Foxconn and Mitsubishi to create joint production of electric buses

Taiwan's Hon Hai Precision Industry, known as Foxconn, and Japan's Mitsubishi Fuso Truck and Bus have announced the creation of a new bus company. The joint venture will produce electric buses for the Japanese and overseas markets. About this reports Nikkei Asia.

The 50/50 joint venture will be established later this year. It will be headquartered in Kawasaki, south of Tokyo, where Mitsubishi Fuso is headquartered. Production will take place at its Japanese partner's plant in Toyama, on the Sea of Japan.

Foxconn, the world's largest electronics manufacturer, and the Japanese truck and bus manufacturer signed a memorandum of understanding in August to explore strategic cooperation in the field of zero-emission buses and clean mobility.

The new company will continue to improve existing Mitsubishi Fuso buses with internal combustion engines in parallel with the development of electric models.

"This collaboration brings together the strengths of both companies to further accelerate the transformation of the bus industry. By combining the extensive experience and advanced technical knowledge accumulated by MFTBC and Foxconn over many years, we will provide advanced solutions for the public transport sector," said Mitsubishi Fuso President and CEO Karl Deppen.

The company plans to take orders for its first electric city bus under the Fuso brand by 2027. The model will be based on Foxconn's design and adjusted to Japanese regulatory requirements and market preferences. Smaller buses will follow.

Jun Seki, Foxconn's chief strategy officer for electric vehicles, explained the motivation.

"Diesel-powered buses have their limitations. That’s why we are expanding our lineup to include electrified options to expand our business in Japan. To do that, we need a very strong manufacturing base," he said.

• In November, it became known that the combined profits of Japan's seven largest automakers – Toyota, Honda, Nissan, Mazda, Mitsubishi, Subaru and Suzuki – due to US tariffs decreased by 1.5 trillion yen ($9.74 billion).