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Mitsubishi will contribute technology in electric powertrains, autonomous driving and in-car intelligence for EV platforms developed by Hon Hai, better known as Foxconn, the companies said Monday during a news conference in Tokyo.

The tie-up gives Foxconn a deeper foothold in the auto industry as it pushes its contract-manufacturing model into EVs, while giving Mitsubishi Electric a partner to help scale its car-parts business. The companies plan to combine Mitsubishi’s long-standing relationships with automakers with Foxconn’s faster development model, while broadening the business beyond traditional auto components into EV and autonomous-driving platforms. 

“What attracted us most was the electronic-control technology — and the substantial software resources behind them,” Jun Seki, Foxconn’s chief strategy officer for EVs, said at the event. 

The deal values the new automotive business at ¥320 billion on an enterprise-value basis. The unit generated ¥876 billion in revenue and ¥54 billion in operating profit in the year ended March.

Mitsubishi Electric expects to book an impairment charge of about ¥100 billion this fiscal year as a result of the transaction. It plans to update its full-year earnings forecast on Oct 30.

The companies expect the transaction to be completed in October 2027. The parts business will then become a 50-50 venture and cease to be a consolidated Mitsubishi Electric subsidiary. 

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