Daily Management Review

Negotiations For Building EV Plant In Wisconsin, US, Being Held By Taiwan's Foxconn


Negotiations For Building EV Plant In Wisconsin, US, Being Held By Taiwan's Foxconn
The largest of the suppliers of apple Inc - Taiwan's Foxconn, is known to be pushing to further diversify in income streams and is now planning to build an electric vehicle making unit in eth United States. The Taiwanese company said on Friday that it was currently in negotiations with the US state of Wisconsin over setting up an electric vehicle factory there.
Finalization of a deal for assembling of vehicles between Foxconn and electric car manufacturer Fisker Inc had been announced by the companies in May this year. at that time the companies had not identified any location for the factories but the fact that Foxconn's Wisconsin site was a possibility was indicated by Fisker's CEO.
It had begun discussions with authorities in Wisconsin, Foxconn said in a statement.
"Foxconn has engaged the Wisconsin Economic Development Corporation to discuss the company's plans for electric vehicle manufacturing. Foxconn is optimistic about our partnership with WEDC and looks forward to ongoing discussions," the Taiwanese company’s statement added.
No further details were however provided by the Taiwanese company which was formally called Hon Hai Precision Industry.
A spokesman for the Wisconsin Economic Development Corp said that the body does not comment on any potential talks until a decision for a deal is arrived at.
The decision of Foxconn to not go ahead with its planned and announced $10 billion factory in Wisconsin was made public by the company in April this year. This project was once described by the former United States president Donald trump as "the eighth wonder of the world" and the company was slated to making cutting edge flat panel display screens.
Foxconn could make electric vehicles (EVs) at the Wisconsin site even though the company was not ruling out setting up the factory in Mexico, Foxconn's chairman had said a month earlier.
A number of deals that it had made related to the making of EVs with auto makers including Fisker, China's Byton and Zhejiang Geely Holding Group, and Stellantis NV's Fiat Chrysler unit have been announced by Foxconn over the past year or so.
Negotiations with officials from the Wisconsin economic development agency about the process of evaluating potential plant sites was a very normal course of action, Fisker said about the talks on Friday. In May this year, the US car maker had said that plans for Foxconn to build vehicles for the electric car startup at a factory in the US had been finalised and production could start by 2023. The company had then said that Wisconsin was one of the four options where the manufacturing would be done.
Foxconn has set a target to being able to supply components or services to about 10 per cent of the EV makers of the world between 2025 and 2027. That is a direct threat for established auto makers as this move by the Taiwanese company would allow tech companies to get into the EV making industry through a shortcut as such companies would not have to develop EV technologies themselves.