Taiwan auto brand Yulong Group and Hon Hai Technology Group, the global communications industry leader, announced today (7th) that the two parties have signed a cooperation agreement and will set up a joint venture in the future to jointly promote the R&D design of automobile complete vehicles, the sharing of open platforms and the ecology of open platforms.
Hotel Group
Hotel and Yulon jointly stated that they adhere to the common vision and strategic direction for the transformation and upgrading of Taiwan's vehicle industry, and the two sides work together to seize the potential business opportunities of the EV electric vehicle market with complementary advantages. In the future, supply chain partners will be invited to join, and also cultivate more excellent automotive and electrical R&D talents and innovation opportunities for Taiwan.
The new company will form a business team jointly with both parties, Hon Hai provides ICT industry supply management and operation advantages and talents; Yulon mainly focuses on Huachuang Automobile's R&D engineering team. This cooperation also represents the official launch of the two groups' transformation and upgrading dual engines, and also injects fresh water into the automotive industry.
The total capital of this joint venture is NT$215.576 billion (about RMB 3.61 billion), Hon Hai invested NT$7.944 billion (about RMB 1.84 billion), accounting for 51% of the shares, and Yulon invested NT$7.632 billion (about RMB 1.77 billion), accounting for 49% of the shares.
In 2009, Yulon, Taiwan established its only Chinese-series car brand - Nazhijie
Hon Hai and Yulon jointly pointed out that the new joint venture will combine the vehicle technology development of Yulon's Huachuang Automobile and Hon Hai's manufacturing and design capabilities in electronic components, give full play to the complementary advantages of vehicle research and development and information communication industry resources, jointly develop automobile-related businesses, and bring innovative models to the automobile industry.
This joint venture's automotive industry IDM business model is introduced to and vertically integrate to maximize its benefits. Hon Hai said that as the global electronic industry service leader, through group operations, IDM innovative operation model has been built in the global industrial chain through group operations. In the future, combining Huachuang Automobile's vehicle design and open platform resources, it will extend to the high-value-added R&D link, and continue to enter the vehicle industrial value chain .
Since Hon Hai announced the three major industrial strategic directions of electric vehicles, digital medical care and robots last year, it has continuously launched in-depth layout in the field of EV electric vehicles. This time, it has joined hands with Yulon, which is the second major cooperative manufacturer announced this year after Hon Hai cooperated with Feiyat Chrysler (FCA). These two cooperations will create a cross-border automobile alliance from brand to platform.
Chairman Liu Yangwei, Hon Hai, said, "The automobile market and industry have entered the fast lane of transformation, and it is a general trend to design vehicles through platform-based models. Hon Hai hopes to use the successful experience in the ICT industry in the past to create a new IDM operation model for the automobile industry. It is honored that this time we can cooperate with Yulon and take advantage of Huachuang's solid foundation in automotive R&D technology, which will help the group accelerate its entry into the EV electric vehicle field."
Yulong Group's automobile sales business
Yulong Group's R&D and components business
Yulong Group stated that with "full openness and diversified customers", Yulong Group has many years of experience and resources in R&D design, production and manufacturing of automobiles, and has invested in open platforms and R&D resources and technologies for future automobile industry development trends such as new energy vehicles, Internet of Vehicles, and autonomous driving. The group has promoted the transformation of value chain strategy in the past (2019). Huachuang Car Diploma's automotive R&D platform adopts an open model. The past "single customer, heavy asset " has transformed into a new direction of "full open and diversified customers" open platform, providing customers' total solution services. Since the open platform transformation strategy, it has continued to operate the existing Nazhijie brand operation and strive for diversified customers.
Edit: AI Smart
