Hon Hai’s subsidiary, Hon Teng Precision Technology (FIT), has made a significant move in the electric vehicle market with the acquisition of PRETTL SWH Group, a German automotive wiring harness factory, for 186 million euros (approximately 1.373 billion yuan). This acquisition will allow FIT to expand its capabilities in the electric vehicle market, as the strength of key car components is expected to be completed in the second quarter.
PRETTL SWH Group is a leading manufacturer of automotive wiring harnesses and has a reputation for producing high-quality components. The acquisition of this factory will give FIT access to advanced manufacturing technologies and a skilled workforce, allowing them to produce components that meet the high standards of the automotive industry.
This acquisition is a strategic move for FIT, as it will allow them to vertically integrate their supply chain and strengthen their position in the electric vehicle market. By controlling the production of key components, FIT can ensure the quality and reliability of its products, which is crucial in the highly competitive automotive market.
According to Hong Teng, this acquisition is expected to bring in annual revenue contributions of 350 million euros to 400 million euros (about 2.583 billion yuan to 2.952 billion yuan) in the short term. It is also expected to improve Hongteng's product mix and overall gross profit margin, as well as expand its global manufacturing, sales, and technical layout of key electric vehicle components.
This acquisition is a significant move for Hong Teng as they continue to grow its presence in the electric vehicle market. The acquisition of PRETTL SWH Group will give them access to advanced manufacturing technologies and a skilled workforce, allowing them to produce high-quality components that meet the standards of the automotive industry.
PRETTL SWH Group, the recently acquired German automotive wiring harness factory by Hon Teng Precision Technology (FIT), a subsidiary of Hon Hai, is reportedly composed of three major departments: the sensor department, the vehicle power management department, and the connector data transmission system department. These departments correspond to Hon Teng's current strategic development direction for electric vehicles, including power management, car networking, and human-machine interface.
PRETTL SWH Group is headquartered in Pfulingen, Germany and has 18 branches in more than 10 countries around the world, employing approximately 8,000 professionals globally. This acquisition will give Hon Teng access to the advanced manufacturing technologies and skilled workforce of PRETTL SWH Group, allowing them to produce high-quality components for the electric vehicle market.