Beijing — Apple supplier Foxconn Technology has signed a strategic co-operation deal with embattled Chinese electric-vehicle start-up Byton in a transaction that could mark a large bet by the iPhone assembler on the car-making business.
The deal could represent a lifeline for Byton, which is struggling to produce its first vehicle, having unveiled its M-Byte concept car several years ago. Under the arrangement, Foxconn will supply Byton with its advanced manufacturing technology, operation management expertise and supply chain resources. The Taiwan-based company is, however, also talking to other Chinese electric-car makers on potential collaborations, another person familiar with the matter said.
“The electric-vehicle-related business will be very good in the first half of 2021,” Hon Hai chair Young Liu said at a company event in Taipei in December. Byton, one of the highest-profile Chinese electric-vehicle start-ups, had a tough 2020. It suspended all domestic operations and furloughed staff in July after the coronavirus pandemic made it tougher to get its business off the ground. That suspension has been extended now until June. Even before Covid-19, the company had encountered difficulties meeting announced deadlines on producing and delivering its first model. The company’s website still accepts reservations for cars.