Taiwanese Foxconn and Chinese automaker Zhejiang Geely Holding Group said on Wednesday they would join hands to provide contract manufacturing to automakers.
They will each own 50% of a company that will also provide consulting services on electric vehicle (EV) technologies to automakers, the companies said in a statement.
It marks the latest move by Foxconn, a major Apple supplier, in the automotive after a tie-up with Chinese electric car startup Byton and comes amid reports that Apple is likely to launch a self-driving electric car from here. 2024.
For Geely, the partnership will allow it to share its first platform dedicated to EVs, launched in September, with other automakers, according to people familiar with Geely’s plan.
It is also the second deal this week announced by Geely, which said it will work with Chinese search engine giant Baidu Inc to make electric vehicles.
Geely, which owns Volvo Cars and owns 9.7% of Daimler AG, wants to improve the capacity utilization rate of its factories in China, said the sources, who were not authorized to speak to the media and refused to ‘be identified.
Its main listed company, Geely Automobile, has the capacity to build more than 2 million vehicles per year but only sold 1.32 million in 2020. Geely Automobile plans to issue shares on the STAR board of China mainland this year.
Foxconn, whose official name is Hon Hai Precision Industry, declared in October its goal of providing components or services to 10% of the world’s electric vehicles by 2025-2027.
Shares of Geely climbed 1% on the news. Foxconn shares finished 2.4 percent higher ahead of the companies’ announcement.
© Thomson Reuters 2020
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