Geely and Foxconn to establish a joint venture company, provide consulting service

KUALA LUMPUR: A strategic cooperative agreement has been signed by Zhejiang Geely Holding Group and Foxconn Technology Group under which the two will form a joint venture company. While the former is a well recognised Chinese automaker (X70 & X50 are re-badged versions of its cars), the latter is an electronics contract manufacturer, best known for its iPhone production.

Daniel Donghui Li, CEO of ZGH said, This cooperation between Foxconn and Geely is of great significance to both parties. The current global automotive industry is undergoing profound changes. We must actively embrace change, build alliances, and synergise global resources to create greater value for our end users,” He further added, “Foxconn’s professional capabilities, rich experience, and global layout in the ICT industry offer important insight for the transformation and evolution of the automotive industry. Geely will give full play to its advantages in the automotive fields of design, engineering, R&D, intelligent manufacturing, supply chain management, and quality control while joining forces with Foxconn to develop together and explore new pathways for transforming, improving, and achieving high-quality development of the manufacturing industry.”

This newly formed joint venture will offer comprehensive customised consulting and OEM production services for whole vehicles, intelligent drive systems, parts, automotive ecosystem platforms. It will also take care of the EV industry value chain to global auto manufacturers.

As per Geely and Foxconn, the newly formed joint venture company will fully revolutionise the auto industry by the introduction of the Information and Communication Technology division of labour. The ICT division will enable car makers to enhance ``their transition to new innovative and efficient manufacturing processes and business models based on CASE (Connected, Autonomous, Shared, and Electrified) technologies”.

Both Geely and Foxconn are 50% stakeholders in the joint venture company that will have five board members - two appointed by the automaker and three by the contract electronic manufacturing giant.

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