The new joint venture aims to "revolutionise the automotive industry model by introducing the Information and Communication Technology (ICT) division of labour to help automakers accelerate their transition to new innovative and efficient manufacturing processes and business models based on CASE (Connected, Autonomous, Shared, and Electrified) technologies".
Foxconn - a Taiwanese electronics contract manufacturer, and Chinese automaker Geely have formed a joint venture to build cars on contract for other vehicle manufacturers.
It marks the latest move by Foxconn, a major Apple Inc supplier, into autos after a tie-up with Chinese electric vehicle startup Byton and comes amid reports that Apple is likely to launch a self-driving electric vehicle by 2024.
The joint venture will be 50/50 held by Geely and Foxconn. Earlier this week, it announced a partnership with Baidu - a Chinese search engine, to develop electric vehicles.
Auto enterprises need to take the initiative to embrace changes, seek extensive alliances and coordinate resources, Geely CEO Li Donghui said in a statement. Among the five members of the board of directors, three are from Foxconn. Geely said the cooperation with Foxconn is different from the partnership with Baidu.
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". Chairman Liu Young-way said it aims to provide components or services to 10% of the world's electric vehicles in five to seven years and has been in talks with multiple auto manufacturers for future cooperation.