Zhejiang Geely Holding Group (ZGH) and Foxconn Technology Group have signed a strategic cooperative agreement that will establish a joint venture company. The JV will provide OEM production and comprehensive customised consulting services relating to whole vehicles, parts, intelligent drive systems, automotive ecosystem platforms, and the EV industry value chain to global automotive companies.

The carmaker and the giant electronics contract manufacturer known as the maker of iPhones say that the new JV “will revolutionise the automotive industry model by introducing the Information and Communication Technology (ICT) division of labour to help automakers accelerate their transition to new innovative and efficient manufacturing processes and business models based on CASE (Connected, Autonomous, Shared, and Electrified) technologies”.

ZGH and Foxconn will each hold equal 50% stake in new JV. The board of directors will consist of five members, with Foxconn appointing three including the chairman and Geely appointing two.

“This cooperation between Foxconn and Geely is of great significance to both parties. The current global automotive industry is undergoing profound changes. We must actively embrace change, build alliances, and synergise global resources to create greater value for our end users,” said Daniel Donghui Li, CEO of ZGH.

“Foxconn’s professional capabilities, rich experience, and global layout in the ICT industry offer important insight for the transformation and evolution of the automotive industry. Geely will give full play to its advantages in the automotive fields of design, engineering, R&D, intelligent manufacturing, supply chain management, and quality control while joining forces with Foxconn to develop together and explore new pathways for transforming, improving, and achieving high-quality development of the manufacturing industry,” he added.

In an unrelated development, ZGH recently teamed up with Baidu, China’s largest Internet company, to produce “intelligent electric vehicles”. The “Google of China” will provide the AI tech, while Geely will be in charge of automobile design and manufacturing.