Geely and Foxconn form partnership to build cars for other automakers

Geely and Foxconn will each own 50% of a company that will also provide advice on electric vehicle (EV) technologies to automakers, the companies said in a statement.

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For Geely, the partnership will allow it to share its first platform dedicated to EVs, launched in September

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 supplier to Apple Inc, in the automotive after a tie-up with Chinese electric car startup Byton and comes amid reports that Apple will likely launch an autonomous electric car by 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 Co Ltd, in October declared its intention to provide 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% higher ahead of the companies’ announcement.

(This story was not edited by The Bharat Express News on Social Platforms.)

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