Taipei: Shares in Foxtron Vehicle Technologies Co., a Taiwanese electric vehicle developer, rose significantly on Monday following the company's announcement over the weekend regarding its acquisition of Luxgen Motor's assets from Yulon Motor Co., a leading automaker in Taiwan. This move signals a strategic expansion in Foxtron's capabilities within the electric vehicle market.
According to Focus Taiwan, Foxtron shares closed at NT$41.00 (US$1.30), marking a 3.80 percent increase on the Taiwan Stock Exchange. The acquisition, valued at NT$787.6 million, involves Luxgen's assets, including five sales dealers, sales offices, and employees, thereby establishing a comprehensive EV distribution and services network in Taiwan. The transaction, set to be completed in the first quarter of next year pending approval from the Fair Trade Commission, highlights the joint venture between Hon Hai Precision Industry Co, globally recognized as Foxconn, and Yulon Motor.
Despite Foxtron's gains, Yulon shares fell sharply by 9.79 percent, closing at NT$34.55. Analysts attributed this decline to investors capitalizing on recent gains as the acquisition deal concluded. Yulon Motor will retain the Luxgen brand post-sale, maintaining its presence in the automotive sector.
Luxgen, established in 2009 by Yulon's late Chairman Kenneth Yen, embodies a blend of "Luxury" and "Genius" concepts. Previously, Luxgen produced the n7 sport utility vehicles based on the Model C EV prototype unveiled by Hon Hai. The n7 model commenced commercial production in the fourth quarter of 2023, with Luxgen delivering 10,162 units. Additionally, Luxgen holds 700-800 n7 units in inventory, with plans to continue sales.
Following the acquisition, Foxtron plans to outsource production of future models and introduce EVs under the Foxtron Bria model, built on Hon Hai's Model B urban car platform. The company intends to first launch the Model B in Taiwan before expanding sales to international markets next year. Furthermore, Foxtron aims to leverage Luxgen's existing sales and services network to promote a contract design and manufacturing service (CDMS) model under Hon Hai, targeting overseas markets.