William Gallagher
Luxshare, which assembles Apple's AirPods, is investing in a Chinese electric car company.
Even as Luxshare is aiming to take on more iPhone orders for the iPhone, the firm is following its rivals in moving to avoid being too dependent on Apple. Just as Foxconn has recently done, Luxshare is turning to the EV market.
According to Nikkei Asia, the Luxshare Precision Industry firm is forming a joint venture with Chery Automobile's Chery New Energy division.
Chery New Energy is reportedly to be established within the next three months, with a capitalization of $267 million. Luxshare will take a 30% share, and a new plant is under construction.
Luxshare chair Wang Laichun has told investors that the AirPods assembler will not become a car company. Also, the vehicles created will not be branded as Luxshare.
Rather, she said Luxshare aims to become what's known as a Tier 1 supplier. Where a Tier 2 supplier will manufacture components for a product, a Tier 1 firm can make complete devices.
In theory, that could mean that Luxshare does manufacture cars, leaving only superficial branding to Chery. Given Wang Laichun's emphasis that the company will not become a carmaker, though, it's more likely that Luxshare will at most assemble key systems.
By comparison, Foxconn's efforts appear to be concentrating on manufacturing processors for its ventures with Fisker, and Byton.
AppleInsider Staff
Malcolm Owen
Oliver Haslam
Andrew O'Hara
Wesley Hilliard
Christine McKee
4 Comments
Great!! More pick and choose for future developments
My favorites are, Magna and LG
To those that have doubted that there will be an Apple Car, it is becoming more and more obvious the infrastructure is being laid with Apple’s partners to make it happen. I wonder if these forays into electric car manufacturing by these contract assembling companies is to show Apple they have the chops to make car manufacturing happen.
A company that can't put two ports on an iPad has no business trying to build a car. Apple just doesn't bring anything to the table that would make a car great.