Apple supplier Foxconn founds e-mobility company with car maker Geely
Foxconn is taking another step towards becoming an automotive supplier. (Photo: Foxconn)
No time right now?
The Apple supplier Foxconn and the Chinese car maker Geely set up a joint venture. This should establish itself both as a contract manufacturer and as a consultant in the e-car industry.
The Taiwanese technology group Foxconn and the Chinese automaker Geely want nothing less than “revolutionize the model of the automotive industry”. With the combined power of information, communication and manufacturing technologies, the joint venture aims to support car manufacturers in accelerating the “transition to new, innovative and efficient manufacturing processes and business models”.
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Contract manufacturing and consulting: IT meets car manufacturing
Foxconn and Geely will each hold 50 percent of the company. However, there are three Foxconn people on the board and only two Geely representatives. Foxconn will also provide the managing director.
What the new company specifically wants to do is unclear. There doesn’t seem to be any customers or projects that would accompany the start. It is conceivable that the joint venture will focus on small electrical startups as customers – i.e. companies that would not be able to set up series production on their own.
Geely’s SEA platform could also play a role in this context. This was expressly presented as a platform for third-party providers in September 2020.
Service providers for smaller startups would be useful
This interpretation would fit in with the other activities of the two companies in the e-mobility sector. Foxconn entered into a partnership with Stromer manufacturer Byton in January. The aim of this partnership is to get the series production of the M-Byte going. The start of production is now planned for the beginning of 2022. Geely, in turn, works with the technology group Baidu. The aim of the cooperation is to develop and build electric cars for Baidu.
It is quite possible that both companies have learned from these projects that there is a general need for a service provider equipped with the corresponding know-how on the world market. Names like Canoo, Sono or Xpeng quickly come to mind.
