Published: Sat, January 18, 2020
Electronics | By Kelly Massey

Fiat Chrysler and Foxconn plan Chinese electric vehicle joint venture

Fiat Chrysler and Foxconn plan Chinese electric vehicle joint venture

However, it seems that the electronics company isn't exclusively based around smartphones as it is forming a joint venture with Fiat Chrysler (the automobile giant) to build electric cars in China. -Italian automaker said Friday.

Fiat Chrysler merges with the French PSA Peugeot, which is 12 percent owned by the Chinese company Dongfeng Motor Co. This seems like a very practical move from an automobile industry standpoint as China is the largest electric vehicle market in the world.

The automaker said in a statement that it is giving details about a joint venture to manufacture electric vehicles and "participate in the vehicle Internet business".

If an agreement is reached with Foxconn, a joint venture will initially focus on China, the largest market for electric cars with 1.2 million vehicles sold past year - half of the total worldwide.

"The proposed cooperation, initially focused on the Chinese market, would allow the parties to gather the capabilities of two established world leaders across the spectrum of auto design, engineering and manufacturing and mobile software technology to focus on the growing electric vehicle market with batteries, "the statement added".

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FCA said it was in the process of signing a preliminary agreement with Hon Hai, aiming to reach final binding agreements in the next few months.

Two unlikely companies can join forces to face China. Previously, the contract smartphone manufacturer has invested in ventures dealing with electric vehicles, but this will be the first as the company will actually develop and manufacture its own products.

Companies including General Motors Co. and Toyota Motor Co. have electric vehicle joint ventures with Chinese partners to take advantage of their experience at making low-priced vehicles.

The trend has led to a complicated mix of tires between competitors.

In addition to its stake in PSA Peugeot, Dongfeng also has joint ventures with Nissan Motor Co., Kia Motor Co. and Groupe Renault, all of which include electric models.

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