Fiat Chrysler Automobiles (FCA) and iPhone manufacturer Foxconn are joining forces to begin making electric vehicles (EVs). Fiat Chrysler will be responsible for 50% stakes while the Taiwanese electronics giant Foxconn will hold around 40%.
“Our initial plan is to manufacture in China for the local market first,” with exports possible later, Foxconn said, adding that the venture will also focus on the “internet of vehicles.”
China is the largest market for electric vehicles receiving aid from government policies and subsidies. In 2019 they saw a 6% increase in EV sales despite seeing overall car sales drop by 8%.
As originally reported by Nikkei Asian Review, FCA and Foxconn have been discussing this for the past seven or eight months. “Fiat Chrysler will be in charge of the carmaking, while Foxconn supports the electronics know-how including hardware and software.”
Foxconn chairman Young Liu also told Nikkei that he is hopeful that this move into EVs may end up accounting for up to 10% of the company’s overall sales.
FCA released a statement saying the two companies are in the process of signing a preliminary agreement, hopeful to have a binding contract within a few months, they said:
It would enable the parties to bring together the capabilities of two established global leaders across the spectrum of automobile design, engineering and manufacturing and mobile software technology to focus on the growing battery electric vehicle market.
If this merger with Foxconn is successful then it could jumpstart FCA into the EV market. They hope that they can create a product that will connect the owner to the internet.
FCA is joining the electric market a bit behind many of the other major automobile manufacturers like Volkswagen, Ford, GM, Toyota, and of course Tesla who recently reported they are producing up to 3,000 Model 3 cars per week at the new Gigafactory Shanghai.
