Taipei (AFP)

Taiwanese technology giant Foxconn announced on Friday that it was partnering with American electric car manufacturer Fisker to produce vehicles in the United States by the end of 2023.

In a joint statement, the two companies indicate that they have signed framework agreements in order to jointly develop a "revolutionary" electric vehicle which would be located in the most affordable segment of the market.

Taiwanese electronics giant Foxconn, which notably assembles the iPhone and supplies other international brands, is however seeking to diversify into electric cars, robots and electronic medical equipment.

In January, Foxconn announced its alliance with Chinese automotive group Geely to become an equipment supplier and advisor to global automakers.

The structure aims to revolutionize the sector, in particular thanks to synergies and new technologies.

Foxconn chairman Liu Young-way said his company invested around 10 billion Taiwan dollars (30 million euros) in the development of electric cars in 2020.

Fisker is one of the American manufacturers of electric cars which aspires to one day be able to challenge the supremacy of the giant Telsa.

This partnership with Foxconn should help it deliver products "at a price that enables true mass market electric mobility," said CEO Henrik Fisker.

The base price of the vehicle will be less than 25,000 euros, with an expected annual volume of more than 250,000 units manufactured at multiple sites, the statement said.

Production is expected to begin in the United States in the fourth quarter of 2023, and both companies have said they are considering having overseas factories as well.

The cars will be sold under the Fisker brand in global markets, including North America, Europe, China and India, the two companies said without giving financial details of the investment made.

Fisker dubbed this joint program "Project Pear", which means "personal revolution of the electric car".

The deal comes as automakers suffer from a global semiconductor shortage due to the coronavirus pandemic that has led to an explosion in purchases of electronics and computer products.

Foxconn chairman Mr. Liu said the company would be able to work with suppliers around the world to ensure the supply of the new plant.

© 2021 AFP