automotive manufacturing capabilities at a time when technology companies including Apple are looking to expand in vehicles.
Foxconn is joining forces with Chinese carmaker Zhejiang Geely Holding Group Co. to provide production and consulting services to global automotive enterprises, according to a statement from the companies Wednesday.
Amid reports of Apple considering making its own electric vehicles, Foxconn has been bulking up its automotive muscles swiftly. Such moves may help the company become a major contender to make cars for its largest customer.
With development work still at an early stage, Apple will take at least half a decade to launch an autonomous electric vehicle, people with knowledge of the efforts have told Bloomberg News. That suggests the company is in no hurry to decide on potential auto-industry partners.
An Apple car would rival electric vehicles from Tesla Inc. and offerings from companies such as upstart Lucid Motors and established manufacturers like Daimler AG and Volkswagen AG. Setting up a car plant can cost billions of dollars and take years, likely the reason why Apple is talking to potential manufacturing partners.
MacDailyNews Note: According to DigiTimes report last month, Apple will unveil an Apple Car in 2024 to 2025 and the company is currently working to establish a factory in the United States, and that there is a production plan in place with preliminary technology specifications.
In August 2018, Apple analyst Ming-Chi Kuo wrote in a note to clients, “We expect that Apple Car, which will likely be launched in 2023–2025, will be the next star product. The reasons for this are as follows: (1) Potentially huge replacement demands are emerging in the auto sector because it is being redefined by new technologies. The case is the same as the smartphone sector 10 years ago; (2) Apple’s leading technology advantages (e.g. AR) would redefine cars and differentiate Apple Car from peers’ products; (3) Apple’s service will grow significantly by entering the huge car finance market via Apple Car, and (4) Apple can do a better integration of hardware, software, and service than current competitors in the consumer electronics sector and potential competitors in the auto sector.”