Fiat Chrysler and Foxconn plan Chinese electric vehicle joint venture (updated)

Foxconn Interconnect Technology

16/01/2020 20:44

(Adds detail on Hon Hai)
    MILAN, Jan 16 (Reuters) - Italian American automaker Fiat
Chrysler  FCHA.MI  and the parent of iPhone assembler Foxconn
plan to set up a joint venture to manufacture electric vehicles
and to engage in the business of wirelessly connected vehicles,
Hon Hai said on Thursday.
    Fiat Chrysler (FCA) and Taiwan's Hon Hai  2317.TW  are
negotiating a 50-50 joint venture, Hon Hai said in a statement.
Hon Hai would hold its 50% share both directly and indirectly
and its direct shareholding would not exceed 40%.
    Hon Hai is the parent of Foxconn  601138.SS   6088.HK , the
Chinese assembler of Apple iPhones. 
    FCA last month reached a binding agreement for a $50 billion
tie-up with France's PSA  PEUP.PA  that will create the world's
No. 4 carmaker.  urn:newsml:reuters.com:*:nL8N28S0TR
    The joint venture with Hon Hai will produce vehicles for the
Chinese market, but many details of the accord are still to be
worked out, one source close to the matter said, adding that a
final deal was expected to be signed in the coming months.
    Foxconn has been investing heavily in a variety of future
transportation ventures for several years, including Didi
Chuxing, the Chinese ride services giant, and Chinese electric
vehicle startups Byton and Xpeng.
    Foxconn also has invested in Chinese battery giant CATL and
a variety of other mostly Chinese transportation tech start-ups.
   
    FCA is set to launch its first full-electric model - the 500
small car - this year.   
    

 (Reporting by Giulio Piovaccari in Milan, additional reporting
by Paul Lienert in Detroit; Editing by Kirsten Donovan and
Rosalba O'Brien)
 ((giulio.piovaccari@thomsonreuters.com; +39 02 6612 9743;
Reuters Messaging:
giulio.piovaccari.thomsonreuters.com@reuters.net))