In a joint release detailing their memorandum of understanding, the companies launched Project PEAR (Personal Electric Automotive Revolution): the creation of a Fisker-branded "breakthrough electric vehicle" which will be manufactured by Foxconn at the projected annual volumes of more than 250,000 starting in the fourth quarter of 2023.
"The creation of Project PEAR with Foxconn brings together two likeminded and complementary companies, each focused on creating new value in a traditional industry," Fisker Chairman and CEO Henrik Fisker said. "We will create a vehicle that crosses social borders while offering a combination of advanced technology, desirable design, innovation and value for money, whilst delivering on our commitment to create the world’s most sustainable vehicles."
"The Fisker and Foxconn partnership brings together two global leaders in innovation that will join forces to unlock the potential of the electric vehicle industry," Foxconn Technology Group Chairman Young-way Liu added.
The companies also said they would enter a formal agreement in the second quarter of 2021.
The vehicle will be California-based Fisker's second vehicle on the heels of the launch of the Ocean SUV -- in partnership with Magna International -- in 2022. The startup-turned-special-purpose-acquisition company (SPAC) plans to unveil a production-intent prototype of the Ocean later this year.
Foxconn, which is best known as the manufacturer of Apple's iPhone, has partnered with automakers before, though its deal with Fisker is the first with a U.S.-based electric-vehicle company.
Previously, the world’s largest electronics manufacturer worked on other electric vehicle ventures including deals with Chinese electric-car maker Byton Ltd. and automakers Zhejiang Geely Holding Group and the then-Fiat Chrysler Automobiles N.V.
While it remains unclear where initial production will start, Fisker told The Wall Street Journal there is a good chance it will be in the U.S.; Foxconn has a factory in Wisconsin.
Simon Sproule, Fisker's senior vice president of communications, told FOX Business that this venture marked big step for both companies and that it was "likely" the vehicle would be made in America.
"The auto industry is a global industry and it serves global markets. But, every country is naturally interested in homegrown technologies, homegrown jobs," he said, noting that the company was hopeful it would be a good manufacturer of opportunities in the U.S.
"I think what you've seen over the last probably two or three years is the auto industry now globally reaching a tipping point in terms of the transition to electric vehicles," Sproule said.
Sproule predicted that as the age of the internal combustion engine concludes, mass adoption of electric cars will follow -- signified by the large number of new electric vehicle companies and established automakers' shift in focus toward electric cars.
"It's not happening just in the U.S., it's happening everywhere around the world and it's a part of a pretty seismic shift in the industry really," said Sproule.
He believes the market will "blossom" in years to come.
"And, I think a vehicle like the one that we're talking about with Foxconn, I think will serve us very well. So, we're very excited about the opportunity it gives us," Sproule concluded.
Fisker, which was founded in 2016, went public in October.