Apple iPhone Assembler Strikes Electric Car Deal With Internet Giant Tencent & Luxury Car Dealer

APR 14 2015 BY MIKE ANTHONY 13

Terry Gou founded Hon Hai Precision Industry Company Ltd, the anchor company of Hon Hai / Foxconn Technology Group in 1974 with US$7,500

Terry Gou founded Hon Hai Precision Industry Company Ltd, the anchor company of Hon Hai / Foxconn Technology Group in 1974 with US$7,500

The Tencent Penquin

The Tencent Penquin

You likely already know of the rumors that Apple wants to create its own EV. On a somewhat related note, the company that assembles the iPhone, Foxconn Technology Group, has recently partnered up with Tencent Holdings and a China auto dealership, China Harmony Auto to create “smart electric cars” for China.

No one is certain when these EVs will be available to the Chinese consumer market, but Foxconn wants them to cost ~ $15,000 or less.

Foxconn claims that it will invest over $800 million to produce these EVs, and that these partnerships will “pave the way for a new business model, and bring about more product innovation,” according to PC World.

We wait patiently for the arrival of these low-cost electric cars from Foxconn/Tencent.

Source: PC World. Forbes

Categories: Apple, General

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13 Comments on "Apple iPhone Assembler Strikes Electric Car Deal With Internet Giant Tencent & Luxury Car Dealer"

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Fabian

Sounds great. More EVs for all of us!

Assaf

Well, if this means that EV factory workers there will be housed in prison-like compounds, with metal nets outside of windows so that whoever jumps to their suicide doesn’t mess up the pavement – then maybe these are not so great news for EVs.

Our segment has enough hostile press without FoxConn on board.

http://national.deseretnews.com/article/3092/bbc-exposes-inhumane-working-conditions-in-apple-factories.html

John Hansen

Those stories are vastly sensationalized, and your histrionics about not messing up the pavement don’t help. The only reason it was a story in the first place was because people were trying to figure out an angle to attack the Apple juggernaut. Every other product that you buy from China is manufactured in similar or worse conditions.

Assaf

Do you have stock in Apply and/or FoxConn?

If not, then why the vile personal hostility? No one here was attacking you.

Apple has branded itself as the definition of Cool in the 21st Century. This type of image comes with increased scrutiny.

I suspect that neither you nor I know how better/worse FoxConn is than other factories making high-end electronics for high-value Western brands.

But that’s besides the point, it’s evasion of the type best kept to PR flacks of those companies.

Fact is, conditions in auto plants tend to be far better than in those sweatshops. So the concern is valid.

John Hansen

Uh, your argument made no sense at all.

First you called my relatively benign statement “vile” after accusing a company of caring more about their cement than their workers (which is a legitimately vile statement).

You also accused me of owning stock. Oh gee, that’s original. Because everybody who rebuts a baseless accusation on the Internet owns stock?

And then your main counter-point is that neither of us really knows, acknowledging that you didn’t have a clue what you were talking about in the first place. That was precious.

You are the stereotypical Internet commenter. Congratulations.

KC

As someone who works in product development for tech, I agree completely. Plus there is a very high chance any device you use has a foxconn component in it. There are many worse factories out there, but that does not justify their behavior. Foxconn was just removed from our ethics violation list in 2014 if that matters.

Lensman

Good luck to China in increasing its domestic production of EVs, and tackling their very serious problem with urban air pollution.

But it’s not likely those Foxconn cars will be sold outside China, or at lest not in first-world countries where safety standards for cars (and enforcement of patent rights) are a lot more stringent than they are in China.

QCO

A $15k a Chinese EV does sound achievable given we’re already in the mid 20’s with today’s battery pricing (and Chinese cars will be simpler with less features and safety).

It is hard to truly comprehend the enormous economies of scale and vertical integration that companies like Foxconn have, right down to owning the raw material mines.

And companies like Apple, which have perfected the “design it here, build it there” consumer product outsourcing model will use the same factories to produce consumer cars for the advanced markets.

The bigger story is really the shift from cars being a “rust belt” industrial product that underpins national economic and social strategies to a lowest possible cost consumer product built in the most efficient factories along side other consumer products, like hedge trimmers and washing machines.

It is entirely possible that 20 years from now you could pick up an off-branded electric car at Walmart with a 30 day return policy for less than $8k in today’s dollars.

CDAVIS

Could this somehow be FoxConn’s’ prepping to capture Apple’s iCar assembly business? If not, I’d think It puts FoxConn & Apple on an eventual conflict of interest collision course.

Does FoxConn currently sell its own phones that compete with iPhone?

QCO

Foxconn is always careful to never directly complete with its customers by selling self branded products.

It will enable independent branding companies using an ODM model, or their latest CI model (customer inception). Many of those branding companies could be well known US brands that have followed the outsourcing model. Just take a walk though a Home Depot or Walmart to see how it works.

The question being pondered these days is why not cars as well, especially now car design is greatly simplified by removing the complicated mechanical ICE component.

Dave K.

Or the Apple and Foxconn cars may share some components, perhaps a 20kwhr single battery pack for the Chinese market and a double 40kwhr for US. We should also remember that the US and Europe are no longer the growing markets, it makes perfect sense to build China specific products and worry less about the rest of us.

Kosh

“Designed by Apple in California”

I can see it now, under the hood. 😉

Loboc

Just print them in a factory the size of a two-car garage. Heck, make it a kit car.

My brother is importing Chinese CDC machines and making a huge profit. They arrive disassembled.