Dubai, United Arab Emirates (CNN) – Taiwan-based electronics manufacturer Foxconn, best known for collecting iPhones for Apple, has announced that it is working on an agreement with Fisker, an electric car company in California, to develop a car. Electric, the two companies said on Wednesday.
Fisker went public last year through its merger with the special-purpose acquisition company, Spartan Energy Acquisition.
The company, founded by auto designer Heinrich Fisker, has previously entered into an agreement with Magna, a contract car manufacturer. Magna is expected to start building the “Fisker Ocean” electric sport utility vehicle by the end of 2022. “Ocean” will rely on engineering developed by “Magna”, but with Fisker modifications.
Fisker is currently working on a similar arrangement with Foxconn, according to a joint press release from the two companies. The two companies also announced a memorandum of understanding without disclosing any financial terms for the potential deal.
The “Fisker” and “Foxconn” will be the second model for “Fisker” after “Ocean”. The two companies have released few details other than the vague diagram of the car.In an interview with CNN, Fisker said that the car would cost less than $ 30,000 and would target urban commuters, but he did not mention in which markets this price would be applied.
The companies plan to produce more than 250,000 cars annually, according to Fisker, and production is set to begin by the end of 2023.
Henrik Fisker, founder of the company, worked as a designer for Aston Martin and BMW. He also designed the Fisker Karma for his predecessor car company, Fisker Automotive, which filed for bankruptcy protection in 2013 and eventually sold its assets.
To date, Fisker has received 12,000 prepaid reservations for the Fisker Ocean SUV at a cost of $ 250 per booking. Once production begins, the SUV will sell for a starting price of $ 37,500 before taxes.