China: Fiat Chrysler and Foxconn build electric cars

Foxconn builds electric cars in the future: The Taiwanese contract manufacturer and the Italian-American automaker Fiat Chrysler Automobiles (FCA) want to establish a joint venture that will build electric cars.

Both companies have been negotiating a collaboration for more than half a year, reports the Japanese business newspaper Nikkei Asian Review citing two sources with knowledge of the matter. A contract has not yet been signed. That is planned for the first quarter of this year.

FCA will hold 50 percent of the joint venture, while Foxconn will hold no more than 40 percent, Nikkei reports, citing Foxconn. The tasks are shared: FCA will build the cars, Foxconn will take over the electronics and software through its subsidiaries FIT Hon Teng and FIH Mobile. FIT Hon Teng manufactures automotive components, FIH Mobile manufactures Android smartphones.

Foxconn CEO Liu Young-way had already announced in June that the company would focus on three new areas that should bring more growth than the smartphone division. On the one hand, there are electric cars, on the other hand, digital medical technology and robots.

China is the largest market for electric cars

The vehicles built by FCA and Foxconn will first be sold in China. The Asian country is currently the largest market for electric cars. In the past, however, FCA, led by CEO Sergio Marchionne, who passed away last year, has foregone large investments in electric drives. The main brands of the group are Jeep and Ram.

However, FCA recently announced a merger with Groupe Peugeot Société Anonyme (PSA). The French group, which owns the Citroën, DS and Peugeot brands and since 2017 Opel and Vauxhall, has expertise in electromobility. With E-CMP, PSA has already developed an electrical platform and some vehicles like that Opel Corsa-e, the Peugeot e-208 and the DS 3 Crossback E-Tense,

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