Geely and Foxconn form a joint venture company to provide foundry services
China Automotive News, January 13th, today, Zhejiang Geely Holding Group Co., Ltd. (hereinafter referred to as 'Geely Holdings') and Foxconn Technology Group (hereinafter referred to as 'Foxconn') signed a strategic cooperation agreement, and the two parties will establish a joint venture company , Provide OEM production and customized consulting services for global automotive and travel companies, including but not limited to automotive vehicles or parts, intelligent control systems, automotive ecosystems, and the entire process of the entire industry chain of electric vehicles.
China Automotive News learned that the joint venture company will introduce the ICT (Information and Communication Technology) division of labor model to help client companies surpass the existing automotive industry model and accelerate the transformation to an innovative and efficient manufacturing supply chain system and business model , To pave the way for the electrification, intelligence, networking, and sharing of automobiles, create value and achieve a win-win situation.
Li Shufu, chairman of Geely Holding Group, and Guo Taiming, founder of Foxconn Technology Group, attended and witnessed the signing ceremony. President of Geely Holding Group, CEO and President of Geely Automobile Group An Conghui, and Chairman of Foxconn Technology Group Liu Yangwei signed the contract on behalf of both parties.
According to the agreement, both parties to the joint venture will each hold 50% of the shares. The board of directors of the joint venture company consists of five directors. Among them, Foxconn appoints three directors, Geely Holdings appoints two directors, and the chairman is appointed by Foxconn.
Li Donghui, CEO of Geely Holding Group, said: 'The cooperation between Foxconn and Geely is of great significance to both parties. The current global automotive industry is undergoing profound changes. We must proactively embrace change, seek extensive alliances, and synergize resources to create for users. Maximize value. Foxconn’s professional capabilities, rich experience and global layout in the ICT field have important demonstration significance for the transformation and upgrading of the automotive industry. Geely Holdings will exert its professional capabilities in the automotive field, including design, engineering research and development, intelligent manufacturing, The systematic advantages of supply chain management and quality control, combined with Foxconn, and integrated development, explore a new path for the transformation, upgrading and high-quality development of the manufacturing industry.'
Liu Yangwei, Chairman of Foxconn Technology Group, said: 'The alliance between Geely and Foxconn is a heavyweight cooperation between the automotive industry and the ICT industry. With the help of Foxconn's global leading front-end technology research and development, intelligent manufacturing and hardware and software ecological vertical integration capabilities, The two parties can complement each other's advantages, can better serve customers, meet the needs of different customers, and provide the most advanced, fastest, and most cost-effective vehicle manufacturing service platform across the value chain, reflecting the competitive advantages of the entire industry chain. I believe that this cooperation not only fits the direction of the Group’s 3+3 strategic transformation, but will also bring about tremendous changes in the development of the automotive industry. I am full of expectations for the cooperation prospects between Geely and Foxconn.'
