iPhone manufacturer Foxconn is stepping into the electric vehicle game, because of a planned joint venture with Italian-American auto manufacturer Fiat Chrysler (FCA). Foxconn declared Thursday that the two firms would combine forces to make automobiles for the Chinese marketplace, with FCA handling the manufacturing and the Taiwanese tech titan managing the electronics and software.
The two corporations have not yet sealed a contract, in keeping with a filing on Taiwan’s stock exchange; however, Nikkei reports that they’ve been discussing for months.
FCA, which manages its eponymous models as well as ones like Jeep and Dodge, has lagged behind its rivals in embracing electric vehicle expertise.
The company recently announced a merger with French automaker PSA Group, which manufactures cars under the Peugeot and Citroën brands, partly in order to better attack the altering automotive panorama.
The Italian-American auto manufacturer has further achieved some due diligence on a number of struggling EV startups in the U.S. in an attempt to speed up its electric ambitions.
Aided by government policies and grants, China has become the largest market for electric autos in the globe, and it continued to grow last year, regardless of a slump in the nation’s overall automotive market.
Electric vehicle sales increased by 6% last year compared to 2018, despite the total car sales dropping by 8%. And regardless that China’s economy is cooling off after decades of rapid progress, the EV market there’s anticipated to easily oust those in Europe and the U.S. in the coming decade.