Apple supplier Foxconn and China’s Geely start EV venture to make cars for others, as sector chases its iPhone moment
- Joint venture will produce original equipment such as whole vehicles, parts, intelligent drive systems, etc for global carmakers
- Move comes as carmakers chase iPhone-like product that will change the whole segment, analyst says
The world’s largest contract manufacturer of consumer electronics is teaming up with China’s leading carmaker to assemble made-to-order electric cars, using their production prowess and supply chain expertise to help more marques enter the highly competitive market for new-energy vehicles.
“The current global automotive industry is undergoing profound changes. We must actively embrace change, build alliances and synergize global resources to create greater value for our end users,” said Daniel Li Donghui, Geely’s chief executive.
The venture will lower entry barriers to the EV market by allowing a would-be EV designer to outsource its production to Geely and Foxconn, in much the same way that smartphones, tablets and personal computers of global brands such as Apple, Samsung and Dell are made to order by Foxconn.
“Carmakers are competing to develop that one product that changes the landscape, like how the iPhone changed the mobile phone segment,” said Danny Chen, an associate at Hong Kong-based credit rating agency Pengyuan International focusing on the automotive industry.
