Fisker deals with Foxconn to build Electric Vehicles in U.S.

Fisker Inc, an electric car maker in U.S. has signed a deal with Foxconn to its vehicle assemblies in U.S. plant from 2023, companies said on Thursday.

Fisker’s chief executive Henrik Fisker said the four locations are considered to set the plant which includes Foxconn’s plant located in Wisconsin. Foxconn president Liu Young-way previously stated that electric vehicles (EVs) have a “promising future” in Wisconsin, but not a detailed one. Fisker said the US plant will have at least 150,000 vehicles to start its annual capacity.

“When you look back at recent history and new technology products, they have been launched in the U.S. first, that’s why we want to launch here”, Fisker said with the media. He expects the U.S. market to initially be the largest for the vehicle

Fixer is one of a handful of Electric Vehicle startups that have gone public through a reverse merger with a Special Purpose Acquisition Company (SPAC) when US President Joe Biden raised $ 174 billion in new spending to boost EVs and charging.

Under the Fisker deal, the companies will jointly invest in “Project PEAR” (Personal Electric Automotive Revolution) and share in any profit. The companies reaffirmed Foxconn, which would eventually manufacture more than 250,000 vehicles a year for Fisker at several sites, with initial production at its US plant announced in late February 2023.

The vehicle type has not been identified by Fisker but will be based on a new lightweight platform – the FP28 – designed by both companies. The five-passenger vehicle, which will be sold globally and is the second model under development, will have an initial price of less than $ 30,000 before the incentive. Fisker said the vehicle would be described by some as a crossover.

The Canadian auto supplier Magna International Inc would initially make its first vehicle in Europe, the Ocean SUV, Fisker said in December. With production expected to begin in the fourth quarter of next year, Heinrich Fisker said the Foxconn deal does not affect his plans. Fisker will show the final production version at the Los Angeles Auto Show in November.

Foxconn aims to cover a 10% of the market share of the electric vehicle market by component or services by 2025 to 2027, Pose a threat to established vehicle manufacturers by giving technology companies a shortcut to compete in the vehicle market.

Last month, Foxconn largely withdrew a plan for a $ 10 billion factory in Wisconsin that was originally announced in 2017 and was about to produce state-of-the-art flat-panel display screens.