Bulletin: Hon Hai's Electric Vehicle Business To Benefit From Partnership With ZF Group

Hong Kong (S&P Global Ratings) July 26, 2023--Hon Hai Precision Industry Co. Ltd.'s electric vehicle (EV) business looks set to grow following the company's announcement of a joint venture with German-based ZF Friedrichshafen AG. Taiwan-based Hon Hai (A-/Stable/--) has announced its intention to acquire a 50% stake in ZF group's axle system assembly unit, ZF Chassis Modules GmbH for about $560 million euros. This will create a joint venture aimed at expanding supply chain opportunities for Hon Hai's EV segment. The transaction still requires regulatory approval but could be finalized in 6 to 9 months. The investment is part of Hon Hai's strategy to achieve annual sales of new Taiwan dollar (NT$) 1 trillion for its EV business by 2025.

...July 25, 2023 Hong Kong (S&P Global Ratings) July 26, 2023--Hon Hai Precision Industry Co. Ltd.'s electric vehicle (EV) business looks set to grow following the company's announcement of a joint venture with German-based ZF Friedrichshafen AG. Taiwan-based Hon Hai (A-/Stable/--) has announced its intention to acquire a 50% stake in ZF group's axle system assembly unit, ZF Chassis Modules GmbH for about $560 million euros. This will create a joint venture aimed at expanding supply chain opportunities for Hon Hai's EV segment. The transaction still requires regulatory approval but could be finalized in 6 to 9 months. The investment is part of Hon Hai's strategy to achieve annual sales of new Taiwan dollar (NT$) 1 trillion for its EV business by 2025. Hon Hai hopes to achieve this through continued investment in EV car assembly and component manufacturing, as well as increasing EV partnerships globally. The joint venture could open access for Hon Hai to ZF's technology and expertise in areas...

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