Shulou(Shulou.com)11/24 Report--

CTOnews.com, October 19, according to a report in Taiwan's Economic Daily today, at the "Foxconn Day" held by Hon Hai Group yesterday, Chairman Liu Yangwei announced that he would launch a new round of mergers and acquisitions. It is said that this wave of mergers and acquisitions will "lock in the factories of traditional car companies", replicating the model that Hon Hai developed in the field of ICT-acquiring factories in exchange for orders.

Liu Yangwei believes that the current traditional car companies are "through-train" to build their own cars, similar to the situation at the beginning of the PC industry. He cites Compaq (Compaq) as an example. At the beginning, the company also made its own computers, but when it developed to a "certain extent", he found that it would be a lot less burden if it could be outsourced. Liu Yangwei revealed that it was against this background that Foxconn was the first to get the contract manufacturing order from Compaq.

It is reported that there are 14 potential customers in Hon Hai's electric car business and a total of 23 ongoing development projects. At the same time, the mass production version of Model B and the electric logistics vehicle Model N, which claims to be able to demonstrate Hon Hai's "omni-directional" vertical integration capability, also made their debut. Liu Yangwei also shouted to traditional car companies, "this is the advantage of Hon Hai that you can make full use of in the future."

Hon Hai has launched a number of mergers and acquisitions in electric vehicles, including the acquisition of the Ohio plant of Lordstown Motors, a US electric car start-up, and a 50 per cent stake in the business of Zaifu, a well-known German supplier of auto parts.

However, Lordstown declared bankruptcy protection in June and largely blamed Hon Hai's failure to abide by electric car production agreements and financial commitments, and then sued investor Hon Hai for "suspected fraud".

Bloomberg reported in July that Hon Hai had urged the US court to reject the bankruptcy application of electric carmaker Lordstown Motors, alleging that the former business partner filed for bankruptcy with "malice" but had no hope of success.

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