TAIPEI (The China Post/ANN) — Taiwan’s Foxconn will join hands with Chinese automaker Zhejiang Geely Holding Group to provide contract manufacturing for automakers, the companies said in a statement on Wednesday.
Foxconn and Geely will form a joint venture that will also provide electric vehicle (EV) consulting services to automakers, the companies said amid reports that Apple is on track to launch a self-driving electric car by 2024.
The latest move by Foxconn, whose official name is Hon Hai Precision Industry Co. Ltd., a major Apple Inc supplier, follows a recent tie-up with Chinese electric car startup Byton into the automobile industry.
Foxconn said in October that it plans to supply components and services for 10 percent of the world’s electric vehicles by 2025 and 2027.
Geely, which owns Volvo Cars and holds 9.7 percent of Daimler AG, also announced this week a partnership with Chinese search giant Baidu Inc. to make electric vehicles.
The partnership will allow it to share its first platform focused on electric vehicles, which launched in September, with other automakers.
Geely Automobile has the capacity to build more than 2 million vehicles a year but sold only about 1.32 million by 2020.
Geely Automobile plans to issue shares on the mainland Chinese stock exchange later this year, according to its website.
Geely shares climbed 1 percent after the news and Foxconn shares closed 1.5 percent higher on the Hong Kong Stock Exchange on Friday.