Foxconn, Geely team up to build electric, autonomous and shared vehicles for automakers – ProWellTech
The electric and autonomous vehicles of the future could be produced by the main Apple supplier Foxconn and the Chinese carmaker Zhejiang Geely Holding Group.
The two companies agreed to form a joint venture focused on contract manufacturing for automakers, with a specific focus on electrification, connectivity and autonomous driving technology, as well as vehicles designed for sharing. Each party will hold a 50% stake in the new joint venture. The board of directors will be made up of five members with Foxconn appointing three, including the chairman and Geely Holding appointing two, according to a statement released by the two companies.
The deal follows both companies’ moves to take on larger roles in contract manufacturing for automakers. Earlier this week, Geely said he would help Chinese research giant Baidu set up an electric vehicle manufacturing company. Baidu will provide intelligent driving technologies while Geely will be responsible for the design and manufacture of automobiles. Meanwhile, Foxconn has announced plans to help troubled Chinese electric car startup Byton build its M-Byte SUV.
Geely Holding Group CEO Daniel Donghui Li said the global auto industry is undergoing profound changes. Geely must “actively embrace change, build alliances and synergize resources to create greater value for our users,” he said, adding that Foxconn’s experience will offer important insights into the transformation and evolution of the automotive industry.
The joint venture will provide consultancy services on entire vehicles, parts, intelligent drivetrains and other platforms of the automotive ecosystem to automakers and ride-sharing companies. Geely will bring its expertise in automotive design, engineering, research and development, smart manufacturing, supply chain management and quality control while Foxconn will bring its manufacturing and information and communication technology (ICT) know-how. .
The goal, the companies said, is to help automakers accelerate their transition to new innovative and efficient manufacturing processes and business models based on connected, autonomous, shared and electrified technologies (referred to in the CASE industry).
Dozens of new companies aiming to become the next Tesla or looking to market autonomous vehicles have sprung up in recent years, giving this Foxconn-Geely firm a long list of potential customers. One of the main obstacles to the production of volume vehicles is the billions of dollars needed to build and equip a factory. This capital need has prompted a number of electric vehicle startups to become publicly traded companies by merging with a special purpose acquisition company. Canoo, Fisker, Lordstown Motors, and Nikola Corp. are some who have merged with a SPAC, otherwise known as a blank check company.
Young-way Liu, president of Foxconn Technology Group, called the alliance a milestone in cooperation between the automotive and information and communication technologies (ICT) sectors.
“With Foxconn’s globally leading R&D technologies, intelligent manufacturing and hardware-software integration capabilities, the two sides form a highly complementary partnership that allows us to better serve and meet the diverse needs of different customers. and to offer the most advanced, fastest, most-effective comprehensive value chain vehicle manufacturing service platform, “Young-way Liu said, adding that the partnership will bring about a huge change in the development of the automotive industry.