Geely, Foxconn team up for auto joint venture

HANGZHOU, Jan. 14 (Xinhua) -- Chinese automaker Zhejiang Geely Holding Group (Geely Holding) and Foxconn Technology Group (Foxconn) have signed a strategic cooperative agreement to establish a joint venture company providing original equipment manufacturer (OEM) production and comprehensive customized consulting services.

The new company will produce goods and offer services relating to whole vehicles, parts, intelligent driving systems, automotive ecosystem platforms and the electric vehicle industry value chain to global automotive enterprises.

According to the agreement, the new joint venture will upgrade the automotive industry model by introducing the Information and Communication Technology (ICT) division of labor to help automakers accelerate their transitions to innovative and efficient manufacturing processes and business models based on CASE (Connected, Autonomous, Shared, and Electrified) technologies.

Each party will hold an equal 50 percent stake in the new joint venture.

"This alliance between Geely Holding and Foxconn represents a milestone in cooperation between the automotive industry and ICT industry," said Young-way Liu, chairman of Foxconn Technology Group.

The global automotive industry is undergoing profound changes, according to Geely Holding CEO Li Donghui. "Geely will give full play to its advantages in the automotive fields of design, engineering, research and development, intelligent manufacturing, supply chain management, and quality control while joining forces with Foxconn to develop together and explore new pathways for transforming, improving and achieving the high-quality development of the manufacturing industry."