Published: Sun, January 19, 2020
Electronics | By Kelly Massey

Fiat Chrysler and Foxconn plan push into Chinese electric car market

Fiat Chrysler and Foxconn plan push into Chinese electric car market

Documents filed by Foxconn to authorities have revealed that the two companies are looking to establish a 50/50 joint venture to build these EVs.

Fiat Chrysler now builds several vehicles in China for regional sales, including the plug-in hybrid Jeep Grand Commander, through a joint venture with Chinese automaker GAC.

Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), seeks to diversify from its role as the assembler of a swathe of the world's electronics, from Apple Inc's MacBook to Sony Corp's PlayStation.

Apple supplier Foxconn has started a new joint venture deal with Fiat Chrysler to develop electric vehicles and the "internet of vehicles", the Nikkei reported, citing a regulatory filing. This seems like a very practical move from an automobile industry standpoint as China is the largest electric vehicle market in the world.

It "would enable the parties to bring together the capabilities of two established global leaders across the spectrum of automobile design, engineering and manufacturing and mobile software technology to focus on the growing battery electric vehicle market", FCA said.

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The aim is to reach a binding agreement in the next few months, though there's no guarantee of that timeframe, it added.

The joint venture with Hon Hai will produce vehicles for the Chinese market, but many details of the accord are still to be worked out, one source close to the matter said, adding that a final deal was expected to be signed in the coming months.

FCA Chief Executive Mike Manley a year ago said the group had "streamlined" the structure of its Chinese partnership and appointed a new leadership to improve its competitiveness. And Foxconn is also an investor in XPeng Motors, the Chinese electric vehicle startup that recently raised a fresh injection of $400 million in capital and has taken on Xiaomi as a strategic investor. -Italian automaker said Friday.

While Chinese consumers buy more electric vehicles than anywhere else in the world, sales have slumped since the government pared back subsidies amid a broader downturn in market demand.

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