Fiat Chrysler and Foxconn plan to bring electric cars to China
Fiat Chrysler are in talks with Hon Hai on the possible creation of a 50-50 joint venture to develop and manufacture battery electric vehicles in China
Automaker Fiat Chrysler is joining forces with the parent company of iPhone assembler Foxconn to build electric cars and develop internet-connected vehicles.
Fiat Chrysler said it was in talks with Foxconn parent Hon Hai, on the possible creation of a 50-50 joint venture to develop and manufacture battery electric vehicles in China and to engage in the ‘Internet of vehicles’, business. Foxconn assembles iPhones in China.
The car maker is looking to make up ground in the battery-powered vehicle space and is set to launch its first full-electric model, the 500 small car, this year.
Hon Hai said it would hold its 50 per cent share in the venture both directly and indirectly and said its direct shareholding would not exceed 40 per cent.
Last month, Fiat Chrysler reached a $50bn (£38.33bn, €42.6bn) agreement for a tie-up with France’s PSA which will create the world’s fourth-largest carmaker.
The Italian-American carmaker said it was in the process of signing a preliminary agreement with Hon Hai, aiming to reach final binding agreements in the next few months.
However, it said there was no assurance that final binding agreements would be reached or would be completed in that timeframe.
Foxconn also has invested in Chinese battery giant CATL and a several other mostly Chinese transportation tech start-ups.
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