Taiwanese electronics maker Hon Hai Technology Group, aka Foxconn, and auto parts maker ZF Group have announced a strategic partnership in which Foxconn will acquire a 50% stake in ZF Chassis Modules, the group’s axle system assembler.
In a statement, both companies said the deal, which values ZF’s Chassis Modules division at one billion euros (RM5.06 billion), will allow them to leverage each other’s capabilities and expand their product offerings in the internal combustion engine and electric vehicle space.
“With this step, we are executing on our strategy to grow specific areas of ZF’s businesses with the support of external partners beyond our current confines,” said ZF CEO Holger Klein. Meanwhile, Foxconn Chairman and CEO Young Liu said the company is keen to explore further cooperation opportunities with ZF Group in the broader transportation and mobility sectors.
The joint venture agreement is expected to come into effect within six to nine months of signing, pending regulatory approval.
Foxconn’s deal with ZF is the latest in a growing string of partnerships for the Taiwanese company. Closer to home, it is partnering with Thai state-owned energy group PTT to produce electric vehicles in Thailand from 2024and announced plans to invest approximately US$250 million (RM1.2 billion) in two new projects in Vietnam to manufacture components for electric vehicles.
In 2021, it bought shares in Malaysian technology company Dagang NeXchange Berhad (DNex), and the following year, announced that it was forming a joint venture with DNex to build and operate a 12-inch chip manufacturing facility in Malaysia.
Looking to sell your car? Sell it with MyTukar.
