Taiwan-based electronics giant Hon Hai Precision Industry Company, well known as Foxconn, has reached a strategic agreement with China’s Zhejiang Geely Holding Group this week to manufacture electric vehicles, components and advanced systems for third-party companies. Announced that it has signed.
Each partner holds a 50% stake in the joint venture, produces electric vehicles and provides components and services to third-party companies seeking to outsource production. Details of the location of the new company and when the service will be available have not been disclosed.
Foxconn said in a statement that the two companies will “provide OEM and customized consulting services for all vehicles, components, intelligent drive systems and automotive ecosystem platforms to automotive and ride-sharing companies worldwide.” He said he would establish it.
The company said, “The new joint venture will revolutionize the automotive industry model by introducing the division of labor in information and communication technology (ICT), and automakers will have a new innovative and efficient manufacturing process based on CASE (Connected, Autonomous). And help accelerate the transition to business models. (Sharing and electrification) technology. “
Young-way Liu, Chairman of Foxconn Technology Group, said: “This partnership between Geely Holding and Foxconn is a milestone in collaboration between the automotive and ICT industries. They form a very complementary partnership to better service and respond to the diverse needs of different customers. We provide the most advanced, fastest and most cost-effective full value chain vehicle production service platform. “
“The global automotive industry is undergoing major changes. To create greater value for end users, we are willing to embrace change, build partnerships and synergize global resources,” said Daniel Donghui Li, CEO of Geely. It is necessary to utilize it as a target. ” He said the Geely Holding Group will provide “automobile design, engineering, R & D, intelligent manufacturing, supply chain management and quality control expertise” to help “transform, improve and achieve high quality development in manufacturing”. I added.
Analysts believe the joint venture will be a strong position to accommodate the growing number of technology companies such as Baidu and Apple that are considering entering the smart electric vehicle segment. Outsourcing the production of smart EVs, advanced systems and design / engineering services has the potential to become a significant growth segment over the last decade.
Earlier this month, Foxconn agreed to provide support to Chinese EV startup Viton and begin production of its first battery-powered vehicle in the first quarter of 2022. Last year, it announced a partnership with Fiat Chrysler to develop and manufacture electric vehicles in China.
Foxconn, Geely Manufacturing EVs / Components for Third Party | Automotive Industry News
Source link Foxconn, Geely Manufacturing EVs / Components for Third Party | Automotive Industry News