If you have not heard of Foxconn, this is something really easy to remember: Foxconn assembles iPhone for Apple. In fact, Foxconn is also OEM suppliers for many other products. For example, the 17-inch LCD display screen in the Tesla Model S, is build by Foxconn too.
Now, Foxconn is not satisfy with just building electronic gadgets – it also want some shares in the automobile industry, which means it wants to manufacture whole cars too. More specifically speaking, electric cars.
Foxconn has been working on this for some time, here are something it has done recently:
– An investment of $814 million to building a battery factory in Shanxi province, China;
– A contract with BYD (a Chinese automobile manufacturer specialized in electric cars) to open an EV rental car business;
– Foxconn’s CEO, Terry Gou, has met with Gang Wan, chief of the Ministry of Science and Technology of China, to discuss details of Foxconn supplying OEM products to Tesla;
– During the China automotive industry “Top Ten” internal meeting held in Shenyang, Liaoning province this July, Foxconn expressed its intention to work with all China major auto makers, and cited its future plan of OEM Tesla’s vehicle as proof.
Maybe unknown to some people, many of the parts in the Tesla Model S are actually from Taiwan suppliers. For example:
Dash console: made by Chi Lin Technology
Reducer gear assembly: made by HarTech
Battery connection cables: made by BizLink Technology
Electric invertor: made by Delta Electronics
Electric motor: made by Fukuta Motor
Touch-screen control: made by TPK
You can see most of the Model S critical parts comes from Taiwan, also considering currently Asian customers need to wait at least 4 to 5 months to get their Model S (which means Tesla’s production ability is lacking behind), it makes sense that Tesla producing the Model S and all future models in Taiwan directly, which makes logistics more efficient and provides shorter turnaround time.
Another important factor is: right now, Tesla is so eager to entering and extanding the China market. Within 2014, Tesla has signed contracts with multiple Chinese conglomerate (including China Unicom, SOHO China, Yintai Holdings etc.) to promote the new charging stations and network.
Because of the way how electric cars works, its mechanical structure is significantly more simple than a car using traditional internal combustion engine. No more cylinder, valves, injectors, spark plugs, fuel pipes/lines, engine coolant, transmission, gears etc.
The entry barrier is much lower for making electric cars. This is the reason why a company that has zero previous experience in the automobile industry, can ramp up production of electric cars so quickly.
Base on the build quality of your iPhone or iPad, if Foxconn is doing things right, you should not be worried about the quality of Tesla vehicles build by them.
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