Mitsubishi Electric considers alliance with Foxconn for joint automotive equipment operation

About this update from Foxconn Technology Co., Ltd.

Mitsubishi Electric TSE:6503 signed a memorandum of understanding with Foxconn TWSE:2317 on Friday to explore a strategic alliance covering their automotive equipment businesses, with Mitsubishi Electric considering transferring a 50% stake in its automotive unit to the Taiwanese manufacturer.The proposed alliance targets electrification, autonomous driving, and software-defined vehicle technologies and would build on their existing collaboration.• Mitsubishi Electric is considering transferring 50% of shares in its automotive subsidiary, Mitsubishi Electric Mobility, to Foxconn as part of the joint operation framework.• Under the envisioned structure, Mitsubishi Electric Mobility would use Foxconn's capabilities and networks to supply an electric vehicle platform from Japan, including powertrain and autonomous driving technologies.• The alliance is described as intended to support sustainable growth of Japan's automobile industry and strengthen its industrial base.• Mitsubishi Electric said it will proceed with discussions and promptly disclose any matters requiring announcement.• No financial terms, timeline, or conditions for the potential stake transfer were disclosed.

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