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World’s biggest contract smartphone manufacturer, Foxconn partners with Fiat to build Electric Cars

Foxconn Technology Group is a well known name in the smartphone industry. The Taiwanese giant is a primary supplier of Apple for its iPhones and by its extension one of the world’s largest contract smartphone manufacturers. However, it seems that the electronics company isn’t solely based around smartphones as it is forming a joint venture with Fiat Chrysler (the automobile giant) to build electric cars in China.

Foxconn
Foxconn is one of the world’s largest contract smartphone manufacturer with notable clients like Apple

The filing of this sizable undertaking has been filed in China’s Market Observation Post System (MOPS), which details that both companies own 50 percent of the venture equally. The main objective of this joint venture is to produce electric vehicles in China and start an IOV. This stands for Internet of Vehicles (after IoT or Internet of Things devices) as coined by the Foxconn’s parent company.

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Initially, Fiat Chrysler and Foxconn will aim to mass produce electric vehicles in China and will expand to foreign markets after the foundation is laid in the Southeast Asian country. This seems like a very practical move from an automobile industry standpoint as China is the largest electric vehicle market in the world. Notably, the filing also states that the joint venture aims to develop electric vehicles from scratch. In other words, they are not planning on simply making the existing Fiat offerings into electric versions.

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Foxconn
Fiat Chrysler Automobiles (FCA logo)

The collaboration with Foxconn will also help Fiat gain a solid footing in the Chinese market. Previously, the contract smartphone manufacturer has invested in ventures dealing with electric vehicles, but this will be the first as the company will actually develop and manufacture its own products. A good example of past investment is Byton, an electric vehicle startup. This began as the Future Mobility Corporation, which was a joint venture between Harmony Auto, Foxconn, Tencent and now even Xiaomi as a strategic investor.

 

(Via)

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