TOKYO, April 24 (Reuters) - Mitsubishi Electric signed a memorandum of understanding with Foxconn on Friday to explore a strategic alliance covering their automotive equipment businesses, with Mitsubishi Electric considering transferring a 50% stake in its automotive unit to the Taiwanese manufacturer.
The proposed alliance targets electrification, autonomous driving, and software-defined vehicle technologies and would build on their existing collaboration.
o Mitsubishi Electric is considering transferring 50% of shares in its automotive subsidiary, Mitsubishi Electric Mobility, to Foxconn as part of the joint operation framework.
o Under the envisioned structure, Mitsubishi Electric Mobility would use Foxconn's capabilities and networks to supply an electric vehicle platform from Japan, including powertrain and autonomous driving technologies.
o The alliance is described as intended to support sustainable growth of Japan's automobile industry and strengthen its industrial base.
o Mitsubishi Electric said it will proceed with discussions and promptly disclose any matters requiring announcement.
o No financial terms, timeline, or conditions for the potential stake transfer were disclosed.
(Reporting by Chang-Ran Kim and Mariko Katsumura)
