Bloomberg reports Hon Hai Precision Industry Co, part of Foxconn Technology Group and among other things responsible for the assembly of Apple’s iPhones, plans to form a joint venture with Fiat Chrysler Automobiles (FCA) to develop and produce electric vehicles in China.
According to Hon Hai’s echange filings, the Taiwanese company will hold 50% of the joint venture with the remaining shares held by FCA. People familiar with the matter predict the two parties will sign a cooperation agreement in the first quarter of this year.
Hon Hai Chairman Liu Yangwei said that his company will be responsible for product design, component R&D and supply chain management, but will not participate in the process of automobile assembly. He also noted that in the future the new automotive business will account for only 10% of Hon Hai’s overall sales revenue.
Financially Hon Hai currently mainly relies on assembling iPhones. Apple’s orders account for half of the company’s revenue. In the past few years, the Taiwanese company has waded into a number of business ventures and invested in multiple electric car companies, none of which were successful.