TAIPEI (Taiwan News) – The Foxconn Technology Group wants to work on electric vehicles for the China market with the Fiat Chrysler Group (FCA), reports said Thursday (Jan. 16).
The Italian-American car giant features brands ranging from Ferrari to Jeep, and is currently in the process of merging with France’s PSA, the manufacturer of Peugeot, Citroën and Opel.
FCA will produce the electric cars while top iPhone supplier Foxconn will provide the electronics and software, the Nikkei Asian Review reported.
Talks have been under way for months, but the car maker and the tech giant still have to sign a contract.
Even though China’s economy is not growing as fast as it once was, the market for electric vehicles grew by 6 percent in 2019 while overall car sales contracted by 8 percent.
As FCA has been struggling to expand its presence in China, an alliance with Foxconn, which runs huge electronics plants in the country, could help.
According to Nikkei, the Taiwanese company wants to diversify away from consumer technology as the sale of smartphones cools, and sees electric vehicles account for 10 percent of its overall sales.