Many of our readers may know Foxconn as the controversial manufacturer of Apple’s iPhone, but the company may soon be known as something else – a car manufacturer. Foxconn has announced plans to build an electric car that would undercut its competitors with a price tag around $15,000. Foxconn is investing $811 million in a new car manufacturing facility in China’s Shanxi province.
The new facility will join the other two existing Foxconn factories in Shanxi. Even though the company’s automotive ambitions may seem far-fetched, it should be noted that Foxconn already produces batteries and other components for electric vehicles like the touchscreen in the Tesla Model S. Foxconn has also helped Tesla develop its car batteries. But why is the company now intent on building its own car?
Currently half of Foxconn’s revenue comes from production of the Apple iPhone, but by entering the automotive segment, they will be able to broaden their portfolio. Foxconn hasn’t released any other details about the $15,000 EV, but it’s being reported that the manufacturer wants to take advantage of the Chinese government’s strong support for electric cars. Authorities recently announced that all electric, hybrid and fuel cell vehicles will be exempt from the purchase tax until 2017.
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