Fiat Chrysler Automobiles confirmed on Friday that it's in discussions with Taiwan's Hon Hai, the parent company of Foxconn, which assembles iPhones for Apple, to create a new automotive joint venture.
The automaker said in a statement it's hashing out details surrounding a joint venture to manufacture electric vehicle and "engage in the internet of vehicles business."
"The proposed cooperation, initially focused on the Chinese market, would enable the parties to bring together the capabilities of two established global leaders across the spectrum of automobile design, engineering and manufacturing and mobile software technology to focus on the growing battery electric vehicle market," the statement added.
For years, Foxconn has said it plans to Foxconn won't be building the cars.outside of assembling iPhones for Apple. Combining hardware and software services was a priority for the company, back in 2018. With this potential agreement, Foxconn said it will not, however, enter the vehicle manufacturing business. Whatever this joint venture may bring,
FCA said a preliminary agreement is in the works, and in the months to come, it will work on final binding agreements. Of course, there's always the possibility things won't go through at all.
Hon Hai told Bloomberg that is expects 10% of its overall sales to come from this joint venture in the future. It will be responsible for design, components and supply chain management in the potential joint venture.