Lin Yin International Investment Co., Ltd. (Lin Yin), an investment management subsidiary of Hon Hai Precision Industry Co., Ltd. (Hon Hai Precision Industry) (Foxconn), and Mitsubishi Electric Corporation (Mitsubishi Electric) announced that they have formalized a strategic alliance for the joint operation of an automotive equipment business. Through the alliance, the companies aim to develop next-generation mobility and thereby strengthen the sustainable growth of the Japanese automotive industry.
Under the agreement, Mitsubishi Electric will transfer to Lin Yin 50% of its stake in Mitsubishi Electric Mobility Co., Ltd., which handles Mitsubishi Electric’s automotive equipment business, after which the two co-owners will jointly operate Mitsubishi Electric Mobility. The share transfer price is expected to be JPY 115.0 billion. The share transfer agreement establishes an enterprise value of JPY 320.0 billion and an equity value of 230.0 billion for the target business. The transfer price corresponds to a 50% stake to be transferred based on the equity value. Subject to the satisfaction of contractual conditions, including obtaining required approvals and clearances from relevant authorities under competition laws and other applicable laws and regulations, the share transfer is expected to be completed on October 1, 2027.
The joint-operating arrangement will combine Mitsubishi Electric Mobility’s technological and developmental capabilities, particularly in electric powertrains, software and vehicle control, with Hon Hai Precision Industry’s speed, scale and other strengths in market deployment.
By providing high-quality electric-vehicle platforms (basic structures) developed in Japan, the companies expect to contribute to the widespread adoption and advancement of next-generation mobility. The alliance will translate advanced technologies and quality achieved through high-level Japanese manufacturing into new value for mobility. In turn, this is expected to strengthen Japan’s industrial base and support the sustainable growth of the domestic automotive industry. In addition, over the medium to long term, the companies aim to expand Japanese technology and quality to global markets as well as further enhance the value of “Made in/by Japan” and demonstrate new possibilities for Japanese manufacturing to the world.
