Geely, Foxconn to form joint venture for contract manufacturing service

Shanghai (Gasgoo)- Zhejiang Geely Holding Group (Geely Holding) and Foxconn Technology Group (Foxconn) agreed on Jan. 13 to build a joint venture that works on offering contract manufacturing service and tailor-made counseling to global automakers and mobility service providers, according to Geely Holding.

Geely, Foxconn signing agreement; photo credit: Geely

Under the agreement, the joint venture will introduce the ICT (information and communications technology) labor division to help clients speed up their transition to the innovative high-efficient manufacturing & supply systems and business models.

The joint venture will be 50/50 held by Geely and Foxconn. Among the five members of the board of directors, three are from Foxconn. The chairman will be delegated by the Taiwan-headquartered company as well.

“Foxconn's expertise, experience and global deployment in ICT field is of exemplary significance to the transition and upgrading of automotive industry. Joining hands with Foxconn, Geely will leverage its systematic advantages in automotive design, engineering development, smart manufacturing, supply chain management and quality control to explore all-new approaches for the transition, upgrading and high-quality development of manufacturing industry,” said Li Donghui, CEO of Geely Holding.

Two days ago, Geely entered into a strategic partnership with Baidu to invest in the latter’s forthcoming smart vehicle company. The tech giant announced it planned to establish a company to produce intelligent electric vehicles. Baidu will provide intelligent driving capabilities to power the passenger vehicles for the new venture, and Geely, which holds the distinction of best-selling Chinese automobile brand in past years under the Volvo and Geely brands, will contribute its expertise in automobile design and manufacturing.

EV startup Byton signed on Jan. 4 a framework agreement with Foxconn and Nanjing Economic and Technological Development Zone to jointly promote the volume production of the M-Byte.

Under the agreement, the Apple supplier will provide the automaker with its manufacturing technologies, operation & management experience as well as industrial resources.