TAIPEI/HANOI (TAIWAN) – Reports suggest that Taiwan’s Foxconn has proposed acquiring Vietnamese carmaker VinFast’s EV production lines and both the companies are in early stage talks about the same.
But VinFast, a unit of Vietnam’s largest conglomerate Vingroup JSC, prefers a partnership as it is keen to brand itself as an eco-friendly automaker and wants to retain its EV business, one of the sources said.
The world’s largest contract manufacturer and Apple Inc supplier has outlined 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.
Seeking to provide components or services to 10% of the world’s electric vehicles as early as 2025, Foxconn has moved quickly to clinch a number of deals. One of its biggest is an agreement with Zhejiang Geely Holding Group to provide contract manufacturing for other automakers.
It has also said it will work with US startup Fisker to produce more than 250,000 vehicles a year beginning in late 2023 and will start building SUVs for China’s Byton next year.]
With Fiat Chrysler, it is setting up a venture to develop EVs and internet-connected cars.
Foxconn chairman Liu Young-way also said this week the company may make electric vehicles at its high-profile but troubled plant in the U.S. state of Wisconsin, though it could decide on Mexico.
He described Foxconn, formally called Hon Hai Precision Industry, as the “new kid in town” for carmaking and said it needs to quickly build up its capacity to earn trust from clients.