Apple supplier Foxconn inks partnership with Geely for contract manufacturing of cars

Workers stand at the gate of a Foxconn factory in the township of Longhua in Shenzhen, Guangdong province in this May 26, 2010 file photo. REUTERS/Stringer

Taiwan’s Foxconn and Chinese automaker Zhejiang Geely Holding Group said on Wednesday they will join hands to provide contract manufacturing for automakers.

They will each hold 50% of a venture that will also provide consulting services on electric vehicle (EV) technologies to automakers, the companies said in a statement.

It marks the latest move by Foxconn, a major Apple Inc supplier, into autos after a tie-up with Chinese electric car startup Byton and comes amid reports that Apple is likely to launch a self-driving electric car by 2024.

For Geely, the partnership will allow it to share its first EV-focused platform, launched in September, with other automakers, according to people familiar with Geely’s plan.

It is also the second deal this week announced by Geely, which said it will work with Chinese search engine giant Baidu Inc to make electric vehicles.

Geely, which owns Volvo Cars and holds 9.7% of Daimler AG, is keen to improve the capacity utilisation rate of its plants around China, said the sources, who were not authorised to speak to media and declined to be identified.

Its main listed company, Geely Automobile, has the capacity to build more than 2 million vehicles a year but sold only some 1.32 million in 2020. Geely Automobile plans to issue shares on mainland China’s STAR board this year.

Foxconn, whose official name is Hon Hai Precision Industry Co Ltd, said in October it aimed to provide components or services to 10% of the world’s EVs by 2025-2027.

Geely shares climbed 1% on the news. Foxconn shares finished 2.4% higher prior to the companies’ announcement.

Reuters

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.