TOKYO (Reuters) – Japan’s Mitsubishi Motors, a junior partner of Nissan Motor, is planning to outsource the production of electric vehicles to Taiwanese electronics contract manufacturer Foxconn, Kyodo News reported on Thursday.
Through the collaboration, Mitsubishi Motors is aiming to lower production costs and shorten the development period for its product lineup, while Foxconn, officially known as Hon Hai Precision Industry, is hoping to use it as a foothold to collaborate on EVs with Nissan and Honda, Kyodo said.
A proposed merger between Nissan, Mitsubishi Motors’ largest shareholder, and Honda fell through last month and sources have told Reuters that Nissan is open to working with new partners, including Foxconn.
Mitsubishi Motors is discussing developing software for EVs with Honda and Nissan, Kyodo said.
The tie-up will be announced before the end of March, Kyodo said.
Mitsubishi Motors was not immediately available for comment.
(Reporting by Anton Bridge; Editing by Muralikumar Anantharaman)
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