MILAN (Reuters) – Carmaker Fiat-Chrysler’s plans for a joint venture with one of the parents, the iPhone assembler, Foxconn, to build electric vehicles and the development of the internet-connected vehicle in China, as it looks to make up ground in e-mobility.
FILE PHOTO: The logo of the car manufacturer Fiat, is to be seen in zurich, Zurich, Switzerland, October 30, 2019 at the latest. REUTERS/Arnd Wiegmann/File Photo
Fiat-Chrysler (FCA), which is set to launch its first all-electric model, the 500 is a small car, and this year, for the past month and has reached a binding agreement for a $50 billion, a tie-up with france’s PSA, and to make it in the world, ” No.” 4 the car manufacturer.
The company’s merger with PSA would be of help to the Italian-American automaker to build the resources they need to meet the strict new emission regulations and investment in electric mobility, and that has continued to be its main competitors.
FCA confirmed on Friday it was in talks with Hon Hai about a possible establishment of a 50: 50 joint venture for the development of a new generation of battery-electric vehicles, and Commissioned by, or in the ‘Internet of cars industry, with an initial focus on the Chinese market.
FCA’s statement came after taiwan’s Hon Hai – the parent company of Foxconn, announced a potential joint venture, in a statement.
It “would allow the parties to work together to bring out the capabilities of two established global leaders in the field of automotive design, engineering and manufacturing, and software technology to address the growing battery-electric vehicle on the market,” FCA said.
Intesa Sanpaolo analyst Monica Bosio described the potential deal as “positive,” but it was not expected to have a significant impact on the FCA, which stands in 2020 and 2021.
To help the FCA and the future of the combined entity, FCA, PSA, to reduce the gap in electric vehicles in Asia pacific,” You said.
In a further demonstration of how the traditional car makers are speeding up their electric push to be the world’s largest auto market, the German Volkswagen VOWG_p.DE is set to take a 20% stake in the Chinese electric-vehicle battery maker, Guoxuan High-tech Co., two of the sources told Reuters.
The case of FCA, said: ‘it was in the process of signing an interim agreement with Hon Hai, aimed at the achievement of the final, legally binding agreements within the next couple of months.
However, it added that there was no guarantee that the nal binding agreements should be reached on whether it would be completed in that amount of time.
With a global market share of China’s passenger car market of around 0.35%, FCA is currently active in the country, by means of a loss-making joint venture with Guangzhou Automobile Group (GAC).
However, the joint venture is not the production of the electric models, so that doubt is created, it can cater to China, it is hard emission lines, and the green auto light.
FCA’s Chief Executive, Mike Manley, last year, said the group had “streamlined” the structure of the Chinese partnership and to the appointment of a new leadership to improve its competitiveness.
Foxconn has been investing heavily in a variety of future transportation ventures for a number of years, including A Chuxing, the Chinese, the ride services giant, and in the Chinese electric-car start-ups, Byton, and Xpeng.
Foxconn has invested in the Chinese battery giant, CATL, and a variety of other, mostly Chinese, the transportation-tech start-ups.
Reporting by Giulio Piovaccari in Milan; Additional reporting by Paul Lienert in Detroit; Editing by Alex Richardson/Emelia Sithole-Matarise/Louise Heavens