Fiat Chrysler & Foxconn Plan an Electric Vehicle Joint Venture in China
Italian American automaker Fiat Chrysler is looking to bolster its presence in China and plans to build electric vehicles for the world's biggest auto market in a new joint venture.
Taiwan's Hon Hai, the parent company of Foxconn, plan to set up a joint venture with Fiat Chrysler to manufacture electric vehicles and to engage in the business of wirelessly connected vehicles, Hon Hai said on Thursday.
Hon Hai's parent company Foxconn is best known as the assembler of Apple's iPhone in China.
Each company will own a 50% stake in the joint venture, Hon Hai said in a statement. Reuters reports that Hon Hai would hold its 50% share both directly and indirectly and its direct shareholding would not exceed 40%.
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.
Foxconn has been investing in a variety of future mobility ventures for several years, including Didi Chuxing, the Chinese ride-hailing equivalent of Uber, and Chinese electric vehicle startups Xpeng and Byton.
In Jan 2018, Foxconn together with Alibaba led a 2.2 billion yuan ($347.74 million) funding round in Xpeng.
In 2017, Foxconn invested $145 million in Chinese battery maker Contemporary Amperex Technology (CATL). Separately, CATL has entered deals with automakers Daimler and Volkswagen to supply EV batteries for future electric models.
FCA is set to launch its first full-electric model later this year. The EV will be an electrified version of the popular Fiat 500 compact car called the 500e.
Last month, FCA last month reached a binding agreement for a $50 billion tie-up with France's Group PSA, Europe's 2nd largest carmaker. The deal will create the world's 4th largest carmaker.
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