Taiwan's Hon Hai Precision Industry (OTC:HNHPF), better known as Foxconn, the firm that assembles Apple's iPhones, has formed a joint venture with Chinese automaker Geely Automobile Holdings (OTC:GELYF) aimed at making cars for other companies.
The deal, announced on Wednesday, builds on Foxconn's recent interest in autos and Geely's efforts to raise its global profile with technology alliances.
The joint venture will provide engineering and consulting services, manufacturing, access to Geely's electric-vehicle (EV) supply chain, and advanced driving technologies to "global automotive enterprises," the two companies said in a statement.
One of the shared goals is to help established automakers transition to so-called CASE vehicles (for "connected, autonomous, shared, and electrified").
Foxconn has been interested in the booming market for EVs for a while. The company announced last fall that it had created an "open source" EV platform, and that the first vehicle to use it will launch by the end of 2022. It's also known to be working on solid-state batteries, and last week signed a manufacturing deal with embattled Chinese EV start-up Byton.
Geely has emerged as perhaps China's leading home-grown automaker, at least in global profile, thanks in part to its ownership of Swedish automaker Volvo and British sports-car specialist Lotus. The company yesterday announced a separate deal with search giant Baidu, in which it will take a stake in and become the manufacturing partner for a new Baidu EV venture.