Foxconn And Geely Establish Contract Manufacturing Partnership For Budding Electric Car Makers
In the most unlikely of partnerships Foxconn, a Taiwanese multinational electronics contract manufacturer, and Geely Motors have announced they will partner to provide contract manufacturing services for external clients. The move will allow Geely to specifically sell its modular EV platform to other automakers. The partnership will allow Foxconn to sell its electronic components and self-driving technology to an international Business-2-Business market. Reports suggest that both companies have a 50 percent stake in the newly established business.
Geely owns Volvo, the Volvo electric car spin-off brand Polestar, the British taxi maker London EV Company and Lotus Cars. Indeed Geely’s massive investments are not limited to the automotive industry. However, it does currently own a 9.7 stake in Daimler, the parent company of Mercedes Benz. So, who is this new Foxconn/Geely manufacturing partnership aimed at? Any automotive manufacture who desires to reduce development and infrastructure costs in order to enter the Chinese market at a rapid rate of knots.
Reports also suggest that Apple is mulling an entry point into the electric car industry. Apple is so cash-rich it could start its own electric car company from scratch and it wouldn’t even register on its annual report. In theory, by outsourcing the testing, development and manufacturing to this Foxconn/Geely partnership, Apple could significantly cut costs and significantly expedite their entry into the electric car industry.