Mitsubishi Electric and Foxconn announced plans to transfer shares to pursue joint operation of the automotive equipment business. The transfer is expected to be completed in October 2027, at an assumed price of approximately ¥115 billion.
Mitsubishi Electric and Hon Hai Precision Industry (Foxconn) formally announced their intention to transfer shares in Mitsubishi Electric Mobility, which operates the group's automotive equipment business, and operate it jointly with Lin Yin International Investiment. The alliance is positioned as part of an initiative to establish an EV platform originating in Japan.
The transfer is expected to be priced at ¥115 billion, and Lin Yin, the transferee, is Foxconn's investment management company. Based on the valuation of the business, shares representing 50% of the enterprise value are expected to be transferred, with completion scheduled for October 2027.
The collaboration is expected to result in the recognition of an impairment loss of approximately ¥100 billion in the consolidated results for the fiscal year ending March 2027. The financial impact and earnings outlook are scheduled to be announced on 30 October 2026 following further review.