FCA in discussion with iPhone manufacturer Foxconn to manufacture EVs in China

Fiat Chrysler Automobiles N.V. confirmed that it is in discussions with Hon Hai Precision Ind. Co., Ltd. (Foxconn) regarding the potential creation of an equal joint venture to develop and manufacture in China new generation battery electric vehicles and engage in the IoV (Internet of Vehicles) business.

The proposed cooperation, initially focused on the Chinese market, 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.

The parties are in the process of signing a preliminary agreement which will govern further discussions aimed at reaching final binding agreements in the next few months. There is however no assurance that final binding agreements will be reached or will be reached in that timeframe.

China is the biggest market for EVs across the globe. Even though auto sales in the country have been sluggish in 2019, EV sales witnessed a growth of around 6% as compared to the previous year. FCA will be looking to tap into the growing demand for EVs with this collaboration.