TAIPEI (Taiwan News) — Foxconn announced Wednesday it will invest NT$1.03 billion (US$31.7 million) into its joint venture ZF Foxconn Chassis Modules GmbH.
The electronics manufacturer said this was a long-term investment, with the Class A preferred shares being convertible, per CNA. The conversion price will be handled according to the transaction agreement, the company explained.
Foxconn announced last year in July that it would cooperate with Germany’s ZF Friedrichshafen AG to develop passenger car chassis systems, investing nearly NT$19 billion to acquire 50% of the common stock and Class A preferred shares of ZF Foxconn Chassis Modules GmbH.
Industry sources said ZF Foxconn Chassis Modules is a tier-one automotive supplier spun off from ZF’s axle assembly department. With this move, Foxconn has entered the European car manufacturing supply chain, sources explained.
Foxconn and ZF established its joint venture ZF Foxconn Chassis Modules on April 30, with Foxconn acquiring 50% of its shares.
