Hon Hai, Mitsubishi Fuso to jointly develop ZEV buses

Taipei, Aug. 24 (CNA) Taiwan manufacturing giant Hon Hai Technology Group has signed a memorandum of understanding (MOU) with Japan-based automaker Mitsubishi Fuso Truck and Bus Corp. (MFTBC) to jointly develop zero-emission (ZEV) buses.

iPhone assembler Hon Hai, better known globally as Foxconn, has been stepping up its push into the electric vehicle market. Under the agreement, it will collaborate with MFTBC through their respective subsidiaries -- Foxtron Vehicle Technologies and Mitsubishi Fuso Bus Manufacturing Co. (MFBM) -- on the development of ZEV buses.

The partnership aims to accelerate "clean mobility for the Japanese commercial vehicle powerhouse and the world's largest electronics manufacturer," Hon Hai said in a statement.

Hon Hai said Foxtron and MFBM will partner in developing, producing and selling ZEV buses and managing the supply chain, their cooperation beginning with Foxtron-developed prototypes Model T and Model U.

ZEVs do not use petroleum fuels with no greenhouse gas emissions from the tailpipe. Battery EVs and hydrogen fuel cell EVs are examples of such technologies.

According to Hon Hai, MFBM will serve as the operational platform for developing, producing, and commercializing buses, while also exploring the introduction of Japan-made internal combustion engine (ICE) and ZEV buses into target markets.

The four entities will use the MOU to explore a future business model in a bid to strengthen the Fuso brand and push for further research and development of Japan made bus models, Hon Hai said.

"Through this initiative, the companies will provide products that meet a wider range of needs in the rapidly evolving bus market and achieve sustainable business growth," Hon Hai added.

The MOU among the four companies came after an earlier MOU signed by Foxtron and Mitsubishi Motors Corp. in May to allow the Taiwanese car maker to develop and supply an EV model to its Japanese partner on an original equipment manufacturer (OEM) basis.

According to Hon Hai, MFTBC is a commercial vehicle manufacturer in Kawasaki City, Japan with 89.29 percent of its shares owned by Daimler Truck AG and the remaining 10.71 percent held by various Mitsubishi group companies.

MFTBC's heavy-duty Super Great Truck was the first of its kind in Japan to boast SAE (Society of Automotive Engineers) Level 2-equivalent automated driving support technology, currently a benchmark in the commercial vehicle market in the country, Hon Hai said.

In recent years, Hon Hai has aggressively diversified its business under its "3 plus 3" strategy to expand into integrated hardware and software.

The initiative covers three emerging industries -- EVs, robots, and digital health care -- which the company said it is developing via artificial intelligence, semiconductor, and communications technologies, with EVs as the core business.