Hon Hai Group plans to launch a new round of mergers and acquisitions, locking in the factories of traditional car companies

According to news on October 19, Hon Hai Group announced yesterday at the "Hon Hai Technology Day" that Chairman Liu Yangwei plans to launch a new round of mergers and acquisitions, which will focus on acquiring factories of traditional automobile manufacturing companies and draw lessons from Its successful experience in the field of ICT serves as the basis for order exchange.

Liu Yangwei believes that the current independent manufacturing model of traditional automobile manufacturing companies is similar to the early personal computer industry. He cited Compaq as an example, pointing out that the company initially manufactured computers in-house, but as the business continued to grow, they found that outsourcing production to foundries could relieve a lot of the burden. Liu Yangwei revealed that under this background, Hon Hai’s Foxconn Company obtained Compaq’s first foundry order.

According to the editor’s understanding, Hon Hai’s electric vehicle business has currently contacted 14 potential customers and accumulated 23 ongoing research and development projects. At the same time, Hon Hai showed off the Model that represents its vertical integration capabilities. B mass production version and electric logistics vehicle Model N. Liu Yangwei also called on traditional automobile manufacturing companies, saying this is an advantage of Hon Hai that they can take advantage of in the future.

Hon Hai Group has made a number of acquisitions in the field of electric vehicles, including the acquisition of US electric vehicle startup Lordstown Motors has a factory in Ohio, USA, and has acquired a 50% stake in the business of ZF, a famous German auto parts supplier.

However, Lordstown Motors declared bankruptcy protection in June this year, blaming its difficulties mainly on Hon Hai's failure to fulfill its electric vehicle production agreements and financial commitments. Later, Lordstown Motors sues Hon Hai for alleged fraud.

According to a report by Bloomberg in July this year, Hon Hai Group urged the U.S. court to reject Lordstown Motors' bankruptcy filing accused its former business partners of filing a "bad faith" bankruptcy filing with no hope of successful restructuring.

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