Fisker to Collaborate with Foxconn on Electric Vehicle Project – Globally Aiming High
Fisker (NYSE:FSR) is a company that seems to be constantly on the move. From the merger with Spartan to their first major order, then revealing that they're working on an electric truck, the company constantly appears in the news. Today marks another day, with the announcement that Fisker and Hon Hai Technology Group (Foxconn) (TWSE:2317) have signed a Memorandum of Understanding (MOU) in support of a new electric vehicle project.
The highlights of this proposed collaboration, codenamed 'Project PEAR' (Personal Electronic Automotive Revolution), are as follows:
- Fisker and Foxconn to jointly develop a breakthrough new segment vehicle.
- Foxconn to manufacture the vehicle at projected annual volumes of more than 250,000.
- Global market scope – including North America, Europe, China, and India.
- The projected start of production is Q4 2023; this will be the second vehicle introduced by the Fisker brand, following the launch of the Ocean SUV in Q4 2022.
This collaboration between Fisker and Foxconn aims to "revolutionise the automotive industry model" by introducing further ICT capabilities, helping manufacturers accelerate the transition to new manufacturing processes and business models. Fisker Chairman and CEO, Henrik Fisker, had this to say:
We created our company to disrupt every convention in the auto industry. The creation of Project PEAR with Foxconn brings together two likeminded and complementary companies, each focused on creating new value in a traditional industry. We will create a vehicle that crosses social borders, while offering a combination of advanced technology, desirable design, innovation and value for money, whilst delivering on our commitment to create the world’s most sustainable vehicles.
He also stated that the vehicle's final design will be held as a surprise until the last possible moment due to "the level of innovation planned for this vehicle". However, the design sketch is said to hint at the direction the company is taking.
Foxconn Technology Group Chairman, Young-way Liu had this to say:
The Fisker and Foxconn partnership brings together two global leaders in innovation that will join forces to unlock the potential of the electric vehicle industry. Foxconn's participation in the electric vehicle industry delivers a refreshing thrust into the Information and Communication Technology (ICT) industry that is already focused on this exciting sector. The key success elements of electric vehicle development include the electric motor, electric control module and battery. We have two major advantages in this regard, with an exceptional vertically integrated global supply chain and the best supply chain management team in our industry. Coupled with our accumulated engineering capabilities, Foxconn has been critical to the success of many ICT companies over the past 40 years and we look forward to extending this success with Fisker.
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The collaboration between our firms means that it will only take 24 months to produce the next Fisker vehicle – from research and development to production, reducing half of the traditional time required to bring a new vehicle to market.
Following the MOU signing, teams from Fisker and Foxconn will establish several workstreams focused on design, technology, engineering, and manufacturing. Due to the rapid development schedule, both companies expect to conclude discussions and enter into a formal partnership agreement during Q2 2021.
Fisker is projected to start production on its first vehicle, the Ocean, in Q4 2022 and has over 12,000 global paid reservations as of today. Fisker plans to unveil a production-intent prototype of the Ocean later this year.
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