Fiat Chrysler Automobiles and Foxconn (Hon Hai Precision Industry Co.) plan to set up a joint venture to build electric cars and develop internet-connected vehicles.
FCA confirmed on Friday it was in talks with Hon Hai on the potential creation of a 50-50 joint venture to develop and manufacture new generation full-electric vehicles in China and engage in the IoV (Internet of Vehicles) business.
The initial focus will be on the Chinese market, with exports coming later, according to the automaker.
FCA said it is in the process of signing a preliminary agreement with Foxconn aimed at reaching final binding agreements in the next few months.
FCA's statement came after Taiwan's Hon Hai, the parent of Foxconn, the Chinese assembler of Apple iPhones, announced the potential joint venture in a separate statement.
Hon Hai said it would hold its 50 percent share both directly and indirectly and its direct shareholding would not exceed 40 percent. The two companies plan to target the China market first and consider exporting cars later.
"Hon Hai will be responsible for design, components and supply chain management," Chairman Young Liu told Bloomberg News. He said that the company will not get into car assembly.
Source: AutoMotive News 17.1.2020