Foxconn, Geely Form Partnership to Build Cars for Other Automakers

Under the agreement, the Apple supplier will provide the automaker with its manufacturing technologies, operation & management experience as well as industrial resources.

Shanghai (Gasgoo)- Zhejiang Geely Holding Group (Geely Holding) and Foxconn Technology Group (Foxconn) agreed on January 13 to build a joint venture that works on offering contract manufacturing service and tailor-made counseling to global automakers and mobility service providers, according to Geely Holding.

The two companies will each hold 50 percent of the joint venture each.

It has agreed to start building electric sport-utility vehicles in 2022 with Chinese startup Byton. As a result of an interview with Korea Economic Daily on the 8th, it was confirmed that Apple is in the process of negotiating and proposing cooperation with the Hyundai Motor Group to launch an Apple auto.

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The joint venture will be 50/50 held by Geely and Foxconn.

It was the second deal to be announced this week by Geely, which linked up with Chinese search giant Baidu to co-develop intelligent electric vehicles.

Geely Holding Group CEO Daniel Donghui Li said that the global automotive industry is undergoing profound changes. Among the five members of the board of directors, three are from Foxconn.

Amid studies of Apple taking into consideration making its very own electrical autos, Foxconn has been bulking up its automotive muscle mass quickly. The joint venture with Foxconn will introduce a model of information and communication technology, aiming to help clients in areas beyond the existing auto industry model and accelerate the transformation of innovative and efficient manufacturing supply-chain systems and business models. This could make Foxconn a prime manufacturing partner, much in the same way that the Taiwanese company now assembles iPhones and other devices for Apple.

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