Fisker, Foxconn to collaborate on EV project

Fisker Inc – designer and manufacturer of the world’s most emotion-stirring, eco-friendly electric vehicles, and advanced mobility solutions announced it has entered into a MOU with Hon Hai Technology Group (TWSE:2317) (Foxconn) supporting a project to develop a breakthrough electric vehicle. Highlights of the proposed collaboration, codenamed ‘Project PEAR’ (Personal Electric Automotive Revolution):

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.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.

"We created our company to disrupt every convention in the auto industry," commented Fisker Chairman and Chief Executive Officer, Henrik Fisker. "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."

"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," said Foxconn Technology Group Chairman, Young-way Liu. "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."

The new collaboration between Foxconn and Fisker will revolutionize the automotive industry model by introducing ICT capabilities – which help automakers accelerate their transition to new, innovative, and efficient manufacturing processes and business models. "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," said Young-way Liu.

Fisker is projected to start production on its first vehicle, the Ocean electric SUV, in Q4 2022. Interest in the Ocean continues to build at an encouraging pace, with more than 12,000 global paid reservations as of today. Fisker plans to unveil a production-intent prototype of the Ocean later this year.

Following the signing of the MOU, 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.

"Not unlike when Isaac Newton realized the powers of gravity, the inspiration for this project has come from some unconventional sources," added Mr. Fisker. "The design sketch hints at the direction we are taking. However, with the level of innovation planned for this vehicle, I intend to keep the final design a surprise until the last possible moment!"