Foxconn has signed a deal to buy 50% of Mitsubishi Electric Mobility for ¥115 billion ($727 million), forming an equal joint venture with Mitsubishi Electric. The target is not an EV startup but a traditional auto-parts maker that supplies alternators, ignition coils, radar sensors, and some electric powertrain components. Closing is expected in October 2027 after antitrust review.
The two companies say they will combine Mitsubishi Electric's powertrain and control software with Foxconn's manufacturing speed to develop EV platforms for Japanese automakers, with a revenue target of more than ¥1 trillion ($6.3 billion) by fiscal 2030. However, the deal excludes Mitsubishi Electric's power semiconductor business, which is in separate merger talks with Rohm and Toshiba.
The price suggests the seller is offloading a mature, shrinking division. The enterprise value is roughly 0.37 times sales and about six times operating profit, below the unit's net assets, and Mitsubishi Electric expects a ¥100 billion impairment. Foxconn's EV record is mixed: Fisker went bankrupt, the Lordstown plant was sold, and a proposed Nissan investment fell through. So far, only Mitsubishi Motors—a separate company—has put its badge on a Foxconn-developed EV.