Geely Holding Group and Foxconn Technology Group signed a strategic cooperative agreement on 13th January to form a joint venture providing OEM and customized consulting services, including whole vehicles, parts, intelligent drive systems, automotive ecosystem platforms to global automotive enterprises and ridesharing companies.
Providing one-stop service from design to production
The new joint venture company will introduce the Information and Communication Technology (ICT) division of labor to the automotive industry model in helping automakers accelerate their transition to new and efficient manufacturing processes and business models based on CASE (Connected, Autonomous, Shared, and Electrified) technologies.
This is aimed at providing a one-stop service for automotive makers from design to production.
According to the agreement, each party will hold an equal 50% stake in the new joint venture. The board of directors will consist of five members with Foxconn appointing three including the Chairman and Geely Holding appointing two.
“A milestone for the automotive and ICT industry”
Young-way Liu, Chairman of Foxconn, believes the cooperation is going to result in a tremendous transformation in the development of the automotive industry.
“This alliance between Geely Holding and Foxconn represents a milestone in the cooperation between the automotive industry and ICT industry, “ he said, “ we will offer the most advanced, fastest, cost-effective full value-chain vehicle production service platform.”
Daniel Donghui Li, CEO of Zhejiang Geely Holding Group, said “The current global automotive industry is undergoing profound changes. We must actively embrace change, build alliances, and synergize resources to create greater value for our users. Foxconn’s professional capabilities, rich experience, and global layout in the ICT industry offer important insight for the transformation and evolution of the automotive industry.”
He adds “Geely Holding Group will give full play to its advantages in the automotive fields of design, engineering, R&D, 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 high-quality development of the manufacturing industry.”