Fiat Chrysler confirmed it was in talks with Taiwanese electronics giant Hon Hai Precision Industry Company, more widely known as Foxconn Technology Group (Foxconn), for the joint production of electric vehicles (EVs) in China.
The two companies are discussing establishing an equal stake joint venture to develop and manufacture a new generation of battery powered electric vehicles in China and also “engage in the internet of vehicles business”, according to a statement from the Netherlands based Fiat Chrysler Automobiles.
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By GlobalDataThough Jeep, under previous ownership entered China relatively early, Fiat Chrysler now has only a small presence in China with sales last year estimated at 73,000 mainly Jeep brand SUVs.
The automaker agreed to merge with PSA Group at the end of last year.
According to Fiat Chrysler, the proposed joint venture with Foxconn would focus initially on supplying China, the largest market for electric vehicles worldwide.
By choosing Foxconn, FiatChrysler hopes to tap into the expertise of one of the world’s largest manufacturers of consumer electronics, smart phones, software and IT services.
The two parties were expected to sign a preliminary agreement soon which will form the basis of further discussions aimed at reaching final binding agreement in the next few months.