Taiwan’s Hon Hai Technology Group announced it has signed an agreement to acquire German automotive components manufacturer Prettl SWH Group, in a move designed to strengthen its electric vehicle (EV) supply chain.
Hon Hai, also known as Apple Inc’s main manufacturing subcontractor Foxconn, has been expanding aggressively in the global EV sector in the last few years as it looks to reduce its dependence on the iPhone maker. The company recently unveiled a number of battery-powered vehicles based on its dedicated MIH open EV platform and has established several EV partnerships around the world.
Last year it completed the acquisition of a former General Motors plant in Lordstown, in the US state of Ohio, where it now produces the Endurance battery-powered truck. It also has an agreement to produce Fisker Inc EVs at the plant. Hon Hai is said to be looking to claim 5% of the global EV market by 2025, generating revenues of NTD1trn (US$33bn).
Hon Hai said it will acquire 100% of the equity in Prettl SWH through its Foxconn Interconnect Technology (FIT) Hon Teng Ltd subsidiary, a manufacturer and distributor of electrical and electronic equipment headquartered in Taiwan.
Prettl SWH Group, based in the German city of Pfullingen, is described as a leading developer and manufacturer of best-in-class sensor, connectivity and electrification solutions for the automotive industry, supplying OEMs as well as tier-1 and tier-2 component manufacturers. Hon Hai said the German company, which employs 8,000 skilled workers at 18 sites in 13 countries, focuses on high-margin niche segments, supplying high-precision electronic products.
Hon Hai expects the acquisition of Prettl SWH will help it strengthen its core capabilities in EV components and extend its mobility solutions portfolio. The company also stands to benefit from its extensive, long-term relationships in global automotive industry. The acquisition is expected to be completed in the second quarter of 2023 though FIT Singapore.
Hon Hai claims that with its roots as a leading OEM, ODM and IDM company, Hon Hai Technology Group has leveraged its decades-long expertise to become an Innovation Integration Design Manufacturer (IIDM). The group said it offers an integrated approach to key components and core technology innovation, software and hardware integration and industrial design, addressing the needs of the end-user customer.