Foxconn Technology Group, the world biggest contract smartphone makerÂ is a primary supplier of AppleÂ for itsÂ iPhones. Despite its big status in smartphone industry, it seems that the Taiwanese electronic giant isnâ€™t ready to based its hands on only making smartphones as it is forming a partnership with Fiat Chrysler (the automobile giant) to build electric carsÂ in China.
The filing of this sizable undertaking has been filed in Chinaâ€™s Market Observation Post System (MOPS), which reveals 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 Foxconnâ€™s parent company.
Initially, Fiat Chrysler and Foxconn will target mass production of the electric vehicles in China and will expand to foreign markets after the foundation is laid in the Southeast Asian country.
This looks 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.
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.