Fisker to collaborate with Foxconn on electric vehicle project, shares jump
(Reuters) - On Wednesday, Fisker Inc. Electric-car manufacturer said it is partnering with Foxconn on a project for electric cars and is expecting a start to production in the fourth quarter of 2023.
Fisker's stock had risen almost 18% in pre-bell trade.
Foxconn will produce the vehicles at estimated annual volumes of more than 250,000 according to the contract, dubbed Project PEAR (Personal Electric Automotive Revolution).
It signals the first shift to cars by Foxconn, a leading Apple Inc. supplier.
In January, Foxconn signed related agreements with Chinese firm Byton and car producer Fiat Chrysler.
Foxconn's strategy presents an incredible challenge for well-established manufacturers to use tech giants like Apple and other non-traditional players as a shortcut to compete in the automotive market.
Contract machines will help technology firms concentrate on technological and digital communication features, which will characterize automobile competitiveness in the coming years, by reducing production and related capital costs as a barrier to entry.
In the fourth quarter next year, Fisker is scheduled to launch the production of its first car, the Ocean electric SUV.
(Tiyashi Datta reporting in Bengaluru; Shounak Dasgupta editing)