Chinese automaker Zhejiang Geely Holding Group Co Ltd has signed a strategic cooperation agreement with Foxconn Technology Group to establish a joint venture company for manufacturing vehicles, auto parts, and components for other auto manufacturers and mobility service providers, the company said in a statement.
Both companies will have an equal share of 50pc in the joint venture which will focus on contract manufacturing, especially on electrification, connectivity, and autonomous driving technologies as well as vehicles designed for sharing.
The joint venture will also provide a variety of services, including customized consulting regarding vehicles or auto parts, intelligent control systems, automotive ecosystems, and the electric vehicle (EV) industry.
Foxconn will provide Geely its manufacturing technologies, operation, and management experience as well as industry resources.
The board of directors will consist of five members, three from Foxconn, including the chairman, and two from Geely.
Earlier, Geely said it would help Chinese search giant Baidu set up a company to produce electric vehicles, while Foxconn had said in October that it aimed to provide components or services to 10pc of EVs across the world by 2025-2027.