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Foxtron Acquires Yulon Motor’s Luxgen for $25 Million: Overview
- Foxtron Vehicle Technologies (a Foxconn subsidiary) agrees to acquire Luxgen from Yulon Motor for $25 million (NT$800 million) in a strategic transaction.
- The deal includes Luxgen’s brand, intellectual property, dealer network, and service operations; it excludes manufacturing assets.
- Yulon retains its production facilities and will focus on contract manufacturing for Foxtron and other partners.
- The transaction is expected to close by March 2026 and aims to streamline operations, boost EV development, and leverage Foxconn’s tech expertise.
- Luxgen, a Taiwanese brand since 2005, has struggled with sales; Foxtron plans to revitalize it with new electric models.
Foxtron Takes Over Luxgen in $25 Million Deal: Taiwan EV Push Gains Momentum
Taiwan’s automotive sector is witnessing a major realignment as Foxtron Vehicle Technologies, the electric vehicle arm of tech giant Foxconn, has agreed to acquire the Luxgen brand from Yulon Motor for $25 million (NT$800 million). Announced on December 19, 2025, the deal marks a strategic pivot for both companies in Taiwan’s evolving mobility landscape, where Foxconn is aggressively building an EV ecosystem while Yulon seeks to refocus on its core strengths.
Under the agreement, Foxtron will gain ownership of the Luxgen brand, its intellectual property, dealer network, and after-sales service operations. Yulon, Taiwan’s oldest automaker, retains its manufacturing plants and will transition to a contract manufacturing role, producing vehicles for Foxtron and potentially other partners. The transaction is expected to close by March 2026, pending regulatory approvals.
This move comes as Luxgen has faced declining sales and market challenges in recent years, while Foxtron ramps up its ambitions to become a major player in global electric mobility. By acquiring Luxgen, Foxtron gains an established domestic brand and distribution channel to accelerate its EV rollout in Taiwan and beyond.
Deal Breakdown: What Each Side Gains
| Party | Assets Gained/Lost | Strategic Benefit |
|---|---|---|
| Foxtron (Foxconn) | Luxgen brand, IP, dealer network, service operations | Instant market presence, distribution channels, brand equity |
| Yulon Motor | Sells Luxgen brand; retains factories | Streamlines operations, focuses on contract manufacturing |
The deal excludes Yulon’s production facilities, allowing the company to pivot toward supplying Foxtron’s EV projects and other OEMs. This asset-light approach for Foxtron aligns with its strategy of leveraging partnerships and tech expertise rather than building everything from scratch.
Luxgen’s Journey: From Taiwanese Icon to EV Revival
Launched in 2005 as a joint venture between Yulon and Nissan, Luxgen quickly became a domestic favorite with models like the Luxgen7 SUV and S3 sedan. Over time, however, competition from imports and local rivals eroded its position, with sales declining steadily.
For Foxtron, the acquisition offers a ready-made brand and infrastructure to launch its own electric lineup. Foxtron, established in 2020 as a Foxconn venture, has already partnered with Yulon on projects like the Foxtron Model C and Model T. Taking over Luxgen allows Foxtron to:
- Rebrand or refresh the lineup with EV models.
- Tap Luxgen’s dealer network across Taiwan.
- Integrate Foxconn’s tech strengths (batteries, semiconductors, smart systems).
Why This Deal Matters for Taiwan and Beyond
Taiwan’s automotive industry has long been overshadowed by its semiconductor dominance. Foxconn’s EV push, including its own Model C SUV and partnerships with global players, aims to change that. Acquiring Luxgen gives Foxtron a local foothold and accelerates its timeline to market.
For Yulon, the deal offloads a struggling brand while securing contract work. The move reflects broader industry trends: legacy makers shifting to contract roles as tech giants like Foxconn enter mobility.
In India and Asia, where Foxtron has interests, the deal signals growing ambition. Foxtron’s EV expertise could eventually influence regional strategies, especially as Chinese rivals like BYD expand aggressively.
The Road Ahead: Revival or Rebrand?
Post-acquisition, Foxtron plans to revitalize Luxgen with electric and smart models. The brand’s heritage and network provide a head start, but success hinges on competitive pricing, range, and features.
As Taiwan’s EV ecosystem matures, this $25 million deal could prove transformative—turning a fading nameplate into a flagship for Foxconn’s mobility ambitions.
Source: www.reuters.com
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