Foxconn to deepen EV role with Taiwan’s Luxgen brand acquisition – report

Core Viewpoint - Foxconn's vehicle design subsidiary, Foxtron, is acquiring full control of the Taiwanese car brand Luxgen for T$787 million ($24.9 million), marking a strategic move into the electric vehicle (EV) market in Taiwan [1][2]. Group 1: Acquisition Details - Foxtron will gain complete control over Luxgen's operations, including workforce, sales, dealer network, marketing assets, and after-sales services [2]. - The acquisition is part of Foxconn's strategy to expand its presence in the EV sector, which has been identified as a key growth area by chairman Young Liu [3]. Group 2: Strategic Implications - The decision to acquire Luxgen raises questions about Foxconn's previous focus on contract design and manufacturing services (CDMS) for other automakers [4]. - A source indicated that the Luxgen acquisition will initially focus on the domestic market and will not undermine the core CDMS strategy [5]. Group 3: Brand Development - Foxtron has registered the "Foxtron" trademark in Taiwan along with model names for various EV types, preparing for the launch of its own models [4]. - The introduction of a consumer-facing brand is seen as a way to demonstrate design optimization and integration of software and hardware in vehicles, similar to tech companies like Google and Microsoft [6].