(Yicai Global) Jan. 13 -- Geely Holding Group plans to set up a joint venture with Foxconn Technology Group to provide original equipment manufacturer and customized consulting services for global carmakers and transportation companies.
Today’s announcement comes after Geely unveiled the founding of a smart electric vehicle firm with Chinese technology giant Baidu on Jan. 11.
Automaker Geely and electronics manufacturer Foxconn will each own half of the new company, which will provide vehicles and parts, as well as intelligent control systems and an industrial chain for electric vehicles, Zhejiang province-based Geely said in a press release.
Geely will leverage its expertise in the automotive sector, including smart manufacturing, supply chain management and advantages in quality control, Chief Executive Daniel Li said in the press release.
With Foxconn’s research and development technologies, the two parties form a highly complementary partnership to meet the diverse needs of different customers, said Liu Young-way, chairman of Foxconn.
The new JV's board will have five directors, three of whom will be appointed by Foxconn and two by Geely. Foxconn will also appoint the chair.
Formed in 1986, Geely is China's largest private carmaker. Its Hong Kong-listed unit Geely Automobile Holdings [HKG: 0175] closed up 1.1 percent today at HKD32.7 (USD4.20). Taipei-based Foxconn, best-known for assembling Apple’s iPhone, is a leading global electronic services provider.
Editor: Tom Litting