Fiat Chrysler & Foxconn Plan Push Into Chinese Electric Car Market


The filing of this sizable undertaking has been filed in China's Market Observation Post System (MOPS), which details that both companies own 50 percent of the venture equally.

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.

Fiat Chrysler now builds several vehicles in China for regional sales, including the plug-in hybrid Jeep Grand Commander, through a joint venture with Chinese automaker GAC.

In a move out of left field, the automaker could soon begin producing EVs in partnership with Foxconn, one of the companies that makes iPhones for Apple.

Young Liu, Foxconn's chairman, told the financial publication Foxconn "will be responsible for design, components and supply chain management".

Ambitious in his approach, Liu said that he aims to capture up to 10 percent of the market share in the electric-vehicle industry by 2025, or US$130 billion, as well as the digital health and robotics industries, through investments of about NT$10 billion per year over the next two to three years.

Hon Hai relies on Apple for about half of its sales.

The venture will initially focus on making electric vehicles for China.

The Chinese government has a credit-based system that encourages auto manufacturers to sell electric vehicles, leading to an increase in brands.

Hon Hai, which competes globally with companies such as Flex Ltd and Jabil Inc, might now be counting on transferring years of experience in manufacturing consumer electronics to an automotive arena that is increasingly going high-tech.

The Chinese electric vehicle space is getting crowded.

"The proposed collaboration ... would enable the parties to bring engineering and production and mobile software technology together to focus on the growing market for battery-electric vehicles", said Fiat Chrysler in a statement.

FCA 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.



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