The 10-Second Version (AI Summary)
Generated by AI and reviewed by our team.
What happened: Foxconn agreed to buy 50% of Mitsubishi Electric Mobility for about $728 million to build EV platforms, starting in Japan.
Why it matters: It is the iPhone assembler’s latest attempt to turn electronics scale into a car business after earlier efforts stalled.
What to do: Watch for the October 2027 close, and expect nothing new on your lot before then.
We don’t care how good somebody is at cooking pancakes. Steak is a whole other game.
Foxconn makes pancakes better than almost anyone. It has assembled hundreds of millions of iPhones and iPads at a speed and scale few companies can match. Cars keep turning out to be steak, and this week’s deal is Foxconn’s newest attempt at the grill. Paul and Kyle broke it down on today’s Automotive State of the Union.
What is Foxconn actually buying?
Foxconn, officially Hon Hai Precision Industry, is taking a 50% stake in Mitsubishi Electric Mobility for about 115 billion yen, or roughly $728 million. That company runs Mitsubishi Electric’s automotive equipment business. Mitsubishi Motors, the brand on your local Mitsubishi store, is a separate company and isn’t part of this deal.
The two partners will run the business jointly under the Mitsubishi Electric Mobility name. Mitsubishi Electric brings electric powertrains, software and vehicle control systems, and Foxconn brings manufacturing speed and scale. The first products will be EV platforms developed in Japan, with global markets to follow. The deal is expected to close October 1, 2027.
Mitsubishi Electric brings the recipe. Foxconn brings the kitchen.
How many times has Foxconn tried to get into cars?
July 2021: Launches the Mobility in Harmony consortium to build an open, modular EV platform.
November 2021: Buys GM’s former Lordstown, Ohio, plant from Lordstown Motors in a deal valued at about $260 million.
May 2022: Forms a $100 million joint venture with Lordstown Motors.
Afterward: Lordstown Motors files for bankruptcy and sues Foxconn, alleging it failed to invest $170 million in the plant.
January 2024: Sets up a new EV company in Zhengzhou, China.
June 2025: Signs a joint development deal with Elektrobit for an AI-powered, software-defined EV platform.
April 2026: Signs a memorandum with Mitsubishi Electric to explore this alliance.
October 1, 2027: Expected close of the Mitsubishi Electric Mobility deal.
Five years of attempts across the U.S., China and now Japan.
Why could this attempt go differently?
This time, Foxconn is partnering with a company that already handles the steak side: powertrains, vehicle controls and the software that ties them together. Kyle pointed out on the show that the price is far lower than what a partnership with a major automaker would cost. Paul noted that Foxconn already builds software-rich products that live in American homes and pockets.
The joint structure is the smartest part. At Lordstown, Foxconn tried to own the whole meal. Here, it splits the work with a partner that knows vehicle systems.
For dealers, the near-term impact is minimal. The deal hasn’t closed, the first platforms are aimed at Japan, and no brand or model has been named. The direction is still worth watching. Electronics giants keep circling the car business, and eventually one of them will make it work. When that happens, some of the vehicles on your lot may come from companies your customers know from their phones.
As Kyle put it, “Someone’s going to do it.”
Paul and Kyle unpack the deal in the first segment of today’s Automotive State of the Union.
