Geely in talks with Foxconn on new energy vehicles

Shanghai January 13 (Gasgoo.com) Geely Automobile (00175.HK) is hoping to create a bridge to allow Taiwan industries develop in Mainland China. Yang Xueliang, Geely's public relations director, in an interview with First Financial Daily yesterday said that Geely is currently in the early stages of contact with Foxconn, the world's largest electronics contract manufacturer, with the goal of cooperating on developing new energy automobiles.

The new technology industry is not only one of the seven key emerging industries as designated by the Chinese government, it is also an important focal point of the Twelfth Five-Year Guideline (2011-2015). New energy automobiles constitute the most important part of the industry, with businesses in every domain taking steps towards their research and production, as noted by the media.

In a recent interview with Taiwanese media, Yang Jian, President of Geely, confirmed that the company was in contact with Foxconn, with the aim of exploring cooperation on developing new energy automobiles. He continued to say that Foxconn holds a significant advantage in producing parts for new energy automobiles, especially electrically-powered ones, and that Geely would be willing to cooperate with them.

Geely is taking advantage of its position as an intermediary providing Taiwanese companies with easy access to the Chinese marketplace. Among the over 20 programs at its large Ningbo International High-end Automobile Parts Production Zone, opened in partnership with Hangzhou Bay New Zone, Geely has contracted Taiwan Xinchang, producer of automobile sunroofs. Furthermore, during his visit to Taiwan, Yang Jian's took special care to visit United Microelectronics Corporation, one of the world's leading semiconductor producers. He says that the automobile industry's future development will depend not only on pure automobile production, but also on cooperation with other industries. The automobiles of the future will be able to establish connections to the Internet, satellites and cloud computing.

Geely's annual automobile sales were approximately 41,500 units, an increase of 27% fom 2009 and exceeding the company's sales target of 40,000 units. The company is aiming to sell 48,000 vehicles this year.