Apple-supplier Foxconn plans to drive Byton electric car project with €164m 

The interior of Byton's M-Byte electric vehicle, featuring a massive screen, is shown after the vehicle's unveiling during the 2019 CES in Las Vegas in 2019. Photo: REUTERS/Alexandria Sage

Apple-supplier Foxconn signed a strategic cooperation deal with embattled Chinese electric-vehicle startup Byton in a transaction that could mark a large bet by the iPhone assembler on the car-making business.

The companies, aided by the Nanjing Economic and Technological Development Zone, aim to start mass production of the Byton M-Byte by the first quarter of 2022. Foxconn, whose main listed arm is Hon Hai Precision Industry Co., plans to invest around $200m (€164m) in the venture. 

The deal could represent a lifeline for Byton, which is struggling to produce its first vehicle having unveiled its M-Byte concept car several years ago. 

Under the arrangement, Foxconn will supply Byton with its advanced manufacturing technology, operation management expertise, and supply chain resources. The Taiwan-based company is however also talking to other Chinese electric-car makers on potential collaborations. 

Tech companies are increasingly pouring money into developing next-generation cars, including all-electric vehicles and the smart technologies that go with them like autonomous driving and car-to-car communication systems. 

Foxconn is the single most important production partner for Apple, which itself is reportedly considering developing a self-driving car. Foxconn is also seeking to diversify a business that depends on the US smartphone giant for half its revenue.

In early 2020, Hon Hai announced a plan to form a joint venture with Fiat Chrysler to develop and make electric vehicles in China, though it won’t be involved in any assembly itself. In October, the Taiwanese company unveiled its first electric-vehicle chassis as well as an open software platform that’s aimed at helping EV makers deliver models to the market faster. 

It will start shipping its first developer kit in April. The Foxconn group has been supplying parts to other major carmakers including Tesla. 

Bloomberg