Japan’s Mitsubishi Motors is planning to outsource production of electric vehicles (EVs) to Taiwan’s Foxconn, in a move aimed at reducing costs and accelerating product development, Kyodo News reported on Thursday.
Foxconn, formally known as Hon Hai Precision Industry, is seeking to strengthen its presence in the EV sector and establish ties with Mitsubishi Motors’ key partners, Nissan Motor and Honda, according to the report.
See also: Foxconn Proposes Partnership with Honda Following Nissan-Honda Merger Collapse
Mitsubishi Motors said it had not provided the information and stated that it continues to “explore collaboration opportunities with various partners to achieve sustainable growth.”
Foxconn has been expanding its automotive ambitions, leveraging its expertise as the world’s largest contract electronics manufacturer, best known for assembling Apple products. Last week, the company told investors during its quarterly earnings conference that it expects to finalize an EV deal with an undisclosed Japanese automaker within two months.
See also: Foxconn Proposes Partnership with Honda Following Nissan-Honda Merger Collapse
The company has also previously indicated interest in acquiring a stake in Nissan as part of its broader EV strategy. Nissan, which is Mitsubishi Motors’ largest shareholder, has been open to partnerships following the collapse of a proposed merger with Honda last month.
Kyodo also reported that Mitsubishi Motors is in discussions with Nissan and Honda regarding EV software development, with an official announcement expected before the end of March.