Foxconn, Geely Plan Venture to Make Cars for Other Automakers

Andrew Cummings
January 14, 2021

IPhone assembler Foxconn Technology Group and the Chinese owner of Volvo Cars will set up a joint venture to provide contract manufacturing for global automakers, the companies said Wednesday.

Apple Inc.'s Taiwanese production lover Foxconn Technology Group is placing up a auto or truck undertaking, strengthening its automotive abilities at a time when technology companies such as its California ally are wanting to expand in vehicles.

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 must "actively embrace change build alliances, and synergize resources to create greater value for our users", he said, adding that Foxconn's expertise will offer important insight for the transformation and evolution of the automotive industry. Meanwhile, Foxconn has announced plans to help troubled Chinese electric auto startup Byton build its M-Byte SUV.

Its main listed company, Geely Automobile, has the capacity to build more than 2 million vehicles a year but sold only about 1.32 million in 2020.

They will each hold 50% of a venture that will also provide consulting services on electric vehicle (EV) technologies to automakers, the companies said in a statement.

Young-way Liu, Chairman of Foxconn Technology Group said: "This alliance between Geely Holding and Foxconn represents a milestone in cooperation between the automotive industry and ICT industry. Joining hands with Foxconn, Geely will leverage its systematic advantages in automotive design, engineering development, smart manufacturing, supply chain management and quality control to explore all-new approaches for the transition, upgrading and high-quality development of manufacturing industry", said Li Donghui, CEO of Geely Holding.

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