Vingroup, the largest corporation in Vietnam, stated that it has held discussions with Foxconn concerning creating partnerships and focusing on manufacturing batteries and parts of electric vehicles. Foxconn proposed to get production lines of electric vehicles owned by VinFast. However, sources with similar information spoke to Reuters but under anonymity because they could not talk to media heads.
However, VinFast said that it desires to have a deal because it is branding its name as an eco-friendly vehicle manufacturer and wants to maintain its venture in the sector of electric vehicles. Vingroup has received proposals from Foxconn, but there is nothing cooking yet in the kitchen. If the two arrived at a successful agreement, it would major in manufacturing batteries and parts of electric vehicles. There is no final decision made concerning the partnership of manufacturing the electric cars.
The largest contract producer and Apple Inc. provider drew its strategies of becoming the leading supplier of parts and other EV products in the automotive industry. Any successful deal with VinFast would open another door of partnerships with Fiat Chrysler and other EV Startups. The outlined strategies appear to threaten and shake up the industry, and this would be the point Apple and other current players would get the shortest route to be able to compete in the vehicle market.
VinFast became the first fully-fledged vehicle manufacturer of Vietnam. VinFast manufactured gasoline-powered vehicle models under its badge and later gained success in 2019. The firm sold over 30,000 vehicles in 2020 and anticipated selling more than 45,000 electric vehicles before this year ends. The company would start to supply electric cars manufactured at its plant in the northern port city of Hai Phong by December.
Additionally, VinFast manufactures electric motorbikes and buses. It announced this month that it has launched an electric vehicle battery business with ProLogium, a Taiwan-based company. Providing parts or other EV services up to 10 percent before we hit 2025 has exposed Foxconn to great deals.
Its most considerable value is with Zhejiang Geely Holding Group, where it would offer a manufacturing contract to other vehicle makers. Additionally, the firm stated that it would partner with Fisker, a US startup, to manufacture over 250,000 vehicles annually in late 2023. It plans to commence making SUVs for China-based firm Byton in 2022. Fiat Chrysler sets up a business where it would start manufacturing electric vehicles and cars connected to the internet. Foxconn might begin manufacturing electric cars under its high profile.