Electric, autonomous vehicles of the future may be manufactured by Apple’s main supplier Foxconn and Chinese automaker Zhejiang Geely Holding Group.
The two companies have agreed to form a joint venture focused on contract manufacturing for vehicle manufacturers, with a particular focus on vehicles designed for sharing, along with electrification, connectivity and autonomous driving technology. Each party will hold an equal 50% stake in the new joint venture. Five members of the Board of Directors will comprise three members along with Foxconn, with two companies to be appointed as chairman and Gioli Holding.
The agreement is followed by both companies to play a larger role in contract manufacturing for vehicle manufacturers. Earlier this week, Jelly said it would help China’s search giant Baidu set up a company to manufacture electric vehicles. Baidu will provide smart driving technology, while Geely will be in charge of car design and manufacturing. Meanwhile, Foxconn has announced plans to help Chinese electric car startup Baytan build its M-Bite SUV.
Jelly Holding Group CEO Daniel Donghui Li said the global automotive industry is undergoing profound changes. “Change must be able to actively form alliances, and coordinate resources to create greater value for our users,” he said, adding that Foxconn’s expertise is key insights for the transformation and development of the automotive industry Will provide.
The joint venture will provide consulting services to vehicle drivers as well as ride-sharing companies across vehicles, parts, intelligent drive systems and other automotive ecosystem platforms. Geely will bring its experience in the automotive areas of design, engineering, R&D, intelligent manufacturing, supply chain management and quality control, while Foxconn will become known for its manufacturing and information and communications technology (ICT).
The objective, the companies said, is to help automakers accelerate their transition to new innovative and efficient manufacturing processes and business models based on connected, autonomous, shared and electrified technologies (referred to in the industry as CASE).
With dozens of new companies aiming to become the next Tesla or trying to commercialize autonomous vehicles have grown in recent years, the Foxconn-Jelly venture has a long list of potential customers. One of the primary obstacles to building vehicles in volume is the billions of dollars required for factory construction and equipment. The need for capital has led many EV startups to become publicly traded companies by merging with a special purpose acquisition company. Canoo, Fisker, Lordstown Motors and Nikola Corp. There are some that have merged with SPAC, otherwise known as a blank-check company.
Young-Way Liu, chairman of Foxconn Technology Group, called the alliance a milestone in the collaboration between the automotive and information and communications technology (ICT) industries.
“With Foxconn’s globally leading R&D technologies, intelligent manufacturing and hardware-software integration capabilities, the two parties form a highly complementary partnership that allows us to better meet and provide for the diverse needs of different customers , And offers the most advanced, fastest, cost. -Experienced complete value-chain vehicle production service platform, “said Young-Wei Liu will partner Tremendous change in the development of the automotive industry.