China-based Zhejiang Geely Holding Group (Geely) and Taiwan’s Foxconn Technology Group (Foxconn) have signed a strategic cooperative agreement to establish a joint venture to build cars for other EV automakers and expand their reach in the electric vehicle sector.
As per the agreement, each party will have an equal 50 percent stake in the JV that will provide automakers with consulting to assist their transition to "innovative and efficient manufacturing processes and business models based on Connected, Autonomous, Shared, and Electrified (CASE) technologies."
“The automotive industry is undergoing profound changes. We must actively embrace change, build alliances, and synergize resources to create greater value for our users,” said Daniel Donghui, CEO, Geely.
“Foxconn's professional capabilities, rich experience, and global layout in the ICT industry offer important insight for the transformation and evolution of the automotive industry."
As the market share of EVs grows rapidly, increased interest in the EV sector is being observed from the auto and the technology sector. With several governments introducing emission norms in the quest to bring carbon emission to net zero levels, mass adoption of EVs is considered to be a key pivot for this industry.
As per reports, the latest move by Foxconn (a chief Apple Inc supplier) into autos comes after a tie-up with Chinese electric car startup, Byton, and amid reports that Apple is likely to launch a self-driving electric car by 2024.
As for Geely, this is the second deal made by the company this week. Earlier, it had announced that it will work with Chinese search engine behemoth Baidu Inc to make electric vehicles.
According to reports, the partnership with Foxconn will also allow Geely to share its first EV-focused platform, launched in September, with other automakers.