When the Green Party was elected, Foxconn bet on China-made cars, what kind of medicine is sold in Guo Taiming's gourd?
Foxconn's car manufacturing finally has an eyebrow.
On January 9, Foxconn New Energy Vehicle Industry Development (Henan) Co., Ltd. was established with a registered capital of 500 million yuan. The company's wholly-owned shareholder is Foxconn New Business Development Group Co., Ltd.
Foxconn has long had ambitions for building cars.
At the "Hon Hai Tech Day 2023" event held in October last year, Liu Yangwei, chairman of Hon Hai Group, announced Foxconn's new strategic transformation plan: the launch of a CDMS model for the electric vehicle market. The so-called "CDMS business model", which is called "contract design and manufacturing service contract business" in Chinese, is a contract design and manufacturing service contract business, providing overall and customized solutions to the automotive industry.
However, since the Greens came to power, Frog Island has made a series of disgusting incidents, which everyone knows. Major Taiwanese-funded manufacturing companies, including Foxconn, are also actively cooperating with the U.S. offshore and onshore supply chains and manufacturing transfer policies.
Foxconn has successively promoted the plan to build factories in the United States and India and increase investment.
In November and December last year, Foxconn announced two investment plans of 11 billion yuan and 12 billion yuan in India, and also built a semiconductor factory in India.
All previous signs were that Foxconn was fleeing China.
So according to this logic, Foxconn's automobile factory has nothing to do with us.
But why did Foxconn come back to build cars this time?
A notable timing is that Foxconn's return to build a car comes just after the Greens won a new round of elections on Frog Island.
The Green Party is so disgusting, and Foxconn's landing of new energy vehicle projects in China seems to be contrary to the island's policies. But in fact, behind this action is a lot of careful thinking of Guo Taiming.
First of all, Gou is well aware that his new energy vehicle ambitions can only be realized by China.
In other words, Foxconn will still take the road of OEM after making cars. Look at the world, because only China can provide it with a mature, low-cost supply chain, relevant policy support and tax breaks, and a stable business environment.
As an industrial "vassal" of the United States, Terry Gou has not tried to put factories in other countries before, but no market has given it positive feedback.
In India, for example, employee strikes, arson, tax investigations, government corruption and other issues have always plagued Foxconn. Although India has a large population, the level of education is generally not high, and the people are very committed to their own beliefs and lives (free and loose), which does not give full play to the so-called "demographic dividend" effect.
For example, in the United States, Americans are not very "eye-catching" to Foxconn, and the support in all aspects is a false shot, and the $3 billion in financial assistance promised by the state of Wisconsin in advance to Gou was cut in half, resulting in Foxconn still owing the local government $300 million in infrastructure debt.
After going around the global market, Gou realized how fragrant it is to invest in China, the government sincerely supports it, and the employees work down-to-earth, so if Foxconn still wants to get a foot in the new energy vehicle market, China now seems to be the only option.
Second, although the Greens are now in power, it is clear that the prospects for the development of cross-strait relations are not good. However, on the one hand, the United States has recently been involved in a lot of energy in the Middle East, and the country has also entered a fierce game before the election, and the energy of East Asia will be somewhat drained.
On the other hand, although the Greens are disgusting, they are not stupid, and they know very well how much benefits we have given to Frog Island over the years. If economic and trade cooperation is completely cut off, the economy of Frog Island will suffer a heavy blow.
Terry Gou understands the "deep meaning" of the Green Party too well, so he dares to bet on the Chinese market at this time. Relying on companies like Foxconn to be deeply tied to China economically, it is impossible for Frog Island to completely decouple from us.
In fact, it can also be understood that Foxconn's embrace between China and the United States is the epitome of what the Wanwan authorities want and want.