(Reuters) – Electric-car maker Fisker Inc said on Wednesday it will collaborate with Foxconn on an electric vehicle project and forecast that production would start in the fourth quarter of 2023.
Fisker’s shares were up nearly 18% in trading before the bell.
As part of the deal, codenamed “Project PEAR” (Personal Electric Automotive Revolution), Foxconn will manufacture the vehicles at projected annual volumes of more than 250,000, according to a statement.
It marks the latest move by Foxconn, a major Apple Inc supplier, into autos. Foxconn has previously signed similar deals with Chinese startup Byton and automaker Fiat Chrysler in January.
Foxconn’s approach poses a major threat to established automakers that technology companies such as Apple and other non-traditional players could use contract assemblers as a shortcut to competing in the vehicle market.
By lowering manufacturing and associated capital costs as a barrier to entry, contract assemblers could enable technology companies to focus on software and digital connectivity features that will define automotive competition in the coming years.
Fisker is expected to start production of its first vehicle, the Ocean electric SUV, in the fourth quarter next year.
(Reporting by Tiyashi Datta in Bengaluru; Editing by Shounak Dasgupta)
